Inhibiting Factors of Cost Performance in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Past Research ◽  
Cost Overrun ◽  
Index Method ◽  
Cost Performance ◽  
Factors Affecting ◽  
Inhibiting Factors ◽  
Critical Problems ◽  
Structured Questionnaire

UAE construction industry frequently faces poor cost performance which commonly known as cost overrun problem. This problem is resulted from several factors and it is important to identify these cost overrun factors in order to avoid and minimize it. Hence, this paper focused on determined the relevancy of factors affecting cost performance in construction projects of UAE. Through a review of past research works conducted globally, 27 factors of cost overrun were listed and used for developing a structured questionnaire. A survey was conducted with 33 practitioners from client, consultant and contractors organizations involved in handling construction projects in UAE. The respondents were requested to state their perception regarding the relevancy of each of the factors that was perceived in context with cost overrun issue using 5-points Likert scale. The responses were analysed using average index method and the results found that all the 27 factors are relevant with construction industry of UAE in causing cost overrun. These factors can be used for further investigation to uncover critical problems of cost overrun.

scholarly journals Effective Selection of Resources for Construction using Program Tool

2020 ◽  
Vol 9 (3) ◽  
pp. 2927-2931
Keyword(s):  
Construction Industry ◽  
Resource Selection ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Programming Tool ◽  
Effective Selection ◽  
Selection Factor ◽  
Selection Of ◽  
Indian Scenario

In the Indian scenario construction industry facing a major problem is cost and time overrun. Effective time performance and cost performance are very important to execute the project in a successful manner by keeping them within the prescribed schedule and cost. Overall cost and duration of construction projects affected by the effective resource selection factor. This paper's objective is to rectify the improper selection of resources by a programming tool. Field survey and codebook study did collect the needed data to feed in the programming tool. The prepared tool gets distributed and making to access by every stakeholder of construction projects. This may result in the selection of construction resources as effectively. The term cost overrun in the resource part will be reduced.

Factors affecting tender price in the Ghanaian construction industry

2017 ◽  
Vol 22 (3) ◽  
pp. 252-268 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Edward Badu ◽  
Emmanuel Bannor Boateng
Keyword(s):  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Negative Influence ◽  
Positive Influence ◽  
The Body ◽  
Content Type ◽  
Factors Affecting ◽  
Practical Implications ◽  
Structured Questionnaire

Purpose Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry. Design/methodology/approach Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI. Findings Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence. Practical implications The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing. Originality/value This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Mohamad Zahierruden Ismail ◽  
◽  
Zuhaili Mohamad Ramly ◽  
Razali Adul Hamid ◽  
◽  
...  
Keyword(s):  
Developing Countries ◽  
Construction Industry ◽  
Construction Projects ◽  
Developed Countries ◽  
Developing Nations ◽  
Transport Infrastructure ◽  
Cost Overrun ◽  
Cost Performance ◽  
Significant Difference ◽  
Developed Nations

For decades, reputation of the construction industry has been tainted by poor cost performance caused by project cost overrun. In addition, studies by scholars worldwide have also found cost overrun to be more serious in developing countries compared to the developed countries. Despite the numerous researches addressing the issue of cost overrun in the construction industry through the years, the issue remains. Acknowledging that maintaining good cost performance is a key factor of project success and that the issue has persisted for decades, this study aims to explore the distinction of cost overrun studies that has been conducted between developed nations and developing nations. In achieving this aim, a systematic literature review is performed by following the integrative steps of PSALSAR (Protocol, Search, Appraisal, Synthesis, Analysis and Report) and PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) for screening and selecting the retrieved studies. The synthesis and screening of literatures have yielded with 152 articles which are then classified into their countries, developed countries (44) and developing countries (108). The results indicated a significant difference in the domain of research on cost overrun between the 2 nations. Despite the numerous studies on cost overrun in the developing nations compared to developed nations, the majority of the studies are not directed to any specific type construction while developed nations have moved forward to focus on more specific projects. The project with the highest attention in the developed nations is transport infrastructure construction projects, particularly rail infrastructure projects. The findings of this study have shown that there have been broad studies conducted on cost overrun in both developing nations and developed nations. However, there is a slight lacking in comprehensiveness of cost overrun studies in the developing nations, perhaps future studies on cost overrun in developing nations can be directed to more specific areas of construction projects such as those that have been performed by researchers of the developed nations.

scholarly journals Controlling Measures for Cost Overrun Causes in Highway Projects of Sindh Province

2019 ◽  
Vol 9 (3) ◽  
pp. 4276-4280
Author(s):  
S. Sohu ◽  
A. H. Abdullah ◽  
S. Nagapan ◽  
T. A. Rind ◽  
A. A. Jhatial
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Mitigation Measures ◽  
Cost Overrun ◽  
Index Method ◽  
Highway Projects ◽  
Second Stage ◽  
Common Causes ◽  
Road Projects ◽  
Controlling Measures

Cost overrun is a serious issue in the construction industry worldwide, including Pakistan. Cost overrun is a critical and serious issue found in highway projects among all construction projects in Pakistan. Cost overrun occurs when the final cost of the projects exceeds the actual cost of the project. The main objective of this research is to identify the main causes of cost overrun and to determine possible mitigation measures of the identified main causes of cost overrun from contractors of highway/road projects of Pakistan. In this study, a mixed mode (quantitative and qualitative) approach was used. A deep literature review helped to identify the 30 most common causes of cost overrun in the construction industry. In the first stage, a questionnaire was developed, and a survey was carried out among professional and experts who were working with contractors in highway projects. In the second stage, a semi-structured questionnaire was developed, and a survey was carried out to determine the possible mitigation measures of the identified main causes of cost overrun. Collected data for the first stage from experts were inserted in SPSS and were analyzed by using the average index method and the data of the second stage were analyzed by content analysis. It is expected that the findings of this research will be useful and helpful for the construction stakeholders to control and mitigate the major causes of cost overrun.

scholarly journals SEM-PLS Analysis of Inhibiting Factors of Cost Performance for Large Construction Projects in Malaysia: Perspective of Clients and Consultants

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Aftab Hameed Memon ◽  
Ismail Abdul Rahman
Keyword(s):  
Structural Equation ◽  
Construction Projects ◽  
Cost Overrun ◽  
Multivariate Statistical ◽  
Cost Performance ◽  
Substantial Impact ◽  
Inhibiting Factors ◽  
Causative Factors ◽  
Pls Analysis ◽  
Iteration Processes

This study uncovered inhibiting factors to cost performance in large construction projects of Malaysia. Questionnaire survey was conducted among clients and consultants involved in large construction projects. In the questionnaire, a total of 35 inhibiting factors grouped in 7 categories were presented to the respondents for rating significant level of each factor. A total of 300 questionnaire forms were distributed. Only 144 completed sets were received and analysed using advanced multivariate statistical software of Structural Equation Modelling (SmartPLS v2). The analysis involved three iteration processes where several of the factors were deleted in order to make the model acceptable. The result of the analysis found thatR2value of the model is 0.422 which indicates that the developed model has a substantial impact on cost performance. Based on the final form of the model, contractor’s site management category is the most prominent in exhibiting effect on cost performance of large construction projects. This finding is validated using advanced techniques of power analysis. This vigorous multivariate analysis has explicitly found the significant category which consists of several causative factors to poor cost performance in large construction projects. This will benefit all parties involved in construction projects for controlling cost overrun.

scholarly journals Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part I (Ranking of Cost Overrun Factors and Risk Mapping)

2017 ◽  
Vol 11 (7) ◽  
pp. 20 ◽  
Author(s):  
Hedaya A. M. Abusafiya ◽  
Saad M. A. Suliman
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Extensive Literature ◽  
Cost Overrun ◽  
Construction Sector ◽  
Cost Performance ◽  
Expert Opinions ◽  
Schedule Delay ◽  
Design Changes

Cost performance is one of the basic criteria for measuring construction project success. Despite its proven importance it is not uncommon to see a construction project failing to achieve its objectives within the specified cost. The paper attempts to identify the major causes of cost overrun in Bahrain construction sector, and to assess the effect of these causes on cost overrun.  A list of these causes was collected through an extensive literature review, historical construction projects records and expert opinions. In total 45 factors were short-listed to be made part of questionnaire used in a survey conducted with representatives from local contracting, consulting, and client firms. Findings are presented in form of tables that classify cost overrun factors, and their ranking. The overall results showed that frequent design changes, mistakes during construction, and schedule delay were considered as the most important factors of cost overrun causes in Bahrain construction industry.

scholarly journals Delay and cost overrun in road construction projects in Jordan

2015 ◽  
Vol 4 (2) ◽  
pp. 288 ◽  
Author(s):  
Nabil Al-Hazim ◽  
Zaydoun Abusalem
Keyword(s):  
Construction Projects ◽  
Road Construction ◽  
Weather Conditions ◽  
Public Works ◽  
Fiscal Year ◽  
Cost Overrun ◽  
Construction Time ◽  
Change Orders ◽  
Critical Problems ◽  
The Cost

This study aims to identify the most important factors that cause delay in road construction projects in Jordan, which results in cost and time overrun allocated for this type of engineering projects and cause critical problems for both the developer and the contractor. The gap between the cost at completion and that originally estimated, known as cost overrun, can be regarded as one of the most important parameters reflecting the success of projects. In the public sector, money spent on project change orders results in increased construction time which in return reduces the number and size of the projects that can be completed during any given fiscal year. To achieve this goal, the documents and the final reports for several sample projects implemented over the years 2000 to 2008 were analyzed. All the projects were administered by the same organization taken from Jordan Ministry of Rural and Public Works. The results of this study can assist highway officials in their design, planning, scheduling and projects completions so that necessary actions can be taken to control these overruns in future projects. The study showed that 19 factors might cause delays of road construction projects as defined through a detailed literature review. The analysis of the study indicated that the top causes affecting time and cost overrun in road construction projects in Jordan are Terrain and Weather conditions.

scholarly journals Application of Quality Assessment System in Sudanese Construction Industry

2021 ◽  
Vol 9 (3) ◽  
pp. 52-57
Author(s):  
Yasir Mohamed Hassan Amin ◽  
Mohamed Abdulla Nugdalla Ahmedi
Keyword(s):  
Literature Review ◽  
Quality Assessment ◽  
Construction Industry ◽  
Construction Projects ◽  
Assessment System ◽  
Construction Process ◽  
Standard Score ◽  
Factors Affecting ◽  
Assessment Systems ◽  
Main Factors

Quality management is considered one of the most important obstacles facing the construction industry in Sudan. The application of a quality assessment system contributes to the development of quality in projects as it is possible to measure the quality in projects. This paper aims to introduce one of the quality assessment systems, which is the system followed and applied in the Singapore (CONQUAS). This system assesses quality based on structural, architectural, mechanical and electrical work. The paper also aims to study the factors affecting the application of the quality assessment system in Sudan. The study is carried out in the region of Khartoum. The study is focusing on the construction projects. The study is carried out by questionnaires and other literature review. The respondents are consultants and contractors. The data has been distributed and analyzed by using the Average Index. From the study it was found that CONQUAS standard is assessed the building based on workmanship standards by the assessors from the BCA on site using standard score sheets. The assessment is done throughout the construction process for structural, mechanical and electrical works, and from questionnaire results the main factors affect construction industry in Sudan is lack of standardization in Sudan. The author recommended that more study shall be conducted to identify factors affecting quality in Sudanese construction industry and how to improve the quality.  

scholarly journals CRITICAL FACTORS VARYING CONSTRUCTION COST

2009 ◽  
Vol 12 (1) ◽  
pp. 104-117
Author(s):  
Tam Thi Minh Nguyen ◽  
Thi Hao Cao
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Multiple Linear Regression Model ◽  
Construction Cost ◽  
Ho Chi Minh City ◽  
Cost Overrun ◽  
Key Factors ◽  
Industry Sectors ◽  
The Relationship ◽  
Chronic Problem

Construction industry is considered to be one of the most important industries in Vietnam's economy. But many construction industry sectors have been experienced chronic problem as cost overrun. Therefore, a conceptual model of factors influencing construction cost was developed to determine the key factors that cause difference between budget cost and actual cost and some solutions are recommended to be applied to achieve the best outcome of cost. The result of analyzing 216 construction projects completed from 2002 to 2007 by companies located in Ho Chi Minh City indicated 6 main factors varying construction cost: project planners, project executives, economics, political, natural environment, fraudulent and lost. The results of multiple linear regression model confirmed the relationship between these above 6 factors and construction cost with the theories are supported at the statistically significant level of 0.05.

Appraisal of stakeholders' willingness to adopt construction 4.0 technologies for construction projects

2020 ◽  
Vol 10 (4) ◽  
pp. 547-565 ◽  
Author(s):  
Temidayo Oluwasola Osunsanmi ◽  
Clinton Ohis Aigbavboa ◽  
Ayodeji Emmanuel Oke ◽  
Muredini Liphadzi
Keyword(s):  
South Africa ◽  
Construction Industry ◽  
Construction Projects ◽  
Survey Design ◽  
Principal Component ◽  
Sampling Technique ◽  
Design Management ◽  
Content Type ◽  
Willingness To Adopt ◽  
Structured Questionnaire

PurposeConstruction 4.0 technology has the capabilities for improving the design, management, operations and decision making of construction projects. Therefore, this study aimed at examining the willingness of construction professionals towards adopting construction 4.0 technologies.Design/methodology/approachThe study adopts a survey design, and construction professionals in South Africa are assessed using a convenience sampling technique through a structured questionnaire. The questionnaire was analysed with SPSS while statistical test like; mean score, t-test and principal component analysis was used to present the data.FindingsThe findings, from the analysis, revealed that the construction professionals are willing to adopt construction 4.0 technologies for construction project. However, the possibility of fully integrating the technologies into the construction industry is low. This is because the major technologies such as; Internet of things, robotics, human-computer interaction and cyber-physical systems that encourage smart construction site are rated as not important by the construction professionals.Practical implicationsIt is believed that the findings emanating from this study will serve as an indicator for investors that are interested in procuring construction 4.0 technologies for the construction industry.Originality/valueThis paper presents a framework for the application of construction 4.0 technologies for the construction industry. It also contributes to the development of digitalising construction industry in South Africa.

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