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

Author(s):  
Mohamad Zahierruden Ismail ◽  
◽  
Zuhaili Mohamad Ramly ◽  
Razali Adul Hamid ◽  
◽  
...  

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.

Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  

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.


Author(s):  
Anthony Akai Acheampong Otoo ◽  
Li Zhiwen ◽  
Charles Oduro Acheampong Otoo ◽  
Maxwell Opuni Antwi

The clear differences between developing nations and developed nations have posed an enormous problem in trying to design a “one-size-fits-all” theory of Electronic Commerce (EC) adoption. Most prior studies have proposed that generalizing findings of developed countries to the context of developing countries are of worry (Rahayu & Day, 2015; J. Tan, Tyler, & Manica, 2007). Table 1 shows the ICT Development Index (benchmarking tools to monitor information society developments worldwide) of some countries that have hosted the earlier literature on EC International Telecommunications Unions (ITU, 2017). These statistics may well indicate that businesses in developed countries and developing countries vary with regard to information technology and EC context<strong>.</strong> The latest ITU report in 2017 on ICT Development Index, ranks Ghana as the 112th country regarding ICT development in 2016, which shows a slight decline in the ranking compared to 111th in 2015 (the IDI value increased from 3.75 in 2015 to 3.99 in 2016). This may suggest that Ghana does not have appropriate infrastructure for effective e-business compared to countries like Singapore, China and USA.


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.


2016 ◽  
Vol 23 (1) ◽  
pp. 125-136 ◽  
Author(s):  
Roya DERAKHSHANALAVIJEH ◽  
Jose Manuel Cardoso TEIXEIRA

Cost overrun in construction projects is a common issue affecting project performance, and Gas-Oil con­struction projects in Iran are no exception. This paper presents the results of a questionnaire conducted to identify and evaluate the relative importance of the significant factors contributing to the Gas-Oil construction industry of Iran as a case study for developing countries. The survey respondents included project owners, contractors and consultants in­volved in Iranian Gas-Oil construction projects. The results of the survey revealed that the main causes of cost overrun in this industry include inaccurate cost estimations, improper planning, frequent design changes, inadequate labour/skill availability, inflation of costs of machinery, labour, raw material and transportation prices. The first three factors are the project consultants’ responsibility and the appointment of qualified consultants and personnel training are strongly recommended to alleviate cost overrun. The paper also reviews and compares findings of a set of similar researches in a number of developing countries.


1986 ◽  
Vol 18 (7-8) ◽  
pp. 59-62
Author(s):  
Robert W. Seabloom ◽  
Dale A. Carlson

The majority of people in developing countries are without reasonable access to safe drinking water and are forced to live without proper sanitation. This lack of safe water and poor sanitation is the major cause of untold misery, disability, disease and death. The United Nations declared the 1980's as the “International Drinking Water Supply and Sanitation Decade” with the lofty goal of safe water and adequate sanitation for all by 1990. Realizing it required about 150 years for sanitation systems to evolve in the developed nations, it is important that the developing nations learn from their mistakes. The future sanitation systems for developing countries must use appropriate low cost technologies, rather than the conventional high cost water carriage sewerage technology of the developed nations. These low cost solutions when properly sited, designed, constructed and maintained are no less prestigious and as the overall environmental impacts become understood are in many instances the preferred solution.


2017 ◽  
Vol 11 (7) ◽  
pp. 20 ◽  
Author(s):  
Hedaya A. M. Abusafiya ◽  
Saad M. A. Suliman

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.


2009 ◽  
Vol 12 (1) ◽  
pp. 104-117
Author(s):  
Tam Thi Minh Nguyen ◽  
Thi Hao Cao

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.


2019 ◽  
pp. 368-386
Author(s):  
Victor Jaquire ◽  
Basie von Solms

The objective of this paper is to provide a strategic framework for a secure cyberspace in developing countries, taking cognisance of the realities and constraints within a developing milieu; and to discuss if the risk of cyber warfare and related techniques against developing countries should be addressed within ‘The Framework'. Cybersecurity policies and related strategies are required for developing countries in order to effectively safeguard against cyber related threats (the same as for developed countries). These policies and strategies for developing countries will differ from those of developed countries due to the unique realities within a developing world. Africa in specific is presently seen as a hotbed for cybercrime, and one of the reasons is that many African countries do not have a proper framework, policies and procedures to properly protect cyberspace. Experience has also shown that a pure adoption by developing countries of the cyber frameworks of developed nations will not always be effective, especially due to the unique requirements and realities within developing worlds, such as limited resources, infrastructure, technologies, skills and experience. It is also necessary when talking about a strategic framework to secure cyberspace, to discuss cyber warfare, its general application and its possible utilisation as part of the strategy to protect national critical information infrastructure. This, as part of a developing country's national security strategy in addition to traditional cybersecurity defence measures. The approach taken for the research program, and discussed in this paper, is based on a comprehensive literature study on several existing cybersecurity policies and strategies from both developed and developing countries. From this the drivers / elements for national cybersecurity policies and strategies were identified. These drivers were than adapted to specifically relate to the requirements of developing countries, and then, utilising the identified and adapted drivers, our strategic framework for developing countries to secure their cyberspace was developed. This document will be very useful for those African countries venturing into defining relevant policies and procedures.


The rationale for this publication emanated from the challenges facing the efficient delivery of construction projects in developing countries. Although, some aspects of the book focus on key applications in Cameroon, a holistic approach was adopted where an overview of challenges related to construction for developing countries was considered. To re-focus issues addressed in this book, this last Chapter provides a summary of what has been covered in each Chapter. Also, major achievements and challenges will be discussed. Nevertheless a construction matter can not be seriously handled today without taking into account environmental issues. For this reason, we will say just a few words about environment. Indeed, wherever infrastructures in general and buildings in particular through production and emission of toxic matters and gas have harmful consequences on the environment. They must be assessed and monitored to reduce the risk of pollution. Among many environmental assessment methods, life cycle assessment (LCA) seems to be the most suitable. Wherever, it involves a lot of data and must be handling with a lot of caution. The life cycle assessment tools used in developed countries is not suitable in developing countries context. It should be benefit for them to develop a simple and suitable methodology easy to manage, in order to propose an environmental impacts measurement of construction projects' and buildings. The High Environmental Quality, which a priori ensures minimized environmental impact and promotes the principles of sustainable development, is the solution that seems best suited for the design of many social infrastructures projected in developing countries. This is going to be for them the future challenge for the next decades.


Author(s):  
Sim Chia Hua ◽  
Modapothala Jashua Rajesh ◽  
Lau Bee Theng

With a major proportion of research on Electronic Commerce (EC) undertaken on large corporations, and focused primarily on developed countries, little is known about the determinants of EC in Small and Medium-sized Enterprises (SMEs) of developing nations. This chapter explores the extent of EC use by SMEs, and provides some empirical evidence of how internal factors of firm and owner are influencing EC adoption among smaller businesses in Malaysia. The methodology and results of this study may be applicable to other developing countries. Findings confirm the low level of participation in EC by SMEs. The age of enterprise, as well as the owner’s gender and education were found to be significant in determining the level of EC adoption. Though some of the results contradict those of previous studies, they may have a greater implication for government authorities in drawing up guidelines, approaches, and formulating more effective frameworks to promote EC use among SMEs in developing countries.


Sign in / Sign up

Export Citation Format

Share Document