scholarly journals Assessment of the Cost and Time Impact of Variation Orders on Construction Projects in Sulaimani Governorate

2021 ◽  
Vol 27 (2) ◽  
pp. 106-125
Author(s):  
Karukh Hassan Mohammad ◽  
Noori Sadiq Ali ◽  
Basira Majeed Najm
Keyword(s):  
Construction Projects ◽  
Descriptive Statistics ◽  
Construction Time ◽  
Project Cost ◽  
Cost Overruns ◽  
Project Costs ◽  
Type Size ◽  
The Cost ◽  
The Impact ◽  
One Way Anova

Variation orders are an on-going phenomenon in construction and industry projects worldwide, particularly in the province of Sulaimani, where the project's damage from cost and schedule overrun because of variation orders. However, the effect on project costs and time overrun of variation order has yet to be identified. This study evaluates the impact of variation orders on the cost and time off in the Sulaimani governorate. Two hundred twenty-eight projects from various construction sectors built between 2007-2012 were adopted to calculate the contract cost and schedule overruns due to variation orders. Data analysis was applied in the study were descriptive statistics. One-way ANOVA was also applied to determine whether the overrun of project cost and schedule significantly varied depending on project type, size, duration, location, and awarded years. The findings indicated that cost overruns are very common due to variation orders. 95.6% of the projects were studied being impacted, and overrun in project cost are also huge, with 16%. Time also overruns more common than cost overruns due to the variation orders. 98.7% of the projects were studied in Sulaimani were affected by time overrun with an average of 46.3% of initial duration observed. Findings also indicated that two out of five parameters measured in the analysis had a significant correlation with project cost overruns. Three out of five considered variables correlated with construction time overruns. 

scholarly journals Training Program in the Construction projects

2020 ◽  
Vol 9 (5) ◽  
pp. 515-522
Keyword(s):  
Training Program ◽  
Construction Industry ◽  
Construction Projects ◽  
System Dynamic ◽  
Cost Overruns ◽  
Efficient Performance ◽  
Comprehensive Development ◽  
Unskilled Workers ◽  
The Cost ◽  
The Impact

Construction is questionably a main part in relative to comprehensive development . It plays an important part in the role in the economy as and in people’s survives over influencing and preserving the environment of the city-region’s constructed, and it is a rising sector. To provide an efficient performance and more development of the economic, there is emphases on optimizing the employees contribution to the goals and areas of the governments. The training significance as a management central part has long been documented by principal writers.This paper aim to find the impact of training in the construction industry and how the training is been underestimate lead in increase the cost by using the simulation technique system dynamic. The research methodology include designing of questionnaire that consist of three items , the first item include , general Training (Training Program), evaluation of on-the-job training and evaluation of training after establishing work and the second part include building the model using system dynamic to show the effect of training on the cost of construction. the results the authors made the following conclusions .The absence of training program has very strong effect as the absence of such program is caused by the finance absence , this is common problem with Iraqi construction industry. The most environment of the Iraqi industry is the absence of the finance from both owner and contractor as they ignore this part and consider unnecessary expenses and this will lead to unqualified engineering or worker in the wrong job .The absence of management mean that , usually the contractor and his staff are working without the supervise or represented from the owner side , which some time mean unskilled workers may be hired which lead to delay of the work and cost overruns .

scholarly journals Analysis of Cost of Rework on Time and Cost Performance of Building Construction Projects in Abuja, Nigeria

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Emmanuel Chidiebere Eze ◽  
John Ebhohimen Idiake
Keyword(s):  
Significant Relationship ◽  
Construction Projects ◽  
Building Construction ◽  
P Value ◽  
Delivery Time ◽  
Cost Performance ◽  
Project Cost ◽  
Final Project ◽  
The Cost ◽  
The Impact

Rework is a menace that leads to undesired and unnecessary loss of efforts, it degrades project cost and schedule performance of construction projects, both at design and construction phases. This study therefore, analyzed the impact of cost of rework on time and cost performance of building construction projects in Nigerian, using selected commercial building project within the country’s capital. A pro forma was adopted for gathering data on rework cost, project cost and time of selected building projects, while structured questionnaire was used to collect information on the likely measures for reducing rework incidences from construction professionals that were involved in the delivery of the identified projects. Regression analysis, relative importance index and Kruskal-Walis test were employed for data analysis. The study revealed a significant relationship between the cost of rework and initial and final project cost of delivering commercial buildings, as an average of 3.53% impact on the initial project cost, 46.60% contribution to cost overrun, and p-value of 0.000 was observed on all assessed projects. For the project delivery time, a significant relationship between the cost of rework and initial and final project duration, as an average of 7.35% impact on the initial delivery time, extra 19 days and p-value of 0.000 was observed on all assessed projects. Team building and education, management commitment, employee involvement, were some of the best possible measures to minimized rework problems.

scholarly journals Design Changes in Construction Projects – Causes and Impact on the Cost

2019 ◽  
Vol 5 (7) ◽  
pp. 1647-1655 ◽  
Author(s):  
Mughees Aslam ◽  
Edmund Baffoe-Twum ◽  
Farhan Saleem
Keyword(s):  
Construction Projects ◽  
Primary Objective ◽  
Extensive Literature ◽  
Cost Overrun ◽  
Project Cost ◽  
Design Changes ◽  
Communication And Coordination ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Isolation of design phase from construction has made the design changes inevitable in construction projects. Extensive literature appraisal has acknowledged the detrimental effect of design changes on project performances. However, the impact and causes of design changes have been divided up, either separately or project specific. As a result, the relationship between impact and causes of design changes could not be established for general construction. The primary objective of this paper is to examine the impact of design changes on project cost and identifying actions responsible for these changes. The objectives of the study were achieved through a systematic review of past literature published in well-established journals, and contents analyzed. From the extensive literature review, it was established that the design change is one of the predominant factors to cost overrun, and in some cases, may upshot into cost overrun between 5 and 40% of the project cost. Also, many causes of design changes resulting in cost overrun within the perspective of the owner, consultant, and contractors are explored. Some projects experienced closure as a result of owner induced design changes, although these changes may not be significant in number.  Design changes as a result of consultants and contractors in some cases might have reduced impact but are frequent. For each consideration, most events leading to design changes can be eliminated by improving on communication and coordination between stakeholders. The main contribution of this research is to bring together the impact and causes of design changes on cost under one platform for effectively managing the design process.

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 An assessment of cost escalation in building construction project

2021 ◽  
Vol 39 (4) ◽  
pp. 1029-1034
Author(s):  
A. Nazif ◽  
A.K. Mustapha ◽  
F. Sani
Keyword(s):  
Construction Projects ◽  
Building Construction ◽  
Project Cost ◽  
Mean Values ◽  
Design Error ◽  
Project Construction ◽  
Effective Cost ◽  
Building Project ◽  
The Impact ◽  
The Relationship

Estimating of cost for building construction projects with minimum error at the conceptual stage of project development is quite  essential for planning. This study seeks to evaluate factors responsible for cost escalation of building construction projects.  Questionnaires were administered to examine and assess these factors. Subsequently, the mean score value of each factor was determined. In addition, Correlation and Linear regression analyses were used to establish the relationship between these factors. Factors responsible for cost escalation in projects were examined as well as the impact of those factors, and occurrence of those factors on project cost. The result of the analysis showed that, the most agreed factors responsible for project cost escalation were; inadequate supervision, irregular payment, and design error, having high mean values of 4.25, 4.20, and 4.15, respectively. Also, correlation analysis result established that the factors responsible for cost escalation and the impact of cost escalation had significant R and R2 of 0.81 and 0.70 respectively. Addressing these factors would go a long way in reducing the escalation of building project cost. Never the less, an effective cost management strategy is absolutely necessary to safeguard and sustain the construction  industry. Keywords: cost escalation, building project, construction, regression analysis

scholarly journals Method of Assessing the Risk of Implementing Railway Investments in Terms of the Cost of Their Implementation

2021 ◽  
Vol 13 (23) ◽  
pp. 13085
Author(s):  
Jan Kowalski ◽  
Mieczysław Połoński ◽  
Marzena Lendo-Siwicka ◽  
Roman Trach ◽  
Grzegorz Wrzesiński
Keyword(s):  
Construction Projects ◽  
Original Method ◽  
Project Managers ◽  
Simple Method ◽  
Construction Companies ◽  
Risk Forecasting ◽  
Specific Object ◽  
Effective Cost ◽  
The Cost ◽  
The Impact

Exceeding the approved budget is often an integral part of the implementation of construction projects, especially those where unforeseen threats may occur. Therefore, each construction investment should contain elements of risk forecasting, mainly in terms of the cost of its implementation. Only a small number of institutions apply effective cost control methods, taking into account the specifics of a given industry. Especially small construction companies that participate in the structure of the implementation of large construction projects as subcontractors. The article presents a method by which it is possible to determine, with certain probability, the final cost of railway construction investments carried out in Poland. The method was based on a reliable database of risk factors published in sources. In this article, the main presumptions of the original method are presented, which take into account the impact of potential, previously recognized, risks specific to railway investments, and enable project managers to relate them to the conditions where the implementation of a specific object is planned. The authors assumed that such a relatively simple method, supported by a suitable computational program, would encourage teams that plan to implement railway projects to use it and increase the credibility of their schedules.

Study on the Relationships of the Construction Technology and the Cost Management Based on Enterprise Quota

2014 ◽  
Vol 543-547 ◽  
pp. 4040-4043
Author(s):  
Wen Zhang ◽  
Li Juan Zhang
Keyword(s):  
Cost Management ◽  
Value Engineering ◽  
Construction Technology ◽  
Project Cost ◽  
The Cost ◽  
The Impact

Enterprise quota is the foundation of project cost management. With the appearance of advanced construction technology, enterprise quota should be constantly updated and improved, so as to improve the level of enterprise cost management. This paper studies the impact of construction technology on cost management based on enterprise quota,and then demonstrated by the Value Engineering. From that, we know the advanced construction technology can help enterprise save the cost and improve the economical benefits.

scholarly journals ANALISIS KETERLAMBATAN PROYEK SERTA DAMPAKNYA TERHADAP BIAYA DAN WAKTU PELAKSANAAN PROYEK

2019 ◽  
Vol 5 (1) ◽  
pp. 13-19
Author(s):  
Fitri Nur Kharina ◽  
Kusno Adi Sambowo
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Project Work ◽  
Earned Value ◽  
Time Period ◽  
Review Period ◽  
The Difference ◽  
The Cost ◽  
The Impact

Construction projects in all regions continues to be developed for the creation of facilities that can be utilized by the community. One of them is the construction of apartments which are now being intensively carried out to meet residential needs for the community. Making a construction project plan always refers to estimates that exist at the time development plan is made, therefore problems can arise if there is a discrepancy between the plans that have been made and the actual reality. So the impact that often occurs is the delay in the time of project implementation which can also be accompanied by an increase in the cost of implementing the project. In the construction project of Cinere Terrace Suites Apartemen & Citywalk, Jakarta there was a delay resulting in a late payment of monthly bill progress by the owner. Based on the above reasons, this research was conducted to find out how the project performance was seen from the cost and time period of the review period. how is the estimated cost and time to complete the overall project work. The method used in the analysis of this study is the Earned Value Method. Based on the results of the analysis carried out for 29 weeks the project performance on schedule has been delayed and cost shows a positive value. For the estimated completion time of the project there is an increase in time whose duration increases from the planned 98 weeks or 685 days to 109,624 weeks or 768 days. While the estimated cost of completing the project from the results of the analysis obtained a value of Rp. 270,147,448,569.16 smaller than the planned cost of Rp. 315,272,727,272.73. With the difference VAC of Rp. 45,125,278,703.57 this shows that there are benefits obtained by the contractor.

Construction Project Costs Management Research

2014 ◽  
Vol 1079-1080 ◽  
pp. 1115-1118
Author(s):  
Lu Liu
Keyword(s):  
Cost Control ◽  
Construction Project ◽  
Project Cost ◽  
Control Goal ◽  
Project Costs ◽  
Construction Project Cost ◽  
Cost Forecasting ◽  
The Cost ◽  
Cost Plan ◽  
And Control

Themain content of the construction project cost management including costforecast, cost plan, cost control. Do cost forecast, cost control goal set,must be ahead of the labor, material, cost forecasting, construction scheme ofchange of the cost forecast and the prediction of auxiliary construction cost.Cost control should follow the principle of conservation and comprehensivecontrol, there are some effective ways to realize the cost control, forexample, take organizational measures to control the project cost, take technicalmeasures to control the project cost, to take economic measures to control theproject cost, strengthen quality management and control of rework rate, etc.

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