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.

scholarly journals Significance and Analysis of Time and Cost Overrun in the Construction Industry of Mumbai

2021 ◽  
Vol 9 (11) ◽  
pp. 295-310
Author(s):  
Priyesh Mulye
Keyword(s):  
Risk Factors ◽  
Construction Industry ◽  
Construction Projects ◽  
Performance Standards ◽  
Construction Cost ◽  
Cost Overrun ◽  
Potential Development ◽  
The World ◽  
Very High ◽  
Total Construction Cost

Abstract: The occurrence of time and cost overrun has become quite significant in a majority of construction projects in India, which is negatively affecting the GDP and potential development of nation. As per the statistics of project cost and duration in March 2012, 179 projects out of 555 projects of worth 150 Crore INR have been facing cost and time overrun and others are at the very high risk, with the total construction cost overrun of 1.23 Lakh Crore INR. (Times, 2013) The time and cost overrun of the construction projects results in overextension of the time and finance of the client which may lead to entire failure of the project, unfinished project, abandoned project or reduction in the performance standards of the project. This condition depicts the requirement of the study and analysis of the causes or risk factors for time and cost overrun, and solutions and strategies for mitigation of cost and time overrun. The present research involves the study and analysis of the various risk factors related to time and cost overrun; assessment of the overruns in the construction projects of Mumbai, India and other parts of the world; identification and analysis of the leading causes for time and cost overrun in the construction projects of Mumbai; identification of potential solutions; and preparation of an effective mitigation model for overruns in construction projects of Mumbai

scholarly journals Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part 2 (PLS-SEM Path Modelling)

2017 ◽  
Vol 11 (7) ◽  
pp. 28
Author(s):  
Hedaya A. M. Abusafiya ◽  
Saad A. M. Suliman
Keyword(s):  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Mathematical Representation ◽  
Cost Overrun ◽  
Equation Modelling ◽  
Path Modelling ◽  
Global Fit ◽  
Fit Index ◽  
The Relationship

In part 1 of the paper, cost overrun factors associated with the construction industry in Bahrain were identified, and risk maps were developed based on a survey and actual construction projects records. This part of the paper adopted structural equation modelling (SEM) approach to assess the effects of cost overrun factors on project cost in Bahrain. SEM is the graphical equivalent of a mathematical representation to study relationship between dependent variable to explanatory variable. SEM is regarded as extension of standardized regression modelling and is important tool to estimate the causal relationship between factors. The collected data from the questionnaire and actual projects of part 1 were modelled and analyzed using SmartPLS v3.0 software. Results showed that approximately 60% of cost overrun was influenced with the factors identified in part 1. The Global fit index (GoF) value of the developed model was 0.591, indicating that the model has enough power in explaining the relationship between identified factors and cost overrun.

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.

The Vulnerability of the Construction Ergonomics to Covid-19 and Its Probability Impact in Combating the Virus

2021 ◽  
Vol 4 (1) ◽  
pp. 01-17
Author(s):  
Ahmed Fahim Elgendi ◽  
◽  
◽  
◽  
◽  
...  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
World Health ◽  
Personal Hygiene ◽  
Extensive Literature ◽  
Novel Coronavirus ◽  
Health Organization ◽  
Assessment Procedures ◽  
Chronic Health Problems ◽  
The Relationship

Currently, the world encounters the outbreak of an unprecedented epidemic named novel coronavirus COVID -19. World Health Organization (WHO) advises maintaining social distancing, preserving personal hygiene, and staying informed with the latest guidelines. WHO also reports the patients with robust immunity can combat the virus. However, the workers in the construction industry work and live in a crowded and non-hygiene environment. Moreover, they are characterized by illiteracy, a dearth of awareness, and chronic health problems that prove weak immunity. Therefore, this study aims to find the relationship between the virus and the prevailing conditions and the environment of the construction industry, under focus, and study so that the construction industry is not a vulnerability gap that may exacerbate the crisis. An extensive literature exploration for the latest research deals with coronavirus, the construction industry ergonomics, and its relevant diseases. This study makes robust alerts to motivate the governments, organizations, and individuals to collaborate to find solutions to close the gap between the current situation in the construction of ergonomics and the required precaution to avoid the outbreak of the virus. This study makes a crucial and novel contribution by paving the way for providing solutions to save humanity worldwide. The management system should review the conventional risk assessment procedures, and developed criteria must be introduced and become an everyday practice of all construction projects. This will help identify the gaps within the safety procedures associated with the COVID – 19 protection aspects. This article also introduces a framework in this regard.

scholarly journals Quantitative risk analysis procedure for economic project sustainability.

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Jithin Arakkatt Shaji
Keyword(s):  
Risk Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Methods ◽  
Economic Sustainability ◽  
Key Factors ◽  
Paper Briefly ◽  
Cost Variance ◽  
Project Sustainability ◽  
Project Deliverables

The paper briefly explains the importance of quantitative procedures of risk analysis in large and medium scale projects for the sustenance of project economic sustainability. Globally, several construction projects are being descoped and tend to close out before attaining the initial project deliverables due to cost and schedule overruns. The quantitative methods can sieve the key factors and forecast the tangible impacts that can lead to schedule or cost variance in a project. It can guide the project stakeholders for timely decision making and mitigate the risks associated to achieve the project goals. Today, the quantitative methods are pivotal to analyze the impacts of Covid-19 crises in Construction industry which are increasingly apparent. Keywords- Project economic sustainability, Risk analysis, Quantitative methods

scholarly journals Investigating Variation Orders Causes in Iraqi Building Construction Projects

2021 ◽  
Vol 318 ◽  
pp. 02003
Author(s):  
Hassan Kamal Alhilli ◽  
Sedki I. Rezoqi
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Harmful Effect ◽  
Fuzzy Cognitive Map ◽  
Future Research ◽  
Change Orders ◽  
Management Processes ◽  
And Performance ◽  
The Relationship ◽  
Comprehensive Reference

Changes are a common phenomenon in the construction industry, impacting the project's cost, time, and performance. The purpose of this work is to a comprehensive review relating to variation order causes. Also, the aim here is to determine variation order causes in the building’s construction. More importantly, explore the relationship between these causes. However, the importance of specifying the causes for change orders is the first step in managing variation orders to reduce the harmful effect on a project. The field survey was conducted for several institutions such as health (Karkh’s health), higher education (University of Baghdad and University of Kufa). As a result, a field visit was made to the project sites. They were then, Conducting interviews with the resident engineer, the consultant, and the contractor. A developer tool called cause (variation orders) breakdown structure (CBS) included 12 causes at the first level, including 103 sub-causes. There is a relationship between the variation orders causes, which is evident in the third level. The study recommends adopting (CBS) a comprehensive reference for variation order causes in projects due to facilitating their management processes. Future research could examine the relative importance of variation order causes, in addition to using a fuzzy cognitive map to find the extent of each cause’s influence on the other.

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.

Optimisation of resource management in construction projects: a big data approach

2019 ◽  
Vol 16 (2) ◽  
pp. 82-93 ◽  
Author(s):  
Habeeb Kusimo ◽  
Lukumon Oyedele ◽  
Olugbenga Akinade ◽  
Ahmed Oyedele ◽  
Sofiat Abioye ◽  
...  
Keyword(s):  
Big Data ◽  
Resource Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Design Methodology ◽  
Key Factors ◽  
Content Type ◽  
Management Processes ◽  
Qualitative Research Methodology ◽  
The Uk

Purpose The purpose of this paper is to identify challenges faced in resource management in the UK construction industry and to propose some solutions to these problems. Design/methodology/approach Based on a qualitative research methodology, 14 experts from the UK construction industry were chosen to be participants in the study. The participants were equally divided into two focus groups to discuss resource management using five projects as case studies. Thematic analysis of the discussion reveals seven key factors that affect resource management. Findings The results show that most of the problems identified are due to poor data management processes and the practice of having data in silos. Overcoming this challenge requires the adoption of big data approaches for resource management to allow the integration of large and different forms of data. Originality/value This study seeks to bring to the fore challenges faced in resource management by the UK construction industry and to outline some solutions to address them.

Implementation of project change management best practice in different project environments

2009 ◽  
Vol 36 (3) ◽  
pp. 439-449 ◽  
Author(s):  
Yi Zou ◽  
Sang-Hoon Lee
Keyword(s):  
Change Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Best Practice ◽  
Change Orders ◽  
Project Outcomes ◽  
Construction Industry Institute ◽  
Project Characteristics ◽  
Project Data ◽  
The Relationship

Change orders are ubiquitous in construction projects, and effective and efficient control of changes is critical to project success. There have been many empirical suggestions as to how to manage changes for best project outcomes, but this research is specifically aimed at exploring the relationship between project characteristics and the implementation of project change management best practices (PCMBP). Construction project data for this research are derived from the Construction Industry Institute (CII) benchmarking and metrics (BM&M) database. Binary logistic regressions and factorial analysis of variance (ANOVA) are performed to find out the differences among diverse types of projects in terms of the extents to which the PCMBP elements have been implemented. The findings can assist construction industry practitioners with using PCMBP more purposefully in accordance with specific project characteristics so that they will be better able to develop and administer their project execution plans.

scholarly journals Factors influencing decisions on delay claims in construction contracts for Indian scenario

2014 ◽  
Vol 14 (1) ◽  
pp. 32-44 ◽  
Author(s):  
Nitin Balkrishna Chaphalkar ◽  
K. C. Iyer
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Decision Makers ◽  
Infrastructure Development ◽  
Court Cases ◽  
Cost Overrun ◽  
Root Cause ◽  
Delay Claims ◽  
Indian Scenario ◽  
Probing Questions

  Construction industry in India is second largest next to agriculture. In current era of infrastructure development construction projects occupy a key position. In any construction project contract time and cost overrun is a common feature, which gives rise to claims leading to disputes. These disputes if not handled properly tend to consume time and money of all parties to the contract. To resolve the dispute in optimum time, it is essential to understand the root cause of disputes as early as possible. Hence there is a need of analyzing the disputes scientifically.  The present study reveals from the study of arbitration awards that the causes for delay claims can be grouped in domains and the probable decisions to the disputes can be traced through the probing questions considered by decision makers. This paper attempts to identify questions related to disputes for Indian scenario through literature, arbitration awards, court cases and discussions with professionals.

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