scholarly journals Identifying the Risk Impact on Cost and Time of the Egyptian Non-Residential Buildings Projects

2020 ◽  
pp. 01-12
Author(s):  
Medhat M. A. Osman ◽  
Usama H. Issa ◽  
Ayman M. Zakaria Eraqi
Keyword(s):  
Risk Factors ◽  
Time Delays ◽  
Construction Projects ◽  
Field Survey ◽  
Residential Buildings ◽  
Risk Groups ◽  
Cost Overruns ◽  
High Agreement ◽  
Multiple Risk Factors ◽  
The Cost

Construction projects in Egypt were typically influenced by multiple risk factors which have various impacts on both cost and time objectives that lead to project cost overruns and time delays. This paper presents the results of an investigation study concerns with the identification and assessment of risks associated with the Egyptian Non-Residential Buildings Projects (ENRBP). The study explores risk factors probability of occurrence and their effects on cost and time of these projects. A field survey was conducted with professionals in the construction projects in EGYPT for a purpose of collecting the required data of the risk factors characteristics. Based on results analysis, several risk factors were identified and categorized into fifteen risk groups as well as they were prioritized based on their effects on cost and time. A high agreement for ranking risk factors among contractors, consultants and owners was acquired. The list of the major risks included many factors such as: dramatic changes in the materials prices and Adopting direct attribution system rather than tendering and bidding systems. The most expected average increase of the cost overruns and time delays was more than 20% of the project planned budget and schedule. Finally, the analysis and findings showed that risk factors were very close in their impacts on both cost and time of ENRBP.

scholarly journals A MODEL FOR EVALUATING THE RISK EFFECTS ON CONSTRUCTION PROJECT ACTIVITIES

2019 ◽  
Vol 25 (7) ◽  
pp. 687-699 ◽  
Author(s):  
Usama Hamed Issa ◽  
Salah Attia Mosaad ◽  
Mohamed Salah Hassan
Keyword(s):  
Membership Function ◽  
Time Delays ◽  
Construction Projects ◽  
Construction Project ◽  
Cost Overrun ◽  
Analysis Model ◽  
Expected Cost ◽  
Cost Overruns ◽  
Proposed Model ◽  
The Cost

Cost overruns and time delays are considered to be very important challenges for the majority of construction projects. These challenges are typically attributed to their associated risks. Due to the risky and uncertain nature of construction projects, an increasing amount of attention is given to estimating and overcoming cost overruns and time delays. New techniques are being developed to help project managers to contractually complete projects within cost and time constraints. The objective of this study was to develop a new qualitative and quantitative risk analysis model that can be employed for construction projects. The proposed model, which is based on a fuzzy logic tool, consists of two modules for assessing risk factors that affect the main construction activities and computing the expected cost overruns and time delays that are associated with these risks. Using numerous logical rules, the model applies the probability of occurrences and impacts of the risks on the cost and time of the main activities. The Spearman and Kendall correlation coefficient tests are applied to verify and select a suitable membership function. Using four proposed membership functions, the results of these tests confirmed that the triangle membership function is suitable for the model. The model is verified by application to HVAC system activities in two actual construction projects, which serve as case studies. Two different methods are proposed and applied to quantify the cost overruns and time delays. The first method is based on determining the cost overruns and time delay values for each activity according to their weight in the system. Triple premise rules are proposed and applied in the second method, which is established to relate all activities. The results from the second method are more accurate compared with the first method based on actual data from the case study projects. In addition, the results demonstrated that the proposed model can be used to quantify the expected cost overrun and time delays in construction project activities and can be generalized and implemented in different construction activities.

scholarly journals A Suggested Module for Risk Framework of Water Control Construction Projects using Qualitative and Quantitative Techniques

2020 ◽  
Vol 9 (3) ◽  
pp. 1448-1454
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Quantitative Analysis ◽  
Construction Projects ◽  
Control Strategies ◽  
Significant Risk ◽  
Water Control ◽  
Global Challenge ◽  
Managing Risk ◽  
The Cost

Managing risk is an integral part of sound management and risk management helps to achieve projects objectives. Although the process of risk management is standardized to a great extent, risk control strategies depend on project circumstances and feature. One of the essential humanity’s challenges in the future, is surely ensuring water needs. Equitable and sustainable management of water resources is a major global challenge, and supply of clean fresh water is decreasing around all nations. Egypt is one of the countries hardest affected by climate change. Also challenges include population growth, increase in food demand and Lack of water and energy Leads to let managing risk for construction of water control structures projects on water streams in Egypt becomes more challenging and essential than ever before. Moreover, this study aims to show the effect of risk on cost and time targets for water control structure projects in Egypt .This study mainly identify a list of significant risk factors effecting on cost and time for these type of projects in Egypt through studying pervious publishing for risk management in construction projects and a questionnaire survey , then conducting a qualitative analysis using a Severity and Probability matrix (S/P matrix) techniques to assess the influence of risk factors and to isolate critical risk factors for a quantitative analysis. Finally, conducting a quantitative analysis by mean of Analytical Hierarchy Process (AHP) to determine the cost and time contingency, s the conclusion of this study shows that the cost contingency needed to account for the different critical risk factors is to increase the estimated cost by 12.35 % on the total estimated budget of the project. In addition that the time contingency needed to consider for different critical risk factors is to increase the scheduled time by 11.25% over the total originally scheduled of the project

scholarly journals Risk Assessment Model Based on Fuzzy Logic for Residential Buildings

2021 ◽  
Vol 29 (4) ◽  
pp. 37-48
Author(s):  
Namdeo Hedaoo ◽  
Amey Pawar
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Residential Buildings ◽  
Construction Project ◽  
Significant Risk ◽  
Fuzzy Model ◽  
Residential Building ◽  
Assessment Model ◽  
Response Strategy ◽  
Industry Professionals

Abstract Risk is involved in every construction project. Residential building construction projects comprise a variety of risks and are more likely to be affected due to their difficulty and many operations and threats. The study aims to identify the various risk elements and their effect on construction projects of residential buildings using a fuzzy approach with the help of MATLAB software. This study includes 60 risk factors recognised through an expert opinion and literature review. These factors are categorised into 7 major groups, i.e., construction, project manager, architect/consultant, contractor, owner, resources, and external environment-specific risk factors. A questionnaire was prepared and sent using emails based on the identified risk factors to be filled out by construction industry professionals in India and by conducting in-person interviews. Based on the risk severities obtained from the fuzzy model, the top 10 risk factors have been considered. As a result, for identified top severe risk factors, a significant risk response strategy was implemented.

scholarly journals An Analytical Study of Critical Factors Affecting Contractor Efficiency in Construction Projects in Indian Scenario

2018 ◽  
Vol 10 (1) ◽  
pp. 1794-1802
Author(s):  
Shumank Deep ◽  
Laura Simon ◽  
Mohd Asim ◽  
Ali Rahimzadeh ◽  
Sulala Al-Hamdani
Keyword(s):  
Construction Projects ◽  
Indian Subcontinent ◽  
Uttar Pradesh ◽  
Research Approach ◽  
Snowball Sampling ◽  
Critical Factors ◽  
Cost Overruns ◽  
Factors Affecting ◽  
The Government ◽  
The Cost

Abstract Purpose: Recent studies show that lowest bidder tech­nique is mainly used in developing countries such as India to award a contract. It has been demonstrated that the lowest bid is not always the accurate one and can lead to cost overruns and time extensions amongst other prob­lems. The aim of this study was to investigate the critical factors impacting contractor’s efficiency in Indian con­struction projects. Research approach: A survey was sent to participants of construction projects awarded by the government with the lowest bidder technique in Uttar Pradesh, India. For further research, snowball sampling was used, and struc­tured interviews were conducted amongst experienced managers and engineers of these projects on both client’s and contractor’s side.Findings: It was observed that, to a greater extent, the delays were caused due to contractor’s opportunistic behaviour. The main findings are that new bidding meth­odologies are to be tested as they can lead to the choice of a more accurate and realistic bidder. In addition, subjec­tive evaluation components, such as schedule and work­force, should be reflected in contract award methods in addition to the cost criteria. Further studies should be per­formed on the choice of contract awarding methodology based on the project size and type. Originality value: The researcher’s focus was to analyze the influence of contracting methodologies and factors affecting contractor’s performance in lowest bid award project, where this is an area of least focus amongst researchers in the Indian subcontinent.

scholarly journals Quantitative Risk Assessment in Construction Disputes Based on Machine Learning Tools

Symmetry ◽  
2021 ◽  
Vol 13 (5) ◽  
pp. 744
Author(s):  
Hubert Anysz ◽  
Magdalena Apollo ◽  
Beata Grzyl
Keyword(s):  
Machine Learning ◽  
Construction Projects ◽  
Quantitative Risk Assessment ◽  
Construction Site ◽  
Learning Tools ◽  
Single Product ◽  
Cost Overruns ◽  
Independent Variables ◽  
Construction Disputes ◽  
The Cost

A high monetary value of the construction projects is one of the reasons of frequent disputes between a general contractor (GC) and a client. A construction site is a unique, one-time, and single-product factory with many parties involved and dependent on each other. The organizational dependencies and their complexity make any fault or mistake propagate and influence the final result (delays, cost overruns). The constant will of the parties involved results in completing a construction object. The cost increase, over the expected level, may cause settlements between parties difficult and lead to disputes that often finish in a court. Such decision of taking a client to a court may influence the future relations with a client, the trademark of the GC, as well as, its finance. To ascertain the correctness of the decision of this kind, the machine learning tools as decision trees (DT) and artificial neural networks (ANN) are applied to predict the result of a dispute. The dataset of about 10 projects completed by an undisclosed contractor is analyzed. Based on that, a much bigger database is simulated for automated classifications onto the following two classes: a dispute won or lost. The accuracy of over 93% is achieved, and the reasoning based on results from DT and ANN is presented and analyzed. The novelty of the article is the usage of in-company data as the independent variables what makes the model tailored for a specific GC. Secondly, the calculation of the risk of wrong decisions based on machine learning tools predictions is introduced and discussed.

Aggregation of factors causing cost overruns and time delays in large public construction projects

2017 ◽  
Vol 24 (3) ◽  
pp. 393-406 ◽  
Author(s):  
Abderisak Adam ◽  
Per-Erik Bertil Josephson ◽  
Göran Lindahl
Keyword(s):  
Time Delays ◽  
Construction Projects ◽  
Journal Articles ◽  
Cost Overruns ◽  
Content Type ◽  
Trend Data ◽  
Public Construction ◽  
The Impact ◽  
Literature Selection

Purpose The purpose of this paper is to explore the impact that cost overruns and time delays exert on large public construction projects to clarify how past and current research regard factors causing cost overruns and time delays in large public construction projects. Design/methodology/approach This paper, which is based on an analysis of a literature selection consisting of 40 journal articles, investigates and ranks the occurrence of and the explanations for cost overruns and time delays in large public construction projects. The study makes use of a kiviat diagram/radar chart in order to visualize multivariate data. Findings Aggregated rankings of important causes of cost overruns and time delays are reported. These show a strong emphasis on the management aspect as a primary cause of cost overruns and delays. Additionally, there seems to be a trend toward deemphasizing the role of financial considerations in explaining cost overruns and delays. It is argued that there needs to be a more rigorous assessment of the impact that each factor has on cost increases and delays based on factual observed data as opposed to retrospective accounts from questionnaire respondents. Research limitations/implications Only public construction projects have been considered. The results will not be directly applicable to privately funded construction projects and/or projects of a smaller size. Originality/value The use of trend data, as illustrated in a kiviat diagram, showing how different ranking factors causing cost overruns and time delays has changed in importance over time.

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 Faktor Keterlambatan Pekerjaan Struktur Gedung terhadap Biaya Pelaksanaan pada Proyek Pembangunan Hotel di Bekasi

2019 ◽  
Vol 7 (2) ◽  
pp. 110-119
Author(s):  
Dian Dwi Putra ◽  
Ninik Paryati ◽  
Elma Yulius
Keyword(s):  
Time Delays ◽  
Service Providers ◽  
Construction Project ◽  
Curve Analysis ◽  
Cost Overruns ◽  
The Future ◽  
Spss Software ◽  
S Curve ◽  
The Cost ◽  
Project Delay

Nowadays, delays in project often occur and cause various losses both for service providers and users. For the contractors, delays create the project cost overruns due to project overtime and can decrease contractor credibility in the future. This study aims to analyze a project delay by minimizing the work delays earlier. The analysis of a hotel building planning regarding the cost and time delays is done qualitatively by distributing questionnaires to the contractors and processing the responses using the SPSS software. The results of the S curve analysis and 30 factors that caused the project delay were identified and indicated that there was a delay value of 1.26% with five variables that most contributed to the delay in the construction project at PT. Wijaya Kusuma Contractors, i.e. reworking due to construction errors, low coordination between contractors and stakeholders, late material delivery, and equipment shortages.

scholarly journals Construction Risks in Developing Countries: A Vietnam Case Study

2020 ◽  
Vol 12 (1) ◽  
pp. 30-49
Author(s):  
Nguyen Le ◽  
Oswald Chong ◽  
Kenneth Sullivan
Keyword(s):  
Risk Factors ◽  
Developing Countries ◽  
Construction Projects ◽  
Rank Order ◽  
Extensive Literature ◽  
Cost Overruns ◽  
Legal Information ◽  
Financial Difficulties ◽  
Common Risk Factors

Most construction projects in the developing countries are marred with delays, cost overruns and low satisfaction levels. This paper focuses on analysis of the data collected from a survey that include the twenty-three (23) common risk factors that cause non-performance in construction projects in developing countries. The factors were consolidated from an extensive literature review, and inputs were solicited from 103 construction practitioners in Vietnam. The study reveals the top five risk factors as the bureaucratic administrative system, financial difficulties of owner, slow payment of completed works, poor contractor performance, financial difficulties of contractor. Spearman’s rank-order correlation tests determined no significant differences between the participating groups. Factor analysis explored the correlations among the risks and yielded four outcomes – Lack of Site and Legal Information, Lack of Capable Managers, Poor Deliverables Quality, and Owner’s Financial Incapability. The findings lay the foundation for stakeholders in the developing countries’ construction industry to better plan and manage the risks for their projects and investment and develop innovative solutions to improve their construction project performances.

FACTORS AFFECTING COST OVERRUN IN CONSTRUCTION PROJECTS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Mohammed Algahtany
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Factors Affecting ◽  
Public Projects ◽  
Low Performance ◽  
Major Factors ◽  
Public Construction ◽  
The Cost

Public construction projects in Saudi Arabia have been suffering from low performance for the past decade. Cost overrun is one of the most important issues in project’s performance and is nearly associated with most of public projects. The aim of this study is to identify and assess the major factors leading to cost overruns in education construction projects in the Northern Province of Saudi Arabia to minimize the risks’ effects in future projects. The research methodology started by identifying cost overrun factors through literature review, project’s documentations, and experts’ interviews. Professionals who worked at the construction projects undertook a questionnaire survey to investigate the importance of the cost overrun factors. The top factors of cost overrun were identified through the analysis of the factors’ occurrence and severity. The study main results included the top causes of cost overrun which are delay in contractors’ progress payment by client, difficulties in financing project by contractor, delays in sub-contractor’s work, additions of quantities such as excavation, backfill, and concrete works, and bid award for lowest price. The investigated risks in the study should be evaluated and mitigated in future projects to minimize their effects and enhance the industry performance.

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