scholarly journals A Forecast Model for the Level of Engineering Maturity Impact on Contractor’s Procurement and Construction Costs for Offshore EPC Megaprojects

Energies ◽  
2019 ◽  
Vol 12 (12) ◽  
pp. 2295 ◽  
Author(s):  
Myung-Hun Kim ◽  
Eul-Bum Lee
Keyword(s):  
Forecast Model ◽  
Construction Cost ◽  
Cutoff Score ◽  
Cost Overrun ◽  
Construction Costs ◽  
Cost Performance ◽  
South Korean ◽  
Cost Impact ◽  
Data Points ◽  
Procurement Cost

This paper focuses on the influence of detailed engineering maturities on offshore engineering, procurement, and construction (EPC) project procurement and construction cost performance. The authors propose a detailed engineering completion rating index system (DECRIS) to estimate the engineering maturities, from contract award to beginning of construction or steel cutting. The DECRIS is supplemented in this study with an artificial neural network methodology (ANN) to forecast procurement and construction cost performances. The study shows that R2 and mean error values using ANN functions are 20.2% higher and 19.7% lower, respectively, than cost performance estimations using linear regressions. The DECRIS cutoff score at each gate and DECRIS forecasting performance of total cost impact were validated through the results of fifteen historical offshore EPC South Korean mega-projects, which contain over 300 procurement cost performance data points in total. Finally, based on the DECRIS and ANN findings and a trade-off optimization using a Monte-Carlo simulation with a genetic algorithm, the authors propose a cost mitigation plan for potential project risks based on optimizing the engineering resources. This research aids both owners and EPC contractors to mitigate cost overrun risks, which could be continuously monitored at the key engineering gates, and engineering resources could be adjusted per optimization results.

scholarly journals An Investigation into Factors Influencing Construction Costs Based on Japanese, UK and US Contractor Practice

2012 ◽  
Vol 2 (2) ◽  
pp. 27-35
Author(s):  
Hong Xiao ◽  
David Proverbs
Keyword(s):  
Indirect Costs ◽  
Construction Cost ◽  
Office Building ◽  
Construction Process ◽  
Close Attention ◽  
Construction Costs ◽  
Cost Performance ◽  
Factors Influencing ◽  
Site Design ◽  
The Uk

Construction cost is a major concern to both clients and contractors. Based on a hypotheticalconstruction project (a six-storey concrete framed office building), cost and otherrelated information was collected through a survey of contractors in Japan, the UK and theUS. Using multiple regression analysis it was found that lower overheads, less prefabricatedcomponents, and fewer design variations could reduce construction cost. Overheadslargely represent indirect costs to contractors and if reduced can lead to increased profitlevels and improved competitiveness. The use of prefabricated components may be problematicwhere there are delays in production, insufficient coordination between design andconstruction, and congested transportation on site. Design variations during constructionbring about uncertainties and are disruptive to the construction process. These factorshave paramount impact on construction cost and demand close attention and consideration.Contractors are advised to reduce the costs of their overheads and utilise prefabricationappropriately, while clients and designers should minimise the number of designvariations during construction if better cost performance is desired.

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 UTILIZING SITE CHARACTERISTICS IN NEURAL NETWORK MODELLING OF PERCENTAGE COST-TIME OVERRUN OF BUILDING PROJECTS

2017 ◽  
Vol 8 (1) ◽  
pp. 1-15
Author(s):  
A. O. Ujene ◽  
A. A. Umoh
Keyword(s):  
Neural Network ◽  
Cost Overrun ◽  
Construction Costs ◽  
Network Modelling ◽  
Building Projects ◽  
The Neural Network ◽  
Site Characteristics ◽  
Neural Network Prediction ◽  
The Cost ◽  
Prediction Approach

This study evaluated the site characteristics influencing the time and cost delivery of building projects, determined the range of percentage cost and time overrun and developed a neural network model for predicting the percentage cost and time overrun using the site characteristics of building projects. The study evaluated twelve site characteristics and two performance indicators obtained from records of construction costs, contract documents, and valuation reports of 126 purposively sampled building projects spread across several cities in Nigeria. Analyses were with descriptive and artificial neural network. It was concluded that with fairly favourable site characteristics, cost overrun range reached 77.95% with a mean variation of 44.36%, while time overrun range reached 51.23% with a mean variation of 26.77%. It was found that the accuracy performance levels of 91.93% and 91.43% for the cost and time overrun predictions respectively were very high for the optimum models. Building projects have eight significant site characteristics which can be used to reliably predict the percentage overrun, among which the ground water level, level of available infrastructure and labour proximity around the site are the most important predictors of cost and time overrun. The study recommended that project owners, consultants, contractors and other stakeholders should always use the eight identified site characteristics in predicting percentage cost and time overrun, with more priority on the first three characteristics. The study also recommended the neural network prediction approach due to its prediction accuracy.

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 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.

MODELLING A COST PROFILE FOR ROAD PROJECTS

2020 ◽  
Author(s):  
Opeoluwa Akinradewo ◽  
Clinton Aigbavboa ◽  
Ayodeji Emmanuel Oke ◽  
Harrison Coffie
Keyword(s):  
Probability Distributions ◽  
Descriptive Analysis ◽  
Construction Cost ◽  
Cost Data ◽  
Density Functions ◽  
Cost Overrun ◽  
Historical Cost ◽  
Road Projects ◽  
Pro Forma

One of the vital success elements of a construction project is the accuracy of the estimation of construction cost. This study is aimed at developing a cost profile for road projects in Ghana. Pro-forma was designed to retrieve historical cost data of completed road projects in Ghana. The pro-forma retrieved data such as the initial budgeted cost and final construction cost of road projects, location of road projects, features of road projects, the scope of road projects (New project, renovation work, upgrade work or replacement work), type of road projects and classification of road projects. Cost data were analysed using descriptive analysis and probability distributions such as Cumulative Density Functions and Probability Density Functions. From findings, estimates prepared for road projects in Ghana can be expected to be below the final construction cost by about 20% while most of the completed road projects in Ghana experience cost overrun.

scholarly journals Study on Foundation Pit Construction Cost Prediction Based on the Stacked Denoising Autoencoder

2020 ◽  
Vol 2020 ◽  
pp. 1-16
Author(s):  
Lanjun Liu ◽  
Denghui Liu ◽  
Han Wu ◽  
Junwu Wang
Keyword(s):  
Influencing Factors ◽  
Construction Cost ◽  
Average Error ◽  
Support Vector ◽  
Calculation Error ◽  
Denoising Autoencoder ◽  
Construction Costs ◽  
Deep Foundation ◽  
Foundation Pit ◽  
Project Construction

To accurately predict the construction costs of foundation pit projects, a model based on the stacked denoising autoencoder (SDAE) is constructed in this work. The influencing factors of foundation pit project construction costs are identified from the four attributes of construction cost management, namely, engineering, the environment, the market, and management. Combined with Chinese national standards and the practice of foundation pit project management, a method of the quantization of the influencing factors is presented. 60 deep foundation pit projects in China are selected to obtain 13 main characteristic factors affecting these project construction cost by using the rough set. Then, considering the advantages of the SDAE in dealing with complex nonlinear problems, a prediction model of foundation pit project construction costs is created. Finally, this paper employs these 60 projects for a case analysis. The case study demonstrates that, compared with the actual construction costs, the calculation error of the proposed method is less than 3%, and the average error is only 1.54%. In addition, three error analysis tools commonly used in machine learning (the determination coefficient, root mean square error, and mean absolute error) emphasize that the calculation accuracy of the proposed method is notably higher than those of other methods (Chinese national code, the multivariate return method, the BP algorithm, the BP model optimized by the genetic algorithm, the support vector machine, and the RBF model). The relevant research results of this paper provide a useful reference for the prediction of the construction costs of foundation pit projects.

scholarly journals Construction Cost of Green Building Certified Residence: A Case Study in Taiwan

2019 ◽  
Vol 11 (8) ◽  
pp. 2195 ◽  
Author(s):  
Chen-Yi Sun ◽  
Yin-Guang Chen ◽  
Rong-Jing Wang ◽  
Shih-Chi Lo ◽  
Jyh-Tyng Yau ◽  
...  
Keyword(s):  
Residential Buildings ◽  
Public Information ◽  
Residential Building ◽  
Green Building ◽  
Construction Cost ◽  
Construction Costs ◽  
Practical Strategy ◽  
The Government ◽  
The Relationship

The green building certification system of Taiwan, EEWH (Ecology, Energy Saving, Waste Reduction and Health), has been in operation for more than 20 years (since 1999). In order to understand the relationship between green building certification and the construction costs of residential buildings, this study obtained 37 green building-certified residential cases and 36 general residential cases available from public information and conducted a comparative analysis. The results of this study showed that the average construction cost of a green building certification residential building was only 1.58% higher than a general residential building, indicating that green building certification does not require a large increase in costs. However, for residential buildings, achieving a high-grade (gold-grade or diamond-grade) green building certification means an increase of 6.7% to 9.3% in construction costs. This shows that the pursuit of higher levels of green building certification does require higher construction costs. In addition, the results of this study can not only provide important references for the government in making green building policies, but also offer a practical strategy for developers for decision-making.

scholarly journals Cost Overruns in Tunnelling Projects: Investigating the Impact of Geological and Geotechnical Uncertainty Using Case Studies

2020 ◽  
Vol 5 (9) ◽  
pp. 73
Author(s):  
Chrysothemis Paraskevopoulou ◽  
Georgios Boutsis
Keyword(s):  
Case Studies ◽  
Research Work ◽  
Construction Cost ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Total Cost ◽  
Ground Investigation ◽  
Major Factors ◽  
The Uk ◽  
The Impact

Tunnelling projects seldom meet the initial budget requirements. Commonly, these types of projects suffer from cost overruns, which subsequently lead to project delivery delays mainly due to unsuccessful ground investigation as specified in the literature. The presented work scrutinises the effect of ground investigation in cost overruns. More specifically, various cost figures (total cost, construction cost, tunnel cost) are analysed for two case studies i) the Channel tunnel in the UK and ii) the Olmos Tunnel in Peru. Clayton’s relation between ground investigation and the construction cost is utilised and further investigated. In the Channel tunnel, the main problems faced led to a cost overrun of 78% for the total cost, 66% for the construction cost and 77% for the tunnelling cost. In the Olmos tunnel, two main geological scenarios are analysed and the construction cost overrun is calculated at 9.6% and 6.7%. Drawing on the conclusions, this research work proves that ground investigation can be one of the major factors influencing the tunnel cost.

scholarly journals Exploring the Components of Cost on Construction Projects

2018 ◽  
Vol 2 (2) ◽  
pp. 42-50
Author(s):  
Abimbola Windapo ◽  
Alireza Moghayedi ◽  
David Oliphant ◽  
AbdulRauf Adediran
Keyword(s):  
South Africa ◽  
Construction Projects ◽  
Resource Planning ◽  
Construction Cost ◽  
Research Approach ◽  
Construction Work ◽  
Construction Costs ◽  
Cost Overruns ◽  
Planning And Control ◽  
Electrical Installation

This study examines the components of construction projects and whether there are construction resources that are the key project constituents. The rationale for the study stems from the unexplained assumptions regarding the primary components responsible for increases in construction costs in South Africa, as South Africa lacks a national building cost database. The study adopts a qualitative research approach that employs a case studies of six new and six refurbished projects in obtaining the necessary data for use in answering the study objectives. The study found that the primary cost constituents of construction projects are materials and sub-contracted work, accounting for 63.69% and 74.6% of the value of renovation and new construction work respectively and on the average, the major materials by value are reinforcement, cement and filling, while Electrical Installation is the primary sub-contracting item by value. Based on these findings, the study concludes that the future levels of construction work can be predicted knowing levels of specialist sub-contractor costs and building material costs. The study recommends that the sub-contractor and material inputs into construction projects are carefully managed, both on the projects and the construction industry, to limit construction cost increases and cost overruns on projects. The study contributes to the literature on resource planning and control in construction. Keywords: Cement, Construction Cost, Electrical Installation, Reinforcement, Specialist Sub-contractor.

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