scholarly journals Model of Predicting Cost Overrun in Construction Projects

2018 ◽  
Vol 10 (12) ◽  
pp. 4387 ◽  
Author(s):  
Edyta Plebankiewicz
Keyword(s):  
Prediction Model ◽  
Cash Flow ◽  
Construction Projects ◽  
Cost Overrun ◽  
Fuzzy Relations ◽  
Inference Method ◽  
Total Cost ◽  
The Cost ◽  
Selection Of ◽  
Construction Works

During the construction phase, significant differences between the planned and actual costs of construction projects frequently occur. The paper describes the concept of a model of prediction of the increase in the costs of construction works in relation to those planned. The assumption of the model is to determine the probability of the cost increase for the elements of the object for which it is the largest. A fuzzy Mamdani inference method was proposed for the selection of the elements to be evaluated. In the cost prediction model, fuzzy relations and the compound max-min relations were used. The result of the model are the probabilities of cost overrun for works most exposed to changes in costs. The model can be helpful mainly for the contractor who wants to know not only the probability of the total cost overrun but also the possibility and amount of increase in the costs of individual packages of works or detailed construction works necessary to complete a construction project. Such an approach may help to properly plan expenses related to the implementation and schedule of works along with the cash flow for the project.

scholarly journals Influence of rebar practice in the total cost of building construction projects: The case of Hawassa city, Ethiopia

2020 ◽  
Vol 12 (1) ◽  
pp. 54-65
Author(s):  
Tariku Nigussie ◽  
M.K. Chandrasekar
Keyword(s):  
Construction Projects ◽  
Cost Overrun ◽  
Value Analysis ◽  
Total Cost ◽  
Correlation And Regression Analysis ◽  
Central Value ◽  
Research Designs ◽  
Analytical Research ◽  
The Cost ◽  
Bill Of Quantity

Rebar is one of the materials which is so scarce and highly expensive. The existing practices produce a large quantity of wastage; which contributes to the increment of the project cost. This study aimed to analyze the causes, extent, and remedies of steel wastages on the total costs of construction projects in Hawassa city. The study followed descriptive and analytical research designs. The cost estimated in the bill of quantity and the final cost after the provision of the steel with alterations was compared and the reasons for cost overrun were analyzed. The data were analyzed using Central value analysis, correlation and regression analysis using SPSS stat20, RebarWin7.97, ETABS2016. The percentage of the cost of steel wastage in total cost was found 1.43%. The result of the study verdict that frequent design change and bare-benders skill gap contribute much to the material wastage, thus for the cost overrun of projects. Keywords: Bending gain, cost overrun, detailing, rebar, redesign, steel, wastage

Effects due to Change in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Abdulla AlAmeri ◽  
◽  
Nur Ain Ngah Nasaruddin ◽  
Aftab Hameed Memon ◽  
◽  
...  
Keyword(s):  
Construction Projects ◽  
Major Effect ◽  
Project Performance ◽  
Cost Overrun ◽  
Review Of Literature ◽  
Quality Performance ◽  
Negative Impacts ◽  
The Cost ◽  
Materials Specifications ◽  
Construction Works

Globally construction works are suffering from several challenges. One of the major challenges is changes during execution of the construction work. Changes exert several negative impacts on the project performance. For effective project performance, it is necessary to understand the effects of changes. Hence, this study investigated various effects of changes occurring in construction project. Investigation was carried out quantitatively through questionnaire survey based on effect variables identified from review of literature. It involved three categories as time overrun, cost overrun and quality measured with 48 variables. 100 questionnaire sets collected against 218 questionnaire forms distributed among the practitioners were analysed statistically. From analysis results, it was found that cost overrun is major effect of changes followed by quality and time overrun. Delay in completion schedule, slower project progress and dispute between owner and contractor are reported as major drivers of time overrun. Top three variables of cost overrun in cost overrun are increase the cost of the projects, interrupted cash flow and additional money for contractor. While, major drivers of the quality in construction projects are rework of bad quality performance, changes in materials specifications and changes in material types & specifications during construction. These findings will be helpful for the practitioners in achieving project performance.

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 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.

scholarly journals Cost prediction model based on system dynamics in water resource project

2019 ◽  
Vol 258 ◽  
pp. 02027
Author(s):  
Hirijanto ◽  
I Wayan Mundra ◽  
Addy Utomo
Keyword(s):  
Prediction Model ◽  
Cost Estimation ◽  
Construction Projects ◽  
Model Simulation ◽  
Secondary Data ◽  
System Dynamic ◽  
Cost Prediction ◽  
Cost Component ◽  
The Government ◽  
The Cost

Project’s cost is one of important components in project achievement. Because of the uniqueness of construction projects, cost estimation always differs from project to project. The rate of cost components always change over time make difficult to forecast the cost for the upcoming project. The cost component consists of many influencing variables where there is interrelationship each other affecting to the total project cost. This paper objective is to develop a cost prediction model to assist the project planners in cost estimation for future projects. System dynamic is one of the appropriate methods to analyse system behaviour with interrelationship referring to the historic data, so it is able to predict the future project. Developing the model, primary and secondary data are collected from previous studies, interview with the government planner and survey in Malang Regency. The model simulation is Brick work unit with its components. Data from last thirteen years are used to verify and validate the developed model by causal loop diagram as a basic method in system dynamic. The finding showed that the model is closed to real condition through the validation mechanism. The developed system is useful in decision making of budget planning based on work quantity.

scholarly journals Evaluation of Dispute Prone Areas in Construction Projects

2021 ◽  
Author(s):  
Manu Noushad ◽  
Anu V. Thomas ◽  
Ramaswamy K. P
Keyword(s):  
Analytical Hierarchy Process ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Research Findings ◽  
The Cost ◽  
Hierarchy Process

Construction projects experience claims and disputes due to increased complexity of contract documentation, which subsequently affects the cost performance of projects. Majority of the previous studies on disputes and cost overrun have mainly focused on finding the causes of cost overrun or disputes in the industry. Identification of dispute prone areas and the associated range of cost overrun due to the disputes are less explored. Previous research findings indicate that the various factors resulting in cost overrun itself are the causes of disputes. It is necessary to understand, assess and take appropriate actions for increasing the predictability of claims and disputes in order to improve the cost performance of construction projects. In this study, an attempt is made to identify and prioritize the dispute prone areas in Indian construction projects by analytical hierarchy process (AHP).

scholarly journals Estimation of cost overrun in construction projects using Fuzzy Logic

2021 ◽  
Vol 23 (05) ◽  
pp. 797-805
Author(s):  
Neelakash Haloi ◽  
◽  
Tapas Goyal ◽  
Faizan Zahoor ◽  
Harsh Jain ◽  
...  
Keyword(s):  
Fuzzy Logic ◽  
Construction Projects ◽  
Cost Overrun ◽  
Time Data ◽  
Construction Companies ◽  
Five Factors ◽  
Spss Software ◽  
The Cost ◽  
The Impact ◽  
Published Research

In recent years, the impact of the construction industry on the economy of India is increasing. However, there are a number of problems that are being faced by the construction companies or contractors or other relevant stakeholders, in the completion of a construction project. One of the major problems being faced is time and cost overrun. Thus, it is important to find ways of mitigating this critical problem. One of the solutions that is being used is the prediction of the amount and time that a project might overrun beforehand i.e. estimating the overrun during the design phase itself. This prediction can be done using a number of different techniques, the important one of which used in this paper is through the use of Fuzzy Logic. It also provides a brief description about the factors that are responsible for causing this cost overrun. The factors are identified by conducting a questionnaire survey and gathering responses from the relevant stakeholders which include contractors, project engineers, architects and consultants. The responses collected are further processed and analysed using SPSS software. The top 5 factors have been selected after the analysis and further used in preparation of the fuzzy logic model in the fuzzy toolbox of MATLAB. Further, the validation of this model has been done with real-time data of projects from various published research papers. Thus, the model developed provided prediction of the percentage of the cost overrun based on the percentage input of the top five factors.

scholarly journals Impact of Construction Project Execution with and without Project Management Software

2019 ◽  
Vol 9 (1S3) ◽  
pp. 157-164
Keyword(s):  
Resource Allocation ◽  
Project Management ◽  
Cash Flow ◽  
Construction Projects ◽  
The Other ◽  
Cost Overrun ◽  
Time Schedule ◽  
Resource Poor ◽  
Experimental Project ◽  
Future Work

The delay of work is common in construction projects. Delay has a major impact on time and cost overrun. Project management helps to avoid or minimize delays in future work. Here in this paper, two private residential apartments are considered for evaluation. One project has been executed using software and the second project has no such process. The first project prepared with time schedule, resource allocation and levelling, estimation, billing and cash flow all the details using the software tools helps to execute the project with more profit and less delay in work execution whereas the other experimental project is not having plan, same less resource, poor execution leads to heavy loss and more stress to the builder.

scholarly journals Contractor’s Perception on Factors Causing Cost Overrun in Construction Works of Pakistan

2020 ◽  
Vol 11 (3) ◽  
Author(s):  
Abdul Qadir Memon ◽  
◽  
Aftab Hameed Memon ◽  
Mohsin Ali Soomro ◽  
◽  
...  
Keyword(s):  
Construction Projects ◽  
Cost Overrun ◽  
Critical Factors ◽  
Factors Affecting ◽  
Governmental Agencies ◽  
Construction Methods ◽  
Financial Difficulties ◽  
Timely Completion ◽  
Questionnaire Form ◽  
Construction Works

This paper assessed the occurrence and severity level of various factors causing time and cost overrun in construction projects of Pakistan. Investigation was carried out through questionnaire form prepared based on 55 common factors identified from literature. Survey was done amongst the representatives of the contractors involved in handling construction activities in Pakistan. A total of 46 responses gathered against 100 distributed forms were analysed statistically. The results obtained from the analyses based on Average Index values revealed that delay in obtaining permits from the governmental agencies, financial difficulties are common issue faced in construction works of Pakistan. The study also revealed that high cost of machinery & its maintenance, inadequate planning & scheduling and slow information flow between parties have significant effect on time overrun cost while critical factors affecting cost overrun are high cost of machinery & its maintenance, unsuitable construction methods and lack of experience of contractors in affecting project cost. The findings of this study will be helpful for the practitioner in planning for achieving timely completion of the projects and also within the estimated cost.

scholarly journals Prediction of Cost Overrun Risk in Construction Projects

2020 ◽  
Vol 12 (22) ◽  
pp. 9341
Author(s):  
Edyta Plebankiewicz ◽  
Damian Wieczorek
Keyword(s):  
Prediction Model ◽  
Construction Projects ◽  
Fuzzy Inference ◽  
Unit Price ◽  
Design Stage ◽  
Rule Base ◽  
Cost Overrun ◽  
Single Output ◽  
General Contractors ◽  
Input Variables

The paper proposes a cost overrun risks prediction model, the structure of which is based on the fuzzy inference model of Mamdani. The model consists of numerous inputs and one output (MISO, multi-input-single-output), based on processes running consecutively in three blocks (the fuzzy block, the interference block, and the block of sharpening the representative output value). The input variables of the model include the share of element costs in the building costs (SE), predicted changes in the number of works (WC), and expected changes in the unit price (PC). The developed rule base makes it possible to determine the risk of cost overruns in the following categories: “very low”, “quite low”, “average”, “quite high”, and “very high”. Twenty-seven rules were assumed in the interference block. The operation of the model was illustrated by the example of selected elements of a road object and was validated by checking the correctness of the assumptions made at the design stage of the inference block rule base. It has been proven that with the increase of the share of element costs in the building costs (SE), predicted changes in the number of works (WC), and expected changes in the unit price (PC), the value of the risk exceeding the costs of a given element of the construction project (R) increases naturally and smoothly. It was emphasized in the conclusions that the cost overrun risks prediction model is intended for general contractors who subcontract many stages of works to their subcontractors in accordance with the agreed division into work elements.

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