scholarly journals Who Risks and Wins?—Simulated Cost Variance in Sustainable Construction Projects

2020 ◽  
Vol 12 (8) ◽  
pp. 3370 ◽  
Author(s):  
Jarosław Górecki ◽  
Manuel Díaz-Madroñero
Keyword(s):  
Construction Projects ◽  
Probability Distributions ◽  
Sustainable Construction ◽  
Social Responsiveness ◽  
Construction Companies ◽  
Cost Variance ◽  
Project Failures ◽  
The Cost ◽  
Risk Construction ◽  
Cost Risk

More and more construction projects are closed before they ever start. Among the most significant reasons for project failures is cost risk. Construction companies have many problems with reliable cost management. Rising demands of the key market players insist on making construction projects more sustainable according to the simultaneous improvement of the economic, environmental and social responsiveness dimensions. In order to investigate these problems, a four-phase research methodology has been followed consisting of: (1) literature review to identify research trends and gaps, (2) survey to construction experts to detect their subjective perspectives about risk costs and analyse the corresponding costs structure for the investment in sustainable projects, (3) simulations based on Monte Carlo simulation with an author’s methodology for calculating the cost risk with an additional statistical analysis, (4) ending questionnaire to obtain the final feedback from the experts and the validation of obtained results. A contribution to the development of knowledge about cost risk is the observation that the changing probability distributions of individual cost-generating components may include both economic as well as technological and organizational aspects. Thus, with the proposed approach, often complex, global challenges of sustainable construction projects can be tackled in an accessible way.

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.

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 INDONESIAN CONSTRUCTION SUPPLY CHAINS COST STRUCTURE AND FACTORS: A CASE STUDY OF TWO PROJECTS / SĄNAUDŲ STRUKTŪRA IR VEIKSNIAI INDONEZIJOS STATYBŲ TIEKIMO GRANDINĖSE: DVIEJŲ PROJEKTŲ ATVEJO TYRIMAS

2012 ◽  
Vol 18 (2) ◽  
pp. 209-216 ◽  
Author(s):  
Muhamad Abduh ◽  
Biemo W. Soemardi ◽  
Reini D. Wirahadikusumah
Keyword(s):  
Supply Chains ◽  
Construction Projects ◽  
Early Stage ◽  
Selection Process ◽  
Cost Structure ◽  
Construction Company ◽  
Construction Companies ◽  
Material Requirement ◽  
Reducing Costs ◽  
The Cost

Studies of Indonesian construction supply chains have been in the early stage. Previous studies have described very well the structures of construction project supply chains. Moreover, one of strategies that have been considered by construction companies for gaining a competitive advantage is to reduce the cost of their supply chains. The research's objective is to identify the cost structure of construction supply chains in Indonesia and factors that could influence it. By knowing these factors, construction companies are expected to be able to determine strategic efforts needed for reducing cost of their construction supply chains. Two construction projects operated by a large construction company were explored as case-studies. Rebar material was chosen for this supply chains study. It was found that the cost of purchasing was very significant. Meanwhile, costs of transportation and inventory were insignificant. It can be concluded that efforts to reduce supply chains cost by reducing costs of inventory and transportation would not be effective. Therefore, factors that could influence the cost of supply chains are related to management of supply chains, such as procurement policy, material requirement planning, supplier qualification, selection process, contract, and supplier development. Santrauka Ankstesniuose Indonezijos statybų tiekimo grandinių tyrimuose labai gerai apibūdintos statybos projektų tiekimo grandinių struktūros. Be to, viena iš strategijų, kurias statybų įmonės nagrinėjo kaip galimybę įgyti konkurencinį pranašumą, buvo išlaidų mažinimas tiekimo grandinėms. Šiuo tyrimu siekiama nustatyti Indonezijos statybų tiekimo grandinių išlaidų struktūrą ir jai įtaką galinčius daryti veiksnius. Žinodamos tokius veiksnius, statybų įmonės turėtų sugebėti nustatyti, kokios strategijos leistų sumažinti išlaidas statybų tiekimo grandinėms. Atvejui tirti pasirinkti du statybų projektai, kuriuos vykdė stambi statybos įmonė. Šiam tiekimo grandinių tyrimui pasirinkta armatūra. Nustatyta, kad pirkimo kaina buvo labai svarbi, o pristatymo ir inventorizacijos išlaidos svarbiomis nelaikytos. Galima daryti išvadą, kad bandymas apriboti išlaidas tiekimo grandinėms, mažinant inventorizacijos ir pristatymo išlaidas, nebūtų veiksmingas. Taigi išlaidoms, kurios skiriamos tiekimo grandinėms, įtaką galintys daryti veiksniai yra susiję su tiekimo grandinių valdymu: pirkimo politika, medžiagų poreikio planavimu, tiekėjų kvalifikacija, atrankos procesu, sutarties sudarymu ir tiekėjų tobulinimo programa.

scholarly journals Risk Management of Construction Projects

2020 ◽  
Vol 9 (1) ◽  
pp. 15
Author(s):  
Amer Abdullatef Mahmoud al-Mukahal
Keyword(s):  
Risk Management ◽  
Quantitative Analysis ◽  
Qualitative Analysis ◽  
Construction Projects ◽  
Probability Distributions ◽  
Construction Project ◽  
Risk Identification ◽  
Political Factors ◽  
Construction Companies ◽  
Cause And Effect Diagram

This study aims to Analyzing the nature of Construction Projects, Analyzing the Nature of Construction Projects Risk, and Analyzing The mechanism of Risk Management. This Study adopted The Quantitative Method. The Summary Concluded From The Study Lies in the Theoretical Study of construction Project`s Risk. The Construction Project Contains Many Risk Which Related to Different Factors: Legal, Organizational, Technical, Zoning, Financial, Social and Political Factors. The Process of Management of Construction Projects includes: Planning of Risk Management, Risk Identification By (Checklist Analysis, Questionnaire, Personal Interview, Brainstorming Technique, Delphi Technique), Risk Analysis By Qualitative Analysis By (Probability and Impact Assessment, Cause and Effect Diagram, Probability and Impact Matrix) and Quantitative Analysis By (Probability Distributions, interviews , Sensitivity Analysis, Fault tree, Events tree, Munte Carlo Simulation), Planning the Response to Risk By (Strategies for Response to Negative Risk , and Strategies to Positive Risks), and Risk Control and Cheek. Depending on The Conclusions, The Study Recommends the Following: Process of Assessing The Efficiency of Construction Companies. Use Qualitative Analysis and Quantitative Analysis in The Process of diagnosis, and Categorization of Risk in the Process of Risk Management. Studying Types of Contracts of Construction Projects.

scholarly journals Classification of project cost overruns in the construction industry

2019 ◽  
Vol 11 (5) ◽  
Author(s):  
Vitali Chulkov ◽  
Sergey Sinenko ◽  
Mukhammet Fakhratov ◽  
Mohammad Akbari
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Potential Cost ◽  
Management Tools ◽  
Cost Overruns ◽  
Construction Company ◽  
Construction Companies ◽  
Potential Factor ◽  
Potential Factors ◽  
The Cost

Cost overruns vary evidently almost in every construction project, but their magnitude from project to project. The cost overruns have hit down the economy and the reputation of many Construction Company and hit down the economy and the reputation of many construction companies around the world. Many project management tools are designed to manage the project's budget. However, cost management is still considered poor, as there are many cost overruns in the construction industry. Thus, this work is aimed at identifying and clustering potential factors of the excess cost of construction projects in accordance with their original groups using a thematic approach. Basically, through a literature review, all the potential factors that could cause cost overruns were carefully analyzed before they were grouped into seven (7) groups of underlying factors, namely: project, contract, client, contractor consultant, workforce and external. Each potential factor was clearly explained with some examples based on Malaysian case studies to illustrate the cost overruns scenario. These findings may help in the future to focus on how to mitigate critical potential cost-overs to reduce or overcome its impact on all involved stakeholders.

The implications of reuse and recycling for the design of steel buildings

2006 ◽  
Vol 33 (4) ◽  
pp. 489-496 ◽  
Author(s):  
Mark Gorgolewski
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Steel Production ◽  
Green Building ◽  
Environmental Issues ◽  
Local Area ◽  
Sustainable Construction ◽  
Limiting Factor ◽  
Steel Buildings ◽  
Construction Companies

There is an increasing interest in reuse and recycling in the Canadian construction industry. This interest is driven partly by the recent adoption in Canada of the Leadership in Energy and Environmental Design (LEED®) Green Building Rating System and partly by a greater general awareness of environmental issues. Designers are beginning to look at how to incorporate reused steel components into construction projects, thereby reducing greenhouse gas emissions by saving on primary steel production. However, although some designers are willing to redesign their projects to make use of available reclaimed structural steel components, it is often difficult to identify suitable materials in the local area at the appropriate time in the life of a project. A limiting factor is that designers, construction companies, and others perceive a lack of a well-established and easily available mechanism for exchange of reclaimed components. This paper reviews the issues that are relevant to increasing recycling and reuse in construction and focuses on examples that illustrate the benefits that steel can bring to sustainable construction. In particular, it discusses the issues relevant to designing to enable future disassembly and the way in which steel components can be readily reused.Key words: reclaimed steel, reuse of materials, steel recycling, design for deconstruction, sustainable construction.

Statistical Evaluation for claims and disputes in construction contracts

2017 ◽  
Vol 5 (2) ◽  
pp. 80-96
Author(s):  
Raid Saleem Abd Ali ◽  
Nooran kanaan Yassin
Keyword(s):  
Construction Projects ◽  
Statistical Evaluation ◽  
Relative Importance ◽  
Minimum Level ◽  
Construction Contracts ◽  
Long Period ◽  
Price Schedule ◽  
Questionnaire Form ◽  
The Subject ◽  
The Cost

This research aims to diagnose and identify the causes of claims and disputes between the contractor and the employer, also review the methods used to resolve disputes in construction contracts. In order to achieve the goal of the research, scientific methodology is followed to collect information and data on the subject of claims and disputes in construction projects in Iraq through personal interviews and questionnaire form. The most important results in this research are: the price schedule contract as a kind of competitive contracts is the most important and guarantee for the completion of minimum level of claims and disputes with relative importance of (84.1), compared with the (cost plus a percentage of the cost contract) as a kind of negotiating contracts is the most relative importance of (79.6), and the turnkey contract as a kind of special contracts is the most relative importance of (74.2). The  contractor and  his agents are one of the most influence sources in occurring claims and disputes in construction contracts with relative importance of (77.4) followed by the contract documents with relative importance of (74.2) and then the employer with relative importance of (73.2). In addition to the long period of litigation and the multiplicity of veto grades are most negative when contractual disputes have resolved by it, and with relative importance of (86), followed by the large number of issues and lack of efficiency and specialty of Judges with relative importance (78.4). Finally, the direct negotiation method (relative importance of 77) is one of the most friendly settlement ways favored by conflicted parties, while the resolution of disputes and claims board (relative importance of 10) occupied the last rank in the friendly settlement ways.

scholarly journals Sustainability in Construction Projects: A Systematic Literature Review

2021 ◽  
Vol 13 (4) ◽  
pp. 1932 ◽  
Author(s):  
Reza Kiani Mavi ◽  
Denise Gengatharen ◽  
Neda Kiani Mavi ◽  
Richard Hughes ◽  
Alistair Campbell ◽  
...  
Keyword(s):  
Project Management ◽  
Structural Equation ◽  
Construction Projects ◽  
Feasibility Studies ◽  
Integrated Approach ◽  
Sustainable Construction ◽  
Fuzzy Decision Making ◽  
Eigenvector Centrality ◽  
Mathematical Techniques ◽  
New Research

This paper aims to identify the major research concepts studied in the literature of sustainability in construction projects. Two bibliometric analysis tools—(a) BibExcel and (b) Gephi, were used to analyze the bibliometrics indices of papers and visualize their interrelations as a network, respectively. Therefore, a research focus parallelship network (RFPN) analysis and keyword co-occurrence network (KCON) analysis were performed to uncover the primary research themes. The RFPN analysis clustered the studies into three major categories of evaluating sustainability, project management for sustainability, and drivers of sustainable construction. The KCON analysis revealed that while each paper had a different focus, the underlying concept of all clusters was sustainability, construction, and project management. We found that while ‘sustainability’ was the leading keyword in the first cluster, i.e., evaluating sustainability, it was the second top keyword with the eigenvector centrality of over 0.94 in the other two clusters. We also found that the concept of sustainability should be included in construction projects from the early stages of design and feasibility studies and must be monitored throughout the project life. This review showed that previous researchers used a variety of statistical and mathematical techniques such as structural equation modelling and fuzzy decision-making methods to study sustainability in construction projects. Using an integrated approach to identifying the research gaps in this area, this paper provides researchers with insights on how to frame new research to study sustainability in construction projects.

scholarly journals Application Of The Work Breakdown Structure In Determining Cost Buffers In Construction Schedules

2015 ◽  
Vol 61 (1) ◽  
pp. 147-161 ◽  
Author(s):  
M. Połoński
Keyword(s):  
Construction Projects ◽  
Work Breakdown Structure ◽  
Initial Task ◽  
The Common ◽  
Definition Of ◽  
The Cost ◽  
Construction Schedules

AbstractThe paper presents methods of determining the location of cost buffers and corresponding contingency costs in the CPM schedule based on its work breakdown structure. Application of correctly located cost buffers with appropriately established reserve costs is justified by the common overrunning of scheduled costs in construction projects. Interpolated cost buffers (CB) as separate tasks have been combined with relevant summary tasks by the start–to–start (SS) relationship, whereas the time of their execution has been dynamically connected with the time of accomplishment of particular summary tasks using the “paste connection” option. Besides cost buffers linked with the group of tasks assigned to summary tasks, a definition of the cost buffer for the entire project (PCB) has been proposed, i.e. as one initial task of the entire project. Contingency costs corresponding to these buffers, depending on the data that the planner has at his disposal, can be determined using different methods, but always depend on the costs of all tasks protected by each buffer. The paper presents an exemplary schedule for a facility and the method of determining locations and cost for buffers CB and PCB, as well as their influence on the course of the curve illustrating the budgeted cost of work scheduled (BCWS). The proposed solution has been adjusted and presented with consideration of the possibilities created by the scheduling software MS Project, though its general assumptions may be implemented with application of other similar specialist tools.

Sign in / Sign up

Export Citation Format

Share Document