scholarly journals Analyzing Cost and Schedule Growths of Road Construction Projects, Considering Project Characteristics

2021 ◽  
Vol 13 (24) ◽  
pp. 13694
Author(s):  
Kang-Wook Lee ◽  
Kyong-Hoon Kim
Keyword(s):  
Construction Projects ◽  
National Level ◽  
Road Construction ◽  
Project Performance ◽  
Project Planning ◽  
Future Research ◽  
Socioeconomic Impacts ◽  
Factors Affecting ◽  
Project Characteristics ◽  
The Cost

The development of road infrastructure is closely related to national competitiveness and presents significant socioeconomic impacts. However, road construction involves a large budget and is vulnerable to political, economic, social, and project-specific risks, which often result in cost overruns and schedule delays. Assessing the gap between the final performance and the planned performance, and providing feedback to similar projects in the future is essential for successful project planning and management. The aim of this study is to empirically analyze the cost and schedule growth of road construction projects, considering project characteristics. Using the national-level project performance data, the primary goal is to answer, “Do project characteristics influence the road project performance? If so, how different is the performance because of the project characteristics?” To this end, this study analyzes the cost and schedule growth of 423 road construction projects, considering five project characteristics: facility type, construction type, bid type, contract type, and project size. Non-parametric tests (the Mann–Whitney U test and the Kruskal–Wallis test) are used to analyze the differences between sample groups. The results demonstrate (1) better management of the performance of the highway when compared to the national and provincial roads; (2) higher schedule growth of the expansion and renovation than that of the new construction; (3) lower cost growth of the design-build method (turnkey and alternative) than the design-bid-build methods (qualification examination and lowest price); and (4) relatively larger cost and schedule growth for projects over $50 million than those of smaller projects. These results present empirical references from the Korean construction industry that can help construction-related entities (clients, design consultants, and contractors) to estimate and manage the cost and schedule buffers of future projects by considering different project characteristics. Discussions and suggestions connected with the findings are also provided. Future research will continue to shed light on the critical factors affecting the cost and schedule growth.

PREDICTING COST CONTINGENCY FOR PRIVATE PROJECTS: CASE STUDY IN VIETNAM

2020 ◽  
Vol 43 (01) ◽  
Author(s):  
NGUYEN TUAN KIET ◽  
SOO-YONG KIM ◽  
VAN TRUONG LUU ◽  
LE VAN HUNG ◽  
LE HUU DAT
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Project Performance ◽  
Project Managers ◽  
Performance Information ◽  
Quality Cost ◽  
Factors Affecting ◽  
Forecasting Method ◽  
The Cost

Actual cost in construction projects has tended to exceed the project budgets. Thus, cost contingency from the initial of the project is the significant budget to complete project activities. Cost contingency is an important element of  cost estimation to protect project stakeholders such as owners, contractors, and architects from the risks of the project. This paper reviewed the previous studies to find the factors affecting cost contingency and proposed a regression model to predict the cost contingency for private projects in Vietnam. Through industry survey, project performance information from a total of 48 private projects in Vietnam was gathered. The research also compared with other studies to have an overview about cost contingency predicting methods. The key benefit of this research is that the project managers can use this model as another forecasting method to get a better quality cost management. The further research can be focused on developing the model for other project types in Vietnam.

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 ANALISIS KETERLAMBATAN PROYEK SERTA DAMPAKNYA TERHADAP BIAYA DAN WAKTU PELAKSANAAN PROYEK

2019 ◽  
Vol 5 (1) ◽  
pp. 13-19
Author(s):  
Fitri Nur Kharina ◽  
Kusno Adi Sambowo
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Project Work ◽  
Earned Value ◽  
Time Period ◽  
Review Period ◽  
The Difference ◽  
The Cost ◽  
The Impact

Construction projects in all regions continues to be developed for the creation of facilities that can be utilized by the community. One of them is the construction of apartments which are now being intensively carried out to meet residential needs for the community. Making a construction project plan always refers to estimates that exist at the time development plan is made, therefore problems can arise if there is a discrepancy between the plans that have been made and the actual reality. So the impact that often occurs is the delay in the time of project implementation which can also be accompanied by an increase in the cost of implementing the project. In the construction project of Cinere Terrace Suites Apartemen & Citywalk, Jakarta there was a delay resulting in a late payment of monthly bill progress by the owner. Based on the above reasons, this research was conducted to find out how the project performance was seen from the cost and time period of the review period. how is the estimated cost and time to complete the overall project work. The method used in the analysis of this study is the Earned Value Method. Based on the results of the analysis carried out for 29 weeks the project performance on schedule has been delayed and cost shows a positive value. For the estimated completion time of the project there is an increase in time whose duration increases from the planned 98 weeks or 685 days to 109,624 weeks or 768 days. While the estimated cost of completing the project from the results of the analysis obtained a value of Rp. 270,147,448,569.16 smaller than the planned cost of Rp. 315,272,727,272.73. With the difference VAC of Rp. 45,125,278,703.57 this shows that there are benefits obtained by the contractor.

Exploring influential factors leading to the poor performance of public construction project in Ethiopia using structural equation modelling

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Poor Performance ◽  
Project Performance ◽  
Influential Factors ◽  
Project Design ◽  
Content Type ◽  
Factors Affecting ◽  
Public Construction

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.

scholarly journals FAKTOR DEMOGRAFI DOMINAN YANG MEMPENGARUHI PROYEK KONSTRUKSI JALAN DI PEDESAAN INDONESIA

2020 ◽  
Vol 3 (1) ◽  
pp. 135
Author(s):  
Samuel Semaya ◽  
Basuki Anondho
Keyword(s):  
Data Analysis ◽  
Rural Areas ◽  
Construction Projects ◽  
Demographic Characteristic ◽  
Influence Factor ◽  
National Development ◽  
Road Construction ◽  
Analysis Data ◽  
Test Reliability ◽  
Factors Affecting

National development for almost 70 years since independence Indonesia has produced various advances, but it was realized that the development process carried out so far turned out to have caused a residual problem of development inequality, especially in rural areas. the development approach which only emphasizes macroeconomic growth tends to lead to a large development gap between regions. Therefore, this study would like to conduct a study of the dominant demographic characteristic factors affecting construction projects in rural Indonesia. The research was conducted by distributing questionnaires to contractors selected by the Ministry of Village. The source of the questionnaire used is through previously identified journals and books. The method used in analyzing data is factor analysis. Data analysis was carried out starting from the validity test, reliability test, KMO test, MSA test, communality test, and determining the dominant influence factor. Based on the data analysis conducted, it was concluded that the most dominant demographic characteristic factors affecting road construction projects in rural Indonesia were education, gender, age, urbanization, and labor.AbstrakPembangunan nasional selama hampir 70 tahun sejak Indonesia merdeka telah menghasilkan berbagai kemajuan, namun disadari bahwa proses pembangunan yang dilaksanakan selama ini ternyata telah menimbulkan residu masalah kesenjangan pembangunan, khususnya wilayah pedesaan. pendekatan pembangunan yang hanya menekankan pada pertumbuhan ekonomi makro, cenderung menimbulkan terjadinya kesenjangan pembangunan antar wilayah yang cukup besar. Oleh karena itu, studi ini ingin melakukan penelitian tentang faktor demografi dominan yang mempengaruhi proyek konstruksi jalan di pedesaan Indonesia. penelitian dilakukan dengan penyebaran kuesioner kepada kontraktor yang dipilih oleh Kementerian Desa. Sumber kuesioner yang digunakan adalah melalui jurnal dan buku yang telah diidentifikasi lebih dulu. Metode yang dipakai dalam menganalisis data adalah analisis faktor. Analisis data dilakukan mulai dari uji validitas, uji reliabilitas, uji KMO, uji MSA, uji komunalitas, dan menentukan faktor pengaruh dominan. Berdasarkan analisis data yang dilakukan, diperoleh kesimpulan bahwa faktor demografi yang paling dominan yang mempengaruhi terhadap proyek konstruksi jalan di pedesaan Indonesia adalah pendidikan, jenis kelamin, usia, urbanisasi, dan tenaga kerja.

scholarly journals Application of Value Management in Conception of Construction Projects in Rwanda

2019 ◽  
Vol 6 (3) ◽  
pp. 1-6
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Survey Method ◽  
Value Management ◽  
Maximum Output ◽  
Value For Money ◽  
Mandatory Requirement ◽  
Professional Practitioners ◽  
The Cost

Value Management (VM) and Value Engineering (VE) are techniques concerned with defining, maximizing and achieving “value for money”. It should be noted that VM is not about reducing the cost but about adding value and where necessary the cost can be added to achieve value. Despite its proven significance in securing maximum output from limited resources, this approach is not a common practice in Rwanda’s construction Industry. This study therefore defines VM and describes all the processes and techniques involved in it. The merits and demerits of VM process in construction projects are discussed in details and relevance of its uses is discussed and recommended in consideration of the scope and complexity of the projects as well as the risks involved. While the benefits of a value management review are often perceived in terms of improved quality and reduced cost, this report discusses the exercise as a functional mechanism to measure value, taking into account monetary and non-monetary benefits and thus demonstrating value for money. While the author has not been able to obtain relevant literature on VM practice in Rwanda, It can be deduced from the review of the related literature that most of the evaluation techniques conducted for construction projects in developing world have mostly relied on evaluation of project performance in terms of cost, quality, delivery and progress. Since project evaluation is carried out after the work has been undertaken, the output of the analysis will just give the client an indication or a good understanding of the project performance. Such evaluations only reveal the competence or incompetence of the project participants instead of providing value for money which is addressed by VM practice which is an ex-ante analysis that takes into consideration of all value parameters. The study used a quantitative survey method of research to obtain responses from professional practitioners in construction industry in Rwanda. The sample size of 115 were selected from members of professional practitioners in the construction industry out of which 106 members were responsive. Finally, it is concluded that VM approach is not used in construction industry in Rwanda and recommended that VM practice be adopted in construction industry in Rwanda as a mandatory requirement for conception of all construction projects with a budget of $20M and above

scholarly journals IDENTIFIKASI RISIKO CHANGE ORDER PROYEK KONSTRUKSI JALAN

2021 ◽  
Vol 5 (1) ◽  
pp. 225
Author(s):  
Mega Waty ◽  
Hendrik Sulistio
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Road Construction ◽  
Real Data ◽  
Intermediate Frequency ◽  
Risk Identification ◽  
Construction Work ◽  
Change Orders ◽  
Change Order ◽  
The Cost

A Change Order is a written and legal work order that changes the scope of the original contract, with compensation that has been agreed upon by the owner and the contractor. Changes can be in the form of adding or reducing the scope of work, changing materials, or changing schedules. Change Order causes the cost of contract items to swell, planning errors and negligence as well as changes in scope that can be reduced by sharpening planning results. The scope of research on road construction in Indonesia, especially in DKI Jakarta and Banten provinces. This study aims to determine the identification of change orders in road construction projects. Data obtained from real data on road construction projects from 2013-2018 on 16 road construction project packages in the form of road construction project addendum contracts. Based on the addendum contract, added work, less work, addition of new items and removal of work items are determined. The identification of change order risk is seen from three aspects, namely the addition and reduction of work items, the removal of items and the addition of new items and the wishes of the owner, thereby increasing the cost of the change order contract. This study found 732 changes in construction work items. Risk identification is obtained from the frequency of changes above 35% which is an intermediate frequency that tends to increase the occurrence of change orders. The results of risk identification were obtained for 31 construction work items, the highest percentage was for Thermoplastic Road Marking work, followed by 30 other construction work items. Keywords: risk identification; change orders; road construction projects  AbstrakChange Order adalah perintah kerja tertulis dan sah  yang mengubah lingkup kontrak semula, dengan kompensasi  yang sudah disetujui oleh pemilik dan  kontraktor.  Perubahan dapat berupa penambahan atau pengurangan lingkup pekerjaan, perubahan material, atau perubahan jadwal. Change Order menyebabkan biaya  item kontrak membengkak, kesalahan perencanaan dan kelalaian serta perubahan ruang lingkup yang dapat dikurangi dengan mempertajam hasil perencanaan.. Lingkup penelitian pada konstruksi jalan di Indonesia khususnya  provinsi DKI Jakarta dan Banten. Penelitian  bertujuan untuk  mengetahui  identifikasi change order proyek konstruksi jalan. Data didapat dari data riil proyek konstruksi jalan dari tahun 2013- 2018 pada 16 paket proyek konstruksi jalan berupa kontrak addendum proyek konstruksi jalan. Berdasarkan kontrak addendum maka ditentukan pekerjaan tambah, pekerjaan kurang, penambahan item baru dan penghilangan item pekerjaan. Identifikasi risiko change order dilihat dari tiga aspek yakni penambahan dan pengurangan item pekerjaan, penghilangan item dan penambahan item baru dan keinginan dari pihak owner sehingga meningkatkan biaya kontrak change order.  Penelitian ini mendapatkan 732 perubahan  item pekerjaan konstruksi.  Identifikasi risiko didapat dari  frekuensi perubahan diatas 35% yang merupakan frekuensi menengah yang cenderung meningkatkan terjadinya change order. Hasil identifikasi risiko didapat pada  31 item pekerjaan konstruksi, yang tertinggi persentase pada pekerjaan  Marka Jalan Termoplastik, diikuti 30 item pekerjaan konstruksi lainnya.

scholarly journals The Alternative Net Model with the Fuzzy Decision Node for the Construction Projects Planning

2018 ◽  
Vol 64 (2) ◽  
pp. 3-20 ◽  
Author(s):  
N. Ibadov
Keyword(s):  
Construction Projects ◽  
Project Planning ◽  
Alternative Methods ◽  
Fuzzy Decision ◽  
Work Activity ◽  
Decision Node ◽  
Additional Information ◽  
Fuzzy Preference Relations ◽  
Fuzzy Decision Model ◽  
The Cost

AbstractThe new approach to the construction project planning is presented in the article. The classical net model is enriched by the fuzzy decision node. The decision node allows for alternate choices dependent on appearing circumstances. The alternative net model with fuzzy decision node is an acyclic multi-graph, where some, chosen nodes (events) have multiple connections. These connections represent alternative methods of the certain work execution. Every work (activity) (i, j) in the net model with alternative methods of work execution, despite the basic information comprising the execution time, the cost, the number of necessary workers, should comprise additional information e.g. about a complexity of works, a real feasibility. The alternative ways of a given work execution are evaluated in the decision node based on the fuzzy decision model. Each method is evaluated by assigning it the preference level in a form of the value of the membership function - „equal or higher” μ≥ . The most preferable way of the work execution in a given circumstances, will have the highest value of preference level. When the choice is done the net model is solved in the traditional way. Therefore, the paper concentrates on the process of choosing the method of work execution in the fuzzy decision node. The example calculations accompanying the process of decision taking are presented too. The model requires the use of linguistic variables, a fuzzy numbers, as well as fuzzy preference relations together with some calculations applied the probability theory.

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.

Sign in / Sign up

Export Citation Format

Share Document