scholarly journals Influence of Claim Management in Construction Industry

Most construction projects are suffering from claims due to many reasons. Claim emergencies have risen for ten years due to the critical political situation. These claims have a bad impact on all groups who were work in the construction field. The impact of claim could be followed to cost overrun, loss of efforts and suspension of work, contract termination. This investigation means to recognize the real reason for causes of claim in construction and demonstrate their difference between respondent concerning individual, company and organization traits. It also aims found the important factors in developing for the management of construction project claim to predict claim occurrence and to mitigate the negative impact of a claim. The objective of the study achieved through a valid questionnaire obtained from several construction companies. The questionnaire survey was conducted involving the contractor, consultant, client point of view. The result of the questionnaire encountered in the SPSS software for finding the major factor that affects the construction. The finding demonstrates the absence of site attention to detect claims, detachment or inaccessible of related documents proactively, and conflicts which develop during owner/contractor negotiation are all critical issue related with the system of claim management. My work aims to distinguish the various claims through review paper and to recognize the most impacted causes of claim in our region.

2021 ◽  
Vol 23 (05) ◽  
pp. 797-805
Author(s):  
Neelakash Haloi ◽  
◽  
Tapas Goyal ◽  
Faizan Zahoor ◽  
Harsh Jain ◽  
...  

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ali Musarat ◽  
Wesam Salah Alaloul ◽  
M.S. Liew

PurposeLabours are one of the key resources of construction projects having a significant impact on economic development. With time, the construction industry is getting a boom due to numerous construction projects in which labours’ contribution is significant. Project betterment is associated with the project productivity which relates to the labours. Wages play a vital role in retaining labours in the construction industry.Design/methodology/approachThis study focuses on investigating the increasing and decreasing behaviour of labour wages in the construction industry and observing the impact of the inflation rate in deviating labour wages. Initially, the percentage deviation was calculated to observe the changing behaviour of the data and then the Spearman correlation test was used to find the relationship between the inflation rate and the labour wages.FindingsIt is evident that even with a good economy and a stable construction sector, still, the labour wages faced a decline over time, which is a matter of concern. Also, based on the correlation coefficient, it was revealed that several labour wages categories are moderately and strongly correlated with the inflation rate and can impact project cost if the inflation rate is not considered while finalizing the budget. Besides that, the changing behaviour of labour wages due to the inflation rate impacts significantly on gross domestic product (GDP); therefore, it requires vital attention.Originality/valueChanges in labour wages are not considered in budget estimation which drag the project towards cost overrun. This study brings the attention of the stakeholders on the issue with experimental justification. Also, how the inflation rate is affecting the labour wages has also been addressed.


Author(s):  
Gülden Gümüşburun Ayalp ◽  
Fatma Arslan

Motivation is one of the factors that influence the productivity of people. Architects play a vital role in the management of projects in the construction industry. The success of construction projects relies heavily on their active involvement and effective performance. Hence it is important to assess the impact of motivation on the performance these architects. On the other hand, architects are frequently confronted with problems that could lead them to demotivation. Demotivation is caused not simply by a lack of motivators but the existence of certain situations that cause dissatisfaction and discourage individuals from pursuing desired goals and aims. From this point of view, the present study conducted with the aim of identifying factors affecting demotivation of Turkish architects. After a review of extant literatures in construction management, and design management 69 demotivating criteria was produced and used in questionnaire survey, and data were collected from architects who are working at construction industry, especially at design firms. The questionnaires were administered to architects via e-mail, and 71 participants responded to the survey. Utilizing the particular statistical analyzes, the factors were identified for detailed analysis and discussion. From the findings of the present study, ten underlying demotivating factors have been identified for architects in Turkish construction industry. This study would help managers of design firms to develop healthy workforce through eradication of the identified demotivating factors using some of suggested solutions.


2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Osama Salim Al Adawi ◽  
Hussin Yahia

Cost overrun is a common phenomenon in construction projects of any country, be it in developing or developed countries. This issue is a critical issue that impacts a project's success. It, therefore, needs serious attention from all the participants in the construction project to keep the projects in safe mode, to be completed within its limited cost, time, and performance. Cost overrun has a negative impact on construction project performance, which is because the construction industry is vast and complex. Any difficulty occurring during the project's life cycle leads to other problems in various parts of the project. Studies by many researchers’ cost overruns by literature review, and according to their studies suggested the most cost overrun causes. The aim of this study is to identify the most critical factors leading to cost overruns on road projects in Oman, and then provide suggestions to resolve them.


2021 ◽  
Vol 37 (04) ◽  
pp. 433-443
Author(s):  
Wajid Alim ◽  
Sabahat Nisar ◽  
Rabia Asif

The spread of COVID-19 has obstructed construction projects worldwide owing to disruptions in supply chain, restriction on the combine work and legislative enforcements. Construction projects from developing economies are more susceptible to these challenges. The aim of this research is to identify factors caused by COVID-19 impacting progress of construction projects and review tools to lessen its negative impact. Multistep methodology is adopted using semi-structured interviews with construction experts to identify factors affected the progress during COVID-19; and data collection from professionals to quantify the significance of each identified factor; Cronbach’s alpha for reliability and multiple regression to assess the effect of COVID-19 on progress of construction projects. The findings show that COVID-19 has left severe issues at the operational and financial levels. The remedies use to correct these issues will help policymakers from construction industry to improve existing strategic plans and develop new policies to manage the issues caused by COVID-19.


Author(s):  
Roman Prav ◽  

The issues of economic development in conditions of high risks are becoming highly relevant. Modern trends in the development of the construction industry, as a multiplier of the economic development of the state, form a new system of requirements for the management of operational processes and strategic vectors of the construction industry, both at the macroeconomic level and at the level of individual regional systems and individual enterprises. The trend in the development of society and their influence on the formation of trends in the construction industry were analyzed in the article, taking into account their significant impact on the formation of risk management mechanisms for construction projects. Technologization processes were identified among the main trends in the development of the economy. They directly affect not only the operational work on the implementation of the construction project, but also form the need for personnel of appropriate qualifications, a decrease in the need for labor and an increase in the need for highly qualified specialists with the skills of working in the information technology system and automated construction management systems. The technology of commissioning modular housing, its advantages and disadvantages is considered in detail. The development of green construction is highlighted as a separate trend, which is an important factor in sustainable development and ensuring the competitiveness of construction enterprises. A new trend in the development of regional construction systems has been identified, namely, entry into the traditionally segmented regional markets of foreign investment construction companies, which create additional competitive factors for domestic enterprises. Accordingly, according to certain trends, risk systems were formulated, which are relatively new for the construction market, respectively, an analysis of the mechanisms for their minimization and avoidance was developed. The article analyzes the risks of the construction sector in accordance with the analysis of trends and tendencies in the development of the construction industry. For each block of risk elements, possible forms of response and warning have been identified. According to the analysis, recommendations are given for managing the risks of construction companies. The analyzed risks are considered from the point of view of the formation of mechanisms of state regulatory policy in order to form an effective construction system at the state and regional levels.


2021 ◽  
Vol 318 ◽  
pp. 02005
Author(s):  
Ghasaq A. Fadhil ◽  
Abbas M. Burhan

Construction is a complex activity performed in an almost uncontrolled environment. Although, in theory, projects can be well planned in advance, there is a possibility that unexpected events and crises will disrupt these plans, which will affect the progress of projects. Construction companies can be easily affected by crises because the initial investment costs are very high in construction projects, which may lead to huge financial damages. One of the most prominent crises that Iraq faced was the financial crisis in 2014, which had a significant impact on various activities and the construction industry. This research aims to explore the most important causes of the economic crises in Iraq in general, investigate the impact of this crisis on the construction industry in Iraq particularly, explore the most important factors that contributed to the aggravation of the crisis in this area. Finally, explore the most important strategies adopted by higher authorities and construction companies during the economic recession that followed the crisis to mitigate its impact. One hundred fifty-one closed questionnaires were distributed for this purpose. The results showed that financial and administrative corruption is one of the most important causes of crises with (RII) 0.93. Also, 82% of the respondents answered that the projects had increased their duration significantly so that it was difficult to set a date for their completion due to the insolvency or inability of the Iraqi state to pay the financial dues to the contractors. This insolvency negatively impacted the construction industry during the crisis with RII (0.832).


2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Haitham Nasser Al Siyabi ◽  
Omar Khaleel

There are many challenges in construction industry sector, and one of the most important and critical is completion of the project within the original contract value. As the issue of cost overrun in construction projects is spread worldwide generally and commonly encountered in the Sultanate of Oman.The main objectives of this study are to identify and determine vital factors leading to cost overrun in Building Projects in Oman, evaluate the impact of cost overrun in building construction projects and develop the best protocol strategy for project management teams that can be adopted in order to control the cost overrun in future projects. These objectives have been obtained through several methods, questionnaire survey,interviews with experts in construction industry. Twenty nine major factors lead to cost overrun were identified through literature review and studied in Sultanate of Oman.The study concluded that there are three major impacts of cost overrun in construction projects and industry which are time of completion, delivery of poor quality projects and delay of payment approval. Additional to that, Hire good Supervision Team, a good Cost Controller, Project Manager, a good project design team, well planning for pre-contract stage and proper procurement strategy. Consider the Risk assessment and Risk Control are crucial to minimize the cost overrun in building construction project in Oman. The study have recommended procedure to cost control in future project such as the Employer should have a proper tender analysis of the Contractor’s bid, Detailed design should be finalized before award of work and others.


2019 ◽  
Vol 5 (3) ◽  
pp. 262-271
Author(s):  
R. Nurimbetov ◽  
A. Zikriyoev

A part of the research on the impact and interrelation between human factors and the safety of the working environment in the construction sector is presented. Labor in construction companies is often associated with a high risk of injury and, therefore, occupational safety is an important element of production efficiency in this area. The injured workers lost working days and financial costs affect the social and economic efficiency of the construction industry. Statistics indicate that occupational health and safety for modern research are current issues. Economic reforms in Uzbekistan envisage the creation of favourable and safe working conditions. From this point of view, ILO standards (Health & Safety) are really relevant for research and implementation in the construction industry of Uzbekistan. The purpose of this article is to analyze the implementation of best practices in the construction industry of Uzbekistan.


2018 ◽  
Vol 9 (1) ◽  
pp. 41-49
Author(s):  
P. Muralidhar ◽  
Rahul Kumar Jain ◽  
B. Srivasta ◽  
V. Poorna Chandra Rao

The construction industry is one of the major sectors that provide important ingredients for the development of country’s economy. A survey is conducted to identify the major causes of construction delays, its effects, and minimizing delays in construction projects using relative importance index method. The questionnaire was circulated among various construction companies located in India to find the reasons which are affecting the construction projects in India. The various factors are identified for this purpose and these critical factors are then categorized into owner, contractor, consultant, material, design, labor, equipment and external factors. About fifty six responses are received for the analysis purpose. SPSS software is applied to perform the analysis. The survey is concentrated on the frequency of occurrence of this factors and what is the severity of this factors in the five point scale.


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