scholarly journals Simulation Modeling of Cost Overrun in Construction Project in Ethiopia

2019 ◽  
Vol 8 (4) ◽  
pp. 12685-12691
Keyword(s):  
Simulation Modeling ◽  
Construction Projects ◽  
Construction Project ◽  
Simulation Models ◽  
Simulation Method ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Important Index ◽  
Questionnaire Surveys ◽  
Different Parts

Cost is an essential part of any construction project. It was observed that cost overrun is one of the most frequently occurring issues in construction projects of Ethiopia and it is more severe in different parts of the country. The aim of this research has identified the factors that influence cost overruns of construction projects, quantified the percentage of identified factors, established probability distribution of identified factors and develop simulation modeling of cost overrun. The study was conducted based on the desk study and questionnaire survey. Questionnaire surveys were analyzed by using Relative Important Index (RII) ranking and significance of data checked by using a t-test at a 95% confidence level. Based on the desk study of 19 projects, a simulation model of cost overrun was developed by using the Monte Carlo simulation method. Simulation models showed a higher frequency of cost overrun occurring up to 10%. This indicates that the actual cost of most construction projects runs up to 10 % over the budgeted cost of work performed.

scholarly journals Assessment of delay and cost-overrun in federal road construction project in Abuja

2020 ◽  
Vol 11 (4) ◽  
pp. 1184
Author(s):  
Ashem Emmanuel Egila ◽  
Oluwaseun Abdulakeem Balogun ◽  
Saheed Olanrewaji Yusuf
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Road Construction ◽  
Mean Value ◽  
Cost Overrun ◽  
Related Factors ◽  
Cost Overruns ◽  
Factors Influencing ◽  
Importance Index ◽  
The Government

Poor road infrastructure in Nigeria is a significant challenge, just like poverty, insecurity, and unemployment. The construction of road in the country is characterized by numerous challenges throughout the project life cycle. Some of these challenges are project delay and cost overrun, corruption and fraud, faulty contractual process among others. Objectives of this study are to identify factors influencing delays and cost overruns in road construction project, to rank these factors base on their impacts and importance, and to suggest conservative ways to address the future challenges that can result from delays and cost overruns of future road construction projects. The research instruments include in-depth literature review, fieldwork, questionnaire administration, and interview. Inferential statistics such as Relative importance index (RII) and Mean Value techniques were used to analyze collected data. The result of the study identified factors influencing delays and cost overruns in road construction projects as; man related, money-related, machine-related, material related, environmental-related, and method related factors. Analysis using RII and MV ranked man and money related as the highest factors for delay and cost overrun respectively. Hence, the research recommends that the Government should create an enabling environment, making suitable policy for the construction company to operate.

scholarly journals Cost overruns of public sector construction projects: a developing country perspective

2019 ◽  
Vol 13 (1) ◽  
pp. 66-84 ◽  
Author(s):  
Richard Ohene Asiedu ◽  
Ebenezer Adaku
Keyword(s):  
Public Sector ◽  
Construction Projects ◽  
Public Procurement ◽  
Construction Project ◽  
Cost Overrun ◽  
Project Cost ◽  
Cost Overruns ◽  
Content Type ◽  
Interview Session ◽  
Construction Project Cost

Purpose Cost overrun of construction projects has been a key concern for all stakeholders of projects for many decades now. Many studies have been done in the past and continue to be done currently to understand the underlying causes of construction project cost overruns. However, the empirical evidence of the causes seem not be clear due to the silo approach in understanding the causes of construction project cost overruns. The purpose of this paper is to take the debate a step forward by providing an understanding of the causes of project cost overrun from a system’s perspective, especially from a less researched environment. Design/methodology/approach Data were collected and analysed from 131 respondents who were mainly involved in construction works in public procurement entities in Ghana. A two-staged approach was employed in collecting data from the respondents. The first stage involved an interview session with key informants in the construction industry in Ghana to ascertain the detailed causes of cost overrun of construction projects. The second stage focussed on the validation of these detailed factors by a wider stakeholder group through questionnaires. Factor analysis was employed to consolidate these detailed factors into major causes of construction project cost overruns. Findings The results show that there are primarily four major causes of most public sector construction projects cost overruns. These four major causes of cost overruns are poor contract planning and supervision; change orders; weak institutional and economic environment of projects and lack of effective coordination among the contracting parties. Originality/value The study provides more insights as to the critical and major factors that underpin public sector construction projects cost overruns and more importantly provides a basis for common treatment of the multiple risk factors engendering public sector construction projects cost overruns.

scholarly journals Causes of Costs Overrun in Road Construction Project in Oman

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Osama Salim Al Adawi ◽  
Hussin Yahia
Keyword(s):  
Construction Projects ◽  
Negative Impact ◽  
Construction Project ◽  
Road Construction ◽  
Developed Countries ◽  
Critical Issue ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Road Projects ◽  
And Performance

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.

scholarly journals A MODEL FOR EVALUATING THE RISK EFFECTS ON CONSTRUCTION PROJECT ACTIVITIES

2019 ◽  
Vol 25 (7) ◽  
pp. 687-699 ◽  
Author(s):  
Usama Hamed Issa ◽  
Salah Attia Mosaad ◽  
Mohamed Salah Hassan
Keyword(s):  
Membership Function ◽  
Time Delays ◽  
Construction Projects ◽  
Construction Project ◽  
Cost Overrun ◽  
Analysis Model ◽  
Expected Cost ◽  
Cost Overruns ◽  
Proposed Model ◽  
The Cost

Cost overruns and time delays are considered to be very important challenges for the majority of construction projects. These challenges are typically attributed to their associated risks. Due to the risky and uncertain nature of construction projects, an increasing amount of attention is given to estimating and overcoming cost overruns and time delays. New techniques are being developed to help project managers to contractually complete projects within cost and time constraints. The objective of this study was to develop a new qualitative and quantitative risk analysis model that can be employed for construction projects. The proposed model, which is based on a fuzzy logic tool, consists of two modules for assessing risk factors that affect the main construction activities and computing the expected cost overruns and time delays that are associated with these risks. Using numerous logical rules, the model applies the probability of occurrences and impacts of the risks on the cost and time of the main activities. The Spearman and Kendall correlation coefficient tests are applied to verify and select a suitable membership function. Using four proposed membership functions, the results of these tests confirmed that the triangle membership function is suitable for the model. The model is verified by application to HVAC system activities in two actual construction projects, which serve as case studies. Two different methods are proposed and applied to quantify the cost overruns and time delays. The first method is based on determining the cost overruns and time delay values for each activity according to their weight in the system. Triple premise rules are proposed and applied in the second method, which is established to relate all activities. The results from the second method are more accurate compared with the first method based on actual data from the case study projects. In addition, the results demonstrated that the proposed model can be used to quantify the expected cost overrun and time delays in construction project activities and can be generalized and implemented in different construction activities.

scholarly journals An Integrated Decision Support Model Based on BWM and Fuzzy-VIKOR Techniques for Contractor Selection in Construction Projects

2021 ◽  
Vol 13 (12) ◽  
pp. 6933
Author(s):  
Aziz Naghizadeh Vardin ◽  
Ramin Ansari ◽  
Mohammad Khalilzadeh ◽  
Jurgita Antucheviciene ◽  
Romualdas Bausys
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Water Channel ◽  
Multicriteria Decision Making ◽  
Decision Support Model ◽  
Cost Overruns ◽  
Contractor Selection ◽  
Model Based ◽  
Fuzzy Vikor ◽  
Bid Price

Sustainable development of any country to some extent depends on successful accomplishment of construction projects, particularly infrastructures. Contractors have a key role in the success of these projects. Hence, the selection of a competent contractor as a complicated and hard decision process has a vital importance in the destiny of any construction project. Contractor selection is in essence a multicriteria decision-making that ought to encompass so many aspects of the project and the client’s requirements on one hand and the capabilities and past records of the contractors on the other hand. Failure in selecting a competent contractor may cause time and cost overruns; quality shortcomings; increasing in claims, disputes and change orders; and even failure of the project. In spite of deficiencies of selecting a contractor by the rule of “the lowest bid price”, it still prevails in many countries including Iran. In this paper, a new contractor selection model based on the best-worst method (BWM) and well-known Fuzzy-VIKOR techniques is proposed as a solution to overcome the deficiencies of the traditional “lowest bid price” rule. An illustrative example of a water channel construction project verified the applicability of the proposed model in practice.

scholarly journals Causes of government construction projects’ abandonment

2021 ◽  
pp. 179-190 ◽  
Author(s):  
Isaac Sakyi Damoah ◽  
Anthony Ayakwa ◽  
Desmond Kwadjo Kumi
Keyword(s):  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Political Leadership ◽  
Sequential Data ◽  
Structured Interviews ◽  
Leadership Culture ◽  
Questionnaire Surveys ◽  
External Forces ◽  
Government Construction

Government construction projects are vital to the economic development of developing countries. However, although most of these projects suffer from abandonment, little evidence exists concerning the causes that account for this setback. This paper investigates the causes of government construction project abandonment in Ghana. We used a sequential data collection approach, in-depth semi-structured interviews, and questionnaire surveys to solicit the views of project management practitioners, contractors, and clients associated with Ghana government construction project implementation. Using factor analysis and structural equation modelling, we find that Ghanaian government construction project abandonment is influenced by five sets of causes: political leadership, culture, external forces, resources (including funding) and administrative/institutional bottlenecks. Three of these sets of causes – political leadership, cultural and external forces, are the primary causes, while resources (including funding) and administrative/institutional causes are secondary causes.

scholarly journals A BESPOKE APPROACH FOR RELATING MATERIAL WASTE TO COST OVERRUN IN THE CONSTRUCTION INDUSTRY

2017 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Ibrahim Saidu ◽  
W Shakantu ◽  
A Adamu ◽  
I Anugwo
Keyword(s):  
Construction Industry ◽  
Construction Material ◽  
Methodological Approach ◽  
Construction Project ◽  
Project Managers ◽  
Cost Overrun ◽  
Project Cost ◽  
Cost Overruns ◽  
Project Completion ◽  
Final Project

The problems of material waste and cost overruns are common in the construction industry. These problems occur at different stages of a construction project, from planning, design to project completion. The argument on how to eliminate cost overrun has been on-going for the past 70 years as on-site wastage of materials leads to increase in the final project cost. This paper examines the relationship between the causes of material waste and those of cost overrun at the pre-contract and post-contract stages of a project. The desktop methodological approach was firstly adopted in comparing the causes of material waste and those of cost overruns from the literature, in order to determine the possible relationship. Subsequently, interviews were purposively conducted with construction professionals within Abuja, Nigeria, in order to verify the literature based information. The result reveals that all the causes of material waste also cause cost overrun at the pre-contract and the post-contract stages of a project. 96.88% and 81.81% of the causes of cost overrun also cause material waste at the pre-contract and post-contract stages respectively. Other causes which are not related are mostly, the micro-economic and macro-economic factors. These results are not different from those of the interviews conducted with professionals and summarised in the tick box. It was also found that to achieve Effective Construction Material Waste Management (ECMWM) for any construction project, material waste must be controlled at its sources and causes, and at different stages of a project. Based on these findings, it can be concluded that effective management of material waste would translate into a reduction in the level of project cost overrun. The study recommends that construction-project managers, as well as the construction practitioners should encourage the management of material-waste causes, as it has the potential to minimise cost overrun for projects. 

scholarly journals Project failure Indicators: perceptions of Thai and Malaysian engineers

2018 ◽  
Vol 192 ◽  
pp. 02021
Author(s):  
Pittayaporn Gomarn ◽  
Jakrapong Pongpeng
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Cost Overrun ◽  
Kuala Lumpur ◽  
Negative Effects ◽  
Project Failure ◽  
Similarities And Differences ◽  
Spss Software ◽  
Supervisory Staff

This research aims to compare the rank and importance level of failure indicators of the construction projects from the perception of Thai and Malaysian engineers. The questionnaire was used to survey the opinions of the engineers who supervised construction projects in Bangkok, Thailand and Kuala Lumpur, Malaysia. Analysis of the data was undertaken with the use of SPSS software which included a comparison of the importance level of construction project failure indicators from the perception of Thai and Malaysian engineers. Additionally, the Mann Whitney U test was used to compare the similarities and differences of construction project failure indicators from the perceptions of both Thai and Malaysian engineers. The results showed that construction project failure indicators from both Thai and Malaysian engineers were similar. Failure indicators ranked in importance were: 1) negative effects on safety, health and environment (18.83%), 2) cost overrun (18.44%), 3) time overruns (17.41%), 4) quality defects (16.43%), 5) stakeholders' dissatisfaction (15.36%), and 6) dispute and litigation (13.54%). The outcome of the research is therefore useful in assisting supervisory staff better understand project failure indicators. In addition, the research can be used as a guideline for analyzing the risk of failures in construction projects.

scholarly journals Delays and Cost Overruns Causes During Construction of Palm Oil Refinery Projects

2018 ◽  
Vol 203 ◽  
pp. 02004 ◽  
Author(s):  
Muhammad Sani Abdullah ◽  
Wesam S Alaloul ◽  
Mohd Shahir Liew ◽  
Bashar S Mohammed
Keyword(s):  
Construction Industry ◽  
Palm Oil ◽  
Developing Nations ◽  
Project Performance ◽  
Oil Refinery ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Planning And Scheduling ◽  
Important Index ◽  
Common Problems

Delays and cost overruns are obviously common problems in the construction industry in several developed and developing nations. The purpose of this study is to identify factors cause delays and cost overruns in the construction of palm oil refinery projects in Malaysia. A questionnaire survey of a randomly selected sample was filled by 89 respondents. The questionnaire included 179 factors which classified into 13 groups. The degree of importance of the delays and cost overrun factors were evaluated and ranked by importance degree, based on the viewpoints of stakeholders. The data was analytically investigated by descriptive statistic methods and Relative Important Index (RII). The results of RII showed that Delays in subcontractor’s work, Lack of subcontractor skill, and Poor/inadequate planning and scheduling with RII 0.78, 0.77, and 0.75, respectively, are the most important causes. These causes represent the baseline margin for project management of palm oil refinery construction and development. According to these results, it is suggested that: project client should collaborate with contractors and simplify payments procedures to mitigate delays; coordinate continuously and enhance the association among project stakeholders are obligatory in order to improve the project performance.

Identifying the key factors in construction projects that affect neighbourhood social sustainability

Facilities ◽  
2020 ◽  
Vol 38 (11/12) ◽  
pp. 765-782 ◽  
Author(s):  
Essam Almahmoud ◽  
Hemanta Kumar Doloi
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Social Sustainability ◽  
Key Factors ◽  
Social Functions ◽  
Content Type ◽  
The Social ◽  
New Construction ◽  
Questionnaire Surveys ◽  
Physical Comfort

Purpose Construction projects have huge impacts on the social sustainability of the neighbouring community. The purpose of this paper is to identify and understand the key factors of a construction project that contribute to the social sustainability of a neighbourhood. Design/methodology/approach Questionnaire surveys relating to two case studies of regeneration projects in Saudi Arabia were carried out to ascertain and analyse the perceptions of residents of the neighbourhood communities in which the projects were built. Findings The results derived from factor analysis suggested five significant underlying social factors: health and physical comfort, accessibility, integration, economy and participation. These are defined as the core social functions necessary for enhancing social sustainability in the neighbourhood community as a result of new construction. Originality/value Ideally, a construction project will create spaces where people can interact socially, develop a sense of community and grow and prosper. This study reveals how the neighbours of the project felt about it and what sort of input they wanted to have in the design, construction and operation of the facility. For developers emphasising sustainability, this is the essential data.

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