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 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 Faktor Keterlambatan Pekerjaan Struktur Gedung terhadap Biaya Pelaksanaan pada Proyek Pembangunan Hotel di Bekasi

2019 ◽  
Vol 7 (2) ◽  
pp. 110-119
Author(s):  
Dian Dwi Putra ◽  
Ninik Paryati ◽  
Elma Yulius
Keyword(s):  
Time Delays ◽  
Service Providers ◽  
Construction Project ◽  
Curve Analysis ◽  
Cost Overruns ◽  
The Future ◽  
Spss Software ◽  
S Curve ◽  
The Cost ◽  
Project Delay

Nowadays, delays in project often occur and cause various losses both for service providers and users. For the contractors, delays create the project cost overruns due to project overtime and can decrease contractor credibility in the future. This study aims to analyze a project delay by minimizing the work delays earlier. The analysis of a hotel building planning regarding the cost and time delays is done qualitatively by distributing questionnaires to the contractors and processing the responses using the SPSS software. The results of the S curve analysis and 30 factors that caused the project delay were identified and indicated that there was a delay value of 1.26% with five variables that most contributed to the delay in the construction project at PT. Wijaya Kusuma Contractors, i.e. reworking due to construction errors, low coordination between contractors and stakeholders, late material delivery, and equipment shortages.

FACTORS AFFECTING COST OVERRUN IN CONSTRUCTION PROJECTS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Mohammed Algahtany
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Factors Affecting ◽  
Public Projects ◽  
Low Performance ◽  
Major Factors ◽  
Public Construction ◽  
The Cost

Public construction projects in Saudi Arabia have been suffering from low performance for the past decade. Cost overrun is one of the most important issues in project’s performance and is nearly associated with most of public projects. The aim of this study is to identify and assess the major factors leading to cost overruns in education construction projects in the Northern Province of Saudi Arabia to minimize the risks’ effects in future projects. The research methodology started by identifying cost overrun factors through literature review, project’s documentations, and experts’ interviews. Professionals who worked at the construction projects undertook a questionnaire survey to investigate the importance of the cost overrun factors. The top factors of cost overrun were identified through the analysis of the factors’ occurrence and severity. The study main results included the top causes of cost overrun which are delay in contractors’ progress payment by client, difficulties in financing project by contractor, delays in sub-contractor’s work, additions of quantities such as excavation, backfill, and concrete works, and bid award for lowest price. The investigated risks in the study should be evaluated and mitigated in future projects to minimize their effects and enhance the industry performance.

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 Usefulness and fields of the application of the Earned Value Management in the implementation of construction projects

2014 ◽  
Vol 13 (4) ◽  
pp. 357-364
Author(s):  
Agnieszka Dziadosz ◽  
Oleg Kapliński ◽  
Mariusz Rejment
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Value Management ◽  
Construction Work ◽  
Earned Value ◽  
Earned Value Management ◽  
Cost Overruns ◽  
Total Cost ◽  
The Cost ◽  
Project Realization

The Earned Value Method allows the prediction of future values of the total cost and duration of the construction project realization, and also it allows the early detection of the collisions between the schedule and the construction project budget. It is more often indicated its usefulness for monitoring and controlling the construction work progress in the time and cost formulation. It is used, in the indirect way, to control the risk in terms of the cost overruns of the construction project realization and in case of the failure to meet the deadline for completion of the construction project. The authors’ goal was not only to indicate the advantages of the method (widely discussed in the literature) but also to indicate some inaccuracies in the application of the Earned Value Method, which may affect the costs forecasting and the date of completion of the construction project. The conclusions are based on the analysis of several construction project realizations.

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 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 Kajian Harga Bahan pada Proyek Konstruksi dengan Analisa Dinamik

2021 ◽  
Vol 28 (1) ◽  
pp. 117-124
Author(s):  
Diah Sarasanty
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Error Variance ◽  
Graphical Analysis ◽  
Construction Costs ◽  
Cost Component ◽  
Proposed Model ◽  
Negative Effect ◽  
Design Selection ◽  
The Cost

Abstrak  Konstruksi merupakan salah satu industri yang memberikan kontribusi secara signifikan terhadap pertumbuhan ekonomi suatu negara. Sebuah proyek konstruksi dikatakan berhasil apabila dalam pelaksanaannya memenuhi tiga komponen yakni biaya, waktu, dan mutu. Komponen biaya digunakan untuk studi kelayakan dan pemilihan desain yang optimal dalam sebuah proyek konstruksi. Ketidak akuratan dalam menganalisa biaya konstruksi dapat memberikan efek negatif pada seluruh proses konstruksi dan semua pihak yang terlibat. Penelitian ini bertujuan untuk menganalisa dinamika harga bahan pada proyek konstruksi. Tahapan metode yang dilakukan dalam penelitian ini yaitu dengan mengidentifikasi hubungan sebab akibat antar variabel dalam menganalisa harga bahan. Dari hasil simulasi diperoleh analisa secara grafis melalui keluaran model. Validasi model dilakukan dengan membandingkan base model dengan sebuah skenario. Hasil perhitungan analisa sensitivitas dari perbandingan memperoleh nilai mean comparison ≤ 5% dan variasi amplitudo error variance ≤ 30% yang mengindikasikan kevalidan model yang diusulkan. Dengan keakurasian tersebut diharapkan dapat mengakomodasi segala kemungkinan adanya penyimpangan yang akan terjadi dimasa depan termasuk faktor resiko, sehingga dapat menciptakan sistem yang sesuai dengan kinerja yang diinginkan dan sumber daya yang digunakan lebih efektif serta efisien dalam rangka mencapai sasaran proyek. Kata-kata Kunci: Harga bahan, dinamik, proyek konstruksi. Abstract  Construction is an industry that contributes significantly to a country's economic growth. A construction project is said to be successful if it fulfills three components, namely cost, time and quality. The cost component is used for a feasibility study and the optimal design selection in a construction project. Inaccuracy in analyzing construction costs can have a negative effect on the entire construction process and all parties involved. This study aims to analyze the dynamics of material prices in construction projects. The method used in this research is to identify the causal relationship between variables in analyzing the price of materials. From the simulation results obtained graphical analysis through the model output. Model validation is done by comparing the base model with a scenario. The results of the calculation of the sensitivity analysis from the comparison obtained a mean comparison value of ≤ 5% and the amplitude variation value of the variance error ≤ 30% which indicates the validity of the proposed model. With this accuracy it is expected to be able to accommodate all possible deviations that will occur in the future including risk factors, so as to create a system that is in accordance with the desired performance and the resources used more effectively and efficiently in order to achieve project goals. Keywords: Material cost, dynamic, construction project

scholarly journals Cost Over-Run in Civil Works: A Case-Study of Engineering, Procurement and Construction (EPC) Gas Depot Construction Projects in Nigeria

2020 ◽  
Vol 1 (4) ◽  
Author(s):  
Chukwuemeka Patrick Ogbu ◽  
Raphael Ehigiator-Irughe
Keyword(s):  
Construction Projects ◽  
Oil And Gas ◽  
Case Study Research ◽  
Petroleum Products ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Cumulative Difference ◽  
The Cost ◽  
Cost Of Construction

Engineering, procurement and Construction (EPC) projects in the oil and gas sector of Nigeria are under-researched. This leaves investors with little or no guide on the cost-overrun risks of oil and gas depot projects. Using the qualitative case study research technique, this study investigated cost overrun in the civil works of a petroleum products depot project in Lagos, Nigeria. The objectives were to ascertain the reasons for cost overrun and the areas of substantial cost overrun in the project. It was found that except for the cost of construction of “gantry” which was under-measured as a result of use of a wrong method of costing, the rest of the major facilities experienced cost overrun with a cumulative difference of 106%. It was also discovered that the cost overruns mainly originated from design and construction activities. The study recommends the timely engagement of consultants to review the conceptual designs of contractors and monitor the activities of EPC contractors for oil and gas depot projects on behalf of clients. Such consultants should not, however, have powers to control the contractors. As much as possible, parties to EPC contracts should use standard conditions of contract that will better reflect their intentions rather than contrive bespoke conditions.

scholarly journals Identifying the Risk Impact on Cost and Time of the Egyptian Non-Residential Buildings Projects

2020 ◽  
pp. 01-12
Author(s):  
Medhat M. A. Osman ◽  
Usama H. Issa ◽  
Ayman M. Zakaria Eraqi
Keyword(s):  
Risk Factors ◽  
Time Delays ◽  
Construction Projects ◽  
Field Survey ◽  
Residential Buildings ◽  
Risk Groups ◽  
Cost Overruns ◽  
High Agreement ◽  
Multiple Risk Factors ◽  
The Cost

Construction projects in Egypt were typically influenced by multiple risk factors which have various impacts on both cost and time objectives that lead to project cost overruns and time delays. This paper presents the results of an investigation study concerns with the identification and assessment of risks associated with the Egyptian Non-Residential Buildings Projects (ENRBP). The study explores risk factors probability of occurrence and their effects on cost and time of these projects. A field survey was conducted with professionals in the construction projects in EGYPT for a purpose of collecting the required data of the risk factors characteristics. Based on results analysis, several risk factors were identified and categorized into fifteen risk groups as well as they were prioritized based on their effects on cost and time. A high agreement for ranking risk factors among contractors, consultants and owners was acquired. The list of the major risks included many factors such as: dramatic changes in the materials prices and Adopting direct attribution system rather than tendering and bidding systems. The most expected average increase of the cost overruns and time delays was more than 20% of the project planned budget and schedule. Finally, the analysis and findings showed that risk factors were very close in their impacts on both cost and time of ENRBP.

Sign in / Sign up

Export Citation Format

Share Document