Analysis of Time and Cost Overrun in Malaysian Construction

2012 ◽  
Vol 452-453 ◽  
pp. 1002-1008 ◽  
Author(s):  
Chidambaram Ramanathan ◽  
Narayanan Sambu Potty ◽  
Arazi B Idrus
Keyword(s):  
Risk Factors ◽  
Time Delay ◽  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Related Question ◽  
Cost Overrun ◽  
Construction Stage ◽  
Theoretical Domain ◽  
Related Group

The construction industry in Malaysia is very important for creating employment, both directly and indirectly. It faces two repeated problems during the construction stage: slippage of project-schedules, i.e. time overrun and overrun of project cost; to the dislike of owners, contractors and consultants. This paper studies the time delay and cost overrun factors for Design and Build D&B projects in Malaysia. A Questionnaire was used to collect data from practitioners and analyse the responses and rank the factors and groups on overall view of the contracting parties. Identified risk factors from the theoretical domain were used to prepare 79 time related question and 18 cost related question categorized in 9 groups and 1 group respectively. Total of 136 respondents recorded their ratings to the factors in the questionnaire. Labour-related group has the top 1 rank with RII 0.684. The results can be used as a guideline to successfully handle construction projects in Malaysia; contributing for better project performance and lead to positive risks, opportunities.

CONTRACTS EVALUATION THROUGH CLASSIFIED REWORK ROOT CAUSES IN THE CONSTRUCTION STAGE OF PROJECTS

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Ramin Asadi ◽  
Suzanne Wilkinson ◽  
James Olabode Bamidele Rotimi
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Mitigation Measures ◽  
Rational Approach ◽  
Review Of Literature ◽  
Construction Stage ◽  
Financial Factors ◽  
Resource Material ◽  
The Relationship

Rework occurs across the life cycle of projects and has significant impacts on construction project performance. A rational approach to managing rework is by identifying the main sources of rework; then mitigation measures can be implemented to enhance performance on projects. Rework has been widely studied within the construction industry, but the link between rework and contract conditions remain unexplored. This study identifies and classifies the root causes of rework at the construction stage of projects. It then examines the relationship between the conditions of contracts with the identified root causes. A comprehensive list of rework root causes was determined through the review of literature, which was categorized into five classified factors. The classified factors include process, human resource, material/equipment, technical, and other related environmental and financial factors. The next step comprises a questionnaire survey designed to determine relationships between rework and contracts. The result of the study is presented descriptively for ease of understanding. The results show that rework could be managed more efficiently through contracting processes, which ultimately benefits construction projects’ performance.

scholarly journals Risk Management Analysis of Follow-up Audit in the Construction Stage of Construction Projects

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Yongjun Luo
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Project Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Project Management ◽  
Construction Process ◽  
Construction Stage

The construction project serves as one of the most important projects in the construction industry. The high cost and the particularity in the implementation generate high risks in the investment and construction process. Over the years, the development of construction project management methods has promoted the management of risk factors. This paper reviews the suggestions of risk management of follow-up audit in construction stage and evaluates its application in construction projects.

scholarly journals Significance and Analysis of Time and Cost Overrun in the Construction Industry of Mumbai

2021 ◽  
Vol 9 (11) ◽  
pp. 295-310
Author(s):  
Priyesh Mulye
Keyword(s):  
Risk Factors ◽  
Construction Industry ◽  
Construction Projects ◽  
Performance Standards ◽  
Construction Cost ◽  
Cost Overrun ◽  
Potential Development ◽  
The World ◽  
Very High ◽  
Total Construction Cost

Abstract: The occurrence of time and cost overrun has become quite significant in a majority of construction projects in India, which is negatively affecting the GDP and potential development of nation. As per the statistics of project cost and duration in March 2012, 179 projects out of 555 projects of worth 150 Crore INR have been facing cost and time overrun and others are at the very high risk, with the total construction cost overrun of 1.23 Lakh Crore INR. (Times, 2013) The time and cost overrun of the construction projects results in overextension of the time and finance of the client which may lead to entire failure of the project, unfinished project, abandoned project or reduction in the performance standards of the project. This condition depicts the requirement of the study and analysis of the causes or risk factors for time and cost overrun, and solutions and strategies for mitigation of cost and time overrun. The present research involves the study and analysis of the various risk factors related to time and cost overrun; assessment of the overruns in the construction projects of Mumbai, India and other parts of the world; identification and analysis of the leading causes for time and cost overrun in the construction projects of Mumbai; identification of potential solutions; and preparation of an effective mitigation model for overruns in construction projects of Mumbai

scholarly journals Structural Relationship of Causes and Effects of Construction Changes: Case of UAE Construction

2022 ◽  
Vol 14 (2) ◽  
pp. 596
Author(s):  
Ismail Abdul Rahman ◽  
Abdulla Eisaa Saleh Al Ameri ◽  
Aftab Hameed Memon ◽  
Nashwan Al-Emad ◽  
Ahmed S. A. Marey Alhammadi
Keyword(s):  
Quality Assurance ◽  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Financial Burden ◽  
Explanatory Power ◽  
Project Performance ◽  
Equation Modeling ◽  
Cost Overrun ◽  
Critical Issues

Changes during construction is one of the critical issues faced in the construction industry. Effective management of construction changes will reduce the financial burden faced in construction projects due to cost overrun, and practitioners will be able to complete projects on time. On the other hand, construction changes exert severe effects on project performance. Hence, this paper uncovers several changes occurring in construction projects. It also evaluates the effect on various parameters of project performance due to changes. This was done by uncovering the underlying causes and effects of changes through the PLS method of structural equation modeling technique. SmartPLS software was used to develop and evaluate the study model based on 58 change causes and 48 change effects that were identified from the literature review. Causes of changes were categorized into three constructs which are client-related causes (CLE), consultant-related causes (COS), and contractor-related causes (CON). At the same time, the effects variables were grouped as Time Overrun (TO), Cost Overrun (CO), and Quality (QA). The survey data for generating the model was collected from 218 practitioners working on construction megaprojects of the UAE. Assessment on the constructed model found that the contractor (CON) group is the most influential group of causes with the highest values of the model’s predictive explanatory power (accuracy), which is 0.396, 0.339, and 0.410 to time overrun, cost overrun, and quality assurance of the effects groups, respectively. At the same time, the Quality Assurance (QA) group is considered the most substantial parameter which are affected due to changes occurring in construction projects of UAE. This model is deemed beneficial for the UAE construction industry in facilitating the effective recognition of possible causes and effects of change among the UAE construction projects. As a result, the practitioners will make necessary arrangements to control the potential changes in future projects.

Inhibiting Factors of Cost Performance in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Past Research ◽  
Cost Overrun ◽  
Index Method ◽  
Cost Performance ◽  
Factors Affecting ◽  
Inhibiting Factors ◽  
Critical Problems ◽  
Structured Questionnaire

UAE construction industry frequently faces poor cost performance which commonly known as cost overrun problem. This problem is resulted from several factors and it is important to identify these cost overrun factors in order to avoid and minimize it. Hence, this paper focused on determined the relevancy of factors affecting cost performance in construction projects of UAE. Through a review of past research works conducted globally, 27 factors of cost overrun were listed and used for developing a structured questionnaire. A survey was conducted with 33 practitioners from client, consultant and contractors organizations involved in handling construction projects in UAE. The respondents were requested to state their perception regarding the relevancy of each of the factors that was perceived in context with cost overrun issue using 5-points Likert scale. The responses were analysed using average index method and the results found that all the 27 factors are relevant with construction industry of UAE in causing cost overrun. These factors can be used for further investigation to uncover critical problems of cost overrun.

scholarly journals Analysis of Time Delay and Cost Overrun in Road Construction

2019 ◽  
Vol 8 (9S3) ◽  
pp. 901-907
Keyword(s):  
Economic Development ◽  
Time Delay ◽  
Construction Industry ◽  
Road Construction ◽  
Cost Overrun

Road construction is the important division in the construction industry and the most predominant part of a society. The roadway defines the development of a country or a state and brings in the economic development of the same. The reasons for choosing a project on the roadways are its vast scope of day to day development and progress in this area. Thus it is clearly seen that roadways is the most essential in todays world without which progress and development cannot take place at full fledge. Therefore any delay in completion of a road constructing project may have its impact in degrading of a society. Also at the same time the budget overrun or cost overrun of such project is highly unbearable.

scholarly journals Investigating Rework: Insights from the Malaysian Construction Industry

2021 ◽  
Vol 14 ◽  
pp. 1-9
Author(s):  
Jeffrey Boon Hui Yap ◽  
Shi Min Tan
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Project Performance ◽  
Statistical Techniques ◽  
Cost Overruns ◽  
Delivery Performance ◽  
Communication Design ◽  
Design Changes

Construction practitioners recognise that rework is undesirable due to the detrimental effects. While rework literature has examined rework causation factors in construction projects, the problem continues to plague the industry resulting in poor delivery performance. To better understand this phenomenon and given the scarcity of Malaysian-based rework study, a questionnaire survey involving 130 Malaysian construction practitioners (consultants, contractors and clients) were undertaken to obtain feedback about nature, implications, causes and solutions for rework. Data were analysed using descriptive statistical techniques to prioritise the variables studied. From the analyses, rework is a causal factor for delays and cost overruns, higher wastage and productivity inhibitor. The findings revealed the leading causes of rework are poor quality management, improper planning, lack of communication, design changes and poor subcontractor management. Some practical rework minimisation approaches are also suggested to better manage and prevent rework towards enhanced project performance.

scholarly journals CRITICAL FACTORS VARYING CONSTRUCTION COST

2009 ◽  
Vol 12 (1) ◽  
pp. 104-117
Author(s):  
Tam Thi Minh Nguyen ◽  
Thi Hao Cao
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Multiple Linear Regression Model ◽  
Construction Cost ◽  
Ho Chi Minh City ◽  
Cost Overrun ◽  
Key Factors ◽  
Industry Sectors ◽  
The Relationship ◽  
Chronic Problem

Construction industry is considered to be one of the most important industries in Vietnam's economy. But many construction industry sectors have been experienced chronic problem as cost overrun. Therefore, a conceptual model of factors influencing construction cost was developed to determine the key factors that cause difference between budget cost and actual cost and some solutions are recommended to be applied to achieve the best outcome of cost. The result of analyzing 216 construction projects completed from 2002 to 2007 by companies located in Ho Chi Minh City indicated 6 main factors varying construction cost: project planners, project executives, economics, political, natural environment, fraudulent and lost. The results of multiple linear regression model confirmed the relationship between these above 6 factors and construction cost with the theories are supported at the statistically significant level of 0.05.

scholarly journals Effective Selection of Resources for Construction using Program Tool

2020 ◽  
Vol 9 (3) ◽  
pp. 2927-2931
Keyword(s):  
Construction Industry ◽  
Resource Selection ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Programming Tool ◽  
Effective Selection ◽  
Selection Factor ◽  
Selection Of ◽  
Indian Scenario

In the Indian scenario construction industry facing a major problem is cost and time overrun. Effective time performance and cost performance are very important to execute the project in a successful manner by keeping them within the prescribed schedule and cost. Overall cost and duration of construction projects affected by the effective resource selection factor. This paper's objective is to rectify the improper selection of resources by a programming tool. Field survey and codebook study did collect the needed data to feed in the programming tool. The prepared tool gets distributed and making to access by every stakeholder of construction projects. This may result in the selection of construction resources as effectively. The term cost overrun in the resource part will be reduced.

Risk analysis of construction of administration projects using Bayesian networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Osama ◽  
Aly Sherif ◽  
Mohamed Badawy
Keyword(s):  
Risk Factors ◽  
Life Cycle ◽  
Risk Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Causal Relationships ◽  
Content Type ◽  
Project Life Cycle ◽  
Project Objectives ◽  
Project Life

Purpose This paper aims to enlighten the importance of the risk management process which is considered as a major procedure to effectively handle the potential inherent risks in the construction industry. However, most traditional risk analysis techniques are based on theories that deal with each risk factor as an independent, which does not take into consideration the causal relationships between risk factors. Design/methodology/approach This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using Bayesian belief networks (BBN). Through a review of the literature, 27 risk factors were identified and categorized as the most common risk factors in the construction industry. A structured questionnaire was performed to estimate the probability and severity of these risks. Through site visits and interviews with experts in the construction field, 200 valid questionnaires were collected. A risk analysis model was developed using BBNs, then the applicability of this model was verified using a case study in Egypt. Findings However, the outcome showed that critical risks that manipulate administrative construction projects in Egypt were corruption and bribery, contractor financial difficulties, force majeure, damage to the structure and defective material installation. Practical implications The proposed study presents the possibilities available to the project parties to obtain a better forecast of the project objectives, including the project duration, total project cost and the target quality by examining the causal relationships between project risks and project objectives. Originality/value This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using BBNs.

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