scholarly journals An assessment of cost escalation in building construction project

2021 ◽  
Vol 39 (4) ◽  
pp. 1029-1034
Author(s):  
A. Nazif ◽  
A.K. Mustapha ◽  
F. Sani
Keyword(s):  
Construction Projects ◽  
Building Construction ◽  
Project Cost ◽  
Mean Values ◽  
Design Error ◽  
Project Construction ◽  
Effective Cost ◽  
Building Project ◽  
The Impact ◽  
The Relationship

Estimating of cost for building construction projects with minimum error at the conceptual stage of project development is quite  essential for planning. This study seeks to evaluate factors responsible for cost escalation of building construction projects.  Questionnaires were administered to examine and assess these factors. Subsequently, the mean score value of each factor was determined. In addition, Correlation and Linear regression analyses were used to establish the relationship between these factors. Factors responsible for cost escalation in projects were examined as well as the impact of those factors, and occurrence of those factors on project cost. The result of the analysis showed that, the most agreed factors responsible for project cost escalation were; inadequate supervision, irregular payment, and design error, having high mean values of 4.25, 4.20, and 4.15, respectively. Also, correlation analysis result established that the factors responsible for cost escalation and the impact of cost escalation had significant R and R2 of 0.81 and 0.70 respectively. Addressing these factors would go a long way in reducing the escalation of building project cost. Never the less, an effective cost management strategy is absolutely necessary to safeguard and sustain the construction  industry. Keywords: cost escalation, building project, construction, regression analysis

scholarly journals The Influence of Delays in the Implementation of Work on Budget Plan and Field Management on Building Project in Banjarmasin

2019 ◽  
Vol 280 ◽  
pp. 05010
Author(s):  
Candra Yuliana
Keyword(s):  
Construction Projects ◽  
Project Managers ◽  
Project Work ◽  
Primary Data ◽  
Dominant Factor ◽  
Cost Overruns ◽  
Structural Work ◽  
Project Construction ◽  
Building Project ◽  
The Impact

The construction service company needs to think about the best strategy for dealing with delay in the project work schedule so that the cost overruns can be reduced to a minimum. The purpose of this research is to make a strategy for overcoming the delay of building project construction work in Banjarmasin. Primary data were obtained by field survey and interviews. The survey was conducted to project directors, project managers and the field, supervisors, and experts who are experienced in handling construction projects. The survey aims to collect data on the dominant factors causing delays in structural work, the impact of such delays on the budget plan, and the strategy of handling delays. The data were analyzed descriptively and AHP. Variable Y, which is the impact of the delay on changes in the work plan cost budget structure, is at a large level that is changing between 3% - 4% of the budget plan cost. The dominant factor to the cause of the delay is the slow decision-making process by the owner, the owner’s financial problem, the financial difficulties by the contractor, the mistake of choosing the construction method, the shortage of the project.

scholarly journals Analysis of Cost of Rework on Time and Cost Performance of Building Construction Projects in Abuja, Nigeria

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Emmanuel Chidiebere Eze ◽  
John Ebhohimen Idiake
Keyword(s):  
Significant Relationship ◽  
Construction Projects ◽  
Building Construction ◽  
P Value ◽  
Delivery Time ◽  
Cost Performance ◽  
Project Cost ◽  
Final Project ◽  
The Cost ◽  
The Impact

Rework is a menace that leads to undesired and unnecessary loss of efforts, it degrades project cost and schedule performance of construction projects, both at design and construction phases. This study therefore, analyzed the impact of cost of rework on time and cost performance of building construction projects in Nigerian, using selected commercial building project within the country’s capital. A pro forma was adopted for gathering data on rework cost, project cost and time of selected building projects, while structured questionnaire was used to collect information on the likely measures for reducing rework incidences from construction professionals that were involved in the delivery of the identified projects. Regression analysis, relative importance index and Kruskal-Walis test were employed for data analysis. The study revealed a significant relationship between the cost of rework and initial and final project cost of delivering commercial buildings, as an average of 3.53% impact on the initial project cost, 46.60% contribution to cost overrun, and p-value of 0.000 was observed on all assessed projects. For the project delivery time, a significant relationship between the cost of rework and initial and final project duration, as an average of 7.35% impact on the initial delivery time, extra 19 days and p-value of 0.000 was observed on all assessed projects. Team building and education, management commitment, employee involvement, were some of the best possible measures to minimized rework problems.

scholarly journals Design Changes in Construction Projects – Causes and Impact on the Cost

2019 ◽  
Vol 5 (7) ◽  
pp. 1647-1655 ◽  
Author(s):  
Mughees Aslam ◽  
Edmund Baffoe-Twum ◽  
Farhan Saleem
Keyword(s):  
Construction Projects ◽  
Primary Objective ◽  
Extensive Literature ◽  
Cost Overrun ◽  
Project Cost ◽  
Design Changes ◽  
Communication And Coordination ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Isolation of design phase from construction has made the design changes inevitable in construction projects. Extensive literature appraisal has acknowledged the detrimental effect of design changes on project performances. However, the impact and causes of design changes have been divided up, either separately or project specific. As a result, the relationship between impact and causes of design changes could not be established for general construction. The primary objective of this paper is to examine the impact of design changes on project cost and identifying actions responsible for these changes. The objectives of the study were achieved through a systematic review of past literature published in well-established journals, and contents analyzed. From the extensive literature review, it was established that the design change is one of the predominant factors to cost overrun, and in some cases, may upshot into cost overrun between 5 and 40% of the project cost. Also, many causes of design changes resulting in cost overrun within the perspective of the owner, consultant, and contractors are explored. Some projects experienced closure as a result of owner induced design changes, although these changes may not be significant in number.  Design changes as a result of consultants and contractors in some cases might have reduced impact but are frequent. For each consideration, most events leading to design changes can be eliminated by improving on communication and coordination between stakeholders. The main contribution of this research is to bring together the impact and causes of design changes on cost under one platform for effectively managing the design process.

scholarly journals Method of Assessing the Risk of Implementing Railway Investments in Terms of the Cost of Their Implementation

2021 ◽  
Vol 13 (23) ◽  
pp. 13085
Author(s):  
Jan Kowalski ◽  
Mieczysław Połoński ◽  
Marzena Lendo-Siwicka ◽  
Roman Trach ◽  
Grzegorz Wrzesiński
Keyword(s):  
Construction Projects ◽  
Original Method ◽  
Project Managers ◽  
Simple Method ◽  
Construction Companies ◽  
Risk Forecasting ◽  
Specific Object ◽  
Effective Cost ◽  
The Cost ◽  
The Impact

Exceeding the approved budget is often an integral part of the implementation of construction projects, especially those where unforeseen threats may occur. Therefore, each construction investment should contain elements of risk forecasting, mainly in terms of the cost of its implementation. Only a small number of institutions apply effective cost control methods, taking into account the specifics of a given industry. Especially small construction companies that participate in the structure of the implementation of large construction projects as subcontractors. The article presents a method by which it is possible to determine, with certain probability, the final cost of railway construction investments carried out in Poland. The method was based on a reliable database of risk factors published in sources. In this article, the main presumptions of the original method are presented, which take into account the impact of potential, previously recognized, risks specific to railway investments, and enable project managers to relate them to the conditions where the implementation of a specific object is planned. The authors assumed that such a relatively simple method, supported by a suitable computational program, would encourage teams that plan to implement railway projects to use it and increase the credibility of their schedules.

Forecasting the schedule performance resulting from the adoption of social distancing in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hilary Omatule Onubi ◽  
Nor'Aini Yusof ◽  
Ahmad Sanusi Hassan ◽  
Ali Ahmed Salem Bahdad
Keyword(s):  
Construction Projects ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Social Distancing ◽  
Schedule Performance ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

PurposeThe coronavirus disease 2019 (COVID-19) pandemic has had major impacts on the performance of construction projects that have adopted social distancing measures. This study examines the effect of social distancing measures on project schedule performance through job reorganization on construction project sites.Design/methodology/approachResponses were obtained through a survey of 154 construction projects and analysed using the partial least square structural equation modeling (PLS-SEM) technique.FindingsThe findings established that social distancing has a negative effect on schedule performance, social distancing has a positive effect on job re-organization and job re-organization has a positive effect on schedule performance. Additionally, the results indicate that job re-organization partially mediates the relationship between social distancing and schedule performance, while social distancing moderates the relationship between job re-organization and schedule performance with low social distancing having the stronger positive effect.Originality/valueThis study contributes theoretically to a greater understanding of the impact of adopting COVID-19 safety measures such as social distancing on the schedule performance of construction projects. The study also shows how social distancing could lead to schedule performance through job reorganization.

Study of Natural Disasters Contract Conditions Based on the FIDIC Criteria

2012 ◽  
Vol 238 ◽  
pp. 558-561
Author(s):  
Zhang Lin Guo ◽  
Hua Zhang
Keyword(s):  
Global Warming ◽  
High Temperature ◽  
Natural Disasters ◽  
Natural Disaster ◽  
Risk Sharing ◽  
Construction Projects ◽  
Disaster Risk ◽  
Building Construction ◽  
Project Construction ◽  
Natural Disaster Risk

In the trend of global warming, storms, hurricanes, high temperature and other extreme weather phenomena occur frequently. In the field of project construction, the assets value of the building is exposed, so the construction projects are very vulnerable to natural disasters causing huge losses. Who bears in the both sides of engineering contract, the reasons and consequences of the loss and the specific responsibilities are ambiguous without clearly defined. This paper states the importance to grasp the principle of appropriate risk sharing and explain both responsibilities clearly in natural disasters, how to choose appropriate method to evaluate the natural disaster risk and select suitable building construction contract.

scholarly journals Analysis of Formwork System Selection Criteria for Building Construction Projects: A Comparative Study

Buildings ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 618
Author(s):  
Taylan Terzioglu ◽  
Gul Polat ◽  
Harun Turkoglu
Keyword(s):  
Construction Projects ◽  
Selection Criteria ◽  
Selection Process ◽  
Structural Parameters ◽  
Project Managers ◽  
Building Construction ◽  
Management Service ◽  
Score Analysis ◽  
System Selection ◽  
The Impact

The formwork system (FWS) in reinforced concrete (RC) construction is a critical component. The appropriate FWS is selected based on a number of conflicting and compromising criteria, and the selection of the FWS is carried out by construction professionals with different technical and/or administrative backgrounds. The perspectives and perceptions of construction professionals and companies involved in the FWS selection process may vary depending on their motives. In addition, some building structural parameters may have a significant impact on the FWS selection criteria. Most of the former studies investigated the FWS selection criteria from only the perspective of contractors and neglected the potential differences in the perspectives and perceptions of different construction professionals (i.e., owners (CO), project managers (PM), construction managers (CM), site engineers (SE), planning engineers (PL), procurement engineers (PR), technical office engineers (TO), and formwork design and/or formwork sales engineers (FD/FSL)) and companies specialized in different fields (i.e., project management service (PMS), engineering and design (ENG/DSG), formwork and scaffolding (FW/SCF), and general and/or sub-contractor (GC/SC)) regarding this issue. Moreover, the impact of building structural parameters on the FWS selection criteria has not been investigated. This study aims to fill this knowledge gap through analysing the FWS selection criteria for building construction projects while comparing the perspectives and perceptions of different groups of construction professionals and companies and investigating how FWS selection criteria are affected by the building structural parameters. Based on a comprehensive literature review, 35 FWS selection criteria were identified and a questionnaire was developed. The questionnaire data obtained from 222 Turkish construction professionals were statistically analysed using mean score analysis, the Kruskal–Wallis test, and the Mann–Whitney U test. According to the study’s findings, the FD/FSL group presented significant statistical differences regarding the FWS selection criteria as compared to the CO, PM/CM/SE, and PL/PR/TO groups. Moreover, the total area of building construction and total building height significantly affected the FWS selection criteria. This study serves to underscore the perspectives of various groups of construction professionals and the critical connection between the structural parameters and FWS selection criteria. The findings of this study may guide construction professionals to select the appropriate FWS for their building construction projects.

Incorporating aleatory and epistemic uncertainties in the modelling of construction duration

2020 ◽  
Vol 27 (9) ◽  
pp. 2199-2219
Author(s):  
Hassan Adaviriku Ahmadu ◽  
Ahmed Doko Ibrahim ◽  
Yahaya Makarfi Ibrahim ◽  
Kulomri Jipato Adogbo
Keyword(s):  
Construction Projects ◽  
Bayesian Model Averaging ◽  
Predictive Accuracy ◽  
Tertiary Education ◽  
Model Averaging ◽  
Building Construction ◽  
Percentage Error ◽  
Content Type ◽  
The Impact ◽  
Matlab Programming

PurposeThis study aims to develop a model which incorporates the impact of both aleatory and epistemic uncertainties into construction duration predictions, in a manner that is consistent with the nature/quality of information available about various factors which bring about uncertainties.Design/methodology/approachData relating to 178 completed Tertiary Education Trust Fund (TETfund) building construction projects were obtained from construction firms via questionnaire survey. Using 90% of the data, the model was developed in the form of a hybrid-based algorithm implemented through a suitable user-friendly graphical user interface (GUI) using MATLAB programming language. Bayesian model averaging, Monte Carlo simulation and fuzzy logic were the statistical methods used for the algorithm development, prior to its GUI implementation in MATLAB. Using the remaining 10% data, the model's predictive accuracy was assessed via the independent samples t-test and the mean absolute percentage error (MAPE).FindingsThe developed model's predictions were found not statistically different from those of actual duration estimates in the 10% test data, with a MAPE of just 2%. This suggests that the model's ability to incorporate both aleatory and epistemic uncertainties improves accuracy of duration predictions made using it.Research limitations/implicationsThe model was developed using a particular type of building projects (TETfund building construction projects), and so its use is limited to projects with characteristics similar to those used for its development.Practical implicationsThe developed model's predictions are expected to serve as a useful basis for consultancy firms and contractor organisations to make more realistic schedules and benchmark measures of construction period, thereby facilitating effective planning and successful execution of construction projects.Originality/valueThe study presented a model which permits combined manipulation of aleatory and epistemic uncertainties, hence ensuring a more realistic incorporation of uncertainty into construction duration predictions.

The Analysis of the Engineering Change Impact on Project Cost Based on the Quantities Bill Valuation

2013 ◽  
Vol 405-408 ◽  
pp. 3459-3462
Author(s):  
Jing Li ◽  
Zong Rong Xu
Keyword(s):  
Quantitative Analysis ◽  
Construction Projects ◽  
Project Cost ◽  
Effective Measure ◽  
Engineering Change ◽  
Change Impact ◽  
The Impact ◽  
Cost Of Construction

Engineering change directly impacts on project cost of construction projects. Beginning upon the typical engineering cases based on the quantities bill valuation, the author carried out the quantitative analysis of the impact on project cost under different changes , and find out a effective measure to prevent changes in order to control project cost.

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