scholarly journals Construction Cost Overruns of Residential Building Projects in Oman: Root Cases and Mitigation Strategy

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Mohammed Al Jabri ◽  
Mahmoud Dawood

Characteristics of construction project includes a specific purpose and it must meet the requirements and expectations of the client. The construction project activities are always linked together and the time required for each activity does vary. The working on the project will not complete unless there are experts from different departments ranging from site workers, civil engineers, architects, electricians, designers, project engineer, site engineer, project manager and administrative staff such as procurement department and others. One of the primary objectives is to finish the project within budget. Excess of construction costs has a negative impact on project parties. Therefore, the causes of these abuses must be identified, especially in the Sultanate of Oman. This research investigates and evaluates the root causes of the cost overrun, cost trend and financial risks related to the residential projects in Sultanate of Oman. A questionnaire has been designed to collect the primary data and literatures are studied to collect the related secondary data. The causes are categorized into three groups according to the responses of the specialists with the contractor, consultant and client .Aspects of agreement between groups were identified after analyzing the questionnaire.

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.


Author(s):  
Jerminah Khabisi ◽  
Clinton Aigbavboa ◽  
Wellington Thwala

The purpose of this study was to identify factors that influence project cost overrun within public sector construction projects with specific reference to Gauteng Province of South Africa. The primary data was collected by means of structured questionnaires which were distributed to practicing construction professionals who are engaged in various dimension in public sector construction projects. The secondary data was derived through reviewed literature. Out of 120 questionnaires sent out, 119 were received, which represented 99% response rate. Data received from the questionnaires was analyzed using descriptive statistical procedures. Findings from questionnaire survey revealed that the most dominant factors of cost overruns in public sector project include: variation orders, change in scope of the project, cash flow and financial difficulties faced by contractors, delays in decision making by professional consultants representing the clients, inadequate planning, frequent design changes, lack of coordination between parties, amongst others. The study thus revealed that it is necessary to identify factors that influence construction cost overruns at the start of the project in order to minimize cost overruns and to improve the cost performance on public sector construction projects. This is because of the high level of accountability necessary required for the management of tax payers money.


2017 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Ibrahim Saidu ◽  
W Shakantu ◽  
A Adamu ◽  
I Anugwo

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. 


2021 ◽  
Vol 15 (1) ◽  
pp. 10-19
Author(s):  
M Dana Prihadi

Abstrak - Penelitian ini dibuat dengan didasarkan pada sebuah permasalahan terhadap faktor secara fisik di rumah sakit. Termasuk hal mengenai peralatan dan sarana prasarana kerja yang belum tertata dengan baik, temperatur ruangan tempat bekerja terasa panas dan tidak dingin, tempat bekerja yang kurang nyaman dan kondusif, terjadi kepadatan di lingkungan kerja, polusi suara yang tinggi menyebabkan kebisingan pada lingkungan kerja, luas ruangan kurang memadai yang mengakibatkan area perekam medis tersebut bekerja termasuk dalam beraktivitas berdampak buruk terhadap tingkat fokus bekerja tenaga perekam medis secara langsung. Pada akhirnya kenyamanan kerja tenaga perekam medis terganggu. Penelitian ini menggunakan teknik sampling bola salju dalam penentuan sampel serta memakai metode penelitian deskriptif dan verifikatif dalam pembahasan dan pengolahan penelitian. Data primer merupakan teknik pengumpulan data yang dipakai dan juga teknik data sekunder. Penelitian ini menghasilkan informasi bahwa lingkungan bekerja, konsentrasi dan kenyamanan bekerja masuk dalam kategori cukup baik. Dari kegiatan wawancara dan kuesioner terhadap 9 sampel yang diuji melalui lembar study kasus, menghasilkan informasi bahwa secara bersama-sama lingkungan bekerja fisik mempunyai pengaruh yang positif serta signifikan terhadap kenyamanan kerja. Pengaruh lingkungan bekerja terhadap kepuasan bekerja diperoleh besaran nilai yaitu 66,7%, kemudian faktor lain yang juga mempengaruhi akan tetapi tidak dibahas dalam penelitian ini menunjukkan besaran nilai 33,3%.  Abstract - This research was made based on a problem with physical factors in the hospital. Including matters regarding work equipment and infrastructure that have not been properly organized, the room temperature is hot and not cold, the work place is less comfortable and conducive, there is density in the work environment, high noise pollution causes noise in the work environment, the area of ​​the room inadequate which resulted in the location of the medical recorder working including in activities having a negative impact on the level of focus of the medical recorders work directly. In the end, the work comfort of the medical recorders was disrupted. This study uses snowball sampling techniques in determining the sample and uses descriptive and verification research methods in the discussion and research processing. Primary data is a data collection technique used as well as secondary data techniques. This research produces information that the work environment, concentration and work comfort are in the good enough category. From interviews and questionnaires to 9 samples tested through the case study sheet, it provides information that together the physical work environment has a positive and significant effect on work comfort. The influence of the work environment on job satisfaction obtained a value of 66.7%, then other factors that also influence but are not discussed in this study show a value of 33.3%..


2018 ◽  
Vol 6 (1) ◽  
pp. 100
Author(s):  
Ayu Diva Septiyani Putri Sugianta ◽  
I Nyoman Sunarta

Tourism is designed to be a number one source of foreign exchange in Indonesia. But the development of toursm and tourist destination will definitely have an economic impact whether it’s positive impact or negative impact. As well as development in tourist destinationHidden Canyon Beji Guwang. This research aims to find out what is the participation of local community in the development of Hidden Canyon Beji Guwangand to find out what is the economic impactof it. The data used in this research is qualitative and quantitative data. Primary data source data and secondary data source. This research used descriptive qualitative method. Which is obtained through observation, in-depth interviews and documentation. Informant determination is done bypurposive sampling technique.                   The results of this research is tourist destinationHidden Canyon Beji Guwangmanagement derived entirely from the participation of local communities in Desa Guwang. Economic impact which is more dominantly felt by the local communities because the management system is only employs local people from Guwang Village whosemost of them are dropped out of school.                                                                                            Keywords: Economic Impact, Participation of Local Communities, Tourism Destination, Hidden Canyon Beji Guwang


Author(s):  
Gusti Ayu Marcela Dewi ◽  
I Nyoman Sunarta ◽  
I Nyoman Sukma Arida

The phenomenon of Mount Agung eruption has a negative impact on Ubud tourism. The impact of this event was greater than the 2002 Bali bombing. Generally, governments and tourism actors in Ubud have no yet a specific management to reduce the negative impact of Mount Agung eruptions. This research is qualitative descriptive method approach with case study research. Primary data in this study were obtained from interviews with informants namely; government, tourism institutions (NGOs) and tourism industry players in Ubud. Researchers also used online desk research to collect the secondary data that already exists on the internet from trusted sources in the form of public documents (images, e-news), or personal documents (e-mail, work reports and results of minute meetings). The result of this study, there were obtained four stages of crisis handling carried out by Ubud’s tourism actors namely 4R such as, reduction, readiness, response, and recovery. To minimize the negative impact of Mount Agung eruption, stakeholder needs synergetic all elements such government, non-government organizations (NGOs), industry actors, communities and other stakeholders to keep tourism sector remains conducive. Keywords: strategy of tourism actors, Mount Agung eruption, crisis


2015 ◽  
Vol 5 (2) ◽  
pp. 15-21
Author(s):  
Johan de Beer ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert

Due to technological developments, the complicated world of engineering and its associated products are continuously becoming more specialized. Short-term insurers provide engineering insurance to enable the owners and operators of engineering assets to combat the negative impact of the associated risks. It is, however, a huge challenge to the insurers of engineering insurance to manage the particular risks against the background of technological enhancement. The skills gap in the short-term insurance market and the engineering environment may be the main factor which inhibits the growth of the engineering insurance market. The objective of this research embodies the improvement of financial decision-making concerning the claims handling process of engineering insurance. Secondary as well as primary data were necessary to achieve the stated objective. The secondary data provided the background of the research and enabled the researchers to compile a questionnaire for the empirical survey. The questionnaire and a cover letter were sent to the top 10 short-term insurers in South Africa that are providing engineering insurance. Their perceptions should provide guidelines to other short-term insurers who are engaged in engineering insurance, as they are regarded as the market leaders of engineering insurance in South Africa. The empirical results of this research focus on the importance of various claims handling factors when assessing the claims handling process of engineering insurance, the problem areas in the claims handling process concerned, as well as how often the stipulations of engineering insurance policies are adjusted to take the claims handling factors into account.


2017 ◽  
Vol 13 (3A) ◽  
pp. 63
Author(s):  
River Pieter Tandaju ◽  
Elsje P. Manginsela ◽  
Nordy F. L. Waney

The research aims to describe the impact of the conversion of agricultural land of cloves to the socio-economic condition of farmers. The study was conducted from May to July 2017. The data used are primary data obtained through interviews to 5 (five) respondents who sell land for land converted. Secondary data is obtained from Tetetana Hill nature reserve, Kumelembuai village government, books and journals. Data analysis used is descriptive analysis. The research results showed that viewed from the economic side, land conversion has a positive impact for the farmers family and local society. Positive impacts for farmers family include increasing the income, helping to construction the house of farmers, opening up a new farming businesses, and for local society like existence of jobs. Viewed from the social side, land conversion has positive and negative impacts, that is: change of farmers family life status (positive impact), and the influence of visitor habits toward society (negative impact).


2020 ◽  
Vol 11 (4) ◽  
pp. 1184
Author(s):  
Ashem Emmanuel Egila ◽  
Oluwaseun Abdulakeem Balogun ◽  
Saheed Olanrewaji Yusuf

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.


Author(s):  
Nurmusyahidah Nurmusyahidah ◽  
Arfin Hamid ◽  
Andi Tenri Famauri

Bad credit is caused by two factors, which are from the bank and from the customer. This study aimed to analyze the fine financing problems in the Islamic of Pawnshop Unit Bone according to Indonesian Ulama Council (MUI) perspective. This research is a normative legal research using a sociological juridical approach. The primary data used are regulations or legal products from the Indonesian Ulama Council, namely the DSN-MUI fatwa regarding fines and direct interviews with employees and customers. Besides, the secondary data used was number of books that contain opinion Indonesian Ulama Council and other literature which is relevant to research. The results showed that the application of fines in financing problems in the islamic pawnshop Unit Bone of South Sulawesi had positive and negative impacts. The positive impact was giving a deterrent effect to customers who face the due while the negative impact is the waste of time for employees who have to work more than working hours. However, the impact of these fines did not reduce the performance of the South Sulawesi specially in the Islamic of Pawnshop Unit Bone in order to become a non-bank financial institution that is still in demand by the public and become a financial institution that can help the economy of Indonesian society, among them is the society in Bone, South Sulawesi. It is because people in Bone regency tend to open up business as their economic livelihoods.


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