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 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.

Exploring critical road project delay factors in Ghana

2017 ◽  
Vol 15 (2) ◽  
pp. 110-127 ◽  
Author(s):  
Charles Teye Amoatey ◽  
Alfred Nii Okanta Ankrah
Keyword(s):  
Road Construction ◽  
Mitigation Measures ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Content Type ◽  
The Road ◽  
Integrated Risk ◽  
Road Project ◽  
Road Projects ◽  
Project Delays

Purpose The purpose of this paper is to investigate the causes of road construction delays in Ghana and identify appropriate mitigation measures. Design/methodology/approach The initial approach involved an empirical analysis of 48 road projects to quantify the extent of time. This was followed by a survey of the perception of road agency and donor partner officials of the critical causes of road project delays. Findings About 70 per cent of road projects experience delays and 52 per cent experience cost overruns. The average time overrun and cost overruns of road projects in Ghana was 17 months and US$1.15m (or 22.5 per cent), respectively. The five most critical causes of road construction delays were delay in finance and payment of completed work by owner (client-related); inadequate contractor experience (contractor-related); changes in scope by the owner during construction (client-related); delay to furnish and deliver the site to the contractor (client-related); and inflexible funding allocation for project items (donor-related). Research limitations/implications The most critical constraint of this study is the fact that findings are based on only the views of industry professional experts. It may be assumed that despite using broadly used terminology to refer to the causes of project delays, the interpretations by respondents may have differed from those intended. Further research could look at the correlation between time overrun and cost overrun using principle component analysis. Practical implications The identified delay factors are not unique to the road sector. From both academic and practical perspectives, the results emphasizes on the need for a holistic and integrated risk management model for the entire construction industry in Ghana. Originality/value The paper examined the causes of road project delays in the Ghanaian context and recommended remedial measures.

scholarly journals ANALISA FAKTOR-FAKTOR YANG MEMPENGARUHI PENERAPAN MANAJEMEN WAKTU PADA PROYEK KONSTRUKSI JALAN DI KOTA SAWAHLUNTO

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Abadi Palusia
Keyword(s):  
Time Management ◽  
Research Method ◽  
Construction Projects ◽  
Quantitative Research ◽  
Construction Project ◽  
Road Construction ◽  
Timely Completion ◽  
Road Project ◽  
Road Projects ◽  
Construction Works

Currently, many road projects are performing poorly for timely completion, an analysis of time road project implementation needs to be done on the contractor company, so that it can be known that the shortcomings and weaknesses done so far, which later can be an input for contractor, to be even better in the implementation of time management of a road construction project. In 2017 many packages of road construction works in Sawahlunto City. The purpose of this study is to determine the factors that affect the implementation of time management of road construction projects in Sawahlunto. The research method used is quantitative research method by spreading questionnaires to the respondents involved in road construction project in Sawahlunto City. Kata Kunci : Time Management, road, late

scholarly journals Influence of Claim Management in Construction Industry

2019 ◽  
Vol 9 (2S2) ◽  
pp. 1052-1061
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Negative Impact ◽  
Critical Issue ◽  
Point Of View ◽  
Cost Overrun ◽  
Construction Companies ◽  
Spss Software ◽  
The Impact ◽  
Work Contract

Most construction projects are suffering from claims due to many reasons. Claim emergencies have risen for ten years due to the critical political situation. These claims have a bad impact on all groups who were work in the construction field. The impact of claim could be followed to cost overrun, loss of efforts and suspension of work, contract termination. This investigation means to recognize the real reason for causes of claim in construction and demonstrate their difference between respondent concerning individual, company and organization traits. It also aims found the important factors in developing for the management of construction project claim to predict claim occurrence and to mitigate the negative impact of a claim. The objective of the study achieved through a valid questionnaire obtained from several construction companies. The questionnaire survey was conducted involving the contractor, consultant, client point of view. The result of the questionnaire encountered in the SPSS software for finding the major factor that affects the construction. The finding demonstrates the absence of site attention to detect claims, detachment or inaccessible of related documents proactively, and conflicts which develop during owner/contractor negotiation are all critical issue related with the system of claim management. My work aims to distinguish the various claims through review paper and to recognize the most impacted causes of claim in our region.

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 Evaluation of Contractors’ Financial Ability: A Remedy for Performance of Road Construction Infrastructural Projects for Sustainable Cities

2020 ◽  
Vol 13 (6) ◽  
pp. 86
Author(s):  
James Mushori ◽  
Charles Mallans Rambo ◽  
Charles Misiko Wafula
Keyword(s):  
Construction Projects ◽  
Predictor Variable ◽  
Road Construction ◽  
Evaluation Process ◽  
Target Population ◽  
Poor Quality ◽  
Vital Role ◽  
Cost Overruns ◽  
And Performance ◽  
Descriptive Survey

Construction of roads in Kenya, particularly done by local contractors, has adversely been faced with serious issues to do with cost overruns, longer periods in completion and above all poor quality upon completion. However, performance of roads in the post-delivery or post construction stage has not keenly been assessed or studied despite poor workmanship. Although financial aspect has been associated with completion road construction projects, studies have not used this predictor variable to study performance. The aim of the study was to establish the influence of financial ability of contractors and performance of road construction infrastructural projects in Nairobi County, Kenya. Both descriptive survey research and correlation research designs were adopted in this study. A target population of 460 comprising all public service vehicle drivers plying Eastern Bypass, and Outer-ring roads in Nairobi, as well as the contractors and engineers from the construction firms in Nairobi County. A sample of 210 was drawn from both categories of respondents and served with interview schedules out of which 153 were returned representing 72.8%. Results from the simple linear regression model revealed that contractors’ financial ability, explains 44.7% total variation in the performance of road construction infrastructural projects. This relationship was established to be lineally positive and strong (r=0.669) and also significant (P=0.000<0.05). The study findings play a vital role in construction project management during evaluation process of selecting effective contractors for better road performance.

scholarly journals Identifying the Global Performance of the Construction Industry

2016 ◽  
Vol 8 (2) ◽  
pp. 7 ◽  
Author(s):  
Alfredo Rivera ◽  
Nguyen Le ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Customer Satisfaction ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Performance ◽  
Developed Countries ◽  
Construction Costs ◽  
Cost Overruns ◽  
Best Value ◽  
Project Costs ◽  
And Performance

This paper presents a literature research assessing the performance and issues of delivering construction services worldwide, by exploring reasons for delays and increased construction costs. The study shows a comparison of the performance of the construction industry between different continents and countries. Multiple research databases were looked through and performance information was taken from over 95 publications. The results reveal that although the construction industry is growing throughout the world, there are many of the same problems being experienced in delivering construction projects in developing countries and developed countries. The literature reveals that all countries and continents are experiencing the same issues. On average, 72% of projects are delayed with 38% increase in original contracted duration, also, 63% of projects experienced cost overruns with 24% increase in original contracted cost. Additionally, rework is also a factor that affects performance and accounts for 6% increase in total project costs. Customer satisfaction on projects is low, and 90% of all major issues causing non-performance are due to people. A best value approach was identified as a potential solution to overcome the poor performance on construction projects with the following results: tested over 1900 times, totaling over $6B of procured services, a 94% on time and 97% on budget, and 98% customer satisfaction.

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 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 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
Keyword(s):  
Negative Impact ◽  
Construction Project ◽  
Residential Building ◽  
Secondary Data ◽  
Primary Data ◽  
Cost Overrun ◽  
Sultanate Of Oman ◽  
Construction Costs ◽  
Cost Overruns ◽  
Time Required

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.

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