scholarly journals Cost overrun in construction projects in Oman: Case study

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Haitham Nasser Al Siyabi ◽  
Omar Khaleel
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Building Construction ◽  
Cost Overrun ◽  
Survey Interviews ◽  
Original Contract ◽  
Major Factors ◽  
The Cost ◽  
The Impact

There are many challenges in construction industry sector, and one of the most important and critical is completion of the project within the original contract value. As the issue of cost overrun in construction projects is spread worldwide generally and commonly encountered in the Sultanate of Oman.The main objectives of this study are to identify and determine vital factors leading to cost overrun in Building Projects in Oman, evaluate the impact of cost overrun in building construction projects and develop the best protocol strategy for project management teams that can be adopted in order to control the cost overrun in future projects. These objectives have been obtained through several methods, questionnaire survey,interviews with experts in construction industry. Twenty nine major factors lead to cost overrun were identified through literature review and studied in Sultanate of Oman.The study concluded that there are three major impacts of cost overrun in construction projects and industry which are time of completion, delivery of poor quality projects and delay of payment approval. Additional to that, Hire good Supervision Team, a good Cost Controller, Project Manager, a good project design team, well planning for pre-contract stage and proper procurement strategy. Consider the Risk assessment and Risk Control are crucial to minimize the cost overrun in building construction project in Oman. The study have recommended procedure to cost control in future project such as the Employer should have a proper tender analysis of the Contractor’s bid, Detailed design should be finalized before award of work and others.

Investigation of Cost-Influencing Factors Potentially ‎Controllable by Main Contractors in Construction Projects in ‎Iraq

2020 ◽  
Vol 38 (7A) ◽  
pp. 1069-1076
Author(s):  
Layth T. Ali ◽  
Raid S. Abid Ali ◽  
Zeyad S. M. Khaled
Keyword(s):  
Construction Projects ◽  
Project Managers ◽  
Cost Overrun ◽  
Public And Private ◽  
Importance Index ◽  
Labor Recruitment ◽  
Supply Planning ◽  
Major Factors ◽  
And Control ◽  
The Impact

Cost overrun in construction projects is a common phenomenon in Iraq. This might occur due to diversity of factors. This study aims to identify the factors influencing construction projects cost that are potentially controllable by main contractors. A field study through a questionnaire survey was directed to a sample of related Iraqi professional engineers from general contracting companies at both public and private sectors. Their opinions on the impact and frequency of each factor were investigated. The questionnaire offered (59) factors classified in (8) categories namely; legislations, financial and economic, design, contractual, site management, material, labor and equipment. The factors were ranked according to the highest Relative Importance Index (RII). The study revealed (10) major factors that are potentially controllable by main contractors namely; labor productivity, sub-contractors and suppliers performance, equipment productivity, site organization and distribution of equipment, experience and training of project managers, scheduling and control techniques, planning for materials supply, planning for equipment supply, materials delivery and planning for skilled labor recruitment. Recommendations to aid contractors and owners in early identification of these factors are also included in this study.

scholarly journals Estimation of cost overrun in construction projects using Fuzzy Logic

2021 ◽  
Vol 23 (05) ◽  
pp. 797-805
Author(s):  
Neelakash Haloi ◽  
◽  
Tapas Goyal ◽  
Faizan Zahoor ◽  
Harsh Jain ◽  
...  
Keyword(s):  
Fuzzy Logic ◽  
Construction Projects ◽  
Cost Overrun ◽  
Time Data ◽  
Construction Companies ◽  
Five Factors ◽  
Spss Software ◽  
The Cost ◽  
The Impact ◽  
Published Research

In recent years, the impact of the construction industry on the economy of India is increasing. However, there are a number of problems that are being faced by the construction companies or contractors or other relevant stakeholders, in the completion of a construction project. One of the major problems being faced is time and cost overrun. Thus, it is important to find ways of mitigating this critical problem. One of the solutions that is being used is the prediction of the amount and time that a project might overrun beforehand i.e. estimating the overrun during the design phase itself. This prediction can be done using a number of different techniques, the important one of which used in this paper is through the use of Fuzzy Logic. It also provides a brief description about the factors that are responsible for causing this cost overrun. The factors are identified by conducting a questionnaire survey and gathering responses from the relevant stakeholders which include contractors, project engineers, architects and consultants. The responses collected are further processed and analysed using SPSS software. The top 5 factors have been selected after the analysis and further used in preparation of the fuzzy logic model in the fuzzy toolbox of MATLAB. Further, the validation of this model has been done with real-time data of projects from various published research papers. Thus, the model developed provided prediction of the percentage of the cost overrun based on the percentage input of the top five factors.

Inflation rate and labours’ wages in construction projects: economic relation investigation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ali Musarat ◽  
Wesam Salah Alaloul ◽  
M.S. Liew
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Inflation Rate ◽  
Vital Role ◽  
Strongly Correlated ◽  
Cost Overrun ◽  
Content Type ◽  
Spearman Correlation Test ◽  
Key Resources ◽  
The Impact

PurposeLabours are one of the key resources of construction projects having a significant impact on economic development. With time, the construction industry is getting a boom due to numerous construction projects in which labours’ contribution is significant. Project betterment is associated with the project productivity which relates to the labours. Wages play a vital role in retaining labours in the construction industry.Design/methodology/approachThis study focuses on investigating the increasing and decreasing behaviour of labour wages in the construction industry and observing the impact of the inflation rate in deviating labour wages. Initially, the percentage deviation was calculated to observe the changing behaviour of the data and then the Spearman correlation test was used to find the relationship between the inflation rate and the labour wages.FindingsIt is evident that even with a good economy and a stable construction sector, still, the labour wages faced a decline over time, which is a matter of concern. Also, based on the correlation coefficient, it was revealed that several labour wages categories are moderately and strongly correlated with the inflation rate and can impact project cost if the inflation rate is not considered while finalizing the budget. Besides that, the changing behaviour of labour wages due to the inflation rate impacts significantly on gross domestic product (GDP); therefore, it requires vital attention.Originality/valueChanges in labour wages are not considered in budget estimation which drag the project towards cost overrun. This study brings the attention of the stakeholders on the issue with experimental justification. Also, how the inflation rate is affecting the labour wages has also been addressed.

scholarly journals Training Program in the Construction projects

2020 ◽  
Vol 9 (5) ◽  
pp. 515-522
Keyword(s):  
Training Program ◽  
Construction Industry ◽  
Construction Projects ◽  
System Dynamic ◽  
Cost Overruns ◽  
Efficient Performance ◽  
Comprehensive Development ◽  
Unskilled Workers ◽  
The Cost ◽  
The Impact

Construction is questionably a main part in relative to comprehensive development . It plays an important part in the role in the economy as and in people’s survives over influencing and preserving the environment of the city-region’s constructed, and it is a rising sector. To provide an efficient performance and more development of the economic, there is emphases on optimizing the employees contribution to the goals and areas of the governments. The training significance as a management central part has long been documented by principal writers.This paper aim to find the impact of training in the construction industry and how the training is been underestimate lead in increase the cost by using the simulation technique system dynamic. The research methodology include designing of questionnaire that consist of three items , the first item include , general Training (Training Program), evaluation of on-the-job training and evaluation of training after establishing work and the second part include building the model using system dynamic to show the effect of training on the cost of construction. the results the authors made the following conclusions .The absence of training program has very strong effect as the absence of such program is caused by the finance absence , this is common problem with Iraqi construction industry. The most environment of the Iraqi industry is the absence of the finance from both owner and contractor as they ignore this part and consider unnecessary expenses and this will lead to unqualified engineering or worker in the wrong job .The absence of management mean that , usually the contractor and his staff are working without the supervise or represented from the owner side , which some time mean unskilled workers may be hired which lead to delay of the work and cost overruns .

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.

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 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 Assessment of the impacts of building construction activities on the environment

2020 ◽  
Vol 39 (2) ◽  
pp. 325-331
Author(s):  
F.O. Akintayo ◽  
O.N. Oyebade ◽  
S.P. Songca ◽  
N.O. Adebisi ◽  
O.S. Oluwafemi ◽  
...  
Keyword(s):  
Air Pollution ◽  
Construction Industry ◽  
Construction Projects ◽  
Raw Materials ◽  
Control Measure ◽  
Building Construction ◽  
Construction Sites ◽  
Dust Emissions ◽  
Air Contamination ◽  
Major Factors

Activities in building construction industry contribute to air pollution. In this study, gas data from four locations at each three building construction sites in Doha, Qatar were collected and analyzed. Questionnaires were also administered to companies that are involved in building construction projects. The results showed traces of SO2, CO2, CO and NO2 but in amounts below the detrimental limit stipulated by the Ministry of Environment, Qatar. Questionnaire responses revealed that the extraction of raw materials and the energy consumed during construction occur quite often, but strongly implicated dust generated from construction sites and waste disposal, as major factors causing air pollution in the area. It is therefore, recommended that regular monitoring of air should be carried out within building construction sites to aid detection of air contamination. This will serve as a control measure to stimulate catalytic conversion of exhaust, reuse and recycling of waste materials. Keywords: Air pollution, Building construction activities, Dust, Emissions and Environment.

scholarly journals COVID-19 pandemic impact: an identification of the cause of cost overrun in construction project

2021 ◽  
Vol 331 ◽  
pp. 01014
Author(s):  
Yervi Hesna ◽  
Jati Sunaryati ◽  
Ayu Hidayati
Keyword(s):  
Construction Industry ◽  
Construction Project ◽  
Health And Safety ◽  
Cost Overrun ◽  
Project Cost ◽  
Heavy Equipment ◽  
Two Factors ◽  
Implementation Time ◽  
The Cost ◽  
The Impact

The paper provides a thorough examination of the impact of COVID-19 on increasing the cost of the construction project. The pandemic of COVID-19 had disrupted the financial and operational of the construction industry. Many projects have been closed and suspended, and this situation has caused great uncertainty in the construction industry. Even though the Instruction of the Minister of Public Work No. 2/2020 issued March 27, 2020, stated that construction activities in Indonesia could continue work. However, it still believes COVID-19 can lead to poor project cost performance. The study used a literature review to explore the factors contributing to the increase in project cost. A case study in the hotel construction project is used to test the factors. The research found six factors have a frequency of occurrence for each cause of cost overrun, namely labor, material, implementation time, project financial aspects, estimated cost, and occupational health and safety. The case study’s two factors are not the cause of the cost overrun based on the interviewee’s answer: heavy equipment and overhead. This paper also explains the mechanism to address cost overrun continue in construction work.

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.

Sign in / Sign up

Export Citation Format

Share Document