scholarly journals Improving cost performance in design-bid-build road projects by mapping the reasons for cost overruns into the project phases.

2020 ◽  
Vol 19 (2) ◽  
pp. 334-345
Author(s):  
Maria Calahorra-Jimenez ◽  
Luis Fernando Alarcon ◽  
Cristina Torres-Machi ◽  
Alondra Chamorro ◽  
Keith Molenaar
2020 ◽  
Vol 146 (9) ◽  
pp. 04020113 ◽  
Author(s):  
Hyosoo Moon ◽  
Kwonhyun Kim ◽  
Hyun-Soo Lee ◽  
Moonseo Park ◽  
Trefor P. Williams ◽  
...  

1998 ◽  
Vol 29 (3) ◽  
pp. 43-51 ◽  
Author(s):  
David S. Christensen ◽  
James A. Gordon

A common assertion in defense literature is that an unstable budget baseline contributes to cost overruns on defense acquisition contracts. Using cost performance data from over 400 defense acquisition contracts, we tested this assertion. The stability of the baseline was characterized by the number of significant changes to the budget, and by a statistical measure of the baseline's variability, the coefficient of variation. Cost performance was characterized by cost and schedule performance indices. Using 2 statistical methods, we found no significant relationships between baseline instability and cost overruns. Further, these results were insensitive to the managing service, the buying activity, and the contract type. Changes on a defense contract are not compelling rationale for cost overruns. Other possible causal factors should be more closely examined. The views expressed in this paper are those of the authors and do not reflect the official policy or position of the Department of Defense of the U.S. government.


2020 ◽  
Vol 12 (18) ◽  
pp. 7377
Author(s):  
Adriana Gómez-Cabrera ◽  
Amalia Sanz-Benlloch ◽  
Laura Montalban-Domingo ◽  
Jose Luis Ponz-Tienda ◽  
Eugenio Pellicer

Rural roads play an indispensable role in economic and social well-being, especially in developing countries, contributing to achieving the Sustainable Development Goals. For this reason, it is necessary to plan these projects properly to guarantee their success. In this line, the objective of this research is to identify significant variables generating overruns in time and cost using empirical data of 535 rural road projects in Colombia from 2015 to 2018. Bivariate analysis, with statistical tools like Spearman’s Rho and Kruskal–Wallis, allowed identifying that higher values of variables like budget and project intensity are related to higher deviations in cost and time. Additionally, it was found that projects with shorter durations are reporting higher time overruns. The worst performers are projects executed in the year that council mayors start their terms, those developed in municipalities with more resources, and those awarded using a competitive bidding process. Multivariate analysis, through Random Forest, assessed the effect of considering all variables interacting simultaneously and ranking them in order of importance. The results demonstrated a relationship between cost and time performance, and that numerical variables are more significant than the categorical ones. This study contributes to a better understanding of the causes of delays and cost overruns on rural roads, providing useful insight for researchers and industry practitioners.


2020 ◽  
Vol 27 (10) ◽  
pp. 3135-3153
Author(s):  
Muhammad Irfan ◽  
Muhammad Sohail Anwar Malik ◽  
Syyed Sami Ul Haq Kaka Khel

PurposeThe purpose of this research is to rank the most significant factors of organizational structure that can reduce time and cost overruns (nonphysical waste) in road projects of the developing countries. Additionally, the effect of factors of organizational structure on nonphysical waste in road projects is also measured.Design/methodology/approachFactors of organizational structure causing time and cost overrun are extracted through a content analysis of the published literature. Moreover, a questionnaire survey is carried out involving 128 professionals to assess the effect of organizational structure factors on time and cost overrun. Finally, to obtain a more objective evaluation, relative importance index and regression analysis techniques are utilized, and the most severe factors influencing time and cost overrun are indicated.FindingsThis study found out that top management support and procurement procedures are the most significant factors influencing time and cost overruns in road projects of the developing countries.Originality/valueA small number of studies have been conducted to investigate the effect of factors of organizational structure on time and cost overrun in the construction industry. And even more, its relation with respect to road projects of the developing countries is limited. This research highlights the effect of most significant factors of organizational structure that influence the nonphysical waste in road projects of the developing countries. Therefore, this study adds to the body of knowledge by recommending that all the stakeholders of construction project should pay close attention toward these factors to control the enigma of time and cost overrun. It might also prove helpful, if implemented to its full extent, in all the road construction activities undertaken.


2012 ◽  
Vol 18 (2) ◽  
pp. 184-196 ◽  
Author(s):  
Godwin Iroroakpo Idoro

This study compares the levels of planning and the outcome of projects procured by direct labour and traditional contract procurement options. For this comparison, a survey of 130 projects was carried out. Data were collected using structured questionnaires and analysed using percentage, mean and t-test. The study discovers that whereas the levels of conception and overall planning done in projects procured by the two options are the same, the levels of design and construction planning done in DBB and DL projects differ. The study also discovers that the time-overruns of projects procured by the two methods differ but their cost-overruns are the same. The study concludes that projects procured by DBB and DL options differ in planning and time-overrun and suggests improved planning at the design stage when DL option is adopted and improved planning at the construction stage when DBB option is adopted. Santrauka Šiame darbe lyginami planavimo lygiai ir projektų rezultatai, kai naudojamas tiesioginis darbas ir taikomas tradicinis pirkimų metodas (projektavimas–konkursas–statyba; angl. Design-Bid-Build, D-B-B). Palyginimui atlikta 130 projektų apklausa. Duomenys surinkti naudojant tam tikros struktūros anketas ir išanalizuoti pagal procentus, vidurkius ir t testą. Atliekant tyrimą nustatyta, kad abiem paslaugų pirkimo atvejais projektų sumanymo etapas ir bendras planavimas yra vienodo lygio, tačiau tradicinį pirkimų metodą pasirinkusiuose projektuose projektavimo ir statybų planavimo etapų lygis skiriasi nuo tiesioginį darbą pasirinkusių projektų etapų lygio. Atliekant tyrimą paaiškėjo, kad abiem atvejais laikas viršijimas skirtingai, tačiau sąnaudos viršijamos vienodai. Daroma išvada, kad projektams taikant skirtingus pirkimo būdus (tradicinį metodą arba tiesioginio darbo variantą) skiriasi planavimas ir vėlavimas; taip pat siūloma, kaip pagerinti projektavimo etapo planavimą, kai naudojamas tiesioginio darbo variantas, ir kaip pagerinti statybų etapo planavimą, kai taikomas tradicinis metodas.


2017 ◽  
Vol 24 (1) ◽  
pp. 118-132 ◽  
Author(s):  
Wenxue Lu ◽  
YuanYuan Hua ◽  
SuJuan Zhang

Purpose The purpose of this paper is to explore the influencing factors of cost performance of design-bid-build (DBB) and design-build (DB) projects and comparing the differences of influencing factors between these two delivery methods. Design/methodology/approach This research identified and refined 14 influencing factors through literature review and academic expert discussions. Questionnaire survey was conducted to collect data about the influencing factors and project cost performance. Then those factors were reduced to four components by factor analysis. Logistic regression analysis is used to investigate the relationship between four principal components and project cost performance. Findings The results indicate that the significant influencing factors of project cost performance of DBB projects and DB projects are different. For DBB projects, owner abilities, such as owner team ability, owner experience, and owner finance, are important influencing factors causing cost overruns, while for DB projects cost performance is more sensitive to the contractor abilities, namely, contractor team ability, contractor finance, contractor experience, etc. Research limitations/implications The results of the paper are mainly derived by quantitative research method based on the survey of 144 samples, so the results may need validation by qualitative studies. Further research could apply case study or interview to validate the findings in this research. In addition, project type and location are not considered as control variables due to the limited number of samples, future research could be conducted to investigate their relationship with project performance. Practical implications The findings of this research not only help practitioners have a better understanding of the factors influencing project cost performance, but also provide some guidelines for practitioners to pay attention to different factors to better control the cost performance within different delivery systems. Originality/value Owner ability and contractor ability are found to be of different importance in influencing cost performance of DBB and DB projects. This research extends previous research on cost management by considering different significant factors in influencing project cost performance within DBB and DB projects.


2017 ◽  
Vol 15 (2) ◽  
pp. 110-127 ◽  
Author(s):  
Charles Teye Amoatey ◽  
Alfred Nii Okanta Ankrah

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.


Buildings ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 664
Author(s):  
Pavol Mayer ◽  
Tomáš Funtík ◽  
Ján Erdélyi ◽  
Richard Honti ◽  
Tomo Cerovšek

This paper addresses critical success factors for the delivery of BIM projects. The lack of experience with BIM projects on both the demand and supply side often leads to insufficient project teams, unsatisfied clients, schedule, and cost overruns. In order to better structure and control the information delivery in BIM projects requirements, planning and delivery must be standardized. The latter was achieved by EIR (Exchange Information Requirements), new BIM roles, BEP (BIM Execution Plan), and specified digital handover, which must be supported by a common data environment (CDE). This paper provides an analysis of the characteristics of BIM project delivery and duration in Architectural and Engineering companies in Slovakia. The analysis is based on the web survey of BIM managers and coordinators, which reveals that a significant amount of BIM project efforts must be executed by BIM specialists. The results also graphically depict the scope of critical BIM activities across project phases. The presented study is relevant for various project stakeholders and allows for a deeper understanding of the resources needed for the successful delivery of BIM projects in terms of adequate project team capacity, capability, organization, and planning.


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