scholarly journals Causes and Effects of Cost Overruns in Public Building Construction Projects Delivery, In Imo State, Nigeria

2017 ◽  
Vol 19 (07) ◽  
pp. 13-20
Author(s):  
Anyanwu Columbus Ikechukwu ◽  
Fidelis, I. Emoh ◽  
Okorocha A. Kelvin
2019 ◽  
Vol 8 (2) ◽  
pp. 4-9
Author(s):  
Abdurezak Mohammed Kuhil ◽  
Neway Seifu

The time overrun in construction projects has become one of the most common problems in the industry that cause multitude of negative effects on the projects and its stakeholders. This study focused on assessing the main causes of delay in public building construction projects in Addis Ababa Administration mainly undertaken by grade one contractors. In these projects, 42 delay causing events in the Addis Ababa public building construction projects were identified and categorized in to five main category groups, and the most important and critical causes of public building construction delay causing factors were evaluated and ranked based on the RRI(Ranking and computation of relative importance index)values from the data collected in a questionnaire survey of three groups of respondents- clients, consultant and contractors in the construction industry. The survey findings revealed the top ten factors that cause construction delays in the public building construction projects in Addis Ababa are: (1) Difficulty in project financing (poor financial system); (2) Poor Project management system;(3) Delay in issuance of designs and working drawings; (4) Shortage of availability of imported construction materials and goods on market; (5) Design errors and complexity of designs;(6)Delay in progress payments for completed works; (7) Late start & resource mobilization to site; (8) Financing problems; (9) Inaccurate Site investigation Report;(10) Price Inflation. Furthermore, the ranking of the factors tested the agreement among the respondents and finally agreement test reveal that there appears a positivecorrelation between the groups in noticing and ranking the set of delay causes. The study recommended in general and particularly to all the parties for mitigating factors causing time overrun.


2006 ◽  
Vol 12 (23) ◽  
pp. 437-442
Author(s):  
Shuzo FURUSAKA ◽  
Takashi KANETA ◽  
Naoki KATOH ◽  
Katsuki FUJISAWA ◽  
Ryusuke MIZUNO

Author(s):  
Zelalem Mebrate Ejeta ◽  
Zelalem M ◽  
Vignesh Kumar M ◽  
Getnet Tadesse ◽  
Biftu Jaleta

The Construction Industry is embedded with risky situations that affect construction projects and therefore requires systematic processing to achieve project objectives and ensure business sustainability (5). This research work was tries to study the risk management practice on public building construction projects and aims to identify the level that use of risk management practice especially in the public building. The data collection method was a combination of interview and questionnaire. Samples were purposively selected from clients, consultants, and contractors representatives who are now actively participating in public building construction projects. For this study, the data was collected using both primary and secondary sources. Depending on the data that was gathered from the respondent to test the level of awareness, identifying the Risk that affect the performance of public building construction project and major risk management practice on public building construction project are considered and the RII was used to rank the factors. This data was analyzed using SPSS of version 22 to perform descriptive statistics. A total of 75 questionnaires were targeted to be distributed and out of those 50 which is 66.67% are successfully responded. The finding from this study revealed that, about (52%) of the project progress is lagging from the schedule. Regarding the awareness of the risk management, (94%) of the respondents where confirmed that they have awareness of risk management ideologies and they are confident enough to implement their knowledge while, (6%) of them have no concept about the risk management. The top five risks that affect the performance of construction project have been identified and ranked. Accordingly; market condition, unexpected inflation, local taxes, inadequate production of raw materials, and the economic condition of country are the top five identified associated project risks.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahab Shoar ◽  
Tak Wing Yiu ◽  
Shamsi Payan ◽  
Majid Parchamijalal

PurposeAlthough several studies have been conducted on the causes of cost overrun, they have mainly assumed that the causes of cost overrun are independent of each other, and few of them scrutinized the complex interrelationships between the causes. To fill the gap, this study aims to investigate the mutual interactions between the causes of cost overrun using interpretive structural modeling (ISM) and proposing strategies to tackle the causes considering their interactions.Design/methodology/approachCritical causes of cost overrun were identified through a comprehensive literature review. In total, 22 key causes are then refined based on the opinions of relevant experts involved in the Iranian building and construction sector. Using the nominal group technique, the causes' interactions were examined and represented via the ISM diagram. The causes were also classified using “matrix cross-reference multiplication applied to a classification (MICMAC)” technique.FindingsThe results showed that price fluctuation, claims, execution delay, delay in payment and change order positioned at the highest level of the obtained model can directly result in cost overrun, and corruption and poor contract management located at the base of the model are two major root causes of cost overruns. It was also concluded that more attention should be paid to the precontract phase of the project to address and prevent corruption and managerial issues deeply rooted in this stage.Originality/valueThe findings of this study provide a clear understanding of how different causes of cost overrun are related to each other and can ultimately assist project managers of different parties in choosing strategies to mitigate cost overrun in building construction projects.


2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Solomon Melaku Belay ◽  
Seifu Tilahun ◽  
Mitiku Yehualaw ◽  
Jose Matos ◽  
Helder Sousa ◽  
...  

Today, several developing countries struggle to improve the cost and time performances of major infrastructure works due to various reasons. Cost overrun and delay are one of the major challenges being faced by the construction and infrastructure sector. Hence, the aim of this study is to explore the extent of cost overrun and schedule delays in building and road infrastructure projects across the Ethiopian construction industry. Primary data were collected through a structured questionnaire survey to evaluate the potential risks leading to those challenges. Various data analysis tools were employed, to investigate the critical causes of cost overrun and delays in infrastructure projects. The findings reveal that the minimum cost overrun for building construction projects is found to be 2%, whereas the maximum and average cost overruns are 248% and 35%, respectively. For road infrastructure projects, the minimum, maximum, and average cost overruns are found to be 1%, 61%, and 18%, respectively. Similarly, the minimum, maximum, and average delays recorded in building construction projects are 9%, 802%, and 143%, respectively, whereas, in road infrastructure projects, the minimum delay is found to be 3%, the maximum delay is 312%, and an average schedule delay of 110% is recorded. In addition, the top risk factors leading to cost overrun in infrastructure projects are inflation, inaccurate cost estimates, and variations, whereas the major risks causing schedule delays are variations, economic conditions, and escalation of material prices. Further, practical implications and key recommendations were provided to curb cost overrun and delay in infrastructure projects.


2021 ◽  
Author(s):  
Emer Tucay Quezon

Proper completion of a public building construction project is dependent on the effectiveness of the construction supervision. However, it has become increasingly difficult to finish construction projects within the specified time, budget, and quality standards due to poor supervision practices. Approaches such as quantitative and qualitative research and descriptive research types were used in this study. Questionnaires survey were issued to 104 respondents, with 11 representing clients, 22 representing consultants, and 71 representing contractors. There were 33 factors identified, which were then divided into seven groups for further analysis. It was discovered that the top-ranked factors that influence construction supervision practice are: supervisors' lack of skills and experience, incompleteness and consistency in the design, lack of appropriate decision making, location of the project, material and equipment costs, a lack of construction materials supply, and effect of weather conditions. The Relative Importance Index was calculated to determine whether or not the parties agreed on the factors and ranked them according to their importance. Most respondents suggested that supervisors should receive proper training, and comprehensive and detailed drawings should be provided on time. In addition, it was discovered that the top three essential group elements affecting supervision practice of the public building project are supervisory, design, and management-related aspects.


2020 ◽  
Vol 11 (2) ◽  
pp. 111-124
Author(s):  
Jifara Chimdi ◽  
Sisay Girma ◽  
Alemu Mosisa ◽  
Degefe Mitiku

Construction projects are getting progressively complex and their scales are getting sophisticated. Along these lines, it is getting more problematic to finish the projects inside planned cost limits. In Oromia public building construction projects these problems were raised as a typical challenge. Hence, evaluation of factors affecting the accuracy of cost estimation in public projects was the aim of this study. Both quantitative and qualitative methods were utilized for information assortment. Relative Importance Index (RII) was utilized for information investigation. Totally sixty -two variables were investigated and the best five most significant were selected by this assessment based on the average view of respondents. These significant factors are; Material price/accessibility /source /quality /imports, Experience and ability of the consultant, Variability in the Economy of the country, and financial conditions of client.  Spearman's rank correlation coefficients (rho) investigation was conducted by the assistance of SPSS 20 version for a testing level of connections among respondents on the positioning of the factors affecting the accuracy of cost estimation. Spearman’s rank correlation results were 0.823 among Clients and Consultants, 0.813 among clients and contractors, and 0.802 among Consultants and Contractors. The outcome shows that the rate of the rank correlations was a high positive number, which implies there is a positive connection between them on the ranking of factors disturbing the accurateness of cost estimation in public building construction projects in western Oromia.


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