cost overrun
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2022 ◽  
Vol 5 (1) ◽  
pp. 24-42
Author(s):  
Sugiyanto Sugiyanto ◽  
Rendi Untoko

Pada penelitian ini, evaluasi sistem manajemen pada proyek yang diteliti terdiri dari evaluasi kinerja biaya, evaluasi kinerja jadwal dan evaluasi penerapan mutu pada pelaksanaan proyek. Evaluasi kinerja biaya dan jadwal proyek menggunakan metode konsep nilai hasil (earned value) dan evaluasi penerapan mutu pada pelaksanaan proyek berdasarkan penilaian fisik konstruksi terhadap spesifikasi teknis yang dipersyaratkan. Penggunaan metode nilai hasil untuk mengetahui kinerja biaya dan jadwal proyek dilakukan dengan analisa variabel-variabel BCWS (Budgeted Cost for Work Schedule), ACWP (Actual Cost for Work Performed) dan BCWP (Budgeted Cost for Work Performed), kemudian digambarkan pada kurva S dengan tampilan informasi sumbu X menunjukkan durasi proyek dan sumbu Y menyatakan biaya proyek. Kurva S sangat bermanfaat untuk dipakai karena dapat dengan jelas menunjukkan kemajuan proyek dalam bentuk yang mudah dipahami, apakah terjadi pembengkakan atau penghematan anggaran proyek dan apakah terjadi kelambatan atau percepatan dalam jadwal proyek. Berdasarkan evaluasi kinerja biaya proyek, dapat diketahui terjadi pembengkakan biaya aktual proyek terhadap anggaran sebesar Rp. 12.070.959 atau pemborosan biaya sebesar 2.5% dari total anggaran biaya proyek. Kondisi terjadinya pemborosan anggaran dinamakan cost overrun, hal ini mengindikasikan bahwa pengendalain biaya dalam pelaksanaan proyek yang diteliti masih belum optimal. Berdasarkan atas evaluasi kinerja jadwal proyek, dapat diketahui ada beberapa minggu yang mengalami keterlambatan dan adapula beberapa minggu yang mengalami percepatan. Namun begitu pada masa mendekati batas akhir jadwal proyek, pelaksanaan proyek dapat dicapai tepat jadwal sesuai dengan yang direncanakan. Kondisi tercapainya jadwal pelaksanaan proyek sesuai dengan jadwal yang direncanakan (tepat jadwal) disebut on schedule, hal ini mengindikasikan bahwa dalam pelaksanaan jadwal proyek yang diteliti dapat dikendalikan secara optimal dan tepat sasaran. Adapun untuk evaluasi penerapan mutu, didapatkan bahwa berdasarkan atas penilain fisik konstruksi terhadap spesifikasi teknis yang dipersyaratkan memenuhi persyaratan mutu (persyaratan mutu terpenuhi). Kata kunci: kinerja, nilai hasil, pemborosan, tepat jadwal dan spesifikasi. 


2022 ◽  
Vol 14 (2) ◽  
pp. 596
Author(s):  
Ismail Abdul Rahman ◽  
Abdulla Eisaa Saleh Al Ameri ◽  
Aftab Hameed Memon ◽  
Nashwan Al-Emad ◽  
Ahmed S. A. Marey Alhammadi

Changes during construction is one of the critical issues faced in the construction industry. Effective management of construction changes will reduce the financial burden faced in construction projects due to cost overrun, and practitioners will be able to complete projects on time. On the other hand, construction changes exert severe effects on project performance. Hence, this paper uncovers several changes occurring in construction projects. It also evaluates the effect on various parameters of project performance due to changes. This was done by uncovering the underlying causes and effects of changes through the PLS method of structural equation modeling technique. SmartPLS software was used to develop and evaluate the study model based on 58 change causes and 48 change effects that were identified from the literature review. Causes of changes were categorized into three constructs which are client-related causes (CLE), consultant-related causes (COS), and contractor-related causes (CON). At the same time, the effects variables were grouped as Time Overrun (TO), Cost Overrun (CO), and Quality (QA). The survey data for generating the model was collected from 218 practitioners working on construction megaprojects of the UAE. Assessment on the constructed model found that the contractor (CON) group is the most influential group of causes with the highest values of the model’s predictive explanatory power (accuracy), which is 0.396, 0.339, and 0.410 to time overrun, cost overrun, and quality assurance of the effects groups, respectively. At the same time, the Quality Assurance (QA) group is considered the most substantial parameter which are affected due to changes occurring in construction projects of UAE. This model is deemed beneficial for the UAE construction industry in facilitating the effective recognition of possible causes and effects of change among the UAE construction projects. As a result, the practitioners will make necessary arrangements to control the potential changes in future projects.


Author(s):  
G.B.S. Alekhya ◽  
K. Shashikanth ◽  
M. Anjaneya Prasad

2022 ◽  
Vol 8 ◽  
Author(s):  
Birgit Vogel-Heuser ◽  
Julia A. M. Reif ◽  
Jan-Hendrik Passoth ◽  
Christoph Huber ◽  
Felix C. Brodbeck ◽  
...  

Abstract Interdisciplinary engineering of cyber physical production systems (CPPS) are often subject to delay, cost overrun and quality problems or may even fail due to the lack of efficient information exchange between multiple interdisciplinary teams working in complex networks within and across companies. We propose a direct integration of multiteam and organisational aspects into the graphical notation of the systems engineering workflow. BPMN++, with eight new notational elements and two subdiagrams, enables the modelling of the required cooperation aspects. BPMN++ provides an improved overview, uniform notation, more compact presentation and easier modifiability from an engineering point of view. We also included a first set of empirical studies and historical qualitative and quantitative data in addition to subjective expert-based ratings to increase validity. The use case introduced to explain the procedure and the notation is derived from surveys in plant manufacturing focussing on the start-up phase and decision support at site. This, in particular, is one of the most complex and critical phases with potentially high economic impact. For evaluation purposes, we compare two alternative solutions for a short-term management decision in the start-up phase of CPPS using the BPMN++ approach.


Author(s):  
Muhammad Abdul Rehman ◽  
◽  
Md. Sayuti Bin Ishak ◽  

Contractors have given importance to risks in the construction process as it causes time and cost overrun, delays, and total desertion in activities and events present in the construction project. The uncertainty in the completion time, cost, and quality during construction relate to construction risks. Project goals are achieved by classifying, investigating, and replying to risks associated with construction projects. To achieve project objectives, team competency and skills are required, which are viewed as attitude, aptitude, versatility, and knowledge. Based on organisation control theory, current research (quantitative in nature) discusses the influence of team competency and skills on construction risk management with the moderation role of government Acts, laws, and policies among 303 large-size contractors working in the Kingdom of Saudi Arabia using PLS-SEM technique. PLS-SEM is a composite-based approach that provides high efficiency parameter estimation with increased statistical power for analyzing complex models. Results depict that government Acts, laws and policies and team competency and skills positively influence construction risk management. In addition, moderation of government Acts, laws, and policies has positive relation among team competency and skills and construction risk management. Organisational management can reduce risk occurrence within a project by building conditions for enhancing team competency and skills.


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.


Author(s):  
Yang Yang ◽  
Albert P. C. Chan ◽  
Ming Shan ◽  
Ran Gao ◽  
Fengyu Bao ◽  
...  

The Coronavirus disease 2019 (COVID-19) pandemic has resulted in significant delays and cost overrun in construction projects. The implementation of health and safety (H&S) technologies is one of the most important strategies to alleviate the adverse impacts of COVID-19 on the construction industry and help the industry adapt to the new normal. This study aims to evaluate the adoption of H&S technologies for pandemic management in the construction sector under the COVID-19 pandemic. Semi-structured interviews with eighteen practitioners engaged from construction companies and technology firms were conducted to collect their views on the driving forces and issues of the adoption of H&S technologies for pandemic management in Chinese construction projects. The results reveal that the major H&S technologies used included the health quick response (QR) code system, artificial intelligence (AI)-powered fever monitoring, and site access control system. These technologies were reported to be effective in preventing the spread of the pandemic in workplaces. The findings of the study amplify that the pandemic may serve as an acceleration of the adoption of H&S technologies in the construction sector. Other technologies, such as building information modeling, drones, AI-based safety monitoring, and robotics, however, were seldom used in the studied projects. The interviewees addressed several problems regarding the implementation of these technologies. High costs of technologies, a lack of client support, and disruptions to the normal work process were the main hurdles of the adoption of these technologies. The results indicated that the external influence factor—the COVID-19 pandemic—could considerably drive the use of H&S technologies, whereas the internal influence factors—cost and compatibility of technology—might be the major barriers to technology adoption. To encourage the wider use of H&S technologies in construction, the government is recommended to support the technology transformation by granting financial subsidies for costs involved in innovation adoption. Project owners may consider investing substantially in H&S technologies that can strengthen their resilient and innovative ability to adapt to the post-COVID-19 landscape. The present results will be useful to industry stakeholders and researchers interested in developing H&S technologies for combating the COVID-19 pandemic and future crises.


Author(s):  
Priyesh Mulye

Abstract: The occurrence of time and cost overrun has become quite significant in a majority of construction projects in India, which is negatively affecting the GDP and potential development of nation. As per the statistics of project cost and duration in March 2012, 179 projects out of 555 projects of worth 150 Crore INR have been facing cost and time overrun and others are at the very high risk, with the total construction cost overrun of 1.23 Lakh Crore INR. (Times, 2013) The time and cost overrun of the construction projects results in overextension of the time and finance of the client which may lead to entire failure of the project, unfinished project, abandoned project or reduction in the performance standards of the project. This condition depicts the requirement of the study and analysis of the causes or risk factors for time and cost overrun, and solutions and strategies for mitigation of cost and time overrun. The present research involves the study and analysis of the various risk factors related to time and cost overrun; assessment of the overruns in the construction projects of Mumbai, India and other parts of the world; identification and analysis of the leading causes for time and cost overrun in the construction projects of Mumbai; identification of potential solutions; and preparation of an effective mitigation model for overruns in construction projects of Mumbai


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.


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