Academic literature on the topic 'Cost overrun ; construction project management'
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Journal articles on the topic "Cost overrun ; construction project management"
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Maniar, H. "Contingency Management in Indian Construction Projects." Journal of Construction Business and Management 4, no. 2 (December 4, 2020): 11–24. http://dx.doi.org/10.15641/jcbm.4.2.840.
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The successful completion of Indian construction projects possesses an inherent uncertainty due to the nature of the construction industry along with prevailing tepid recovery of the Indian economy, which has made it difficult for construction companies to achieve required operational and financial performance. This necessitates having accurate project cost estimation and efficient contingency management to shield unknown project risk and address cost overrun problems. Therefore, this study aims to assess the current state, the issues faced in contingency management and evaluating the effectiveness of contingency in overcoming cost overrun problems in Indian construction companies. The study preferred a quantitative approach in capturing the required data by using structured questionnaires collected from 100 Indian construction companies (of contractors, vendors/suppliers, customers, and consultants) out of 335 companies with a response rate of 29.85%. This, along with archival data analysis of 50 Indian construction projects completed between Calendar Year (CY) 2014 to 2019. The captured data were analysed using simple statistical tools like Relative Importance Index (RII), mean score, standard deviation and ranking methods to ensure relevant results aligned with research objectives. The result findings of the study revealed that 60% of Indian construction companies preferred the traditional percentage method for contingency sum percentage addition to estimated project cost (a subjective approach based on the historical project performance) which may not be adequate in overcoming cost overrun problems. Archival data analysis found that contingency consideration was effective in accommodating cost overrun problems in 9 (18%) projects out of 50 projects. The study further found that contingency was utilised in an unplanned mode and having unclear contingency forecasting strategies. Based on result findings and observations, this study concludes that contingency should be estimated based on the scientific approach in place of a subjective approach to address project risks adequately, this along contingency consideration should be an integral part of the project risk assessment and should be effectively utilised during the execution stage.
Keywords: Contingency, Cost Overruns, Indian Construction Projects, Operational and Financial Performance, Project Risk.
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Saidu, Ibrahim, W. Shakantu, A. Adamu, and I. Anugwo. "A BESPOKE APPROACH FOR RELATING MATERIAL WASTE TO COST OVERRUN IN THE CONSTRUCTION INDUSTRY." Journal of Construction Business and Management 1, no. 1 (April 18, 2017): 39–52. http://dx.doi.org/10.15641/jcbm.1.1.63.
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The problems of material waste and cost overruns are common in the construction industry. These problems occur at different stages of a construction project, from planning, design to project completion. The argument on how to eliminate cost overrun has been on-going for the past 70 years as on-site wastage of materials leads to increase in the final project cost. This paper examines the relationship between the causes of material waste and those of cost overrun at the pre-contract and post-contract stages of a project. The desktop methodological approach was firstly adopted in comparing the causes of material waste and those of cost overruns from the literature, in order to determine the possible relationship. Subsequently, interviews were purposively conducted with construction professionals within Abuja, Nigeria, in order to verify the literature based information. The result reveals that all the causes of material waste also cause cost overrun at the pre-contract and the post-contract stages of a project. 96.88% and 81.81% of the causes of cost overrun also cause material waste at the pre-contract and post-contract stages respectively. Other causes which are not related are mostly, the micro-economic and macro-economic factors. These results are not different from those of the interviews conducted with professionals and summarised in the tick box. It was also found that to achieve Effective Construction Material Waste Management (ECMWM) for any construction project, material waste must be controlled at its sources and causes, and at different stages of a project. Based on these findings, it can be concluded that effective management of material waste would translate into a reduction in the level of project cost overrun. The study recommends that construction-project managers, as well as the construction practitioners should encourage the management of material-waste causes, as it has the potential to minimise cost overrun for projects.
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Famiyeh, Samuel, Charles Teye Amoatey, Ebenezer Adaku, and Collins Sena Agbenohevi. "Major causes of construction time and cost overruns." Journal of Engineering, Design and Technology 15, no. 2 (April 3, 2017): 181–98. http://dx.doi.org/10.1108/jedt-11-2015-0075.
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Purpose In Ghana, the duration of construction projects from inception to completion is becoming a great concern, recently, especially among clients and beneficiaries, because of the rising interest rates, inflation, development plan targets, among other factors. Hence the need to understand the causes of delays and cost overrun in the construction sector has become more important than ever. This study therefore aims to identify the major factors underlying time and cost overruns in projects related to the education sector in Ghana to proffer practical solutions in addressing them. Design/methodology/approach The study conducted a survey among clients’ consultants and representatives of the contractors working on about 60 government school projects. A relative importance index was used to determine the relative effects of the factors causing construction time and cost overruns. Findings The key factors causing construction time overrun were: financial problems, unrealistic contract durations imposed by clients, poorly defined project scope, client-initiated variations, under-estimation of project cost by consultants, poor inspection/supervision of projects by consultants. Other factors were underestimation of project complexity by contractors, poor site management, inappropriate construction methods used by contractors and delays in the issuance of permits by government agencies. Factors affecting cost overruns were financial difficulty by client, delays in payments of completed works, variations in designs, lack of communications plans, poor feasibility and project analysis, poor financial management on site and material price fluctuations. Research limitations/implications The research was limited to only the educational sector projects. Practical implications Practically, this study highlights for the construction sector the critical factors causing project time and cost overruns in Ghana. Identification of these factors provides the basis for pragmatic solutions to enhance the chances of project success. Social implications The identification and solutions to project time and cost overruns, especially for educational sector projects, contribute toward making public goods more affordable and accessible to most citizens, particularly in developing countries. Originality/value This study contributes to the debate on factors causing project time and cost overruns in the construction sector especially from a developing country’s perspective.
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Chadee, Aaron, Salisha R. Hernandez, and Hector Martin. "The Influence of Optimism Bias on Time and Cost on Construction Projects." Emerging Science Journal 5, no. 4 (August 1, 2021): 429–42. http://dx.doi.org/10.28991/esj-2021-01287.
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The unresolved scholarly debate to curtail cost and time performances in projects has led to alternate solutions, departing from the dominant technical school of thought to include concepts from behavioural sciences. In this paper, we consider the psychological effect, namely optimism bias, as one of the root causes for delays in cost overruns on projects. The research objectives were to determine the level of bias among project participants, rank time and cost overrun causes according to the participants’ bias score and establish a mitigation strategy to curb potential delays and cost overrun impacts based on the bias scores obtained. A literature survey was conducted to determine causal factors contributing to delays and cost overruns linked to optimism bias. Through a pilot survey of three semi-structured interviews, eighty factors obtained from the literature survey were reduced to 24 critical delay and cost overrun factors relevant to Trinidad and Tobago. A questionnaire was subsequently developed seeking construction professionals to rate their bias scores based on an 11-point Likert scale. The research confirms that project planners and decision-makers exhibit moderate levels of optimism bias; however, participants lacked awareness of the impact of optimism bias on projects outcomes. Project location, environmental impacts and historic preservation, and labour disputes are the top three critical factors where project professionals displayed increased optimistic tendencies. It is proposed that contingency “time window” and reference class forecasting be implemented as control mechanisms to mitigate the impacts of time and cost overruns on projects. This research introduces a novel method to account for and measure optimism bias on construction projects. This study adds knowledge into delays and cost overruns causation and provides a foundation for future studies on quantifying psychological effects on projects and enhancing overall project management practices. Doi: 10.28991/esj-2021-01287 Full Text: PDF
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Ameh, Oko, and Emeka Osegbo. "Study of relationship between time overrunand productivity on construction sites." International Journal of Construction Supply Chain Management 1, no. 1 (December 31, 2011): 56–67. http://dx.doi.org/10.14424/ijcscm101011-56-67.
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The history of the construction industry worldwide is full of projects that were completed with significant time and cost overruns. In an attempt to reverse this trend, this study aims at establishing the relationship between time overrun and labour productivity on construction sites in Lagos, Nigeria. 43 technical and management staff of some medium and large construction firms based in Lagos, Nigeria were sampled and administered a questionnaire survey. The questionnaire contained 18 causes of project time overrun and 14 causes of low labour productivity which had been identified from the literature reviewed. With these a relationship between project time overrun and low labour productivity was established. Both descriptive and inferential statistics were used in analyzing the data. Results indicate that inadequate funds for the project, inadequate planning before project takeoff, inadequate tools and equipment and delay in delivery of material top the list of major causes of time overrun while the use of wrong construction methods, inadequate construction materials and inaccurate drawing/specification are the key factors causing low labour productivity on construction sites. Significant negative relationship was found between time overrun and labour productivity in construction sites in Nigeria. The study concludes by recommending that early appointment of project managers could ensure proper management of both the human and material resources that could guarantee improved productivity and ultimately save projects from time overrun.
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Idrees, Shehryar, and Muhammad Tariq Shafiq. "Factors for Time and Cost Overrun in Public Projects." Journal of Engineering, Project, and Production Management 11, no. 3 (May 21, 2021): 243–54. http://dx.doi.org/10.2478/jeppm-2021-0023.
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Abstract The construction industry in Pakistan is experiencing a surge in public sector projects due to major investments in infrastructure projects. Project delays and cost overrun are common features in public sector construction projects in Pakistan. Therefore, an understanding of the causes of time and cost overrun in public projects is essential. This paper investigates delay and cost overrun factors within the context of public sector projects in Pakistan. This study identifies 48 potential factors from existing literature and semi-structured interviews were used to refine the identified factors into ten categories. A questionnaire survey was used to establish a hierarchy of factors using descriptive statistics. The results showed that the major causes of time overruns in public projects were (1) legal issues, such as court stay orders, land acquisition, relocation of public facilities; (2) technical errors leading to low-quality drawings, rework, and errors at bidding stage; and (3) Poor project management. The findings of this research contribute to understanding the causes of project delays in public sector projects in Pakistan.
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Asiedu, Richard Ohene, Nana Kena Frempong, and Hans Wilhelm Alfen. "Predicting likelihood of cost overrun in educational projects." Engineering, Construction and Architectural Management 24, no. 1 (January 16, 2017): 21–39. http://dx.doi.org/10.1108/ecam-06-2015-0103.
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Purpose Being able to predict the likelihood of a project to overrun its cost before the contract signing phase is crucial in developing the required mitigating measures to avert it. Known parameters that permit the timely prediction of cost overrun provide the basis for such predictions. Therefore, the purpose of this paper is to develop a model for forecasting cost overruns. Design/methodology/approach Ten predictive variables known before the contract signing phase of a project are identified. Based on a survey approach, information on 321 educational projects completed are compiled. A multiple linear regression analysis is adopted for the model development. Findings Five variables – initial contract sum, gross floor area, number of storeys, source of funds and contractors’ financial classification are observed to influence cost overruns. The model, however, yields a fairly weak coefficient of determination with a mean absolute percentage error of 30.22 and 138 per cent, respectively. Research limitations/implications The model developed focussed on data only educational projects sampled from three out of the ten administration regions in Ghana based on a purposive sampling approach. Practical implications Policy makers and construction managers working on public projects stand to gain tremendous assistance in formulating and strengthening their own in-house cost forecasting at the precontract phase based on “what if” analysis to generate various alternative predictions of cost overruns. Originality/value Considering the innate nature of cost overruns within the Ghanaian construction industry often resulting to project abandonment, this research presents a unique dimension for tackling cost overruns based on a predictive approach.
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Aje, Olaniyi Isaac, Oluwole Alfred Olatunji, and Olanrewaju Augustine Olalusi. "Overrun causations under advance payment regimes." Built Environment Project and Asset Management 7, no. 1 (February 6, 2017): 86–98. http://dx.doi.org/10.1108/bepam-06-2015-0028.
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Purpose Evidence suggests project owners could use advance payments to prevent cost escalations. The purpose of this paper is to elicit the relationships between causations of overruns when advance payments are issued to contractors. Design/methodology/approach In total, 97 responses from a questionnaire survey were analysed. Additional data on 51 projects, completed between 2000 and 2014 under different advance payments regimes, were also obtained and analysed. Findings Project owners issue advance payments to contractors so as to avoid delays. However, statistical correlation between advance payments and overrun causations are not significant. Although cost overruns were higher in large projects than in small projects, schedule overruns were more in small projects than in large projects. Schedule overruns were caused most significantly by contractors’ site management approaches. Design and documentation issues were identified as the most prevalent cause of cost overruns. Regression models are proposed to elicit overruns when advance payments are issued. Practical implications Extant debates on project overruns in construction and project management literature are robust. Nonetheless, the study elicits considerable knowledge gaps regarding the roles of advance payments in fostering project performance. Originality/value This pioneering work indexes the relationship between advance payment and project overruns in Nigeria. It is also the first attempt to document the probability distribution of overruns in Nigeria, particularly under specific advance payment regimes.
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Eden, Colin, Fran Ackermann, and Terry Williams. "The Amoebic Growth of Project Costs." Project Management Journal 36, no. 2 (June 2005): 15–27. http://dx.doi.org/10.1177/875697280503600203.
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In the public arena, we often hear about projects that have suffered massive cost overruns. Often they are related to large public construction projects such as airports, bridges, or public buildings. Large overruns also exist in private industry. However, often these do not appear in the newspapers, so the public is not as aware of them. Of course, not all projects go badly wrong, but quite a few do, and frequently we find ourselves uncertain of the causes for such overruns. In this paper, industrial projects that overrun and overrun in a surprising manner are considered. In other words, the paper considers those many projects where the extent of the overrun is well beyond what might ever have been anticipated, even though what was going wrong within the projects was, for the most part, understood. The basis for the content of the paper (that is, the structure and lessons), are drawn from a postmortem analysis of many large projects as part of claims analysis, particularly “delay and disruption” claims for projects whose total expenditure appeared, at first look, inexplicable or surprising. The aim of the paper is to contribute to an understanding of how projects go badly wrong, when they do, and in particular to draw some lessons from this exploration that are likely to help all managers. The reasons for cost escalation are not just the responsibility of project managers.
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Sohu, Samiullah, Abd Halid Abdullah, Sasitharan Nagapan, Ashfaque Ahmed Jhatial, and Muhammed Tahir. "Contributing Cost Variation Factors in Highway Projects." Civil Engineering Journal 4, no. 8 (August 26, 2018): 1793. http://dx.doi.org/10.28991/cej-03091115.
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Cost overrun is known as when the final cost of any project surpasses the sectioned cost of the project at the floating of tender. Cost overrun or cost variation overrun is the main problem in the construction of highway projects in Sindh Province of Pakistan. To attain the main objective of the research a literature review was conducted and 64 general factors of cost overrun were found in construction industry. A questionnaire was developed and distributed among 28 well experienced experts having maximum experience in construction of building projects. Gathered data was analyzed by method of average index. Results shows that main and causative factors of cost variation were financial and cash issues faced by owner, slow information between parties, change in price of material, delay of design, poor site management, payment and financial issues problem faced by the contractor and delay in decision making. This research can help petitioners of highway projects to overcome these main and causative factors of cost.
Dissertations / Theses on the topic "Cost overrun ; construction project management"
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Ahiaga-Dagbui, Dominic Doe. "Rethinking construction cost overruns : an artificial neural network approach to construction cost estimation." Thesis, University of Edinburgh, 2014. http://hdl.handle.net/1842/10454.
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The main concern of a construction client is to procure a facility that is able to meet its functional requirements, of the required quality, and delivered within an acceptable budget and timeframe. The cost aspect of these key performance indicators usually ranks highest. In spite of the importance of cost estimation, it is undeniably neither simple nor straightforward because of the lack of information in the early stages of the project. Construction projects therefore have routinely overrun their estimates. Cost overrun has been attributed to a number of sources including technical error in design, managerial incompetence, risk and uncertainty, suspicions of foul play and even corruption. Furthermore, even though it is accepted that factors such as tendering method, location of project, procurement method or size of project have an effect on likely final cost of a project, it is difficult to establish their measured financial impact. Estimators thus have to rely largely on experience and intuition when preparing initial estimates, often neglecting most of these factors in the final cost build-up. The decision-to-build for most projects is therefore largely based on unrealistic estimates that would inevitably be exceeded. The main aim of this research is to re-examine the sources of cost overrun on construction projects and to develop final cost estimation models that could help in reaching more reliable final cost estimates at the tendering stage of the project. The research identified two predominant schools of thought on the sources of overruns – referred to here as the PsychoStrategists and Evolution Theorists. Another finding was that there is no unanimity on the reference point from which cost performance could be assessed, leading to a large disparity in the size of overruns reported. Another misunderstanding relates to the term “cost overrun” itself. The experimental part of the research, conducted in collaboration with two industry partners, used a combination of non-parametric bootstrapping and ensemble modelling with artificial neural networks to develop final project cost models based on about 1,600 water infrastructure projects. 92% of the validation predictions were within ±10% of the actual final cost of the project. The models will be particularly useful at the pre-contract stage as they will provide a benchmark for evaluating submitted tenders and also allow the quick generation of various alternative solutions for a construction project using what-if scenarios. The original contribution of the study is a fresh thinking of construction “cost overruns”, now proposed to be more appropriately known as “cost growth” based on a synthesises of the two schools of thought into a conceptual model. The second contribution is the development of novel models of construction cost estimation utilising artificial neural networks coupled with bootstrapping and ensemble modelling.
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Creedy, Garry D. "Risk factors leading to cost overrun in the delivery of highway construction projects." Queensland University of Technology, 2006. http://eprints.qut.edu.au/16399/.
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Accurate client budget estimates are critical to the initial decision-to-build process for the highway construction projects. This decision-to-build point in a project's development is seen as the international standard for measuring any subsequent cost estimate inaccuracies involved (National Audit Office/Department of Transport, 1992; World Bank, 1994; Nijkamp and Ubbels, 1999), with accuracy being defined as the difference between the initial project estimate at the decision-to-build stage and the real, accounted project cost determined at the time of project completion. Expressed as a percentage of estimated cost, this is often termed cost escalation, cost overrun or cost growth, and occurs as a result of many factors, some of which are related to each other, but all are associated with forms of risks. The analysis of these risks is often a necessary step for the improvement of any given estimating system and can be used to diagnose trouble spots and to pinpoint areas where project estimating accuracy improvement might be obtained. In this research, highway projects in Queensland, Australia that have suffered significant cost overrun are analysed. The research seeks to address the gap in the knowledgebase as to why highway projects overrun their costs. It focuses on understanding how client projects budgets go wrong, when dealing with project risk. The foundation for this research is drawn from the post-mortem analysis of highway projects, each costing in excess of A$1m and whose final total expenditure exceeded budget by 10% or greater. The research identifies client risk variables which have contributed to significant cost overrun and then uses factor analysis and also expert elicitation, using nominal group technique, to establish groups of importance ranked client risks. Stepwise multivariate regression analysis is then used to investigate any correlation of these risks, along with project attributes such as highway project type, indexed project cost, geographic location and project delivery method to the percentage of cost overrun. The research results indicates a correlation between the reciprocal of project budget size and percentage cost overrun that can be useful in clients determining more realistic decision-to build highway budget estimates when taking into account project size in relation to economy of scale.
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Han, Sedat. "Estimation Of Cost Overrun Risk In Interrnational Project By Using Fuzzy Set Theory." Master's thesis, METU, 2005. http://etd.lib.metu.edu.tr/upload/12606032/index.pdf.
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In the global construction market, most construction companies are willing to undertake international projects in order to maximise their profitability by taking advantage of attractive emerging markets and minimise dependence on unfavorable domestic market conditions. In order to be awarded a contract in highly competitive global construction market, companies should excel in choosing the most attractive markets and prepare winning bids for the selected construction projects in those markets. While preparing bids, the major concern of companies is to offer an optimum price that will enable them to earn enough profits and win the contract at the same time, where profit making ability is strongly correlated with proper estimation of a risk premium that is added onto the estimated cost of the project. Due to the nature of construction works, there are lots of uncertainties associated with the project, market and country conditions. Therefore, how the profitability of the project changes with occurrence of various risk events, in other words, the sensitivity of project costs to risk events, should be estimated by bidders realistically. In this study, fuzzy set theory is used to estimate cost overrun risk in international projects at the bidding stage. The objective is to propose a methodology which can be used by bidders to quantify cost overrun risk so that a realistic risk premium may be determined. A fuzzy risk rating approach is proposed to quantify cost overrun risk rating, which takes into account of risks characterised in international construction projects. For this purpose, risk sources have been identified and a risk model is put forward by using influence diagramming method. Based on this risk model, a fuzzy risk rating algorithm has been defined and software has been developed to conduct fuzzy risk rating calculations easily. After a decision-maker inserts the necessary inputs related with project and country risk factors, the output of the software is a rating that takes into account of all factors that may affect cost overrun risk in international construction projects. The reliability of the algorithm and developed software have been tested by an application on a real construction project. The proposed methodology and decision support tool have been proved to be reliable for the estimation of cost overrun risk while giving bidding decisions in international markets.
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Celenligil, Onur. "Analogical Reasoning For Risk Assessment And Cost Overrun Estimation In Construction Projects." Master's thesis, METU, 2010. http://etd.lib.metu.edu.tr/upload/12612229/index.pdf.
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Project cost increase is the main concern in international construction projects which usually results in disputes and conflicts among the project participants. The aim of this thesis is to construct a database that represents risk event history regarding international construction projects and construct a cost overrun prediction model. It is hypothesized that magnitudes of project related, company related and country related risk factors can be predicted by assessing the level of vulnerability by analogical reasoning with previous projects. The vulnerability and risk factors can further be used to predict cost overrun in the bid preparation stage of international construction projects. Thus, prediction models that link vulnerability with risk factors and cost are constructed by using a dataset of 166 international construction projects, which consists of 66 real and 100 hypothetical cases. Case-based reasoning (CBR) technique is used to construct the prediction models. After testing the performance of various CBR models using different weight generation and retrieval methods, error rate of +/- 7.15 % cost increase is achieved. The utilization of CBR models in the prediction of potential risk sources and cost overrun is demonstrated by a real case study. Finally, the benefits and pitfalls of using analogical reasoning for risk and cost overrun assessment of construction projects are discussed.
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Mitra, John Paul, Joseph Shrestha, Jeremy Ross, and Jinseok Hong. "Analysis of Construction Cost Variation of Construction Manager General Contractor (CM/GC) Project." Digital Commons @ East Tennessee State University, 2019. https://dc.etsu.edu/etsu-works/5472.
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Cost overrun is prevalent in the construction industry. Usually, an owner sets a budget at the preliminary phase of a project which changes over time. Past studies are focused on analyzing the cost growth of design-bid-build projects during construction. Limited efforts have been made to analyze details of projects delivered with the Construction Manager General Contractor (CM/GC) method. This study tracks and analyzes the construction cost variation of a project from the conceptual phase to the design completion phase. The analysis is presented with a case study of a new stadium construction project. It identifies that the changes in the scope and design of the project due to the change in available budget were a major reason for variation in the cost estimates over time. Further, this study identifies a) trades with the highest variation in subcontractors’ bids, b) trades that were most overestimated, and c) trades that were most underestimated. The findings of this study is expected to aid owners, designers, and contractors of future projects in improving the preparation, planning, and estimating of future projects; reducing cost variation within trades; and optimizing the amount of contingency required to ensure the successful completion of similar projects.
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Roachanakanan, Kwanchai. "A case study of cost overruns in a Thai condominium project." Texas A&M University, 2003. http://hdl.handle.net/1969.1/2298.
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Construction managers confront many problems. Still, this industry plays a vital role in the
healthy growth of the economy of many countries throughout the developed and developing
world. Effective management of construction projects has been a major research subject in
the last century due to the importance of this industry and the amount of money it attracts.
One critical problem facing construction managers is inefficient cost control procedures,
particularly in developing regions of the world.
Since the end of the Second World War, the use of sophisticated cost control procedures in
managing and controlling project costs have been accepted and applied widely in many parts
of the world such as the United States and the United Kingdom. These procedures are
important in a growing economy to ensure delivery of projects on time and within budget,
but they are equally important during an economic recession when project viability becomes
marginal.
In the early 1990s, the construction industry in Thailand played a critical role during a
period of strong economic growth. Construction cost control was not a major concern as
developers rushed to capitalize on the booming market. In the late 1990s, the economy of
Southeast Asia sank into recession. Project cost control became a critical issue for the
developers as well as the construction companies in managing construction projects. A
significant number of projects in Thailand in the late 1990s had significant cost overruns.
Cost overruns had been a problem during the high growth period in the early 1990s, but
demand overcame the problems created by poor cost control. The use of good project cost
control procedures has become a concern of project investors and construction companies in
Thailand since the recession of the late 1990s. Project managers and developers are now
aware that the failure of a cost control system or use of a poor system can lead to project
failure. Project cost control methods need to be improved in Thailand to ensure that owners
and contractors manage construction costs and meet project goals on time and within
budget.
In this study, project cost controls in the United States and Thailand will be examined.
These procedures will be analyzed to identify their similarities and differences. The causes
and solutions for cost overruns in the two countries will also be examined. The results from
the study will illustrate how the project cost control procedures used in the United States can
be applied to the construction industry in Thailand to improve the procedures used by Thai
contractors.
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van, der Kuyp Daniel John. "Strategies Construction Managerial Leaders Use to Counteract Material Cost Overruns." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/6288.
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The project cost overruns instigated through the loss of construction materials lowers the profitability of each stakeholder significantly. The purpose of this single case study was to explore strategies managerial leaders of a large construction firm used to counteract material cost overruns successfully. The diffusion of innovation theory was the conceptual framework for this study. The target population consisted of 6 managerial leaders with experience in large construction projects adhering to waste management standards and industry certifications. Data were collected using semistructured interviews and review of company documentation. The data analysis approach involved the content analysis research method to interpret and code the verbatim transcriptions of interviews into categories. The 2 principal categories from the study data were material management and planning and the supply chain and logistics. The results of the study yielded evidence of 2 strategies to counteract the material cost overruns, which were to strengthen partnerships with the suppliers and to hold regular audits at the project sites. The implication of this study for social change includes the potential to conserve depleted land minerals and valuable land reserves from becoming landfill by providing construction managers with information about strategies to counteract material cost overruns.
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Kriebel, Matilda, and Emma Wolgsjö. "Proaktiv ändringshantering i uppstart av byggprojekt : En fallstudie om hur projektledare kan förebygga kostnader för tillägg i mindre byggprojekt." Thesis, Högskolan i Gävle, Industriell ekonomi, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-30309.
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A project can be defined as a temporary work that is within the scope of time and budget in terms of achieving a project goal. Due to the fact that construction projects are unique and usually very complex, project management therefore requires a working method that is adapted to the prerequisites of the project. The project manager's responsibility to follow up on the budget and ensure that resources such as working hours and consulting services are distributed correctly, is becoming increasingly challenging as the change paradox shows that flexibility decreases and costs for changes increase as the project progresses. Exceeding the project budget in construction projects has today become a global phenomenon and involves several negative social effects. Scientific studies show that the increased costs can be derived from deviations such as additions and changes during the construction project. On the other hand, there are perceived gaps in the literature for which factors affect the extent of these and thus became the study's area of investigation. Based on the scientific gap, the study aims to analyze the startup process in smaller construction projects with regard to identifying the factors that have an impact on additions, but also to review how project managers can proactively manage these factors in order to reduce the risk of increased deviations. To answer the research questions and purpose, a qualitative case study has been applied to a global consulting company in the construction industry, where semi-structured interviews were conducted with five project managers at the company. The result of the study shows that project managers do not take preventive measures or work to prevent deviations in the startup process. Based on a thematic analysis of the results, factors with an impact on deviations have been identified in three areas; systematics, communication and experience and competence. The study has shown that increased costs for additions and changes can be deduced from different approaches to project management and misleading information, inadequate requirement specification that leaves room for own interpretation, unspecified communication channels, conflicts, lack of competence and abrupt completions of the project. In order to achieve a more proactive startup process in order to prevent increased costs for additions and changes, project managers should ensure a clear requirement specification by discussing important issues and decisions, requirements and expectations with support from templates and checklists. To avoid misunderstandings and conflicts, a communication plan can be established. Finally, the choice of project model should be established and routines for final reporting should be introduced to create a learning organisation that increases the project managers' self-insight and competence regarding increased costs for additions and project changes. The theoretical contribution of the study is the identified factors within three areas as well as suggestions for how project managers can facilitate the management of additions in the startup process of construction projects.Ett projekt kan definieras som ett tillfälligt arbete som förhåller sig inom ramarna för tid, budget och omfattning i avseende att uppnå ett projektmål. Med anledning av att byggprojekt är unika och vanligen mycket komplexa, är projektledare i behov av verktyg och arbetsmetoder som anpassas utifrån projektets förutsättningar. Projektledarens ansvar att följa upp budget och se till att resurser såsom arbetstid och konsulttjänster fördelas rätt, blir allt mer utmanande under projektets gång då ändringsparadoxen påvisar att flexibiliteten minskar och kostnader för ändringar ökar i takt med projektets fortgång. Överskridande av projektbudget inom byggprojekt har idag kommit att bli ett globalt fenomen och innebär flera negativa samhällseffekter. Vetenskapliga studier visar att de ökade kostnaderna kan härledas till tillägg och ändringar under byggprojektet. Däremot upplevs det finnas luckor i litteraturen för vilka faktorer som inverkar på omfattningen för dessa och detta blev således studiens undersökningsområde. Utifrån det vetenskapliga gapet syftar studien till att analysera uppstartsprocessen i mindre byggprojekt i avseende att identifiera de faktorer som har en inverkan på tillägg, men även till att se över hur projektledare kan hantera dessa faktorer för att minska risken för ökade kostnader vid tillägg. För att besvara rapportens frågeställningar och syfte har en kvalitativ fallstudie tillämpats hos ett globalt konsultbolag inom byggbranschen, där semistrukturerade intervjuer genomfördes med fem projektledare på företaget. Resultatet av studien visar att projektledare inte vidtar förebyggande åtgärder eller arbetar för att förhindra tillägg i uppstartsprocessen. Utifrån en tematisk analys av resultatet har faktorer med en påverkan på tillägg kunnat identifieras inom tre områden; systematik, kommunikation samt erfarenhet och kompetens. Studien har visat att ökade kostnader vid tillägg och ändringar går att härleda till olika tillvägagångssätt vid projektledning och vilseledande information, bristfällig kravspecifikation som lämnar utrymme för egen tolkning, ospecificerade kommunikationsvägar, konflikter, bristande kompetens hos projektledaren samt abrupta projektavslut. För att uppnå en mer proaktiv uppstartsprocess i syfte att förhindra ökade kostnader vid tillägg och ändringar bör projektledare säkerställa en tydlig kravspecifikation genom att diskutera viktiga frågor och beslut, krav och förväntningar med stöd från mallar och checklistor. För att undvika missförstånd och konflikter kan en kommunikationsplan upprättas. Avslutningsvis bör val av projektmodell fastställas och rutiner för slutrapportering införas för att skapa en lärande organisation som ökar projektledarnas självinsikt och kompetens vad gäller ökade kostnader för tillägg och ändringar. Studiens teoretiska bidrag är bidragsfaktorer som identifierats inom tre områden samt förslag till hur projektledare kan underlätta hantering av tillägg i uppstartsprocessen av byggprojekt.
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Kisamfu, Rehema Aman. "Investigating Contractual Challenges of Performing Cost Control in Building Construction Projects." Thesis, KTH, Fastigheter och byggande, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-297855.
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Quantity Surveyors are considered as the most qualified cost specialists in the construction industry, with their experiences and skills in cost management and control as well as contract management. However, this role is not well recognized in Sweden compared to other countries such as the UK where it’s originated from. And so, the construction industry in Sweden uses other professions for the roles that were supposed to be done by quantity surveyors or cost managers. As a result, the quantity surveyors that have penetrated the Swedish construction industry, face challenges to perform their duties specifically in this case, cost control due to several circumstances. This study has looked into different contractual challenges that face quantity surveyors while performing cost control in building projects. Also, recommendations have been made to help mitigate these challenges and improve cost control in projects. In this master thesis, qualitative study has been performed where quantity surveyors were interviewed regarding cost control and the contractual challenges, they face in building construction projects. The findings were analysed with a theoretical framework and discussed together with previous research and knowledge and in this study principal – agent theory was used. The results of the study showed that poor planning, late involvement of the quantity surveyors in projects, lack of effective communication and poor contract management are the main challenges that face quantity surveyor in performing cost control in building projects. To overcome these challenges, the author suggests that there is a need of increasing awareness on the importance of having quantity surveyors and clearly establish their roles in projects, have proper communication plan, proper contract management and improve skills on quantity surveying software.Kvantitetbesiktningsman anses vara de mest kvalificerade kostnadsspecialisterna inom byggbranschen, med sina erfarenheter och färdigheter inom kostnadsstyrning och kontroll samt kontrakthantering. Denna roll är dock inte välkänd i Sverige jämfört med andra länder som Storbritannien där den härstammar från. Och så använder byggbranschen i Sverige andra yrken för de roller som skulle göras av kvantitetsmätare eller kostnadsansvariga. Som ett resultat står de kvantitetsmätare som har trängt igenom den svenska byggbranschen inför utmaningar att utföra sina uppgifter specifikt i detta fall, kostnadskontroll på grund av flera omständigheter. Denna studie har undersökt olika avtalsmässiga utmaningar som möter kvantitetsmätare när de utför kostnadskontroll i byggprojekt. Dessutom har rekommendationer gjorts för att mildra dessa utmaningar och förbättra kostnadskontrollen i projekt. I detta examensarbete har en kvalitativ studie utförts där kvantitetbesiktningsman intervjuades angående kostnadskontroll och de kontraktsmässiga utmaningar som de står inför i byggprojekt. Resultaten analyserades med en teoretisk ram och diskuterades tillsammans med tidigare forskning och kunskap och i denna studie användes princip - agentteori. Resultaten av studien visade att dålig planering, sen involvering av kvantitetsmätarna i projekt, brist på effektiv kommunikation och dålig kontrakthantering är de viktigaste utmaningarna för kvantitetsmätaren när det gäller att utföra kostnadskontroll i byggprojekt. För att övervinna dessa utmaningar föreslår författaren att det finns ett behov av att öka medvetenheten om vikten av att ha kvantitetsmätare och tydligt fastställa sina roller i projekt, ha korrekt kommunikationsplan, korrekt kontrakthantering och förbättra färdigheterna i kvantitetsmätningsprogramvara.
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Al-Keim, Ali. "Strategies to Reduce Cost Overruns and Schedule Delays in Construction Projects." ScholarWorks, 2017. https://scholarworks.waldenu.edu/dissertations/4586.
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Senior managers fail to control time and costs of construction projects despite available advanced project management tools. Based on project management theory, the objective of this multiple case study was to explore the strategies senior managers use to reduce cost overruns and schedule delays in construction projects. Primary data were obtained from semistructured interviews with 3 senior managers from different construction project management companies who have successfully managed construction projects in Qatar. Data analysis process included a modified Van Kaam method. The transcribed interviews were interpreted and coded to generate themes and were validated through member checking and archival documents. The most centralized themes included (a) master planning, (b) processes and procedures, (c) managing design stage, (d) procurement management, (e) use of proper software, (f) setting project cost and time, and (g) deciding clear scope. A construction project may not succeed without appropriate planning for all stages of the project lifecycle. Managing the approval of the project components during the design stage contributes to reducing changes during construction, which is helpful to control cost and time. The project processes and procedures are meaningful roadmaps for the managers and decision makers. The implications for positive social change include the potential to maintain a cleaner Earth by reducing design and construction wastes. Reducing wastes improves the cost of construction and provides opportunities for people to own property at more affordable costs.
Books on the topic "Cost overrun ; construction project management"
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Project cost control in construction. 2nd ed. Oxford: Blackwell Scientific Publications, 1994.
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Kubba, Sam. Green construction project management and cost oversight. Burlington, MA: Architectural Press, 2010.
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Green construction project management and cost oversight. Amsterdam: Architectural Press, 2010.
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Kubba, Sam. Green construction project management and cost oversight. Burlington, MA: Architectural Press, 2010.
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Construction project management. Westchester, Ill: Pareto -- Building Improvement, 2010.
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Kharbanda, O. P. Project cost control in action. 2nd ed. Aldershot: Gower Technical, 1987.
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Hutchinson, Keith. Building project appraisal: Analysis of value and cost. Basingstoke: Macmillan Press, 1993.
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Cheever, Ellen. Kitchen & bath project management: Installation, contractors, cost controls. Hackettstown, N.J: NKBA, National Kitchen & Bath Association, 2006.
Find full textBook chapters on the topic "Cost overrun ; construction project management"
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Maqsoom, Ahsen, Muhammad Umar Khan, Muhammad Tariq Khan, Shahfahad Khan, Naeemullah, and Fahim Ullah. "Factors Influencing the Construction Time and Cost Overrun in Projects: Empirical Evidence from Pakistani Construction Industry." In Proceedings of the 21st International Symposium on Advancement of Construction Management and Real Estate, 769–78. Singapore: Springer Singapore, 2017. http://dx.doi.org/10.1007/978-981-10-6190-5_69.
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Holm, Len, and John E. Schaufelberger. "Introduction to construction project management." In Construction Cost Estimating, 37–47. First edition. | Abingdon, Oxon ; New York : Routledge/Taylor & Francis Group, 2021. | Substantial re-write from previous estimating text: Construction Cost Estimating, Process and Practices by Holm, Schaufelberger, Griffin, and Cole; Pearson, 2005.: Routledge, 2021. http://dx.doi.org/10.1201/9781003023494-5.
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Holm, Len, and John E. Schaufelberger. "Construction project management applications of estimates." In Construction Cost Estimating, 297–308. First edition. | Abingdon, Oxon ; New York : Routledge/Taylor & Francis Group, 2021. | Substantial re-write from previous estimating text: Construction Cost Estimating, Process and Practices by Holm, Schaufelberger, Griffin, and Cole; Pearson, 2005.: Routledge, 2021. http://dx.doi.org/10.1201/9781003023494-30.
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Cretu, Ovidiu, Robert Stewart, and Terry Berends. "Project Cost and Schedule Estimates." In Risk Management for Design and Construction, 11–26. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2014. http://dx.doi.org/10.1002/9781118984017.ch2.
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Munier, Nolberto. "Project Cost and Budgeting." In Project Management for Environmental, Construction and Manufacturing Engineers, 173–85. Dordrecht: Springer Netherlands, 2012. http://dx.doi.org/10.1007/978-94-007-4476-9_12.
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Adam, Abderisak, Per-Erik Josephson, and Göran Lindahl. "Implications of Cost Overruns and Time Delays on Major Public Construction Projects." In Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate, 747–58. Berlin, Heidelberg: Springer Berlin Heidelberg, 2015. http://dx.doi.org/10.1007/978-3-662-46994-1_61.
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Liu, Haiyan, Rong Zhang, and Yawen Cao. "Trends of Research on Cost Overruns in Public Projects: A Review Based on Content Analysis." In Proceedings of the 24th International Symposium on Advancement of Construction Management and Real Estate, 1063–73. Singapore: Springer Singapore, 2021. http://dx.doi.org/10.1007/978-981-15-8892-1_75.
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Yunna, Wu, and Bian Qing. "The Cost Innovation Management of Wind Power Construction Project." In Future Computing, Communication, Control and Management, 331–36. Berlin, Heidelberg: Springer Berlin Heidelberg, 2012. http://dx.doi.org/10.1007/978-3-642-27326-1_43.
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Zhao, Xingjun. "Construction Project Cost Management System Based on Computer Technology." In Application of Intelligent Systems in Multi-modal Information Analytics, 65–71. Cham: Springer International Publishing, 2021. http://dx.doi.org/10.1007/978-3-030-74811-1_10.
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Shi, Huawang, and Wanqing Li. "A Web-Based Integrated System for Construction Project Cost Prediction." In Advancing Computing, Communication, Control and Management, 31–38. Berlin, Heidelberg: Springer Berlin Heidelberg, 2010. http://dx.doi.org/10.1007/978-3-642-05173-9_5.
Full textConference papers on the topic "Cost overrun ; construction project management"
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Assaad, Rayan, Islam El-Adaway, and Ibrahim Abotaleb. "Holistic Risk Management Approach for Predicting Cost and Schedule Overruns at Project Completion." In Construction Research Congress 2020. Reston, VA: American Society of Civil Engineers, 2020. http://dx.doi.org/10.1061/9780784482889.061.
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Daniel Muianga, Elisa Atália, Ariovaldo Denis Granja, and Joyce Andrade Ruiz. "Influence Factors on Cost and Time Overruns in Mozambicans Construction Projects: Preliminary Findings." In International Conference on Engineering, Project, and Production Management. Association of Engineering, Project, and Production Management, 2014. http://dx.doi.org/10.32738/ceppm.201411.0002.
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MJ, Mukuka, Clinton Aigbavboa, and Wellington Thwala. "Construction Experts’ Perception on the Causes and Effects of Cost Overruns in Johannesburg, Gauteng Province, South Africa." In International Conference on Engineering, Project, and Production Management. Association of Engineering, Project, and Production Management, 2014. http://dx.doi.org/10.32738/ceppm.201411.0036.
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Giat, Yahel, and Amichai Mitelman. "The Wisdom of the Crowds and Cost Overruns in Construction Project Tenders [Abstract]." In InSITE 2021: Informing Science + IT Education Conferences. Informing Science Institute, 2021. http://dx.doi.org/10.28945/4783.
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Aim/Purpose: This study’s objective is to demonstrate the wisdom of the crowds phenomenon in construction project tenders and relate it to cost overruns in these projects. Background: The wisdom of the crowd’s phenomenon is an age-old idea that argues that collective opinion is better than any single (even expert) opinion. The first data-based evidence for it is from the beginning of the twentieth century when statistician Francis Galton attended an exhibition in which attendants were asked to estimate the weight of a large ox. He found that while individual estimates varied considerably, the median estimate was within less than one percent from the true weight. The existence of the wisdom of the crowds has a particularly important implication in tenders. Consider a tender for a contract in which the winner is the bidder that agrees to take the contract for the lowest cost. If the collective bid, i.e., the mean bid, is the most accurate in assessing the true value of the contract, then the winning bid is overestimating the contract and is therefore expected to end up with a loss. Indeed, this winner’s curse, was first observed in tenders in the petroleum industry and has been since found in many other fields. Methodology: All the construction projects that were tendered and completed between January 2017 and July 2020 under the management of the department of engineering and construction, a government agency in Israel, were analyzed. After data cleansing, the data comprised 148 tenders with 1295 bids and total value of 229 million US dollars. For each project we determined the valid bids, average (valid) bid, the winning bid, the original project estimated cost, and the actual payments to the winning contractor (actual project cost). Contribution: Construction projects in the public sector are typically granted through a bidding process in which the lowest bidder is granted the contract. It is therefore of interest to examine whether the wisdom of the crowds and the winner’s curse phenomena are manifested in this type of tenders. The results could help understand the reasons for cost overruns in public construction projects. Findings: 1. Wisdom of the crowds: For each project we computed the ratio of the average bid and the project’s estimated cost. The mean ratio (for the 148 projects) was 1.01 suggesting that, on average, the bids are within 1 percent from the true project value. 2. Winner’s curse: On average the winning bid was 7.9% less than the estimated cost and 8.1% less than the average bid. 3. Cost overruns: On average, the payments to the contractor were 16.3% higher than the estimated cost, and 18.8% higher than the average bid. 4. In total these results demonstrate how contractors are able to overcome the winner’s curse. On average, payments to the contractor were 30.7% higher than their bid. Recommendations for Practitioners: Tender issuing public agencies should take into account that the winning bid is based on unrealistic optimism and when the winning contractor is tested by the real costs, they will be hard pressed to avoid these losses and therefore will drive the project into cost overruns. Recommendations for Researchers: It is important to model the strategic game between contractors and project managers that represent the tender-issuing agency. This may explain why the construction industry is beleaguered by cost overruns. Impact on Society: In the current state, the public is paying more than needed for construction projects since winning contractors are struggling to spin their losses into gains. Future Research: Develop game theory models that are based on our empirical findings and that can help to reduce cost overruns in construction projects.
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Ma, Jianqin. "Cost Overrun Control during Tunnel Construction." In 2011 International Conference on Management and Service Science (MASS 2011). IEEE, 2011. http://dx.doi.org/10.1109/icmss.2011.5998184.
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Mejía, Guillermo, Jherson Bohórquez, and Tulia E. Rivera. "Benefits of Using Confidence Intervals in Reports of Project Cost Overrun." In Construction Research Congress 2020. Reston, VA: American Society of Civil Engineers, 2020. http://dx.doi.org/10.1061/9780784482889.075.
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Khabisi, Jerminah, Clinton Aigbavboa, and Wellington Thwala. "Causes of Cost Overruns in Public Sector Construction Projects in South Africa." In International Conference on Construction and Real Estate Management 2016. Reston, VA: American Society of Civil Engineers, 2017. http://dx.doi.org/10.1061/9780784480274.162.
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Kuljaroenwirat, Nicharat, and Pusadee Seresangtakul. "Model for predicting cost overrun in small and medium-sized public construction project." In 2016 13th International Joint Conference on Computer Science and Software Engineering (JCSSE). IEEE, 2016. http://dx.doi.org/10.1109/jcsse.2016.7748867.
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Liu, Yilin, and Mei Lu. "Analysis on building construction project cost." In 2015 International Conference on Education Technology, Management and Humanities Science (ETMHS 2015). Paris, France: Atlantis Press, 2015. http://dx.doi.org/10.2991/etmhs-15.2015.293.
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Adjei, Kofi Owusu, Clinton Ohis Aigbavboa, and Wellington Didibhuku Thwala. "Corrective Measures for Construction Project Cost Control." In International Conference on Construction and Real Estate Management 2017. Reston, VA: American Society of Civil Engineers, 2017. http://dx.doi.org/10.1061/9780784481080.004.
Full textReports on the topic "Cost overrun ; construction project management"
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Akinleye, Taiwo, Idil Deniz Akin, Amanda Hohner, Indranil Chowdhury, Richards Watts, Xianming Shi, Brendan Dutmer, James Mueller, and Will Moody. Evaluation of Electrochemical Treatment for Removal of Arsenic and Manganese from Field Soil. Illinois Center for Transportation, June 2021. http://dx.doi.org/10.36501/0197-9191/21-019.
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Soils containing inorganic compounds are frequently encountered by transportation agencies during construction within the right-of-way, and they pose a threat to human health and the environment. As a result, construction activities may experience project delays and increased costs associated with management of inorganic compounds containing soils required to meet environmental regulations. Recalcitrance of metal-contaminated soils toward conventional treatment technologies is exacerbated in clay or organic content-rich fine-grained soils with low permeability and high sorption capacity because of increased treatment complexity, cost, and duration. The objective of this study was to develop an accelerated in situ electrochemical treatment approach to extract inorganic compounds from fine-grained soils, with the treatment time comparable to excavation and off-site disposal. Three reactor experiments were conducted on samples collected from two borehole locations from a field site in Illinois that contained arsenic (As)(~7.4 mg/kg) and manganese (Mn)(~700 mg/kg). A combination of hydrogen peroxide (H2O2) and/or citrate buffer solution was used to treat the soils. A low-intensity electrical field was applied to soil samples using a bench-scale reactor that resembles field-scale in situ electrochemical systems. For the treatment using 10% H2O2 and citrate buffer solution, average removal of 23% and 8% were achieved for Mn and As, respectively. With 4% H2O2 and citrate buffer, 39% and 24% removal were achieved for Mn and As; while using only citrate buffer as the electrolyte, 49% and 9% removal were achieved for Mn and As, respectively. All chemical regimes adopted in this study reduced the inorganic compound concentrations to below the maximum allowable concentration for Illinois as specified by the Illinois Environmental Protection Agency. The results from this work indicate that electrochemical systems that leverage low concentrations of hydrogen peroxide and citrate buffer can be effective for remediating soils containing manganese and arsenic.