scholarly journals PROBLEMS IN FORMING COST ESTIMATES FOR CONSTRUCTION INDUSTRY

2016 ◽  
Vol 4 ◽  
pp. 179-186
Author(s):  
Sergey Oparin ◽  
Nikolay Chepachenko ◽  
Marina Yudenkо
Keyword(s):  
Construction Industry ◽  
New Technologies ◽  
The United States ◽  
Capital Investments ◽  
Construction Costs ◽  
Cost Estimates ◽  
Construction Companies ◽  
Construction Organizations ◽  
The Cost ◽  
Competitive Pricing

Problems of forming cost estimates for the construction industry is relevant in Russia, where many construction organizations face the issue of a current pricing system that does not consider new technologies in construction. This leads to underestimations of costs in construction and limits opportunity for competitive pricing between construction companies. This article aims to provide recommendations for improving reliability in calculating construction costs and enhance efficiencies in capital investments by construction participants. The article provides an analysis of the existing system of pricing in construction, and the peculiarities of the system of pricing in both Russia and the United States. Results indicate the need for expediency in applying certain provisions of the foreign system into that of Russia’s for determining the cost of construction. These measures would help minimize the presence of contractors in the construction market who do not actually perform the construction and installation work on their own, and to achieve the desired level of profitability of 8 to 10%.

scholarly journals Measuring the Cost of Bailouts

2019 ◽  
Vol 11 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Deborah Lucas
Keyword(s):  
United States ◽  
Direct Cost ◽  
Financial Institutions ◽  
The United States ◽  
Theoretical Framework ◽  
Sharp Contrast ◽  
Total Direct Cost ◽  
Cost Estimates ◽  
Regulatory Burden ◽  
The Cost

This review develops a theoretical framework that highlights the principles governing economically meaningful estimates of the cost of bailouts. Drawing selectively on existing cost estimates and augmenting them with new calculations consistent with this framework, I conclude that the total direct cost of the 2008 crisis-related bailouts in the United States was on the order of $500 billion, or 3.5% of GDP in 2009. The largest direct beneficiaries of the bailouts were the unsecured creditors of financial institutions. The estimated cost stands in sharp contrast to popular accounts that claim there was no cost because the money was repaid, and with claims of costs in the trillions of dollars. The cost is large enough to suggest the importance of revisiting whether there might have been less expensive ways to intervene to stabilize markets. At the same time, it is small enough to call into question whether the benefits of ending bailouts permanently exceed the regulatory burden of policies aimed at achieving that goal.

scholarly journals Overdesign of Villa Structures in Oman

2015 ◽  
Vol 12 (2) ◽  
pp. 68
Author(s):  
A.S. Alnuaimi ◽  
M. Al Mohsin ◽  
A. Hago ◽  
S. El Gamal
Keyword(s):  
Construction Industry ◽  
Structural Design ◽  
Field Survey ◽  
Construction Costs ◽  
Code Of Practice ◽  
The Difference ◽  
Clear Cases ◽  
Almost All ◽  
The Cost ◽  
Residential Projects

Residential projects represent the largest section of the construction industry in Oman. It is widely claimed that designers in Oman tend to unnecessarily overdesign structures, thereby aggravating construction costs. The aim of this research was to investigate the existence and extent of structural overdesign through the investigation of 31 villas which were approved by Muscat Municipality between 2000–2010. The specified villas were structurally redesigned based on the British Code of Practice using the same geometry and material strengths recorded in the drawings. The required reinforcement resulting from the redesign work was compared with the provided reinforcement as per the drawings. The results showed clear cases of extra reinforcement in almost all villas. The difference between required and provided reinforcements in the villas ranged from 2.3– 104.8%, with an average of 48.5% and a standard deviation of 24.0. The required and provided weights of reinforcement per square meter of the built-up area ranged from 25.7–71 and 40.9–87.9 kg/m2, respectively. The largest differences between the required and provided reinforcement were in the slabs, followed by the footings. A field survey of consultants and municipality engineers indicated that the most notable reasons for overdesign are the absence of authorized agents specialized in reviewing structural design, a lack of an engineering licensing system in Oman, and the phenomenon of experienced engineers leaving design offices for better paying jobs elsewhere. Finally, the cost implication of overdesign is minor compared to the overall cost of building. 

scholarly journals A Refined Basket of Goods Approach for Comparing Construction Costs between Countries

2012 ◽  
Vol 9 (2) ◽  
pp. 29-38 ◽  
Author(s):  
Rick Best
Keyword(s):  
Exchange Rates ◽  
Construction Industry ◽  
International Comparison ◽  
Purchasing Power ◽  
Simple Construction ◽  
Construction Costs ◽  
Single Base ◽  
Industry Performance ◽  
The Cost ◽  
Purchasing Power Parities

Most comparisons of construction industry performance requirethat construction costs be converted to a common base. Existingmechanisms for such conversions produce unreliable results.A proposed method for producing industry-specifi c conversionfactors was tested using a single building type. A basket ofmaterials and labour was identifi ed and weighted to refl ect the costshare of each item in a completed project. Prices for the basketwere gathered in three cities and simple construction specifi cconversion indices were calculated based on the constructionpurchasing power of each currency. The construction purchasingpower parities (CPPPs) showed marked differences from otheravailable conversion mechanisms such as exchange rates andgeneral purchasing power parities (PPPs) that have been used inprevious international comparison studies. While the study waslimited in scope, and is only the fi rst stage of a longer process, thesubstantial differences in comparative costs based on purchasingpower illustrate the problems inherent in international costcomparisons. For example, comparing Singapore and Sydney,Singapore costs appear to be only 40% of those in Sydney (basedon exchange rates) about two-thirds the cost of Sydney (usinggeneral PPPs) or almost the same (using the preliminary CPPPs).These results illustrate the problems of converting costs fromlocal currencies to a single base currency and suggest that furtherdevelopment is needed to improve the reliability of outcomes.

Change through Innovation and Customer-Orientation

2013 ◽  
pp. 67-92
Keyword(s):  
Construction Industry ◽  
Computer Aided Design ◽  
New Technologies ◽  
Customer Orientation ◽  
Organizational Capabilities ◽  
Organizational Level ◽  
Construction Companies ◽  
The People ◽  
Different Types

This chapter begins by explaining the nature of innovation and basic models of innovation, including key stages in the process of innovation. As the construction industry is often regarded as different from other industries given its unique characteristics, innovation in construction is discussed in terms of motivation for the industry’s Small and Medium Enterprises (SME) to innovate, key organizational capabilities required for innovation, and external and internal factors critical to successful innovation. In addition, the common enablers, barriers, motivators, and outcomes of innovation in the construction industry are discussed. Understandably, as the role of clients in the construction industry is vital in many ways in driving to improve performance of projects, the chapter focuses on their role in driving innovation. The different types and categories of clients are described, as well as their roles in different types of innovations, and at different stages of innovation. The chapter also covers the role of technology in innovation and, more specifically, Computer-Aided Design (CAD) as an important technological innovation for the construction industry. At the organizational level, factors that can affect the rate of diffusion of a new technology within construction SMEs are explained. At the project level, factors that impact on innovative IT implementation and diffusion are also explained. Next, innovation and its role in enabling construction businesses to gain competitive advantages are discussed. The need to classify construction innovation and how it can encourage businesses to innovate by adopting appropriate strategies are explained through a case of Singapore’s construction industry. In addition, the need for and application of strategies, policies, and procedures to deal with IT in managing construction site processes are described in a study of UK’s leading construction companies. On achieving continuous improvement as a whole for the industry, issues relating to innovation, including reasons for the lack of it, are discussed and presented. On managing change, focus on the “people” factor of innovation, especially the need to develop capability of staff to use new technologies, is given. The chapter concludes with a summary of the main points covered on change through innovation and customer-orientation.

BUSINESS SURVIVAL RATE IN CONSTRUCTION INDUSTRY IN RELATION TO OTHER INDUSTRIES: A COMPARATIVE ANALYSIS

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Ifte Choudhury
Keyword(s):  
Survival Rate ◽  
Construction Industry ◽  
The United States ◽  
Industrial Sector ◽  
Business Survival ◽  
Construction Companies ◽  
Us Economy ◽  
Hard Time ◽  
Significant Difference ◽  
Huge Impact

Construction industry is one of the largest industrial sector in the United States that employs close to ten million people and makes a high contribution to the growth of the country's economy. In spite of the huge impact that the industry has on the US economy, construction businesses have a hard time surviving in the market, with construction companies having the least survival rate among all the industries. Five-year survival rate of construction companies is one of the lowest compared to other industries. This study aims at providing evidence that the construction industry suffers the most as compared to the other industries in terms of business survival rate. A General Linear Model was used for statistical analysis. Results show a significant difference between the construction industry and other industries providing evidence that the construction industry businesses have the least survival rate.

scholarly journals Renovation of apartment buildings with prefabricated modular panels

2019 ◽  
Vol 111 ◽  
pp. 03023 ◽  
Author(s):  
Kalle Kuusk ◽  
Peep Pihelo ◽  
Targo Kalamees
Keyword(s):  
Large Scale ◽  
New Technologies ◽  
Housing Stock ◽  
Cost Effective ◽  
Construction Costs ◽  
Apartment Buildings ◽  
Time Period ◽  
Grant Scheme ◽  
Main Barrier ◽  
The Cost

New recast of the EPBD requires that that Member States shall establish a long-term strategy facilitating the cost-effective transformation of existing buildings into nearly-zero energy buildings. Lack of fund and lack of awareness is often considered to be the main barrier for the renovation. Experiences with renovation grant scheme in Estonia showed that large scale renovation scheme is a challenge to the construction industry and increased demand creates new problems like labour shortage and increased construction costs. Current renovation rate of apartment buildings in Estonia is approximately 200 buildings (~1%) per year. Demand is higher but current renovation technologies makes it difficult to significantly increase the renovation rate. Achieving the deep renovation goals with current technologies would require expansion of the whole construction sector (designers, contactors, material industry), which is difficult to achieve. Therefore, innovation and new technologies are needed. The prefabrication would be one solution to allow automation of the renovation process and renovate the existing housing stock within a reasonable time period.

scholarly journals A Review of Measles Outbreak Cost Estimates From the United States in the Postelimination Era (2004–2017): Estimates by Perspective and Cost Type

2020 ◽  
Vol 71 (6) ◽  
pp. 1568-1576
Author(s):  
Jamison Pike ◽  
Andrew J Leidner ◽  
Paul A Gastañaduy
Keyword(s):  
United States ◽  
Indirect Costs ◽  
Health Department ◽  
The United States ◽  
Public Health Department ◽  
Median Cost ◽  
Cost Estimates ◽  
Measles Outbreak ◽  
Measles Outbreaks ◽  
The Cost

Abstract Despite the elimination of measles in the United States (US) in the year 2000, cases continue to occur, with measles outbreaks having occurred in various jurisdictions in the US in 2018 and 2019. Understanding the cost associated with measles outbreaks can inform cost-of-illness and cost-effectiveness studies of measles and measles prevention. We performed a literature review and identified 10 published studies from 2001 through 2018 that presented cost estimates from 11 measles outbreaks. The median total cost per measles outbreak was $152 308 (range, $9862–$1 063 936); the median cost per case was $32 805 (range, $7396–$76 154) and the median cost per contact was $223 (range, $81–$746). There were limited data on direct and indirect costs associated with measles. These findings highlight how costly measles outbreaks can be, the value of this information for public health department budgeting, and the importance of more broadly documenting the cost of measles outbreaks.

scholarly journals The Importance of Marketing Strategy for Creating and Maintaining Goodwill for Construction Companies

2021 ◽  
Vol 6 (2) ◽  
pp. 21-26
Author(s):  
Radek Radek ◽  
Helena Hanusova ◽  
Zuzana Lipovska
Keyword(s):  
Marketing Strategy ◽  
Construction Industry ◽  
Technological Changes ◽  
Significant Deterioration ◽  
Construction Companies ◽  
Internal Accounting ◽  
The Cost ◽  
Market Construction ◽  
A Company

If a company wants to have a long-term presence on the market, it must have a long-term marketing strategy. It should respect the expected technical, technological and socio-economic development. All these factors are clearly manifested in the construction industry. Construction activities are specific in that their products are for long-term use and financially demanding for the investor. The underestimation of trends, technological changes and investor requirements leads to loss of clients and a significant deterioration in the economic situation. Creating a marketing strategy to keep it on the market can prevent these problems. In construction it means estimating trends and shaping a marketing strategy. This activity is very demanding and costly. It leads to the creation of Goodwill and its focus and is an integral part of the company’s assets. If is the marketing strategy insufficient or wrong, it will result in the loss of Goodwill and therefore clients in the market. Construction companies needs to build Goodwill and record it as part of the company’s property. Goodwill is also part of internal accounting. This is where the cost of marketing will take place, not only in terms of costs. There is a need for companies to deliberately choose the methods through which they will express the value of Goodwill.

scholarly journals RESEARCH TRENDS IN THE CONSTRUCTION INDUSTRY RUSSIAN FEDERATION

2019 ◽  
Vol 8 (6) ◽  
Author(s):  
Albina Khairullina ◽  
Larisa Nabieva ◽  
Aigul Sabirova
Keyword(s):  
Construction Industry ◽  
Russian Federation ◽  
Positive Development ◽  
Construction Companies ◽  
Construction Market ◽  
Current State ◽  
Construction Organizations ◽  
The Russian Federation ◽  
The Republic ◽  
The Government

This article analyzes the current state of the construction industry of the Russian Federation at the federal and local (for example, the Republic of Tatarstan) levels. The features and trends of the construction industry of the Russian Federation (RF) are considered, taking into account the changes in the legislation affecting this industry. The authors analyzed the statistics of housing commissioning, the dynamics of lending and debt of construction organizations, in addition, the analysis of statistics of bankruptcies of companies. The key players in the construction market of the Republic of Tatarstan were studied, and their reliability rating was presented. Based on the results of the analyzed material, certain conclusions were formulated. Based on the findings, it was determined that in the Russian Federation the construction industry is experiencing some difficulties that require special attention from the state. However, at present the government is already taking certain steps towards improving the current situation. As it was revealed, in the Republic of Tatarstan, the construction industry has had a positive development dynamics over several years. In recent years, there has been an increase in housing commissioning. In addition, the government annually invests in the construction industry. Despite this, in Tatarstan there is a high percentage of bankruptcies of construction companies, the reasons for which are identified in this article.

scholarly journals Determinants of Building Construction Costs in South Africa

2017 ◽  
Vol 1 (1) ◽  
pp. 8-13
Author(s):  
Abimbola Windapo ◽  
Sunday Odediran ◽  
Alireza Moghayedi ◽  
Abdul Adediran ◽  
David Oliphant
Keyword(s):  
South Africa ◽  
Construction Industry ◽  
Predictive Modelling ◽  
Construction Cost ◽  
Building Construction ◽  
Construction Equipment ◽  
Construction Costs ◽  
Cost Index ◽  
Cross Sectional ◽  
The Cost

Completing project within cost is the target of most clients on any construction project. However, the achievement of this desire is just an imagination in the construction industry, because procurement and execution environments for projects are hostile and unpredictable. This study examines the determinants of building construction costs in South Africa and whether changes in the cost of certain resource factors such as construction equipment, labour and materials can be related to changes in building construction costs. The study employs a longitudinal cross-sectional quantitative research design approach and makes use of literature review and historical data obtained from institutional and governmental databases to identify the determinants. The data collected were analysed using time series analysis to confirm the trends in the cost of the resource factors and its alignment to the changes in building construction cost. After that, it makes use of an appropriate predictive modelling tool or causal analysis in establishing the determinants of construction cost. The results show that the price indices of construction equipment (EI), labour (LI) and materials (MI) have a gentler slope when compared with the Building Cost Index (BCI). It also emerged that later levels of the BCI are significantly and positively related to EI. The findings infer that the key determinant of increase in building construction costs in South Africa is equipment costs. Contractors and public or private sector clients in South Africa must utilize construction equipment optimally on projects, and these pieces of equipment should not be left idle on project sites or plant yards. Appropriate provisions should be made of equipment utilization policies which allow the joint ownership of equipment by contractors to mitigate the problems of cost increases. There are widely unexamined assumptions as to what resource factors are responsible for the growth in building construction costs in South Africa. Also is the similar high risk and uncertainty affecting the South African construction industry as a result of these fluctuations. The results of the study extend the knowledge of the resource factors responsible for building construction costs increases.     

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