scholarly journals Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

2020 ◽  
Vol 10 (16) ◽  
pp. 5506
Author(s):  
Rodrigo F. Herrera ◽  
Omar Sánchez ◽  
Karen Castañeda ◽  
Hernán Porras
Keyword(s):  
Project Planning ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Price Variation ◽  
Cost Overruns ◽  
Road Infrastructure ◽  
Design Changes ◽  
Causative Factors ◽  
Evidence Collection ◽  
Importance Analysis

Road infrastructure projects are essential for a country’s economic and social development. Due to the magnitude, the projects are associated with considerable economic investments that in the case of failure can seriously affect regions’ economies. Despite the importance, roads from different countries are affected by cost overruns, hence, it is essential to identify and analyze the causative factors to focus the search for mitigation solutions. There are several studies focused on the cost factors identification, however, studies are lacking that synthesize and analyze the frequency and importance with which the factors have been reported to obtain a phenomenon overview. Therefore, this paper focuses on analyzing the frequency and importance with which cost overrun factors are reported in road projects. The research method consisted of a systematic review compound of five principal stages: (1) question formulation; (2) searching of relevant documents; (3) document selection; (4) evidence collection, analysis and synthesis; and (5) results’ report. Thirty-eight cost overrun factors were identified and classified into 14 categories. According to the Influence Index, the five most important and frequent cost overrun factors were: (1) failures in design, (2) price variation of materials, (3) inadequate project planning, (4) project scope changes, and (5) design changes.

scholarly journals Analysis of Cost Overrun and Schedule Delays of Infrastructure Projects in Low Income Economies: Case Studies in Ethiopia

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Solomon Melaku Belay ◽  
Seifu Tilahun ◽  
Mitiku Yehualaw ◽  
Jose Matos ◽  
Helder Sousa ◽  
...  
Keyword(s):  
Low Income ◽  
Average Cost ◽  
Construction Projects ◽  
Building Construction ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Cost Overruns ◽  
Road Infrastructure ◽  
Schedule Delay ◽  
Maximum Delay

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.

scholarly journals Toward a Systemic View to Cost Overrun Causation in Infrastructure Projects: A Review and Implications for Research

2017 ◽  
Vol 48 (2) ◽  
pp. 88-98 ◽  
Author(s):  
Dominic D. Ahiaga-Dagbui ◽  
Peter E. D. Love ◽  
Simon D. Smith ◽  
Fran Ackermann
Keyword(s):  
Systems Thinking ◽  
Future Research ◽  
Popular Press ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Cost Overruns ◽  
Academic Literature ◽  
Multiple Factors ◽  
High Level ◽  
Systemic View

Infrastructure cost overruns receive a significant amount of attention in the academic literature as well as the popular press. The methodological weaknesses in the dominant approaches adopted to explain cost overrun causation on infrastructure projects are explored in this article. A considerable amount of cost overrun research is superficial, replicative, and thus has stagnated the development of a robust theory to mitigate and contain the problem. Future research should move from single-cause identification and the traditional net-effect correlational analysis to a search for causal recipes through systems thinking and retrospective sensemaking to address the high-level interactions between multiple factors.

AN ASSESSMENT OF CONSTRUCTION PROJECTS COST OVERRUNS IN THE PUBLIC SECTOR

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Jerminah Khabisi ◽  
Clinton Aigbavboa ◽  
Wellington Thwala
Keyword(s):  
Public Sector ◽  
Construction Projects ◽  
Secondary Data ◽  
Primary Data ◽  
Specific Reference ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Design Changes ◽  
Response Rate Data ◽  
High Level

The purpose of this study was to identify factors that influence project cost overrun within public sector construction projects with specific reference to Gauteng Province of South Africa. The primary data was collected by means of structured questionnaires which were distributed to practicing construction professionals who are engaged in various dimension in public sector construction projects. The secondary data was derived through reviewed literature. Out of 120 questionnaires sent out, 119 were received, which represented 99% response rate. Data received from the questionnaires was analyzed using descriptive statistical procedures. Findings from questionnaire survey revealed that the most dominant factors of cost overruns in public sector project include: variation orders, change in scope of the project, cash flow and financial difficulties faced by contractors, delays in decision making by professional consultants representing the clients, inadequate planning, frequent design changes, lack of coordination between parties, amongst others. The study thus revealed that it is necessary to identify factors that influence construction cost overruns at the start of the project in order to minimize cost overruns and to improve the cost performance on public sector construction projects. This is because of the high level of accountability necessary required for the management of tax payers money.

POTENTIAL FACTORS TO PROMOTE SUSTAINABLE PROCUREMENT IN ROAD INFRASTRUCTURE PROJECTS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Debby Willar ◽  
Anak Agung Diah Parami Dewi ◽  
Febriane Paulina Makalew
Keyword(s):  
Service Providers ◽  
Practical Knowledge ◽  
Project Planning ◽  
Successful Implementation ◽  
Infrastructure Projects ◽  
Road Infrastructure ◽  
Goods And Services ◽  
Sustainable Procurement ◽  
The Government ◽  
Project Lifecycle

The Indonesian government has promoted the sustainable procurement method regarding the selection of professional planning consultants and main contractors to construct sustainable road infrastructure projects. However, sustainable procurement practice continues to make it difficult to select service providers considering their lack of knowledge and expertise in sustainable infrastructure projects. This paper performs a literature review which includes a review of the government rules and identifies the factors which influence successfully adopting sustainable procurement in Indonesian road infrastructure projects. The review, including lesson learned from other countries, suggests factors which can promote the successful implementation of sustainable procurement: environmentally friendly specifications, producing economical goods and services during the project lifecycle, empowering local societies and small industries, reducing negative impacts on health, air, water, and soil, implementing public-private partnership or private finance initiative methods for a better partnership between the public and private sectors, and requiring assessment methods to initiate and implement sustainable procurement from pre-project planning to project delivery. The review will provide practical knowledge among road infrastructure projects’ stakeholders, hence significantly affecting the adoption of the sustainable procurement process throughout the road infrastructure project lifecycle, as an example.

scholarly journals A study of causes of delay and cost overrun in office construction projects in the eThekwini Municipal Area, South Africa

2015 ◽  
Author(s):  
◽  
Nafkote Tesfahun Adugna
Keyword(s):  
South Africa ◽  
Construction Projects ◽  
Best Practice ◽  
Project Planning ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Time Extension ◽  
Individual Variables ◽  
The Individual ◽  
Poor Site

On-time completion and conformity with assigned cost of every project are the most important factors in the success of project plans. Cost overruns and time overrun (delays) have been critical problems of many projects around the world in general and in South Africa in particular. The main objectives of this research are to assess the dominant causes of cost and time overruns, identifying possible and practical measures that can minimize overruns in office building construction projects around eThekwini Municipal area of Kwazulu-Natal. These objectives are achieved through the implementation of the research methodologies that are mainly literature review and questionnaire survey conducted to identify and evaluate the significant factors contributing to delay and cost overruns within the projects of interest. A review of literature identified eighty-five variables for delay, grouped in nine major categories and nine variables for cost overruns ranked in their order of importance in three sets based on the responses from the professionals working for the client, consultants and contractors. The agreement among the sets of rankings for delay and cost overruns has also been tested using statistical methods. The result indicates that there is strong agreement on ranking the importance of the individual variables of delay and cost overruns between parties. From each of the three sets of rankings, the twenty most important variables of delay and the three most important variables of cost overrun are identified as critical. Based on overall results, the top five most important causes are contractor’s cash flow problems, delay in progress payments by the client, poor site supervision and management by contractor, inefficient quality control by the contractor during construction leading to rework due to errors, and contractor’s difficulties in financing the project. Out of the 20 most important delay causing variables, three are found to be common between all parties. These are delay in progress payments by the client, delay in delivery and late ordering of material, and insufficient skill of labour. Furthermore, the study reveals that all stakeholders of construction parties are deeply involved in contributing to the causes of the problems. Thus, in order to eliminate or minimize cost and time extension of office construction projects in the eThekwini Municipal area, a joint effort based on teamwork is essential through effective project planning, controlling and monitoring which boils down to putting in place best practice construction project management.

scholarly journals Investigating Rework: Insights from the Malaysian Construction Industry

2021 ◽  
Vol 14 ◽  
pp. 1-9
Author(s):  
Jeffrey Boon Hui Yap ◽  
Shi Min Tan
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Project Performance ◽  
Statistical Techniques ◽  
Cost Overruns ◽  
Delivery Performance ◽  
Communication Design ◽  
Design Changes

Construction practitioners recognise that rework is undesirable due to the detrimental effects. While rework literature has examined rework causation factors in construction projects, the problem continues to plague the industry resulting in poor delivery performance. To better understand this phenomenon and given the scarcity of Malaysian-based rework study, a questionnaire survey involving 130 Malaysian construction practitioners (consultants, contractors and clients) were undertaken to obtain feedback about nature, implications, causes and solutions for rework. Data were analysed using descriptive statistical techniques to prioritise the variables studied. From the analyses, rework is a causal factor for delays and cost overruns, higher wastage and productivity inhibitor. The findings revealed the leading causes of rework are poor quality management, improper planning, lack of communication, design changes and poor subcontractor management. Some practical rework minimisation approaches are also suggested to better manage and prevent rework towards enhanced project performance.

scholarly journals A BESPOKE APPROACH FOR RELATING MATERIAL WASTE TO COST OVERRUN IN THE CONSTRUCTION INDUSTRY

2017 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Ibrahim Saidu ◽  
W Shakantu ◽  
A Adamu ◽  
I Anugwo
Keyword(s):  
Construction Industry ◽  
Construction Material ◽  
Methodological Approach ◽  
Construction Project ◽  
Project Managers ◽  
Cost Overrun ◽  
Project Cost ◽  
Cost Overruns ◽  
Project Completion ◽  
Final Project

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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