Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia

2013 ◽  
Vol 13 (2) ◽  
pp. 286-293 ◽  
Author(s):  
Ismail Abdul Rahman ◽  
Aftab Hameed Mem ◽  
Ahmad Tarmizi Abd. Karim
Keyword(s):  
Construction Projects ◽  
Cost Overruns ◽  
Significant Factors

scholarly journals An Integrated Decision Support Model Based on BWM and Fuzzy-VIKOR Techniques for Contractor Selection in Construction Projects

2021 ◽  
Vol 13 (12) ◽  
pp. 6933
Author(s):  
Aziz Naghizadeh Vardin ◽  
Ramin Ansari ◽  
Mohammad Khalilzadeh ◽  
Jurgita Antucheviciene ◽  
Romualdas Bausys
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Water Channel ◽  
Multicriteria Decision Making ◽  
Decision Support Model ◽  
Cost Overruns ◽  
Contractor Selection ◽  
Model Based ◽  
Fuzzy Vikor ◽  
Bid Price

Sustainable development of any country to some extent depends on successful accomplishment of construction projects, particularly infrastructures. Contractors have a key role in the success of these projects. Hence, the selection of a competent contractor as a complicated and hard decision process has a vital importance in the destiny of any construction project. Contractor selection is in essence a multicriteria decision-making that ought to encompass so many aspects of the project and the client’s requirements on one hand and the capabilities and past records of the contractors on the other hand. Failure in selecting a competent contractor may cause time and cost overruns; quality shortcomings; increasing in claims, disputes and change orders; and even failure of the project. In spite of deficiencies of selecting a contractor by the rule of “the lowest bid price”, it still prevails in many countries including Iran. In this paper, a new contractor selection model based on the best-worst method (BWM) and well-known Fuzzy-VIKOR techniques is proposed as a solution to overcome the deficiencies of the traditional “lowest bid price” rule. An illustrative example of a water channel construction project verified the applicability of the proposed model in practice.

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 Significant Factors Causing Time Overrun in Construction Projects of Peninsular Malaysia

2014 ◽  
Vol 8 (4) ◽  
Author(s):  
Aftab Hameed Memon ◽  
Ismail Abdul Rahman ◽  
Muhammad Akram ◽  
Nornashima Md Ali
Keyword(s):  
Construction Projects ◽  
Peninsular Malaysia ◽  
Significant Factors

Effect of factors of organizational structure influencing nonphysical waste in road projects of developing countries

2020 ◽  
Vol 27 (10) ◽  
pp. 3135-3153
Author(s):  
Muhammad Irfan ◽  
Muhammad Sohail Anwar Malik ◽  
Syyed Sami Ul Haq Kaka Khel
Keyword(s):  
Developing Countries ◽  
Organizational Structure ◽  
The Body ◽  
Management Support ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Content Type ◽  
Factors Influencing ◽  
Road Projects ◽  
Significant Factors

PurposeThe purpose of this research is to rank the most significant factors of organizational structure that can reduce time and cost overruns (nonphysical waste) in road projects of the developing countries. Additionally, the effect of factors of organizational structure on nonphysical waste in road projects is also measured.Design/methodology/approachFactors of organizational structure causing time and cost overrun are extracted through a content analysis of the published literature. Moreover, a questionnaire survey is carried out involving 128 professionals to assess the effect of organizational structure factors on time and cost overrun. Finally, to obtain a more objective evaluation, relative importance index and regression analysis techniques are utilized, and the most severe factors influencing time and cost overrun are indicated.FindingsThis study found out that top management support and procurement procedures are the most significant factors influencing time and cost overruns in road projects of the developing countries.Originality/valueA small number of studies have been conducted to investigate the effect of factors of organizational structure on time and cost overrun in the construction industry. And even more, its relation with respect to road projects of the developing countries is limited. This research highlights the effect of most significant factors of organizational structure that influence the nonphysical waste in road projects of the developing countries. Therefore, this study adds to the body of knowledge by recommending that all the stakeholders of construction project should pay close attention toward these factors to control the enigma of time and cost overrun. It might also prove helpful, if implemented to its full extent, in all the road construction activities undertaken.

scholarly journals An Artificial Neural Network Approach to Predicting Most Applicable Post-Contract Cost Controlling Techniques in Construction Projects

2020 ◽  
Vol 10 (15) ◽  
pp. 5171 ◽  
Author(s):  
Temitope Omotayo ◽  
Awuzie Bankole ◽  
Ayokunle Olubunmi Olanipekun
Keyword(s):  
Decision Support ◽  
Construction Projects ◽  
Cost Management ◽  
Management Practice ◽  
Project Managers ◽  
Construction Process ◽  
Neural Network Approach ◽  
Cost Overruns ◽  
Effective Cost ◽  
Artificial Neural

The post-contract phase of the construction process remains critical to cost management. Several techniques have been used to facilitate effective cost management in this phase. However, the deployment of these techniques has not caused a reduction in the incidence of cost overruns hence casting doubts on their utility. The seeming underwhelming performance posted by these post-contract cost control techniques (PCCTs), has been traced to improper deployment by construction project managers (CPM) and quantity surveyors (QS). Utilizing the perspectives of CPM and QS professionals, as elicited through a survey, produced 135 samples. The instrumentality of the artificial neural networks (ANN) in this study enabled the development of a structured decision-support methodology for analysing the most appropriate PCCTs to be deployed to different construction process phases. Besides showcasing the utility of the emergent ANN-based decision support methodology, the study’s theoretical findings indicate that CPM and QS professionals influence decisions pertaining to PCCTs choice in distinct phases of the construction process. Whereas QS professionals were particularly responsible for the choice of PCCTs during the initial and mid-level phases, CPM professionals assumed responsibility for PCCTs selection during the construction process close-out phase. In construction cost management practice, the crucial PCCTs identifies more with the application of historical data and all cost monitoring approaches.

BENEFITS OF BIM IN CONSTRUCTION PROJECTS

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Vanissorn Vimonsatit ◽  
Alex Chai Mui Foo
Keyword(s):  
Content Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Weather Condition ◽  
Secondary Data ◽  
Contributing Factors ◽  
Building Information Modelling ◽  
Cost Overruns ◽  
Building Information ◽  
Survey Results

This paper presents findings of an investigation into benefits of using Building Information Modelling (BIM) in construction projects. The research methodology includes a review of BIM development and achievement in construction industry, questionnaire survey, interview, and content analysis of secondary data. Data was collected and analyzed to identify the various benefits reflected from BIM implementation in addressing common problems experienced by the construction industry. The review and survey results indicate that a high frequency of occurrence of time and cost overruns occur in construction projects. Contributing factors were mainly rework, poor planning, documents delivery and approval, constructability issues, resources and weather condition. While some of the factors were unpreventable, BIM could be used as a tool to eliminate problems causing time and cost overruns. Various project benefits have been reflected through the content analysis of project case studies. It was found that time was the most positively influenced by the use of BIM followed by coordination, procurement, communication, cost and change of scope of the project, and lastly, risk.

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