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 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.

Latent geotechnical pathogens inducing cost overruns in highway projects

2017 ◽  
Vol 22 (3) ◽  
pp. 269-285 ◽  
Author(s):  
Alolote Ibim Amadi ◽  
Anthony Higham
Keyword(s):  
Niger Delta ◽  
Best Practice ◽  
Methodological Approach ◽  
Cost Overrun ◽  
Delta Region ◽  
Cost Overruns ◽  
Highway Projects ◽  
Content Type ◽  
Niger Delta Region ◽  
Geotechnical Risk

Purpose This paper aims to investigate the statistical validity of geotechnical risk factors in accounting for cost overruns in highway projects. The study hypothesises that “latent pathogens” because of mismanaged geotechnical risk, which lay dormant in organisational practices of highway agencies, trigger cost overruns. Design/methodology/approach To test this hypothesis, cost and geotechnical data gathered for 61 completed highway projects, executed in the Niger Delta, recording unusually high cost overruns, along with qualitative data from 16 interviews with the project commissioners, were comprehensively analysed via regression modelling, to statistically explain recorded cost variance. Findings The results provide empirical evidence supporting a cause–effect relationship between the extent of cost overrun and key geotechnical factors. It is suggested that positive changes made in the geotechnical practices of the highway agencies will produce an expected exponential decrease in the level of cost overruns recorded in highway projects. Research limitations/implications The study is limited to explaining the propagation of unusually high cost overruns in the geologic setting of the Niger Delta region of Nigeria. As such there is a need to test the generalisability of the theory presented. Practical implications The emergent view of geotechnical practice calls for further research, necessary to align geotechnical best practice into highway project delivery in the Niger Delta region. Originality/value The study used a robust methodological approach to understanding the propagation of cost overruns in highway projects, based on a characterisation of geotechnical intricacies, which is unprecedented in cost overrun research.

scholarly journals Exploring the Components of Cost on Construction Projects

2018 ◽  
Vol 2 (2) ◽  
pp. 42-50
Author(s):  
Abimbola Windapo ◽  
Alireza Moghayedi ◽  
David Oliphant ◽  
AbdulRauf Adediran
Keyword(s):  
South Africa ◽  
Construction Projects ◽  
Resource Planning ◽  
Construction Cost ◽  
Research Approach ◽  
Construction Work ◽  
Construction Costs ◽  
Cost Overruns ◽  
Planning And Control ◽  
Electrical Installation

This study examines the components of construction projects and whether there are construction resources that are the key project constituents. The rationale for the study stems from the unexplained assumptions regarding the primary components responsible for increases in construction costs in South Africa, as South Africa lacks a national building cost database. The study adopts a qualitative research approach that employs a case studies of six new and six refurbished projects in obtaining the necessary data for use in answering the study objectives. The study found that the primary cost constituents of construction projects are materials and sub-contracted work, accounting for 63.69% and 74.6% of the value of renovation and new construction work respectively and on the average, the major materials by value are reinforcement, cement and filling, while Electrical Installation is the primary sub-contracting item by value. Based on these findings, the study concludes that the future levels of construction work can be predicted knowing levels of specialist sub-contractor costs and building material costs. The study recommends that the sub-contractor and material inputs into construction projects are carefully managed, both on the projects and the construction industry, to limit construction cost increases and cost overruns on projects. The study contributes to the literature on resource planning and control in construction. Keywords: Cement, Construction Cost, Electrical Installation, Reinforcement, Specialist Sub-contractor.

scholarly journals Optimization of M-PERT & BIM 5D to Minimize the Risk of Time Delay & Overrun in Stadium Project Structure Works: Key Success Factors

2021 ◽  
Vol 8 (7) ◽  
pp. 491-498
Author(s):  
Ahmad Sholichan ◽  
Albert Eddy Husin
Keyword(s):  
Time Delay ◽  
Construction Projects ◽  
Success Factors ◽  
Project Planning ◽  
Success Factor ◽  
Cost Overrun ◽  
Planning Period ◽  
Planning And Scheduling ◽  
Critical Success ◽  
Complex Structural

Time delays and cost overrun are still a "scourge" in construction projects. The most important factors that cause these two risks are ineffective project planning and scheduling, and inaccurate quantity taking off. Thus, it is most appropriate to carry out mitigation since the project planning period. With the fact of increasing stadium construction in various countries, with iconic and futuristic design, and containing national pride, must be a serious concern so that the risk of time delay & cost overrun can be reduced. Because stadiums are like that usually involve a complex structural system, complicated installation technique with strict network diagrams. The M-PERT & BIM 5D - Based Quantity Take Off method has the potential to mitigate and minimize this risk. This study, with the RII simulation, reveals the critical success factor for applying the potential of this method, especially in stadium structural work. These factors can become a serious concern for construction practitioners, especially in Indonesia, who are and will build stadium projects. Keywords: Structure; Stadium; M-PERT; BIM 5D; RII.

scholarly journals Assessment of delay and cost-overrun in federal road construction project in Abuja

2020 ◽  
Vol 11 (4) ◽  
pp. 1184
Author(s):  
Ashem Emmanuel Egila ◽  
Oluwaseun Abdulakeem Balogun ◽  
Saheed Olanrewaji Yusuf
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Road Construction ◽  
Mean Value ◽  
Cost Overrun ◽  
Related Factors ◽  
Cost Overruns ◽  
Factors Influencing ◽  
Importance Index ◽  
The Government

Poor road infrastructure in Nigeria is a significant challenge, just like poverty, insecurity, and unemployment. The construction of road in the country is characterized by numerous challenges throughout the project life cycle. Some of these challenges are project delay and cost overrun, corruption and fraud, faulty contractual process among others. Objectives of this study are to identify factors influencing delays and cost overruns in road construction project, to rank these factors base on their impacts and importance, and to suggest conservative ways to address the future challenges that can result from delays and cost overruns of future road construction projects. The research instruments include in-depth literature review, fieldwork, questionnaire administration, and interview. Inferential statistics such as Relative importance index (RII) and Mean Value techniques were used to analyze collected data. The result of the study identified factors influencing delays and cost overruns in road construction projects as; man related, money-related, machine-related, material related, environmental-related, and method related factors. Analysis using RII and MV ranked man and money related as the highest factors for delay and cost overrun respectively. Hence, the research recommends that the Government should create an enabling environment, making suitable policy for the construction company to operate.

scholarly journals Analysis Cost Overruns, Delays and Risk Involved in Construction Management Using Primavera

2018 ◽  
Vol 7 (3.10) ◽  
pp. 160 ◽  
Author(s):  
T Subramani ◽  
P Sivakumar
Keyword(s):  
Construction Industry ◽  
Great Risk ◽  
Construction Management ◽  
Construction Projects ◽  
The Other ◽  
Cost Overrun ◽  
Management Compensation ◽  
Social Effect ◽  
Cost Overruns ◽  
Resource Creation

Construction industry is taken into consideration as one of the maximum crucial industries in India. These phenomena may additionally have an effect on the development of construction industry in India. In addition to may additionally expose many establishments of construction to be destroyed. Delays in addition to disruptions are sources of capacity risks that studies are looking into techniques to manipulate along with technical, social, monetary, felony, economic, useful resource, creation and commercial. To evaluate the reasons of delays and conflicts are due to: layout modifications, delays in price to contractors, facts delays, investment troubles, bad challenge management, compensation problems and disagreement at the valuation of labor accomplished. On the other hand, time overrun, cost overrun, bad social effect, idling assets and disputes are the principle outcomes of delays and disruptions. The observe concludes the reasons of delays and disruptions and their outcomes placed construction projects at extremely great risk that have an impact on their performance the use of primavera. 

Simulation of design changes impact in healthcare construction projects using system dynamics

2020 ◽  
Author(s):  
Dina Atef Saad ◽  
Farouk Gharib ◽  
Moheeb El-Said
Keyword(s):  
System Dynamics ◽  
Construction Projects ◽  
Ripple Effect ◽  
Dynamics Model ◽  
Multiple Stakeholders ◽  
Cost Overruns ◽  
Design Changes ◽  
Proposed Model ◽  
Time Extension ◽  
Catch Up

Design changes (DC) contribute significantly to construction projects’ delays and cost overruns. Many research efforts tackled DCs management, yet with less efforts in healthcare construction (HC) projects which involve multiple stakeholders including medical users and require meeting engineering and medical specifications. Therefore, a new system dynamics model that simulates HC environment, considering engineering and medical factors that can potentially trigger DCs, was developed. It simulates, as well, DCs’ ripple effect in inducing further DCs due to: errors encountered while processing the DCs, and time extension which make the project vulnerable to DCs to catch up with the latest medical advancements. Using a real HC project, the proposed model is validated, and a sensitivity analysis has been conducted to identify the most sensitive factors to DCs. Thus, the new SD model is a useful tool to allow proactive DC management and sound decision-making in order to maintain the planned project performance.

scholarly journals A comparison of the socio-economic determinants of growth retardation in South African and Filipino infants

2008 ◽  
Vol 11 (12) ◽  
pp. 1220-1228 ◽  
Author(s):  
Laura L Jones ◽  
Paula L Griffiths ◽  
Linda S Adair ◽  
Shane A Norris ◽  
Linda M Richter ◽  
...  
Keyword(s):  
South Africa ◽  
Policy Development ◽  
Maternal Education ◽  
Economic Status ◽  
The Philippines ◽  
Birth Cohorts ◽  
Nutrition Survey ◽  
Individual Variables ◽  
The Individual ◽  
Context Specific

AbstractObjectiveTo examine the association between household socio-economic status (SES) at birth and poor infant growth such as small for gestational age (SGA) and stunting across two different socio-cultural settings: South Africa and the Philippines.DesignData were from two longitudinal birth cohorts, the Birth to Twenty (Bt20) study in South Africa and the Cebu Longitudinal Health and Nutrition Survey (CLHNS) in the Philippines.SubjectsBt20 infants (n 2293 total; reduced to 758 (SGA), 450 (stunting 1 year) and 401 (stunting 2 years)) and CLHNS infants (n 2513 total; reduced to 2161 (SGA), 1820 (stunting 1 year) and 1710 (stunting 2 years)).ResultsCLHNS infants were significantly more likely to be born SGA (20·9 v. 11·7 %) and be stunted at 1 year (32·6 v. 8·7 %) and 2 years (48·9 v. 21·1 %) compared with Bt20 infants. Logistic regression analyses showed that SES (index) was a significant predictor of stunting at 1 and 2 years of age in the CLHNS cohort. SES (index or individual variables) was not a significant predictor of SGA in either cohort, or of stunting in the Bt20 cohort. Maternal education, ownership of a television and toilet facilities were all independent predictors of stunting in the CLHNS cohort.ConclusionsThe social and economic milieu within the Philippines appears to place CLHNS infants at greater risk of being born SGA and being stunted compared with Bt20 infants. The present research highlights the importance of investigating the individual SES variables that predict infantile growth faltering, to identify the key areas for context-specific policy development and intervention.

scholarly journals Rank-Order Analysis of Factors Causing Claims on Road Construction Projects in Botswana

2016 ◽  
Vol 8 (2) ◽  
pp. 58
Author(s):  
Aderemi Adeyemi ◽  
Olefile Segwabe
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Rank Order ◽  
Road Construction ◽  
Frequency Of Occurrence ◽  
Cost Overrun ◽  
Planning And Scheduling ◽  
Frequent Type ◽  
Poor Site ◽  
Delay Claims

Claims are considered to be one of the most serious disruptive forces to successful project delivery in the construction industry. In a small developing economy like Botswana, it is germane to identify the sources and the frequency of occurrence of claims so that the burden of project cost overrun, a hallmark of the country’s construction industry is substantially reduced. Detailed literature review and preliminary field investigations were used to identify causes of claims related to road construction projects. The study identified six major types of claim and twenty seven causes of claims. Using questionnaire as research instrument, respondents (construction industry major stakeholders i.e. clients, consultants and contractors) were asked to rank the frequency of occurrence of the types and causes of claims in road construction projects on a Likert-type scale. Relative importance index (RII) method was used to analyze the data collected from the questionnaire survey. The analysis was carried out for each group of respondents and on the overall results (all the parties combined). A total of 27 useful responses made up of nine clients, ten consultants and eight contractors) were analyzed. Findings indicated that the clients and consultants specified delay claims followed by extra work claims were the most frequent type of claims in the construction of roads in Botswana. Contractors perceived differing site conditions followed by delay claims as the most frequent type of claims. From the overall response, delay claims were ranked first followed by extra work claims. Acceleration claims were ranked least. The top five most frequent causes of claims based on overall ranking were: variation in quantities, design errors, poor site management and supervision by contractor, ineffective planning and scheduling of project by contractor, and low price of contract due to high competition. Construction industry research in Botswana has never looked into the issue of claims and yet it is one of the hidden sources of construction project failure in the country. It is perceived that hedging against the most adverse causes of claims will stem the tide of incessant cost overrun, litigation and project abandonment on road projects in Botswana.

scholarly journals Significant Factors Influencing Quality Assurance Practices in Small and Medium-Sized Construction Projects in South Africa

2019 ◽  
Vol 11 (2(J)) ◽  
pp. 30-44
Author(s):  
Kgashane Stephen Nyakala ◽  
Thinandavha Thomas Munyai ◽  
Jan-Harm Pretorius ◽  
Andre Vermeulen
Keyword(s):  
South Africa ◽  
Quality Assurance ◽  
South African ◽  
Financial Management ◽  
Construction Projects ◽  
Project Planning ◽  
Diagnostic Tools ◽  
Research Approach ◽  
Road Building ◽  
Factors Influencing

Although implementing quality assurance (QA) processes in construction play an important role in the South African economy has been acknowledged. However, constructions SMEs are faced with difficulties in improving rural road infrastructure and high-quality roads. Additionally, past research has failed to reach consensus on the construction process and socioeconomic settings in previously disadvantaged areas in South Africa, including the factors influencing negatively the performance of such factors. This research examines what factors facilitate or inhibit the success of construction SMEs and what actions can be taken to being distressed construction SMEs under control. The study adopted a quantitative research approach in which a three-section questionnaire was administered to 160 purposively chosen road- building experts in a South African construction SMEs. The questionnaire was structured into three parts, which sought the participants’ profile, identified the quality assurance practices (QAPs) incorporated in the construction SMEs’ road building programmes, and identified the factors that negatively influence the implementation of QA processes. Data was analysed using the Statistical Package for the Social Sciences (SPSS) version 22. Furthermore, to determine the reliability of the various constructs, mean scores, descriptive statistics and standard deviations were obtained. The empirical findings established eight QAPs that were reliable and valid for implementation processes that can control or minimise their causes of poor quality in projects undertaken by construction SMEs, level of skill acquisition; project planning and control techniques; project construction design; process implementation and process improvement; financial management; organisational structures; involvement of people; and quality standards and measurements. The eight factors attained high Cronbach Alpha values above the recommended 0.70 which indicates high internal consistencies among the sub-scales. Findings from this study should be useful to managers in similar environments may use the results of this study as either diagnostic tools or as a reference benchmark for strategic interventions in solving construction projects related problems. Furthermore, the researchers also recommend that these practices are for quality assurance in construction projects undertaken by SMEs in South Africa.

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