scholarly journals Management and Cost Control of Construction Projects in Jordan

2020 ◽  
Vol 13 (9) ◽  
pp. 166
Author(s):  
Sireen Mamoun Arabiyat ◽  
Ayman Hasan Al-Momani

The variations in time and quality are vital to the projects' success. Though the cost variation is the most impacting variation, the objective of this study is to recognise the significance of the cost controls in the construction projects in Jordan. Moreover, it aims to determine the factors that lead to reduce these costs. For the methodology, the study used the questionnaire instrument for the data collection. The study sample entailed 154 respondents who hold the responsibility in relevance positions with experiences in contracting and consultants engineering field in Jordan under first and second-grade classification. The study results revealed that there is a significant relationship between cost reduction and all investigated factors, namely, the demographic variables, the pre-execution conditions and specification, and managerial, technical, or financial dimensions. Further, the results showed a significant impact of proper resource planning. In summary, the key factors affecting the project cost during the pre-execution stage involves the appropriate resources planning (i.e., workforce, funds, data). In details, the most critical factors affecting the project cost from managerial dimension are the project manager assignment and integrity of consultant. For the technical dimension, the elements are the skilled workers, the applied methods, the statements and specifications. Lastly, for the fund allocation dimension, the most critical factors that affect the project cost from a financial point of view. Lastly, a set of recommendations are proposed to the project managers to reduce the cost.

Author(s):  
Shumank Deep ◽  
Laura Simon ◽  
Mohd Asim ◽  
Ali Rahimzadeh ◽  
Sulala Al-Hamdani

Abstract Purpose: Recent studies show that lowest bidder tech­nique is mainly used in developing countries such as India to award a contract. It has been demonstrated that the lowest bid is not always the accurate one and can lead to cost overruns and time extensions amongst other prob­lems. The aim of this study was to investigate the critical factors impacting contractor’s efficiency in Indian con­struction projects. Research approach: A survey was sent to participants of construction projects awarded by the government with the lowest bidder technique in Uttar Pradesh, India. For further research, snowball sampling was used, and struc­tured interviews were conducted amongst experienced managers and engineers of these projects on both client’s and contractor’s side.Findings: It was observed that, to a greater extent, the delays were caused due to contractor’s opportunistic behaviour. The main findings are that new bidding meth­odologies are to be tested as they can lead to the choice of a more accurate and realistic bidder. In addition, subjec­tive evaluation components, such as schedule and work­force, should be reflected in contract award methods in addition to the cost criteria. Further studies should be per­formed on the choice of contract awarding methodology based on the project size and type. Originality value: The researcher’s focus was to analyze the influence of contracting methodologies and factors affecting contractor’s performance in lowest bid award project, where this is an area of least focus amongst researchers in the Indian subcontinent.


2016 ◽  
Vol 7 (2) ◽  
pp. 82 ◽  
Author(s):  
Gwahula Raphael ◽  
Augustine Wittonde Phillip

The study objective was “An assessment of critical factors affecting quality performance of government financed construction projects in Tanzania”. The study was initiated as much of government financed construction projects are executed with variations on delivering time, cost and quality. The study identified factors if not considered can lead to poor quality performance of projects. Closed end questionnaire consisting of 20 performance factors were issued to 80 respondents dealing with construction related activities, they were required to rank them on a 5 point Likert scale. Data analysis was done using Statistical Package for Social Sciences version 16 (SPSS). The findings revealed that the critical factors that have direct impact on quality performance of government financed construction projects are; project financing processes, experience of contractors in construction industry, project technology, availability of plant and equipment, procurement system and processes as well as the project manager knowledge and skills. A multiple regression model developed showed a positive linear relationship between project quality performance and the critical quality performance factors. All the critical quality performance factors had positive coefficients with an acceptable level of significance. The study recommends further studies on the economic and social factors that hinder women participation in construction relation activities and how training and learning opportunities for continuous improvement will have positive impact on the performance of construction projects.


Author(s):  
Abdul Qadir Memon ◽  
◽  
Aftab Hameed Memon ◽  
Mohsin Ali Soomro ◽  
◽  
...  

This paper assessed the occurrence and severity level of various factors causing time and cost overrun in construction projects of Pakistan. Investigation was carried out through questionnaire form prepared based on 55 common factors identified from literature. Survey was done amongst the representatives of the contractors involved in handling construction activities in Pakistan. A total of 46 responses gathered against 100 distributed forms were analysed statistically. The results obtained from the analyses based on Average Index values revealed that delay in obtaining permits from the governmental agencies, financial difficulties are common issue faced in construction works of Pakistan. The study also revealed that high cost of machinery & its maintenance, inadequate planning & scheduling and slow information flow between parties have significant effect on time overrun cost while critical factors affecting cost overrun are high cost of machinery & its maintenance, unsuitable construction methods and lack of experience of contractors in affecting project cost. The findings of this study will be helpful for the practitioner in planning for achieving timely completion of the projects and also within the estimated cost.


2019 ◽  
Vol 18 (3) ◽  
pp. 531-556
Author(s):  
Djoen San Santoso ◽  
Polwatta Gallage Madusha Piumal Gallage

Purpose This paper aims to analyse the factors affecting the performance of large construction projects in Sri Lanka. The causes, impacts and mitigations in association with the critical factors are explored and discussed. Design/methodology/approach The research focuses on the evaluation and perspectives of clients and contractors of large projects in Sri Lanka. Combined quantitative and qualitative methods were applied in this research. Initially, a questionnaire survey was conducted with clients and contractors involved in large projects to evaluate the factors affecting the performance of projects and to identify the ten most critical factors. Interviews with the clients and contractors of three large projects were conducted to examine the causes and impacts of the critical factors and the approaches used to mitigate them. Findings Significant differences in the factors were observed for more than 40 per cent of the total factors under study, the contractors assigning more weight to most of the factors than the clients. The study identified nine internal factors and one external factor as the critical factors. Of these, seven were related to the contractors, which suggested that the contractors have greater roles in defining performance. Lack of management and technical skills of the parties involved, human capacity, lack of understanding and knowledge of the local context, changes in government policies and political interference were identified as significant causes of the critical factors. Originality/value The study analysed the factors affecting the performance of large projects in Sri Lanka, which, at the time of research, had just ended a 26-year-long civil war and was pushing the construction of large projects to be competitive. The challenges faced in this effort were explored as lessons learnt that might improve the efficiency and effectiveness of infrastructure development in Sri Lanka. The combined quantitative and qualitative methods applied in this study are expected to provide new insights in the project performance research, especially the interviews of the critical factors to gain an understanding on how the factors occurred and manifested themselves in real projects. The findings are, however, expected to be applicable to other developing countries that are currently aggressively developing their large infrastructure.


Buildings ◽  
2019 ◽  
Vol 9 (2) ◽  
pp. 33 ◽  
Author(s):  
Mohammad Alsaedi ◽  
Sadi Assaf ◽  
Mohammad Hassanain ◽  
Abdullatif Abdallah

One of the critical decisions taken by contractors is whether or not to bid for a project. This is due to the complexity and uncertainty surrounding this decision, which is influenced by many factors. Given the above challenge, this study aimed to uncover the critical factors affecting the contractors’ bidding decisions in Saudi Arabia-based construction projects. A questionnaire survey, which consisted of 31 factors, was distributed to first-, second- and third-grade contractors. In total, 67 responses were obtained. Median and relative importance index (RII) techniques were adopted for ranking the most critical factors. Based on the received responses, the top six critical factors were “size of the job”, “type of the job”, “company’s strength in the industry”, “designer/design quality”, “rate of return”, and “project cash flow”. The least significant factors were “job start time” and “labor environment (union/nonunion/cooperative)”. The findings of this study show a level of agreement among all contractors about the critical factors. The findings would benefit contractors and subcontractors by increasing their understanding of the major factors affecting the bidding decision process. Contractors armed with such valuable information will be better able to enhance their bidding decision-making process in terms of efficiency and effectiveness.


2016 ◽  
Vol 23 (3) ◽  
pp. 349-368 ◽  
Author(s):  
Aneetha Vilventhan ◽  
Satyanarayana N. Kalidindi

Purpose – Relocation of utilities is a major source of delay in Indian infrastructure projects. This delay is particularly critical in road and bridge construction projects. The purpose of this paper is to identify the various factors and also the interrelationships between the factors which influence the delays in the relocation of utilities. Design/methodology/approach – Case studies were conducted on 11 road and bridge projects in India with varying levels of complexity and size. Factors causing relocation delays were identified using computer aided qualitative analysis methodology. Cognitive mapping technique was used to map the interrelationships between the factors and to identify the critical delay factors. Findings – Factors affecting delays were identified across two groups, namely, technical and organizational factors. The study offers insights into the kinds of interactions of factors that can lead to delays in a project. The critical factors causing delays were identified as slow response from utility agencies, difficulty in identification of underground utilities, lack of information on underground utilities and conflict between agencies. Research limitations/implications – The limitations of the study are that the interview respondents are not evenly distributed among the type of organizations which may have induced some bias in responses. The impact of the utility relocation delays on the overall project delay has to be detailed further. Practical implications – The interrelationships between factors has the potential to help the officials of highway department, contractors, utility agencies and others understand how various interactions/linkages of factors contributes to delays in utility relocations. Recommendations are provided for the practical use and to reduce the impact of delays. Originality/value – Utility relocation has received very little attention in the extant literature and this paper seeks to contribute to knowledge in this area by identifying the linkages between factors and the critical factors of utility relocation delays in India.


2020 ◽  
Vol 4 (1) ◽  
pp. 13-23
Author(s):  
J. K. Ssegawa ◽  
P. D. Rwelamila ◽  
M. G. Mogome

Anecdotal information in the construction industry in Botswana indicated that the process of closing financial accounts for construction projects within a stipulated period is inefficient and ineffective. This is a serious industry problem because a project with an unclosed account is not a successful project as there are unfinished issues and claims left in abeyance to the detriment of both the client and contractor. This motivated a study aimed at investigating this aspect, including identifying the major causes of delays in formally closing final accounts of construction projects in local authorities. A multimethod approach consisting of a review of project documents which were beyond the end of the defect liability period were used in the study. Also, a questionnaire survey was administered to parties dealing with construction projects in the selected local authorities. Lastly, a focus discussion was held with key stakeholders who implement projects in some selected local authorities. Results indicated that while the final account closure process was inefficient (as only 42% of the accounts which were closed were finalised in the stipulated contractual time). Secondly, it was marginally effective (as only 54% of the sampled project accounts were closed). Common reasons for inefficiency and ineffectiveness include (i) contractors abandoning the project when they realise that the cost of rectifying the defects far exceeds the outstanding balance; (ii) clients taking too long to agree and approve final accounts; and (iii) loss of information when key personnel leave the project on the contractor's side before the final account is finalised. Despite the limitation of considering a selected number of local authorities’ projects, the findings have confirmed anecdotal information circulating in the industry about the substantial numbers of project accounts that are usually left unclosed. The following recommendations based on the study results are made. That all adopted contract conditions be modified to focus on nipping the challenge in the bud as well as deterring instrument to future defaulters. The suggested modification: 'it shall be mandatory for contractors to bring the project under tender to a formal closure through final account documentation within a specified period, defaulting contractors to be blacklisted from future contract awards in Botswana LAs'. Ordinarily, since contractors can hardly suffer financial losses, the paper suggests that consultants and clients should objectively entertain contractors' claims arising from defects rectifications in the liability period. This is provided such defects were neither caused by poor materials nor are traceable to poor workmanship. These hopefully will mitigate the challenge if followed.


2019 ◽  
Vol 5 (5) ◽  
pp. 1136-1146
Author(s):  
Mohammad Balouchi ◽  
Majid Gholhaki ◽  
Ali Niousha

Reducing the cost of quality in mass-housing projects can reduce the overall cost and can also result in increasing profitability or the possibility of getting more projects due to the lower price offered in the tenders. The first step to reduce the cost of quality is to identify different elements, determine their impact on the final product quality and then prioritize them. In this study, questionnaires and structured interviews with experienced construction professionals were employed to identify and prioritize the fundamental elements using the P-A-F (prevention, evaluation, and failure) method, one of the most well-known methods for categorizing quality costs. The results indicate a high impact of preventive activities and the low impact of external failure activities on final product quality. According to the results, the use of experienced specialists and skilled workers is more effective than in-service training of inexperienced forces. Corrective actions of non-conformities and design improvements have a significant impact on final product quality. The new approach to COQ elements ranking, used in this research, can help decision-makers to prioritize the most effective activities in construction projects to increase final quality with an optimum quality cost.


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