scholarly journals OPTIMIZED MANAGEMENT STRATEGY FOR CONSTRUCTION PROJECTS CONSIDERING THE TRADE-OFF OF ESTIMATE SCHEDULE AND COST AT COMPLETION

2019 ◽  
Vol 6 (2) ◽  
pp. 26-37
Author(s):  
Liem Stefani Meilia Gunawan
Keyword(s):  
Prediction Model ◽  
Construction Projects ◽  
Indifference Curve ◽  
Cost Overrun ◽  
Cost Performance ◽  
Trade Off ◽  
Project Duration ◽  
Pareto Curve ◽  
Uncertain Factor ◽  
Direct Equation

Nowadays, the minimization of project time and cost is an important issue. However, time and cost problems are difficult to solve. They are affected by the uncertain factor. Then, the construction project always fails to achieve the effectiveness of time and cost performance. It causes delays and cost overrun. In this research, SOS-NN-LSTM is required to establish the estimate schedule to completion (ESTC) and estimate cost to completion (ECTC) prediction model based on time now performance. Then, the prediction model will be integrated with MOSOS to obtain the optimal prediction value. The integration is needed because there is no direct equation to calculate the ESTC and ECTC. The Pareto curve identified based on the prediction values of MOSOS. The Pareto curve is used to determine the optimal trade-off between project duration and project cost. Then, the indifference curve is used to solve the trade-off problem between estimate schedule at completion (ESAC) dan estimate cost at completion (ECAC) which give the decision-maker preference.

Inhibiting Factors of Cost Performance in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Past Research ◽  
Cost Overrun ◽  
Index Method ◽  
Cost Performance ◽  
Factors Affecting ◽  
Inhibiting Factors ◽  
Critical Problems ◽  
Structured Questionnaire

UAE construction industry frequently faces poor cost performance which commonly known as cost overrun problem. This problem is resulted from several factors and it is important to identify these cost overrun factors in order to avoid and minimize it. Hence, this paper focused on determined the relevancy of factors affecting cost performance in construction projects of UAE. Through a review of past research works conducted globally, 27 factors of cost overrun were listed and used for developing a structured questionnaire. A survey was conducted with 33 practitioners from client, consultant and contractors organizations involved in handling construction projects in UAE. The respondents were requested to state their perception regarding the relevancy of each of the factors that was perceived in context with cost overrun issue using 5-points Likert scale. The responses were analysed using average index method and the results found that all the 27 factors are relevant with construction industry of UAE in causing cost overrun. These factors can be used for further investigation to uncover critical problems of cost overrun.

scholarly journals Effective Selection of Resources for Construction using Program Tool

2020 ◽  
Vol 9 (3) ◽  
pp. 2927-2931
Keyword(s):  
Construction Industry ◽  
Resource Selection ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Programming Tool ◽  
Effective Selection ◽  
Selection Factor ◽  
Selection Of ◽  
Indian Scenario

In the Indian scenario construction industry facing a major problem is cost and time overrun. Effective time performance and cost performance are very important to execute the project in a successful manner by keeping them within the prescribed schedule and cost. Overall cost and duration of construction projects affected by the effective resource selection factor. This paper's objective is to rectify the improper selection of resources by a programming tool. Field survey and codebook study did collect the needed data to feed in the programming tool. The prepared tool gets distributed and making to access by every stakeholder of construction projects. This may result in the selection of construction resources as effectively. The term cost overrun in the resource part will be reduced.

scholarly journals Evaluation of Dispute Prone Areas in Construction Projects

2021 ◽  
Author(s):  
Manu Noushad ◽  
Anu V. Thomas ◽  
Ramaswamy K. P
Keyword(s):  
Analytical Hierarchy Process ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Research Findings ◽  
The Cost ◽  
Hierarchy Process

Construction projects experience claims and disputes due to increased complexity of contract documentation, which subsequently affects the cost performance of projects. Majority of the previous studies on disputes and cost overrun have mainly focused on finding the causes of cost overrun or disputes in the industry. Identification of dispute prone areas and the associated range of cost overrun due to the disputes are less explored. Previous research findings indicate that the various factors resulting in cost overrun itself are the causes of disputes. It is necessary to understand, assess and take appropriate actions for increasing the predictability of claims and disputes in order to improve the cost performance of construction projects. In this study, an attempt is made to identify and prioritize the dispute prone areas in Indian construction projects by analytical hierarchy process (AHP).

scholarly journals Prediction of Cost Overrun Risk in Construction Projects

2020 ◽  
Vol 12 (22) ◽  
pp. 9341
Author(s):  
Edyta Plebankiewicz ◽  
Damian Wieczorek
Keyword(s):  
Prediction Model ◽  
Construction Projects ◽  
Fuzzy Inference ◽  
Unit Price ◽  
Design Stage ◽  
Rule Base ◽  
Cost Overrun ◽  
Single Output ◽  
General Contractors ◽  
Input Variables

The paper proposes a cost overrun risks prediction model, the structure of which is based on the fuzzy inference model of Mamdani. The model consists of numerous inputs and one output (MISO, multi-input-single-output), based on processes running consecutively in three blocks (the fuzzy block, the interference block, and the block of sharpening the representative output value). The input variables of the model include the share of element costs in the building costs (SE), predicted changes in the number of works (WC), and expected changes in the unit price (PC). The developed rule base makes it possible to determine the risk of cost overruns in the following categories: “very low”, “quite low”, “average”, “quite high”, and “very high”. Twenty-seven rules were assumed in the interference block. The operation of the model was illustrated by the example of selected elements of a road object and was validated by checking the correctness of the assumptions made at the design stage of the inference block rule base. It has been proven that with the increase of the share of element costs in the building costs (SE), predicted changes in the number of works (WC), and expected changes in the unit price (PC), the value of the risk exceeding the costs of a given element of the construction project (R) increases naturally and smoothly. It was emphasized in the conclusions that the cost overrun risks prediction model is intended for general contractors who subcontract many stages of works to their subcontractors in accordance with the agreed division into work elements.

scholarly journals A Forecast and Mitigation Model of Construction Performance by Assessing Detailed Engineering Maturity at Key Milestones for Offshore EPC Mega-Projects

2019 ◽  
Vol 11 (5) ◽  
pp. 1256 ◽  
Author(s):  
Myung-Hun Kim ◽  
Eul-Bum Lee ◽  
Han-Suk Choi
Keyword(s):  
Fuzzy Inference ◽  
Risk Mitigation ◽  
Qualitative Comparative Analysis ◽  
Major Elements ◽  
Cost Overrun ◽  
Analytic Hierarchy ◽  
Cost Performance ◽  
Inference System ◽  
Trade Off ◽  
Statistical Confidence

The main subject of this research is to develop a forecast and mitigation model of schedule and cost performance during a detailed engineering stage of offshore engineering, procurement and construction (EPC) projects. The weight factors of major elements in detailed engineering completion rating index system (DECRIS) were measured using a fuzzy inference system (FIS) and an analytic hierarchy process (AHP). At five key engineering milestones, from an EPC contract being awarded to the start of construction, detailed engineering maturities were assessed in fourteen historical offshore EPC projects using the DECRIS model. DECRIS cutoff scores for successful project execution were defined at the key engineering milestones. A schedule and cost performance was forecasted and validated through comparison of DECRIS and other models using statistical confidence of a fuzzy set qualitative comparative analysis (fsQCA) and a regression analysis. As a mitigation method for engineering risks to EPC contractors, engineering resource enhancement is recommended for trade-off optimization of cost overrun using a Monte Carlo simulation. The main contribution of this research is that EPC contractors could continuously forecast construction costs and schedule performance utilizing the DECRIS model, and could review the adequacy of engineering resources, assessing the trade-off between said resources and cost/schedule risk mitigation.

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Mohamad Zahierruden Ismail ◽  
◽  
Zuhaili Mohamad Ramly ◽  
Razali Adul Hamid ◽  
◽  
...  
Keyword(s):  
Developing Countries ◽  
Construction Industry ◽  
Construction Projects ◽  
Developed Countries ◽  
Developing Nations ◽  
Transport Infrastructure ◽  
Cost Overrun ◽  
Cost Performance ◽  
Significant Difference ◽  
Developed Nations

For decades, reputation of the construction industry has been tainted by poor cost performance caused by project cost overrun. In addition, studies by scholars worldwide have also found cost overrun to be more serious in developing countries compared to the developed countries. Despite the numerous researches addressing the issue of cost overrun in the construction industry through the years, the issue remains. Acknowledging that maintaining good cost performance is a key factor of project success and that the issue has persisted for decades, this study aims to explore the distinction of cost overrun studies that has been conducted between developed nations and developing nations. In achieving this aim, a systematic literature review is performed by following the integrative steps of PSALSAR (Protocol, Search, Appraisal, Synthesis, Analysis and Report) and PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) for screening and selecting the retrieved studies. The synthesis and screening of literatures have yielded with 152 articles which are then classified into their countries, developed countries (44) and developing countries (108). The results indicated a significant difference in the domain of research on cost overrun between the 2 nations. Despite the numerous studies on cost overrun in the developing nations compared to developed nations, the majority of the studies are not directed to any specific type construction while developed nations have moved forward to focus on more specific projects. The project with the highest attention in the developed nations is transport infrastructure construction projects, particularly rail infrastructure projects. The findings of this study have shown that there have been broad studies conducted on cost overrun in both developing nations and developed nations. However, there is a slight lacking in comprehensiveness of cost overrun studies in the developing nations, perhaps future studies on cost overrun in developing nations can be directed to more specific areas of construction projects such as those that have been performed by researchers of the developed nations.

scholarly journals Cost Overrun Factors Involving Local Private Residential

2018 ◽  
Vol 7 (3.36) ◽  
pp. 6
Author(s):  
Nik Fatma Arisya Nik Yahya ◽  
Suhaida S.K ◽  
Nurul Aini Osman ◽  
Nadeera Abdul Razak
Keyword(s):  
Construction Projects ◽  
Financial Risk ◽  
Quantitative Method ◽  
Prime Factor ◽  
Cost Overrun ◽  
Average Amount ◽  
Cost Performance ◽  
Design Error ◽  
The Cost ◽  
Residential Projects

Cost is the prime factor for driving to the successful of a project. A poor cost performance become a common problem in worldwide which bring a significant financial risk to both contractors and clients. Construction projects are relatively risky because the projects operate in a complexity and dynamic situation. This study aimed to explore the major contributors of cost overrun and propose strategies in minimizing the cost overrun factors involving local private residential projects in Malaysia. A quantitative method was applied to the respondents from contractors firm Grade G7 in Selangor area, and the data were analyzed using Likert scale to obtain mean score. There are 5 categories of cost overrun factors found from previous studies. Design error and poor contractors site supervision were ranked as the top two contributors to cost overrun in Private Residential Projects. Additionally, 79% of the respondents agreed that construction projects face cost overrun with an average amount of 1-5% of contract sum. 9 strategies are available to overcome the problems and the result shows that effective strategic planning is the most effective mitigation. 

scholarly journals PERCEPATAN WAKTU PELAKSANAAN PEKERJAAN KONSTRUKSI DENGAN METODE CPM DAN TCTO

2019 ◽  
Vol 11 (1) ◽  
pp. 33-40
Author(s):  
Cut Zukhrina Oktaviani ◽  
Ibnu Abbas Majid ◽  
Risdiawati Risdiawati
Keyword(s):  
Completion Time ◽  
Construction Projects ◽  
Critical Path ◽  
Minimum Cost ◽  
Time Cost ◽  
Trade Off ◽  
Project Duration ◽  
Project Completion ◽  
Project Costs ◽  
Total Project

Construction delays are a common and major concern in most construction projects. Construction project delay can indirectly affect of project performance. Delay resolve method is to schedule crashing with various methods. This crashing planning is done by combining the Critical Path Method (CPM) and Time-Cost Trade-Off (TCTO) method for the minimum cost in crash duration calculation. Project A data is used to be a case studi in crash duration calculation and costs increase. Rescheduling with CPM result project completion time 120 days and after crashing project duration becomes 94 days, there was a reduction 26 days project completion time. Crashing programme are do to 18 activities from 30 critical activies rescheduling with CPM result. Total project costs changes is Rp. 19.923.466,- due working time addition (overtime) to reduce project time with Time Cost Trade Off method. Normal condition project costs is Rp. 985,171,182.52 and after duration crash becomes Rp. 1,005,094,648, -.

Time–cost–quality trade-off analysis for planning construction projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianqi Wang ◽  
Moatassem Abdallah ◽  
Caroline Clevenger ◽  
Shahryar Monghasemi
Keyword(s):  
Optimization Model ◽  
Construction Projects ◽  
Present Model ◽  
Construction Project ◽  
Time Cost ◽  
Trade Off ◽  
Content Type ◽  
Project Duration ◽  
Trade Offs ◽  
Project Objectives

Purpose Achieving project objectives in constructionprojects such as time, cost and quality is a challenging task. Minimizing project cost often results in additional project duration and might jeopardize quality, and minimizing project duration often results in additional cost and might jeopardize quality. Also, increasing construction quality often results in additional cost and time. The purpose of this paper is to identify and analyze trade-offs among the project objectives of time, cost and quality. Design/methodology/approach The optimization model adopted a quantitative research method and is developed in two main steps formulation step that focuses on identifying model decision variables and formulating objective functions, and implementation step that executes the model computations using multi-objective optimization of Non-Dominated Sorting Genetic Algorithms to identify the aforementioned trade-offs, and codes the model using python. The model performance is verified and tested using a case study of construction project consisting of 20 activities. Findings The model was able to show practical and needed value for construction managers by identifying various trade-off solutions between the project objectives of time, cost and quality. For example, the model was able to identify the shortest project duration at 84 days while keeping cost under $440,000 and quality higher than 85 percent. However, with an additional budget of $20,000 (4.5 percent increase), the quality can be increased to 0.935 (8.5 percent improvement). Research limitations/implications The present research work is limited to project objectives of time, cost and quality. Future expansion of the model will focus on additional project objectives such as safety and sustainability. Furthermore, new optimization models can be developed for construction projects with repetitive nature such as roads, tunnels and high rise buildings. Practical implications The present model advances existing research in planning construction projects efficiently and achieving important project objectives. On the practical side, the optimization model will support the construction industry by allowing construction managers to identify the highest quality to deliver a construction project within specified budget and duration, lowest cost for specified duration and quality or shortest duration for specified budget and quality. Originality/value The present model introduces new and innovative method of increasing working hours per day and number of working days per shift while analyzing labor working efficiency and overtime rate to identify optimal trade-offs among important project objectives of time, cost and quality.

scholarly journals Identifying and Measuring Engineering, Procurement, and Construction (EPC) Key Performance Indicators and Management Strategies

2019 ◽  
Vol 4 (2) ◽  
pp. 14 ◽  
Author(s):  
Mohammadreza Habibi ◽  
Sharareh Kermanshachi ◽  
Behzad Rouhanizadeh
Keyword(s):  
Performance Indicators ◽  
Construction Projects ◽  
Performance Indicator ◽  
Management Strategies ◽  
Decisive Role ◽  
Key Performance Indicators ◽  
Cost Overrun ◽  
Cost Performance ◽  
Change Orders ◽  
Schedule Performance

Delay and cost overrun in construction projects are two widespread problems that arouse practitioners’ and scholars’ concern. Therefore, the objective of this study was to identify Key Performance Indicators (KPIs) in each of Engineering, Procurement and Construction (EPC) phases separately and then calculate the weight impact that is associated with each of identified KPIs. Additionally, this study aimed to find the most appropriate Best Practices (BPs) for the identified phase-based indicators. Through a review of existing literature, a survey was developed to collect data from the completed construction projects. Various statistical methods, including two sample T-test and Kruskal-Wallis test, were utilized to analyze the data. Subsequently, Epsilon-Squared effect size method was applied to prioritize the identified KPIs. Since the lack of communication and slowness in decision making were found as the primary schedule Performance Indicators, schedule performance was identified to be highly affected by managerial approaches and actions. In addition, clients play a decisive role, because owner-driven change orders were found as the most crucial cost performance indicator affecting the performance of the engineering and construction phases. The outcome of this study helps practitioners and scholars to understand the phase-based cost and schedule KPIs, and appropriate mitigating strategies to improve the construction performance in EPC phases and save time and money.

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