Evaluating impact of waste factors on project performance cost in Vietnam

Abstract

Non value-adding activities, also known as wastes, have not been paid much attention in the current construction management. Previous studies have shown that significant amounts of project values were lost due to these wastes. This study mainly aims to examine the effect of waste factors on project performance cost. A survey was carried out through a structured questionnaire. The respondents are been experienced people in construction and management of building projects. The results of factor analysis showed that there are five principal components extracted with 56.7% of variance explained for all waste factors in construction projects. The mean value of increased project cost due to these wastes is approximately 9.36% of total project cost. An artificial neural network model was developed to estimate the impact of waste factors on project performance cost. The results of analysis showed that the difference between predicted value and actual value is quite small. The Mean Absolute Percentage Error (MAPE) is 1.35%, and the R-squared index is 91.1%. Based on elasticity test, five main waste factors were also discovered in this study. A comparison between some selected countries was then performed to gain a general view about waste problem in construction.