Cost Performance Of Construction Projects Research Articles

Impact of health and safety management implementation on cost performance of construction projects in Abuja, Nigeria

Impact of health and safety management implementation on cost performance of construction projects in Abuja, Nigeria

Factors Influencing Cost Performance of Construction Projects in Kaduna State

The prime objective of every client is to accomplish the project within the agreed budget and time. The construction industry has been described as one of the most fragmented, multifaceted, time and material-driven industry. The industry is always faced with challenges such as low quality, low productivity, delay, cost overrun, etc. The issue of cost does have obvious implications for the key stakeholders in particular, and the industry in general. Therefore, this study aimed at exploring those factors that influence cost performance of the construction projects in Kaduna State with a view of establishing the bases for professionals to note when carrying out cost management of any project. The objective of this study is to establish the main factors influencing cost in the Kaduna state construction projects. This study was carried out in Kaduna state, Nigeria. The Methodology used was quantitative research approach. With the aid of a questionnaire survey, data was collected using Simple random sampling. The target population of this study was 827 while the sample size used was 270. 198 questionnaires were filled and returned. Exploratory factor analysis was used to analyse the data so as to identify factors capable of being understood. Out of which seven underlying factors were identified. The seven-component solution explained a total of 75.782% of the variance explained with component 1 contributing 19.250%, component 2 contributing 14.585%, component 3 contributing 11.737%, component 4 contributing 10.744%, component 5 contributing 7.813%, component 6 contributing 6.872% and component 7 contributing 4.781% establishing the factors influencing cost performance in the Kaduna state construction projects. They are: Project Management Factor, Expertise and Market Forces Factors, Contract Management Factors, Contractual and Socioeconomic Factors, Government Policies and External Factors, Procedural and Standards factor and, Experience and Service Cost Factor. Hence, concluded that much focus should be placed on these factors in order to reduce the cost of construction project, enhance construction cost performance for the client and generate confidence within the construction industry for professionals. The study recommended that the clients, consultants and contractors should undertake the execution of construction works with deliberate and due diligence towards minimizing these factors influence on the cost of construction project as identified from the study.

Effects of Procurement Documentation Errors on the Cost Performance of Construction Projects in Nigeria

Effects of Procurement Documentation Errors on the Cost Performance of Construction Projects in Nigeria

Overall Cost Overrun Estimate in Residential Projects: A Hybrid Dynamics Approach

Residential projects are described as complex, dynamic systems that are subject to uncertainty. Cost performance is a fundamental challenge. As a result, project managers must adequately identify risks that might lead to cost overruns in residential construction projects. Simulation is noticed to be a useful technique for dealing with these complications. Therefore, this study developed a hybrid dynamic approach to study the effect of different risks on the cost performance of construction projects. The proposed approach combines system dynamics (SD) and discrete event simulation (DES), which can take into consideration the dynamics of the project environment, which contains various continuous influencing factors as well as the construction operations. The developed hybrid model is validated through serial model structure tests and model behavior tests, with the aid of data collected from a real construction project used in the simulation process. Based on the simulation results, it is concluded that the proposed hybrid dynamic approach is helpful to enhance the process performance by permitting construction managers to identify possible process improvement areas that traditional methods may miss.

Risk-Based Approach to Predict the Cost Performance of Modularization in Construction Projects

The lack of proper management of the unique modular risks hinders the construction industry from maximizing the potential benefits associated with the use of modularization. Capturing the full cost benefits of modularized processes requires careful consideration of different aspects related to material, design, technology, logistics, installation, and so forth. Although many previous research efforts provided models to assess the feasibility of modularization in construction projects, no previous study developed a risk-based approach to assess the impact of adopting modular approaches on the cost performance of construction projects. This paper fills this knowledge gap. The authors followed an interrelated multistep research methodology. First, 50 modular risks were identified based on an extensive analysis of the literature conducted in a previous research study. Second, an industry survey was conducted in which 48 construction professionals—with an average of 24.25 years experience in construction operations and 13.6 years experience in modular construction—examined and assessed the impact of modular risks on cost performance. Third, integrated statistical and mathematical techniques—including distribution fitting—were utilized to develop a predictive model that (1) maps the 50 modular risks under investigation to cost performance data collected from 56 modular construction projects, and, consequently, (2) computes the associated cost saving and/or growth. The proposed model was verified using extreme condition tests, surprise behavior test, and sensitivity analysis, and was validated by industry experts. The authors provide guidelines for using the proposed model by industry practitioners. The developed model allows for maximized use of available project information to enable a reliable a priori cost assessment for the modularization processes throughout the different project phases. This is particularly important in the case of varying conditions over the project lifecycle. The developed model helps project stakeholders identify cost enablers and barriers that are interrelated with modularization processes. Accordingly, corrective actions and mitigation plans can be established. This research provides improved practices for decision-making, risk management, and project team alignment to maximize the cost benefits of modularization in construction projects.

Predicting Cost Performance of Construction Projects from Projects Procurement Procedure

Abstract The purpose of this paper is to show by multivariate regression model if a defective procurement procedure leading to a contract award affects the smooth execution of a project in terms of its cost performance on the strength of the significance of the model. This investigation was conducted with a quantitative method of research by administering questionnaires to key industry players (clients, consultants, and contractors) engaged in construction projects (both civil and building works) in assessing contract award procedures, conditions for contract award after tender evaluation and criteria for contractors’ prequalification. Data from their field survey was analysed with mean item score to show hierarchal importance of factors and critical evaluation using multivariate analysis of variance. Findings showed that a poor and inappropriate contract award procedure has divergence from efficient project cost management based on the corollary of mean score values of contract award procedures, conditions for the award and prequalification test. The practical implication of this, is that an unbiased contract award procedure will apparently lead to a lesser strenuous project management effort towards mitigating cost spills and overruns for a lesser project abandonment if the right contractor with the right capabilities is awarded the contract. These implications stem from the originality of the investigation arising from F-value statistics (7.406), t-value statistics (3.046), and p-value of 0.003.

Examining the Effect of Material Management Issues on the Schedule and Cost Performance of Construction Projects Based on a Structural Equation Model: Survey of Indian Experiences

AbstractAn effective material management system is key to the success of construction projects. However, the Indian construction industry suffers from many material management issues that lead to i...

The Nexus of Prequalification Criteria and Tender Actions on Tenderers and Its Effects on Cost Performance of Construction Projects

The Nexus of Prequalification Criteria and Tender Actions on Tenderers and Its Effects on Cost Performance of Construction Projects

Make-or-break during production: shedding light on change-orders, rework and contractors margin in construction

A considerable amount of research has examined the cost performance of construction projects, yet there has been a paucity of studies that have examined the impact that client initiated change-orders and rework have on contractors. This paper seeks to add further clarity to this issue by replicating previous empirically-based research to establish the validity and reliability of the key issues influencing a contractor's cost performance. A total of 98 projects were used to examine the value of rework and change-orders and their influence on a contractor's margin. Only 65% of projects experienced a cost increase, though a mean rework cost of 0.39% of the contracted value was incurred. The difference between approved client change-orders and those by the contractor for subcontractors was 0.5% of the total costs incurred, which adversely impacted the organisation's profit. Margin losses may well have been higher as rework is seldom formally documented and reported.

IMPACT OF DESIGN CHANGES IN CONSTRUCTION PROJECT

Design changes in construction projects are always going to happen and cannot be avoided. Design changes are the primary contributor to disruption of time and cost performance of construction projects. Previous research in this domain lacks of detail studies on systematic review on the existing literature. This paper reviewed literature published in peer-reviewed journals and conference proceedings in the construction management field and had emailed several questions to the expert in construction industry. The objectives were to recognize the causes and impacts of design changes on project performance and to provide insights for future studies in Malaysian context. The findings indicate that design changes originate mainly from the owner side are identified as important causing factors to time overruns and cost overruns. This paper proposes framework for the management of design changes in construction projects.

THE MEDIATING EFFECTS OF AWARENESS ON THE RELATIONSHIP BETWEEN PROCUREMENT MANUAL COMPLIANCE’S BARRIERS AND COST PERFORMANCE OF CONSTRUCTION PROJECTS

Public Procurement Manual (PPM) are the procedural guidelines for executing public procurement practices including construction procurement. Compliance with PPM among construction procurement parties has been facing serious challenges which affects the performance of construction projects especially cost aspect. This study identified fraudulent practices as the major procurement manual compliances’ barriers affecting cost performance of construction projects. The paper examines the mediating effects of awareness on procurement manual compliance’s barriers affecting cost performance. Data was collected from the procurement entities of nine selected Nigerian federal universities. A mediation analysis was performed via bias-corrected bootstrapped confidence interval approach using Process Macro package. The indirect effects obtained was positive and different from zero, and the confidence interval within which the effect occur do not include zero indicating that awareness can mitigate the effects of fraudulent practices been compliance barriers affecting cost performance of construction projects.

THE MEDIATING EFFECTS OF AWARENESS ON THE RELATIONSHIP BETWEEN PROCUREMENT MANUAL COMPLIANCE’S BARRIERS AND COST PERFORMANCE OF CONSTRUCTION PROJECTS

Public Procurement Manual (PPM) are the procedural guidelines for executing public procurement practices including construction procurement. Compliance with PPM among construction procurement parties has been facing serious challenges which affects the performance of construction projects especially cost aspect. This study identified fraudulent practices as the major procurement manual compliances’ barriers affecting cost performance of construction projects. The paper examines the mediating effects of awareness on procurement manual compliance’s barriers affecting cost performance. Data was collected from the procurement entities of nine selected Nigerian federal universities. A mediation analysis was performed via bias-corrected bootstrapped confidence interval approach using Process Macro package. The indirect effects obtained was positive and different from zero, and the confidence interval within which the effect occur do not include zero indicating that awareness can mitigate the effects of fraudulent practices been compliance barriers affecting cost performance of construction projects.

ANALISIS FAKTOR IMPLEMENTASI MANAJEMEN K3 TERHADAP KINERJA BIAYA PELAKSANAAN PROYEK KONSTRUKSI

Tujuan penelitian ini adalah 1) untuk menganalisa implementasi faktor K3 yang mempengaruhi kinerja biaya pelaksanaan proyek konstruksi, dan seberapa besar tingkat pengaruhnya. 2) untuk menganalisa bagaimana hubungan faktor-faktor K3 terhadap kinerja biaya pelaksanaan konstruksi. Proses rancangan penelitiannya dimulai dengan pengumpulan data-data primer melalui kuesioner yaitu data pengaruh implementasi SMK3 terhadap kinerja biaya proyek. Populasi utama yang menjadi objek penelitian adalah pihak perusahaan atau kontraktor yang berdomisili di wilayah Kalimantan Selatan, dengan jumlah sampel 36 perusahaan kontraktor. Instrumen yang digunakan adalah kuesioner tertutup. Metode analisis data dari penelitian ini menggunakan analisis statistik deskriptif dan analisis korelasi. Dari hasil penelitian maka diperoleh hasil 1) Implementasi faktor K3 dalam penelitian ini terbukti mempengaruhi kinerja biaya pelaksanaan proyek konstruksi. Membuat perencanaan K3 yang terkordinasi merupakan indikator yang paling berpengaruh pada faktor perencanaan dengan indeks 4,00. Implementasi faktor K3 yang paling berpengaruh terhadap kinerja biaya adalah faktor perencanaan K3 (3,62), kemudian faktor pelaksanaan K3 (3,55) dan yang terakhir adalah faktor evaluasi K3 (3,34). 2) Faktor-faktor implementasi K3 yang memiliki korelasi kuat terhadap kinerja biaya asuransi adalah faktor memantau pemenuhan peraturan perundang-undangan dan persyaratan lainnya berkaitan dengan penerapan K3 di tempat kerja. Tinjauan ulang kontrak merupakan indikator yang berhubungan kuat dengan biaya proyek dalam hal peralatan keamanan. Indikator pemantauan efektifitas pengendalian merupakan indikator yang memiliki korelasi kuat dengan fasilitas kesehatan. Indikator evaluasi penerapan sistem manajemen K3 perusahaan merupakan indikator yang berkorelasi sangat kuat terhadap biaya pengawasan terhadap penerapan safety. Indikator yang memiliki korelasi kuat terhadap biaya-biaya kecelakaan yang terjadi adalah indikator evaluasi keefektifan pengendalian operasi K3. Indikator pelaksanaan audit sistem manajemen K3 merupakan indikator yang berkorelasi sangat kuat terhadap biaya lain yang berkaitan dengan sistem keamanan kerja.

Study on construction material allocation policies: A simulation optimization method

Due to uncertainty in both demand and supply, material shortages are difficult to completely avoid. To reduce the effect on the schedule and cost performance of construction projects, managers should allocate limited material among activities effectively. Motivated by observations of construction practices, this paper investigates the integration of supply logistics and site logistics issues and develops a framework to model inventory replenishment and allocation decisions jointly. On the basis of the activity feature information (e.g., schedule, cost, and demand), we propose five allocation policies to support the integrated inventory management process: schedule-based, cost-based, demand-based, schedule-cost-based, and schedule-demand-based policies. Meanwhile, a genetic algorithm (GA)-based simulation optimization method is utilized to solve the integrated inventory model and find the optimal inventory level under a given allocation policy. Based on a large set of fictitious project networks with different path difference (PD), a computational analysis is conducted to make detailed interpolicy comparisons. It is shown that for a project network with a small (or large) PD value, the schedule-based (or schedule-cost-based) policy is the most appropriate choice.

Mediating Effects of Enforcement on Public Procurement Guidelines' Compliance Barriers and Cost Performance of Construction Projects in Nigerian Federal Universities: A Process Macro Approach

Mediating Effects of Enforcement on Public Procurement Guidelines' Compliance Barriers and Cost Performance of Construction Projects in Nigerian Federal Universities: A Process Macro Approach

Simulation techniques for cost management and performance in construction projects in Malaysia

PurposeSimulation techniques for cost management are useful for modeling uncertainties, making decisions, and improving the accuracy of cost estimation. Despite their usefulness, the application of these techniques in construction projects seems to be uncommon in the construction sector in Malaysia. The purpose of this paper is to determine the application of simulation techniques for cost estimation and control and to assess their influence on project cost performance.Design/methodology/approachA survey questionnaire was used to collect data from 83 government agencies, consultant firms, and contractor firms in Kuala Lumpur, Malaysia.FindingsThe findings revealed that knowledge of respondents and usage of cost simulation techniques in the Malaysian construction industry is low. In addition, main barriers of implementing cost simulation techniques are identified. Cost performance of construction projects in Malaysia is satisfactory; however, there is no association between this performance and the application of simulation techniques.Originality/valueThis paper contributes to construction management field by highlighting the main simulation techniques for cost management and drawing the attention of construction professionals and contractors to implement these techniques in construction projects.

Effect of project managers' skills on construction project delivery

Managers' skills are important requirement in managing construction projects, and as an effective manager, it is the vital responsibility of the project manager to ascertain that work efforts of other participants are guided toward the accomplishment of organisational objectives. The main aim of this study was to assess project managers' skills with a view to determining their effects on performance of construction projects. Data were collected with the aid of questionnaire administered on construction professionals. The results revealed communication, organisational and budgeting skills as the top three skills exhibited by project managers in project management (PM). Furthermore, architects and builders were revealed to exhibit most of the top three skills identified. The study therefore suggested Architects and Builders as the best professionals to carry out project manager's duties on construction projects in the absence of a trained personnel. The study also revealed a poor level of concordance between the PM skills exhibited by the four professionals considered. Finally, project managers' skills were revealed to have a significant effect on time, team and cost performance of construction projects.

Effect of project managers' skills on construction project delivery

Managers' skills are important requirement in managing construction projects, and as an effective manager, it is the vital responsibility of the project manager to ascertain that work efforts of other participants are guided toward the accomplishment of organisational objectives. The main aim of this study was to assess project managers' skills with a view to determining their effects on performance of construction projects. Data were collected with the aid of questionnaire administered on construction professionals. The results revealed communication, organisational and budgeting skills as the top three skills exhibited by project managers in project management (PM). Furthermore, architects and builders were revealed to exhibit most of the top three skills identified. The study therefore suggested Architects and Builders as the best professionals to carry out project manager's duties on construction projects in the absence of a trained personnel. The study also revealed a poor level of concordance between the PM skills exhibited by the four professionals considered. Finally, project managers' skills were revealed to have a significant effect on time, team and cost performance of construction projects.

Mediation Model for Improving Cost Factors That Affect Performance of Small-Scale Building Construction Contract Business in Nigeria: A PLS-SEM Approach

ABSTRACTPerformance of small-scale building construction contract business poses a challenge to the sustainable development of the construction industry, particularly in developing countries like Nigeria. Small-scale construction contract business plays an important role in the economic development of any nation. In Nigeria, small-scale construction contract business has a tremendous role in the development of rural areas. This study assesses the mediation effects of client support with advance payment on cost factors that affect performance of small-scale contract businesses in Nigeria. The study identified three factors that affect cost performance of construction projects in developing countries: cash flow problems, effects of fraudulent practices, and effects of the nature of construction environments. In total, 550 survey questionnaires were administered to stakeholders in the Nigerian construction industry. Stratified proportionate random sampling method was used for the selection of respondents and 387 questionnaires were returned, with 357 used in the analysis.

Quantifying combination effects of project management practices on cost performance

This paper presents an analysis method that quantifies the relationship between project management practices and the cost performance of construction projects. The analysis method includes a series of analysis procedures and methods: data measurement and transformation, contingency table analysis, logistic regression, and a composite index. Step-by-step analysis procedures and methods are described along with the data obtained from 143 owner projects to examine the effect of nineteen project management practices on cost performance. The analysis method uncovers the minimum implementation levels of project management practices for better cost performance, and quantifies the combined effects of project management practices on cost performance varied by their implementation levels. The analysis results generate specific and quantitative information used in implementing project management practices for better cost performance. This information will help practitioners achieve improved cost performance in the most effective and efficient way. The analysis method designed with a series of statistical methods makes it possible to produce useful quantitative information for the implementation of project management practices.