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1 – 10 of 270
Article
Publication date: 25 March 2024

Francis Nuako, Frank Ato Ghansah and Thomas Adusei

It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been…

Abstract

Purpose

It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been advancements in the management of building projects throughout time but cost overruns remain a key concern in the construction sector internationally, particularly in emerging economies such as Ghana. This study aims to answer the question, “What are the critical success factors (CSFs) that can assist reduce cost overruns in public sector infrastructure projects in the Ghanaian construction industry?”

Design/methodology/approach

This study used a quantitative survey method. The questionnaire was pre-tested by interviewing 15 contractors to ascertain the validity of the content. Factor analysis and multiple regression were adopted to analyze the data.

Findings

This study discovered that the critical factors that can reduce cost overruns in construction projects in Ghana are directly linked to five themes: early contractor involvement in the project planning stage, adequate funding, good project team relations, competent managers/supervisors and project participant incentives/bonuses. This study identifies indestructible, empirically measurable important success criteria for reducing cost overruns in public building projects in Ghana.

Practical implications

When well thought through from the project initiation stage to completion, these critical successes can also be used to deal with damaging economic effects such as allocative inefficiency of scarce resources, further delays, contractual disputes, claims and litigation, project failure and total abandonment.

Originality/value

The uniqueness of this research resides in the fact that it is, to the best of the authors’ knowledge, a first-of-its-kind investigation of the CSFs for reducing cost overruns in public building projects in developing countries.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 27 October 2023

Muhammad Saiful Islam, Madhav Nepal and Martin Skitmore

Power plant projects are very complex and encounter serious cost overruns worldwide. Their cost overrun risks are not independent but interrelated in many cases, having structural…

Abstract

Purpose

Power plant projects are very complex and encounter serious cost overruns worldwide. Their cost overrun risks are not independent but interrelated in many cases, having structural relationships among each other. The purpose of this study is, therefore, to establish the complex structural relationships of risks involved.

Design/methodology/approach

In total, 76 published articles from the previous literature are reviewed using the content analysis method. Three risk networks in different phases of power plant projects are depicted based on literature review and case studies. The possible methods of solving these risk networks are also discussed.

Findings

The study finds critical cost overrun risks and develops risk networks for the procurement, civil and mechanical works of power plant projects. It identifies potential models to assess cost overrun risks based on the developed risk networks. The literature review also revealed some research gaps in the cost overrun risk management of power plants and similar infrastructure projects.

Practical implications

This study will assist project risk managers to understand the potential risks and their relationships to prevent and mitigate cost overruns for future power plant projects. It will also facilitate decision-makers developing a risk management framework and controlling projects’ cost overruns.

Originality/value

The study presents conceptual risk networks in different phases of power plant projects for comprehending the root causes of cost overruns. A comparative discussion of the relevant models available in the literature is presented, where their potential applications, limitations and further improvement areas are discussed to solve the developed risk networks for modeling cost overrun risks.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 18 April 2023

Iman Youssefi and Tolga Celik

Total risk score (TRS) is considered one of the main indicators for risk evaluation. Several studies attempted to employ different types of risk indices for the evaluation of cost…

Abstract

Purpose

Total risk score (TRS) is considered one of the main indicators for risk evaluation. Several studies attempted to employ different types of risk indices for the evaluation of cost overrun causes. Hence, this study aims at performing a comparative analysis to evaluate the efficiency of three different approaches for TRS calculation.

Design/methodology/approach

Thirty-eight unique causes of cost overrun in urban-related construction projects were identified and a survey was conducted among construction professionals in Iran. The TRS for each cost overrun cause is calculated using single-attribute (SA), double-attribute (DA), and multiple-attribute (MA) approaches, and eventually, causes were ranked. Furthermore, principal component analysis (PCA), logistic regression analysis (LRA), and K-means clustering are utilized to compare the differences in the generated TRS using different approaches.

Findings

The results revealed that the TRS generated through the MA approach demonstrated the highest efficiency in terms of generating correlation between causes and their identified latent constructs, prediction capability, and classification of the influential causes in the same group.

Originality/value

The originality of this study primarily stems from the adoption of statistical approaches in the evaluation of the recently introduced TRS calculation approach in comparison to traditional ones. Additionally, this study proposed a modified application of the relative importance index (RII) for risk prioritization. The results from this study are expected to fulfill the gap in previous literature toward exploring the most efficient TRS calculation approach for those researchers and practitioners who seek to utilize them as a measure to identify the influential cost overrun causes.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 16 June 2023

Sou-Sen Leu, Kuang-Jen Huang, Cathy Chang-Wei Hung and Pei-Lin Wu

In recent years, cost overrun becomes a common problem in steel building construction projects. The average percentage can vary widely depending on the project type, size…

Abstract

Purpose

In recent years, cost overrun becomes a common problem in steel building construction projects. The average percentage can vary widely depending on the project type, size, complexity and location. The steel structure change ratio in Taiwan is from 1 to 18% in statistics. The contractors always put every possible effort into preventing or mitigating project cost overruns, and one of the approaches is an accurate cost overrun risk estimate. Traditional project cost overrun risk assessment models mainly focus on macro-level evaluation and may not function well for the project-specific level (micro-level). This study creates a network-like connection model between the outcome (i.e. cost overrun risk) and the associated root causes in which the project status evaluation checklists of design, manufacturing, construction and interfaces are used to evaluate the checklists' influences through the Bayesian network (BN) composed by intermediate causes.

Design/methodology/approach

Due to the constraint of data availability, BN nodes, relationships and conditional probabilities are defined to establish a BN-based steel building project cost overrun assessment model following the knowledge of experts. Because of the complexity of the BN, the construction of the BN structure is first to build BN's fault tree (FT) hierarchy. And then, basic BN framework is constructed by the transformation of the FT hierarchy. Furthermore, some worthwhile additional arcs among BN nodes are inserted if necessary. Furthermore, conditional probability tables (CPTs) among BN nodes are explored by experts following the concept of the ranked node. Finally, the BN-based model was validated against the final cost analysis reports of 15 steel building projects done in Taiwan and both were highly consistent. The overall BN-based model construction process consists of three steps: (1) FT construction and BN framework transformation, (2) CPT computation and (3) model validation.

Findings

This study established a network-like bridge model between the outcome (i.e. cost overrun risk) and the root causes in a network of which cost influences are evaluated through the project-specific status evaluation checklists of design, manufacturing, construction and interfaces. This study overcame several limitations of the previous cost overrun risk assessment models: (1) few past research support assessment of cost overrun based on real-time project-owned data and (2) the traditional causal models inadequately depict interdependencies among influence factors of cost overrun at the network. The main influence factors of the cost overrun risk at the steel building projects in Taiwan were also examined using sensitivity analysis. The main root causes of cost overrun in steel building projects are design management and interface integration.

Originality/value

The proposed model belongs to the project-specific causal assessment model using real-time project-owned status checklist data as input. Such a model was seldom surveyed in the past due to the complicated interdependence among causes in the network. For practical use, a convenient and simple regression equation was also developed to forecast the cost overrun risk of the steel building project based on the root causes as input. Based on the analysis of cost overrun risk and significant influence factors, proper tailor-made preventive strategies are established to reduce the occurrence of cost overrun at the project.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 28 July 2023

Sven Modell

The purpose of this paper is to demonstrate how critical realism can be mobilised as a meta-theory, or philosophical under-labourer, for research on space accounting and how this…

Abstract

Purpose

The purpose of this paper is to demonstrate how critical realism can be mobilised as a meta-theory, or philosophical under-labourer, for research on space accounting and how this may further inquiries into the known as well as the unknown implications of space exploration and commercialisation.

Design/methodology/approach

This is a conceptual paper that applies critical realism to the field of space accounting using cost management in space contracts as an illustrative example.

Findings

Adopting a naturalised version of critical realism that recognises the complex interplay between natural and social realities, the author nuances the distinction between intransitive and transitive objects of knowledge and advances a framework that may be used as a starting point for a transfactual mode of reasoning. The author then applies this mode of reasoning to the topic of cost management in the space sector and illustrates how it may enhance our insights into what causes cost overruns in space contracts.

Research limitations/implications

By adopting a naturalised version of critical realism, the author establishes a philosophical framework that can support the broadly based, inter-disciplinary research agenda that has been envisaged for research on space accounting and possibly inform policy development.

Originality/value

This paper is the first to apply a critical realist perspective to space accounting and lays a philosophical foundation for future research on the topic.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 4 December 2023

Alolote Ibim Amadi

This study aims to investigate ground-related design deficiencies as potential avenues of avoidable cost overruns, discernible from the geotechnical practices of highway agencies…

Abstract

Purpose

This study aims to investigate ground-related design deficiencies as potential avenues of avoidable cost overruns, discernible from the geotechnical practices of highway agencies in the Niger Delta region of Nigeria.

Design/methodology/approach

The study deploys an interpretivist qualitative methodology to provide a detailed descriptive analysis of the design-related geotechnical practices of highway agencies during the pre-contract phase of highway projects. Semi-structured interviews were conducted with in-house professionals, consultants and contractors affiliated with the three highway agencies in the Niger Delta and thematically analysed to identify significant deviations from geotechnical best practices.

Findings

The study outcome shows that during the pre-contract phase, a chain of design-related geotechnical shortcomings has plagued highway projects executed in the Niger Delta. This view of practice uncovered in this study demonstrates a culture of significant deviation from best practice recommendations, which could plausibly contribute to the history of significant project cost overruns recorded in the region.

Originality/value

The study qualitatively spotlights gaps in the practice of highway agencies and reinforces the need for a re-orientation of the attitude to risk management, to give geotechnical concerns a priority in the financial management of highway projects executed in the Niger Delta region of Nigeria.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 8 November 2022

Ahmad Shah Kakar, Abid Hasan, Kumar Neeraj Jha and Amarjit Singh

The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource…

Abstract

Purpose

The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource constraints demand cost-efficient delivery of construction projects, many Afghan public projects experience delays and cost overruns. This study aims to evaluate various attributes and factors influencing cost performance in public construction projects in Afghanistan.

Design/methodology/approach

The literature review and Delphi method identified 30 cost performance attributes relevant to the context of Afghanistan. Next, a questionnaire survey was conducted with construction management professionals working in the public sector in the Afghan construction industry to evaluate these attributes.

Findings

This study found that the lack of resources, poor project management skills and corruption in procurement are the leading causes behind cost overruns in Afghan public projects. This study also identified five latent factors influencing cost performance in public projects in Afghanistan: competency of the project team, socioeconomic and political support, governance and public procurement, planning and risk management and project characteristics.

Research limitations/implications

The exploratory factor analysis did not reveal the relative significance of different cost performance success factors. Moreover, the ranking of cost performance attributes is based on the responses from the public sector construction professionals only.

Practical implications

The construction industry in Afghanistan significantly contributes to the country’s social and economic growth and employment. This study’s findings will help researchers, project sponsors, government departments and industry practitioners interested in improving the cost performance in Afghan public projects.

Originality/value

Given the scarcity of research in war-affected and conflict-sensitive regions, this study fills a research gap on project cost performance by providing insights into the cost performance success factors in public projects in Afghanistan.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 11 December 2023

Mohammad Hosein Madihi, Ali Akbar Shirzadi Javid and Farnad Nasirzadeh

In traditional Bayesian belief networks (BBNs), a large amount of data are required to complete network parameters, which makes it impractical. In addition, no systematic method…

Abstract

Purpose

In traditional Bayesian belief networks (BBNs), a large amount of data are required to complete network parameters, which makes it impractical. In addition, no systematic method has been used to create the structure of the BBN. The aims of this study are to: (1) decrease the number of questions and time and effort required for completing the parameters of the BBN and (2) present a simple and apprehensible method for creating the BBN structure based on the expert knowledge.

Design/methodology/approach

In this study, by combining the decision-making trial and evaluation laboratory (DEMATEL), interpretive structural modeling (ISM) and BBN, a model is introduced that can form the project risk network and analyze the impact of risk factors on project cost quantitatively based on the expert knowledge. The ranked node method (RNM) is then used to complete the parametric part of the BBN using the same data obtained from the experts to analyze DEMATEL.

Findings

Compared to the traditional BBN, the proposed method will significantly reduce the time and effort required to elicit network parameters and makes it easy to create a BBN structure. The results obtained from the implementation of the model on a mass housing project showed that considering the identified risk factors, the cost overruns relating to material, equipment, workforce and overhead cost were 37.6, 39.5, 42 and 40.1%, respectively.

Research limitations/implications

Compared to the traditional BBN, the proposed method will significantly reduce the time and effort required to elicit network parameters and makes it easy to create a BBN structure. The results obtained from the implementation of the model on a mass housing project showed that considering the identified risk factors, the cost overruns relating to material, equipment, workforce and overhead cost were 37.6, 39.5, 42 and 40.1%, respectively. The obtained results are based on a single case study project and may not be readily generalizable.

Originality/value

The presented framework makes the BBN more practical for quantitatively assessing the impact of risk on project costs. This helps to manage financial issues, which is one of the main reasons for project bankruptcy.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 18 September 2023

Stephanie Sheamar, Gayan Wedawatta, Maheshi Tennakoon, Roshani Palliyaguru and Maxwell Fordjour Antwi-Afari

Cost overrun is a significant issue in construction, an undesirable feature the industry has long been associated with. Poor procurement practices are often blamed for subsequent…

Abstract

Purpose

Cost overrun is a significant issue in construction, an undesirable feature the industry has long been associated with. Poor procurement practices are often blamed for subsequent cost overruns in construction, especially with conventional procurement methods leading to outrageous cost overruns. The purpose of this study is to review the features of the new models of construction procurement (NMCP) and assess their potential to reduce cost overruns in construction projects.

Design/methodology/approach

A literature review was conducted to identify the issues of procurement leading to cost escalations. Primary data were obtained through exploratory, semi-structured interviews using a case study approach.

Findings

Clients’ lack of knowledge was highlighted as a key issue in procurement that interlinks with many factors causing cost escalation. The findings suggest that the features contained within the NMCP, such as early contractor involvement and collaboration throughout the project team, have the potential to make a positive contribution to addressing cost escalation in construction.

Research limitations/implications

The primary research was undertaken as an exploratory study and presents the contractor's perspective. Further research is therefore suggested, with multiple organisations representing all key stakeholders in a construction project, including clients, consultants, sub-contractors and suppliers.

Practical implications

The study recommends awareness of the NMCP be raised throughout the industry, and simplified information must be made available to help widen uptake of these contemporary procurement methods.

Originality/value

Addressing the dearth of research concerning the use of NMCP within the industry, this study makes a niche contribution to the body of knowledge on construction cost management by illustrating the potential offered by these new procurement methods for addressing cost escalation. For an industry where collaboration is accepted with reservations, this case study demonstrates how novel collaborative strategies such as open book costing, project bank accounts and shared pain and gain mechanisms can be implemented as part of the procurement strategy and how such strategies can contribute towards minimising the cost escalation inherent in construction projects.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 3 January 2023

Simon Wyke, Søren Munch Lindhard and Jesper Kranker Larsen

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as…

Abstract

Purpose

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as identified in previous research. This has led to a need for better understanding how factors affecting cost and time overruns on public construction projects can be managed more efficiently. The purpose of this paper is to address these issues.

Design/methodology/approach

In this study 26 factors affecting cost and time overruns on construction projects were identified, through qualitative interviews with project managers from Danish governmental agencies and through a literature review. Through principal component analyses the 26 factors were subsequently narrowed down to four primary latent factors.

Findings

The identified four latent factors affecting cost and time overruns on public construction projects were lack of quality management, lack of project pre-planning, lack of user management and lack of project management.

Originality/value

Previous research has focussed on increasing knowledge by identifying and ranking factors affecting time and cost performance. This has led to the identification of an overwhelming number of factors to use for managing construction projects. The present research reduced the number of factors by clustering them into key latent factors responsible for most of the deviation in performance, narrowing the scope of construction cost and time management into a few tangible key focus areas. This supports and improves fast decision-making that is necessary in a changeable environment such as construction.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

1 – 10 of 270