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Article
Publication date: 18 July 2024

K.L. Chamikara, B.A.K.S. Perera, Dinithi Piyumra Raigama Acharige and Biyanka Ekanayake

Cost overruns are an inevitable issue in design and build (D&B) projects. In D&B projects, causes for cost overruns can be managed by adopting appropriate building information…

Abstract

Purpose

Cost overruns are an inevitable issue in design and build (D&B) projects. In D&B projects, causes for cost overruns can be managed by adopting appropriate building information modelling (BIM) functions. Because there is a research gap in synergy between the use of BIM for mitigating cost overruns in D&B projects, this study aims to evaluate the adaptability of BIM to manage cost overrun issues in them.

Design/methodology/approach

Research objectives were attained through a quantitative research approach adopting the Delphi technique, which consists of three rounds of a questionnaire survey. Through statistical tools, the collected data were analysed.

Findings

This research revealed the ten most crucial causes for cost overruns in D&B projects, where continuous changes in designs and drawings are the top causes. Change and revision management and interoperability are the most crucial BIM functions to address the aforementioned cause. Subsequently, 16 enablers, 26 barriers and 19 strategies to implement BIM to manage the identified significant causes of cost overruns were overviewed.

Originality/value

This study addresses the literature gap pertaining to the cost overrun in D&B projects and the application of BIM by studying the causes for cost overrun, suggesting BIM functions to mitigate the above cause. Moreover, this study assessed the probable barriers and enablers for BIM adoption in construction projects from D&B perspective.

Details

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

Keywords

Article
Publication date: 31 July 2024

Oluwole Alfred Olatunji, James Olabode Bamidele Rotimi, Funmilayo Ebun Rotimi and Chathurani C.W. Silva

Cost and schedule overruns are rife in dam projects. Normative evidence espouses overruns as though they are inimical to development and prosperity aspirations of stakeholders…

Abstract

Purpose

Cost and schedule overruns are rife in dam projects. Normative evidence espouses overruns as though they are inimical to development and prosperity aspirations of stakeholders. This study examines the causal relationship between project financing and overruns.

Design/methodology/approach

Causative data were extracted from completion reports of 28 major dam projects in Africa. Each of the projects was financed jointly by up to 10 international development lenders. Relationships between causes of overruns and project outcomes were analysed.

Findings

Analyses elicit indicators of remarkable correlations between finance procedures and project outcomes. Lenders’ disposition to risk attenuation was the main debacles to project success. Interests had mounted, whilst release of fund was erratic and ill-timed. Finance objectives and mechanisms were grossly inadequate for projects’ intense bifurcations. Projects had slowed or stalled because lenders’ risks attenuation processes were purposed to favour lenders’ objectives, and not projects’ interests. In addition, findings also show project owners’ own funds and the number of lenders to a single project correlate with overruns.

Practical implications

Findings imply commercial complexities around major projects. They also show transactions are shaped by subtle (mis)trust behaviours in project finance procedures. Thus, scholarly solutions to project performance issues should consider behavioural issues of stakeholding parties more broadly, beyond contractors and project owners. Project finance ecosystems are vulnerable to major actors’ self-interests, opportunism and predatory conducts. Borrowers would manage this by developing and improving their capacity to build resilience and trust. Evidence shows intense borrower nations in Africa have limited capacity and acuity for these.

Originality/value

This study contextualises megaprojects in complexity rather than cost. Its additionality is in how finance steers absolute control of project environment away from project owners and how finance administration triggers risks and overrun.

Details

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

Keywords

Book part
Publication date: 9 September 2024

Char-lee McLennan, Jac Davis and Jegar Pitchforth

No Olympics in recent history have come in on or under budget, with past Olympics having overrun their budgets by an average of 172% (Flyvbjerg et al., 2021). Growing concerns…

Abstract

No Olympics in recent history have come in on or under budget, with past Olympics having overrun their budgets by an average of 172% (Flyvbjerg et al., 2021). Growing concerns among taxpayers about the expense have led many cities to drop out of the bidding process for the Olympics: for the 2024 Olympic Games, bids were withdrawn by Boston, Budapest, Hamburg, and Rome (Okada & Greyser, 2018). Sports infrastructure, including the main stadium, is a major cost category for the Olympic Games. Building or renovating venues to Olympic specifications can leave cities with heavy costs of long-term maintenance as well as the cost of initial construction (Baade & Matheson, 2016). In practice, cities tend to overestimate the size and suitability of existing venues, leading to underestimated costs and budget overruns (Preuß et al., 2019). The Brisbane 2032 Olympic bid says that Brisbane’s Olympics are confident of breaking even, and avoiding building stadiums that end up as white elephants. But does the choice of Olympic stadium make a difference to the final cost overrun? This study finds that cost overruns for past Olympics have been predicted using a few characteristics of the main stadium: its age, its distance from the city centre, and its seating capacity. This has important policy implications for selecting stadiums to be used at the Olympic Games and particularly for the Brisbane 2032 Olympic Games where a stadium has been earmarked for selection without data-driven evidence to support the decision.

Details

Tourism Policy-Making in the Context of Contested Wicked Problems: Politics, Paradigm Shifts and Transformation Processes
Type: Book
ISBN: 978-1-83549-985-6

Keywords

Article
Publication date: 6 August 2024

Nikhitha Adepu, Sharareh Kermanshachi, Apurva Pamidimukkala and Emily Nwakpuda

The effects of the COVID-19 outbreak on the construction industry were formidable and far-reaching, as the construction sector is a major contributor to the gross domestic product…

Abstract

Purpose

The effects of the COVID-19 outbreak on the construction industry were formidable and far-reaching, as the construction sector is a major contributor to the gross domestic product (GDP), which balances various sectors of the global economy, and to infrastructure growth, which is a primary gauge of a nation’s advancement. The outbreak led to workforce disruptions, worker deficits, dwindling efficiency, elongated project durations, and scarce opportunities for training and mentorship, and despite endeavors to mitigate these challenges, construction timelines experienced significant interruptions. Various researchers have pinpointed contributing elements, but few have constructed a predictive model to gauge the degree of impact.

Design/methodology/approach

Therefore, this research intends to fill by introducing an ordinal logistic regression method to forecast the impacts of a pandemic or other similar type of crisis. To achieve this, an online survey was developed and distributed to collect the perceptions of the construction engineers and managers about the diverse contributors to the exceeding project timelines during the COVID-19 pandemic outbreak.

Findings

Findings from this study indicate that financial liquidity, modifications to original plans, delays in securing governmental clearances, and a shortage of competent labor have medium-to-high levels of impact on project schedules.

Originality/value

This study will furnish decision-makers with crucial knowledge that will give them the tools to refine their strategies and judiciously allocate resources to overcome the unique hurdles encountered by various construction segments and will enhance the industry's capability to respond more effectively to challenges inherent in this type of crisis.

Details

International Journal of Building Pathology and Adaptation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-4708

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. 22 no. 5
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 16 August 2024

Dickson Osei-Asibey, Joshua Ayarkwa, Benjamin Baah, Aba Essanowa Afful, Gloria Anokye and Prince Asher Nkrumah

Many investors have less interest in tendering for public-private partnership (PPP) construction projects as a result of the uncertain risks associated with the project delivery…

Abstract

Purpose

Many investors have less interest in tendering for public-private partnership (PPP) construction projects as a result of the uncertain risks associated with the project delivery. Moreover, PPP project stakeholders have inadequate information about the probable impacts of time-based delay imposed on PPP projects under the PPP arrangement. This study aims to identify and categorize construction stakeholders’ perceptions of the impact of time-based delays on PPP construction projects.

Design/methodology/approach

A purposive sampling technique was adopted where questionnaires were used as the primary instrument for gathering data from PPP experts. Cronbach’s alpha coefficient and Kendall’s concordance were used to measure the reliability of the scale and the respondent’s level of agreement, respectively. One sample t-test, mean score ranking and principal component analysis were used to analyse the identified time-based delay impacts.

Findings

The study revealed seven significant impacts of time-based delay on PPP construction project delivery as: “project schedule overrun”, “idling of project resources”, “project cost overrun”, “poor quality of completed works”, “delayed realization of project benefits”, “frequent arbitration/litigation in PPP projects” and “total abandonment of PPP projects”. The study further identified the top five significant impacts of time-based delay on PPP project stakeholders as: “reduction in motivation to attract investment”, “high interest on finance (loans)”, “contractor in financial crisis”, “loss of public confidence in government” and “reduction in parties’ reputation”.

Practical implications

The identified significant impacts of time-based delays will increase stakeholders’ awareness of the repercussions and effects that time-based delays may impose on PPP construction projects if not appropriately managed throughout the project implementation. This awareness will further guide stakeholders to implement targeted risk management strategies to minimize the negative consequences of delays on PPP project performance.

Originality/value

As a pioneering study that provides a better understanding of the impacts of time-based delays on PPP construction projects, this study enhances knowledge of PPP construction project implementation.

Details

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

Keywords

Open Access
Article
Publication date: 15 July 2024

Andrew Ebekozien, Clinton Ohis Aigbavboa, Wellington Didibhuku Thwala, Mohamed Ahmed Hafez and Mohamad Shaharudin Samsurijan

Despite advancements in construction digitalisation and alternative building technologies, cost overrun is still a challenge in the construction industry. The inflation rate is…

Abstract

Purpose

Despite advancements in construction digitalisation and alternative building technologies, cost overrun is still a challenge in the construction industry. The inflation rate is increasing, especially in developing countries, and is critical in cost overrun matters. It can deviate construction built-up rate components. This may thwart improving construction-related Sustainable Development Goals (SDGs). Studies concerning the impact of the inflation rate on construction-related SDGs are scarce in developing countries, including Nigeria. The study investigated the impact of inflation on Nigeria’s construction projects and their outcome on SDGs and suggested possible ways to improve achievement of construction-related SDGs and their targets.

Design/methodology/approach

The researchers employed a qualitative research design. This is because of the study’s unexplored dimension. The researchers engaged 35 participants across major cities in Nigeria via semi-structured virtual and face-to-face interviews. The research utilised a thematic method for collated data and accomplished saturation.

Findings

Findings reveal that the impact of inflation on construction projects, if not checked, could hinder achieving construction-related SDGs in Nigeria. This is because of the past three years of hyperinflation that cut across major construction components. It shows that the upward inflation rate threatens achieving construction-related SDGs and proffered measures to mitigate inflation and, by extension, enhance achieving construction-related SDGs. This includes a downward review of the Monetary Policy Rate, control of exchange rate volatility and addressing insecurity to restore FDIs and FPIs confidence.

Originality/value

Besides suggesting possible solutions to mitigate hyperinflation on construction components to improve achieving construction-related SDGs, findings will stipulate government policymakers put measures in place through favourable fiscal and monetary policy implementation and encourage moving from a consumption to a production nation.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 13
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. 29 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Open Access
Article
Publication date: 31 July 2024

Aravindh Devandran, Felicita J. Davis and Michael Sammanasu Joseph

This study aims to determine and investigate the main causes of construction project delays. Construction projects are more intricate and associated with significant levels of…

1117

Abstract

Purpose

This study aims to determine and investigate the main causes of construction project delays. Construction projects are more intricate and associated with significant levels of risk owing to cost overruns. These overruns frequently lead to delays, incomplete work or other related challenges. Building delays are a prevalent problem in the building sector of developing nations. These delays prolong the duration of projects and result in increased costs and conflicts among stakeholders. A conceptual model consisting of the factors causing the delays in heating, ventilation and air conditioning (HVAC) projects was developed and tested in this study.

Design/methodology/approach

A comprehensive data collection process was undertaken. A meticulously designed survey was distributed to a diverse cohort of 294 participants, including contractors and sub-contractors from Chennai, Tamil Nadu. The data was collected using stratified sampling, ensuring a representative sample. The data was then analysed using ordinary least squares multiple regression.

Findings

The findings of this study have significant implications for the construction industry. They indicate that factors related to sales, clients, design, procurement, finance and labour all contribute to delays in HVAC projects. Understanding these factors can help stakeholders in the industry to better manage and mitigate project delays.

Originality/value

This study is unique because it is a perceptual study of stakeholders. It provides valuable information for analysing and assessing project performance by identifying the primary causes of HVAC project delays. To the best of the authors’ knowledge, the study conducted on HVAC projects is the first of its kind and hence makes a pivotal contribution to the literature on construction projects. Additionally, the study will assist policymakers and consultants in taking necessary steps to minimize delays.

Details

Vilakshan - XIMB Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0973-1954

Keywords

Article
Publication date: 2 July 2024

Mahesh Babu Purushothaman, Leo Neil Resurreccion San Pedro and Ali GhaffarianHoseini

This review paper aims to highlight the causes of delays (COD) and their interactions in construction projects, potentially aiding in timely completion and waste reduction through…

Abstract

Purpose

This review paper aims to highlight the causes of delays (COD) and their interactions in construction projects, potentially aiding in timely completion and waste reduction through early anticipation.

Design/methodology/approach

Forty-seven global literature were examined in detail to identify CODS and its interactions using the systematic literature review (SLR) method that utilised the PRISMA guidelines to ensure the studies reviewed were adequate to safeguard the robustness and comprehensiveness. Three-way analysis, such as Pareto, degree of centrality and loops, was undertaken to identify the critical Level 1,2 and 3 CODS that affect the Construction projects.

Findings

The research findings demonstrate that 65 CODs in eight categories affect construction projects. The CODs act in coherence rather than silos; the CLD displays complex interconnections of 44 factors obtained through the pairwise comparison of the 47 identified literature of the SLR. Through its systematic analysis of interaction loops, this research identified Ten level 1 critical CODs, two second-level critical CODs and 4 Third-level critical CODs. “Contractors' excessive workload/beyond potential/inadequate experience” emerged as the top COD that affects scheduling and project delay.

Research limitations/implications

The study limitations include using only English articles and a restricted number of databases. However, the chosen databases were reputable and underwent thorough peer review processes. This study may have limitations due to the SLR, which means that factors affecting COD and interactions may vary by country, and future research is suggested for validation.

Practical implications

This study identified interactions of construction delays that potentially support scheduling risk management during the early stage of the project and reduce waste to improve sustainability. The theoretical implications of SLR-based research include helping develop a framework that would potentially have all COD in the current scenario and aid future academic and industrial research factor-wise and country-wise in aiding sustainability. This will support and provide construction professionals and academia with knowledge of the COD related to factors and their interactions to be considered in the early assessment and management of future projects and improve sustainability.

Originality/value

Most literature studies the factors or causes of construction delays that affect construction projects. The CODs primarily do not operate in silos but combine with other causes to enhance their influence on delays. Hence, it is of utmost importance to study the interactions of COD to enhance the knowledge in the construction field that would aid in schedule repair and, in turn, on-time project delivery. The study is the first related to COD and their interactions in construction projects in the digital era.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

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