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Article
Publication date: 31 July 2009

Adnan Enshassi, Jomah Al‐Najjar and Mohan Kumaraswamy

Delays and cost overruns are evidently frequent problems in the construction industries of many developed and developing countries. The purpose of this paper is to assess factors…

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Abstract

Purpose

Delays and cost overruns are evidently frequent problems in the construction industries of many developed and developing countries. The purpose of this paper is to assess factors leading to time overruns (delays) and cost overruns in construction projects in the Gaza Strip. Since there appear to be additional special contributors to delays here, the relative perceptions of contractors, consultants and owners are compared, based on a listing of causal factors derived from previous studies elsewhere, together with other factors arising from special conditions in the Gaza Strip.

Design/methodology/approach

A survey of a randomly selected samples yielded responses from 66 contractors, 27 consultants, and 31 owners. The survey included 110 delay factors/causes which were grouped into 12 major groups. The same survey also included 42 cost overrun factors. The level of importance of the delays and cost overrun factors were measured and ranked by their importance indexes, according to the perspectives of contractors, consultants, and owners.

Findings

There seems to be a general agreement between contractors, consultants and owners regarding causes of delays and cost overruns. The main four causes of time delays included strikes and border closures, material‐related factors, lack of materials in markets, and delays in materials delivery to the site. Additionally, the main three causes for cost overruns included price fluctuations of construction materials, contractor delays in material and equipment delivery, and inflation.

Originality/value

The outcome of this paper will assist owners, contractors, and consultants in understanding the reasons for delays and cost overruns, thus eliminating or minimizing these causes. This could be achieved by better management of the projects and by finding new methods for storing the critical materials from the beginning of the project. Furthermore, the local government is advised to initiate legislation to overcome problems arising from monopolies in the supply of construction materials.

Details

Journal of Financial Management of Property and Construction, vol. 14 no. 2
Type: Research Article
ISSN: 1366-4387

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: 2 April 2024

Nikhitha Adepu, Sharareh Kermanshachi, Apurva Pamidimukkala and Emily Nwakpuda

The building sector is vital to a nation’s economy, as it has a major influence on economic activity and growth, job creations and the advancement of infrastructure. Intricate…

Abstract

Purpose

The building sector is vital to a nation’s economy, as it has a major influence on economic activity and growth, job creations and the advancement of infrastructure. Intricate challenges that are inherent in crises such as the COVID-19 outbreak lead to material scarcities, project delays, labor shortages, escalated expenses, funding challenges, regulatory obstacles and dwindling investment funds, all of which culminate in costs that are in excess of those budgeted. While numerous studies have explored the ramifications of COVID-19 on project budgets, there is little, if any, data available on forecasting the magnitude of this impact.

Design/methodology/approach

This investigation seeks to bridge this knowledge deficiency by devising a predictive tool grounded in an ordinal logistic regression method. An online survey was designed and disseminated to gauge the views of construction field experts about the diverse contributors to excessive costs during the viral outbreak, and a predictive tool, crafted from the survey participants’ feedback.

Findings

Findings showed that smaller-scale enterprises and contractor-centric establishments faced greater adversities than medium-to-large ones and consultancy-or-owner-type entities.

Originality/value

The insights from this research shed light on the amplified risk of higher project costs amid health crises or analogous events, underlining the imperative need for fortified risk management approaches to bolster project outcomes. By factoring in demographics, this research offers policymakers a refined lens through which to customize interventions and promote balanced and enduring advancement in the construction industry.

Details

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

Keywords

Article
Publication date: 28 May 2020

Muhammad Irfan, Muhammad Sohail Anwar Malik and Syyed Sami Ul Haq Kaka Khel

The purpose of this research is to rank the most significant factors of organizational structure that can reduce time and cost overruns (nonphysical waste) in road projects of the…

Abstract

Purpose

The purpose of this research is to rank the most significant factors of organizational structure that can reduce time and cost overruns (nonphysical waste) in road projects of the developing countries. Additionally, the effect of factors of organizational structure on nonphysical waste in road projects is also measured.

Design/methodology/approach

Factors of organizational structure causing time and cost overrun are extracted through a content analysis of the published literature. Moreover, a questionnaire survey is carried out involving 128 professionals to assess the effect of organizational structure factors on time and cost overrun. Finally, to obtain a more objective evaluation, relative importance index and regression analysis techniques are utilized, and the most severe factors influencing time and cost overrun are indicated.

Findings

This study found out that top management support and procurement procedures are the most significant factors influencing time and cost overruns in road projects of the developing countries.

Originality/value

A small number of studies have been conducted to investigate the effect of factors of organizational structure on time and cost overrun in the construction industry. And even more, its relation with respect to road projects of the developing countries is limited. This research highlights the effect of most significant factors of organizational structure that influence the nonphysical waste in road projects of the developing countries. Therefore, this study adds to the body of knowledge by recommending that all the stakeholders of construction project should pay close attention toward these factors to control the enigma of time and cost overrun. It might also prove helpful, if implemented to its full extent, in all the road construction activities undertaken.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 24 April 2007

Sanna Laukkanen, Sami Sarpola and Petri Hallikainen

The purpose of this paper is to contribute to the discussion on enterprise resource planning (ERP) system adoption by investigating the relationship of enterprise size to the…

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Abstract

Purpose

The purpose of this paper is to contribute to the discussion on enterprise resource planning (ERP) system adoption by investigating the relationship of enterprise size to the objectives and constraints of ERP adoption.

Design/methodology/approach

In the paper, survey data, based on the responses of 44 companies, are analyzed, by dividing the companies into small, medium‐sized, and large enterprises; and comparing these groups, using statistical methods.

Findings

The paper finds significant differences exist between small, medium‐sized and large enterprises regarding the objectives and constraints of ERP system adoption. While small enterprises experience more knowledge constraints, large enterprises are challenged by the changes imposed by ERP adoption. Further, large and medium‐sized enterprises are more outward‐oriented in ERP adoption than small enterprises. Business development, as opposed to mere efficiency improvement, while being the most prevalent objective for ERP adoption in all the company groups, is considered especially important by medium‐sized enterprises. Finally, the findings suggest that, instead of considering small and medium‐sized enterprises as one homogeneous group of smaller enterprises, differences between these two groups of companies should be acknowledged in information system adoption.

Research limitations/implications

The paper shows that the Finnish context and the sample size should be taken into consideration when generalizing the findings.

Practical implications

The paper points out the differences in objectives and constraints between companies of different sizes that should be acknowledged in ERP adoption.

Originality/value

Instead of resorting to the customary approach of considering small and medium‐sized enterprises as a homogeneous group of smaller enterprises, this study acknowledges the differences between these two groups of companies.

Details

Journal of Enterprise Information Management, vol. 20 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 1 March 1992

Om P. Kharbanda and Ernest A. Stallworthy

In the continuing endeavour to work towards ever better management,experience plays a crucial role. We learn from success, but we can learnmuch more from failure. Further, it is…

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Abstract

In the continuing endeavour to work towards ever better management, experience plays a crucial role. We learn from success, but we can learn much more from failure. Further, it is far better and cheaper when we learn from other people′s failures rather than our own. This monograph assesses the requirements of project management in relation to industrial projects, illustrating the factors that can result in failure by means of a series of case studies of completed and abandoned projects worldwide that have failed in one way or another. The key roles played by project planning and project cost control in meeting and overcoming the practical problems in the management of industrial projects are examined in detail. In conclusion the lessons that can be learned are evaluated and presented, so that we may listen and learn – if only we will.

Details

Industrial Management & Data Systems, vol. 92 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 19 January 2022

Shumank Deep, Vanita Bhoola, Jyoti Vidhani and Pradeep Rajanna Hampannaver

Highway projects in India have a history of cost overruns and delay in project delivery, thus incurring huge losses to public funds. The study aimed to measure the extent of…

Abstract

Purpose

Highway projects in India have a history of cost overruns and delay in project delivery, thus incurring huge losses to public funds. The study aimed to measure the extent of influence of various constraints on the overall success of highway projects (e.g. National highway project, state highway projects and major district roads). Based on the literature, various factors were grouped under three categories (a) Project Constraints, (b) Project Governance Constraints and (c) Stakeholder Induced Constraints.

Design/methodology/approach

A quantitative approach was adopted. A questionnaire-based survey was conducted with 435 respondents from the field of highway projects with a minimum experience of 1 year as Project Manager. The data was analyzed by partial least squares structural equation modeling technique.

Findings

It was identified that the impact of project constraints (ES = 0.313) on project success is more than that of project governance constraints (ES = 0.231) and stakeholder induced constraints. Additionally, it was found that project governance constraints have a strong impact on project constraints (ES = 0.535) and stakeholder induced constraints (ES = 0.403).

Originality/value

The study presented in this paper is first of its kind to measure and articulate the impact of project governance constraint, project constraint and stakeholder induced constraints on project success.

Details

Built Environment Project and Asset Management, vol. 12 no. 4
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 18 July 2019

Muhammad Irfan, Muhammad Jamaluddin Thaheem, Hamza Farooq Gabriel, Muhammad Sohail Anwar Malik and Abdur Rehman Nasir

The purpose of this research is to quantify the effect of stakeholder conflicts on project constraints in the construction industry using ordinal regression analysis. For this…

1997

Abstract

Purpose

The purpose of this research is to quantify the effect of stakeholder conflicts on project constraints in the construction industry using ordinal regression analysis. For this purpose, the most significant project constraints and factors that cause stakeholder conflicts found in the literature are measured.

Design/methodology/approach

Factors causing stakeholder conflicts and project constraints are extracted through a content analysis of the published literature. Further, a questionnaire survey is conducted involving 170 professionals to assess the effect of conflicts on project constraints. Finally, to obtain a more objective assessment, a statistical model is developed, and to highlight the most severe factors causing conflict and impacting project constraints, ordinal regression analysis is performed.

Findings

The results show that in the construction industry, all project constraints are affected by stakeholder conflicts. Factors that result in stakeholder conflicts indicated a positive relationship with cost, time and resources. This means that any increase or decrease in the effect of stakeholder conflicts will directly influence these three project constraints. Similarly, a negative relationship was observed between stakeholder conflicts and quality, workforce productivity, protection of environment and safety regulations in the construction industry, indicating that increase in the effect of stakeholder conflicts will decrease these four project constraints and vice versa. The results for cumulative ordinal regression model highlight that lack of communication, poor quality of completed works and change orders and rework have intense effects on project constraints collectively.

Originality/value

A small number of studies have been undertaken to examine the emergence of project constraints in the developing countries. And even more, its relationship with stakeholder conflicts in the construction industry is limited. This research highlights the most significant project constraints and factors that result in stakeholder conflicts in the construction industry. Therefore, this study adds to the existing body of knowledge by developing an ordinal regression model that will help decision-makers and top management control this enigma of stakeholder conflicts in the construction industry.

Details

International Journal of Conflict Management, vol. 30 no. 4
Type: Research Article
ISSN: 1044-4068

Keywords

Article
Publication date: 2 May 2022

Shima Amini, Alireza Rezvani, Mohsen Tabassi and Seyed Saeed Malek Sadati

Cost overruns have been identified as the most significant challenge for construction sector stakeholders. Like many developing countries, the Iranian construction industry…

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Abstract

Purpose

Cost overruns have been identified as the most significant challenge for construction sector stakeholders. Like many developing countries, the Iranian construction industry suffers from poor cost performance. So, the current research aims to investigate the causes of cost overrun in Iranian construction projects. This paper also reviews the findings of similar studies conducted in several Asian countries.

Design/methodology/approach

This paper includes a literature review and a quantitative method with a questionnaire survey. The review is limited to the studies investigating the causes of cost overrun in an Asian country in the last decade. Moreover, the current research was conducted through a questionnaire prepared based on 43 common factors identified through the literature review. The required data were gathered from the representatives involved in handling construction activities in Iran. The collected data were analyzed based on relative importance index (RII), using the SPSS software package.

Findings

The results showed that poor site management, improper planning, fluctuation of prices of materials, lack of experience, and poor economic condition are the critical reasons for cost overrun in Iranian construction projects. The findings also indicated that among the studies conducted in Asian countries, the first three factors have the highest frequency.

Originality/value

This paper highlighted most studies concerning the cost overrun factors in construction projects in different Asian countries in recent years. Up-to-date knowledge helps to understand the complexity of this field in various periods and therefore minimizes the risk of cost overrun. This research can also be used as a benchmark for further studies to clarify similar issues in other developing countries.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 21 April 2020

Hamidreza Karami and Oluwole Alfred Olatunji

Delay causations in infrastructure projects are well reported in normative literature. However, very little is known regarding the environment-related causations which can assist…

Abstract

Purpose

Delay causations in infrastructure projects are well reported in normative literature. However, very little is known regarding the environment-related causations which can assist in developing mitigation strategies. This study aims to examine critical causations of overruns in marine construction projects.

Design/methodology/approach

A total of 73 delay factors, grouped into 16 themes, were identified from literature. Data relating to the significance of each factor were collected through a questionnaire survey administered to 151 respondents. A total number of 126 valid responses were retrieved. Reductionist methodology was used to identify the statistical significance of each delay causation.

Findings

All 73 variables analysed in the study are significant, including communication issues amongst stakeholders, inadequate planning, safety issues, deficient technical instructions and inappropriate management approaches. Others include design and construction issues, issues with project organisational structures, political and cultural factors, environmental uncertainties and complexity in resource management. The study also found estimation errors, owner's attitude, financial issues, delay in approval processes, construction strategies and unavailability of appropriate technologies for the work as influencing factors. These findings are consistent with earlier studies on other forms of projects, but they further confirm that they are very relevant to marine projects.

Research limitations/implications

Due to the diversity of marine projects, overrun factors are likely to manifest in different ways in varying project circumstances. In addition, economics, technologies and local legislation often influence project situations differently.

Practical implications

The implications of these findings will assist in growing the practicality of scheduling and contract administration theories in marine projects. Although delay causations that have been reported in normative literature are relevant to marine construction, however, some of the causations are more severe in marine projects. It is important that planners and project stakeholders are mindful of this such that they can develop their expectations to tolerate variability rather than trade impracticable blames.

Originality/value

Determining delay factors specific to marine construction projects assists stakeholders and project management community in developing dedicated strategies applicable in scheduling to prevent and correct obstructions caused by overruns. Since projects are different in types and sizes, delay observations cannot be generalised.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

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