Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis (original) (raw)
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Severity Analysis Of The Factors Influencing Cost Overrun In Road Projects
2019
Cost overrun appears to be a common occurrence especially in projects that involve high investments. This study investigated the cost performance in construction projects in Sri Lanka in order to identify the causes of cost overrun and their implications. A quantitative survey was performed for the targeted respondents namely employer, contractor and consultant involved in road projects in Sri Lanka. A total of 44 responses were collected from 50 sets of a questionnaire distributed. The respondents were asked to rate the listed causes on the basis of probability of occurrence and severity of the impact. The causes were ranked according to the degree of importance as responded by the target population. The findings of the study revealed that the majority of cost overrun factors with rating 6 out of 10 lie in medium severity impact zone. Results indicated that the major contributors to poor cost performance include external and material issues that have been elaborately discussed in t...
Peculiarities of Road Projects' Cost Overruns
— Road projects contribute immensely to the development of an economy, yet they do not come without their own share of challenges; among which are cost overruns. Various scholars have carried out studies on cost overruns, including a few on road projects but the peculiarities of road projects cost overruns are yet to be identified. Do these road projects cost overruns have any similarity across the studies? The identification of the peculiarities could aid in developing specific cost management methods by taking into consideration the nature of road constructions. This study therefore aims at finding the peculiarities of road projects cost overruns from the review of literature. The findings reveal that road projects are prone to cost overruns, they have very large magnitude of cost overruns and the causes of cost overruns vary for all road projects.
Analysis of Cost Overrun in Road Construction Activities – A Critical Review
Cost overruns are more common in infrastructure projects especially, more common in road construction activities. The impacts of cost overruns are very high in developing countries compared to developed countries. In fact 100% of projects are suffered by cost overruns in developing countries. For developing countries like India, Road construction activities are much affected by cost overrun due to various factors throughout the project cycle. The deviations between the actual cost incurred during construction phase and originally estimated cost is known as cost overrun and it is one of the most predominant factors affecting the successful completion of the overall project. The main objective of this study, is 1) to identify various factors which are mostly influencing the cost overrun of the construction activities, 2) to rank the factors identifies based on their impact, 3) to find out the critical factor which are mostly affecting the construction activities, finally 4) to give recommendations to overcome the critical factors. Most predominant factors influencing the cost overruns are to be sorted out from the literature survey and those factors are to be considered for preparing questionnaire survey. Responses from various companies' clients, contractors, sub-contractors and concerned authorities are to be collected. Based on the data, statistical analyses are to be done, Ranking the factors according to scores obtained from the data collection. Finally top most influencing factors causing overrun, are to be found out, Recommendations and conclusions are to be made based on the analysis of data to overcome those critical factors in future road construction activities.
Risk factors causing cost overruns in road networks
Risk factors causing cost overruns in road networks, 2022
Cost overrun is a common phenomenon observed in construction projects worldwide. It is one of the biggest challenges experienced in the construction industry that leads to overstretched budgets, and directly affects the country's gross domestic product (GDP). This study aims to identify the factors that significantly contribute to cost overrun for road network projects in Egypt during the implementation phase. A survey was conducted to determine the most critical factors affecting the cost overrun for road network construction projects. Results showed that the main factors causing cost overrun are inaccurate cost estimates, design modifications, quantity changes, variation orders, political interference, inflation, specification changes, and change in the scope of work. This study will help decision-makers identify the factors that may affect the costs of future road projects and provide guidelines to mitigate the adverse effects observed during the implementation stage.
Cost overruns in road construction--what are their sizes and determinants?
Transport Policy, 2004
This paper investigates the statistical relationship between actual and estimated costs of road construction using data from Norwegian road construction over the years 1992-1995. Based on this data a regression model is developed. The findings reveal a discrepancy between estimated and actual costs, with a mean cost overrun of 7.9% ranging from 2 59% to þ 183%. In absolute terms, cost overruns amounted to a formidable 519 million Norwegian kroners. One particular new finding that has not been shown before in previous studies is that cost overruns appear to be more predominant among smaller projects as compared to larger ones. This observation, for the Norwegian road sector in particular, leads us to assert that the greatest potential for cost savings lies in exerting pressure on smaller projects to control their costs. Other factors found to influence the size of cost overruns include completion time of the projects and the regions where projects are situated. Surprisingly, neither project type nor work force type seems to influence the level of cost overrun. Finally, the paper proposes some policy implications.
2020
Welcome from the Editors Welcome to the Malaysian Construction Research Journal (MCRJ) special issue. This journal provides a forum for dissemination of research activity broadly in the built environment. The RISM-IRC2020 is an outreach platform for surveying postgraduates and researchers with the aim to serve as an open dialogue avenue in the region on contemporary surveying and built environment issues. The conference presents the best of current systems research and practice, emphasizing innovation and quantified experience. It is aim to emerge this platform as the foremost worldwide gathering of academic researchers, Ph.D. and graduate students, top research think tanks and industry technology developers. It would also be the best opportunities for linkages, networking and talent-scout for research institutions and industry around the globe. This is the second year for the RISM QS Division organising the conference. Previously, the conference was known as RISM Postgraduate Research Conference (jointly organised by RISM and SEGi University); it was successfully brought together researchers in one venue to not only present breakthrough research in future technologies but to also promote practicality and applications and an intra-and inter-field exchange of ideas. We are very happy to have a team of excellent scientific committee and editorial board members from the national and international league covering in depth the related topics. The abstract of the twenty (20) articles are as follow;
Causes of Cost Overrun in Federal Road Projects of Ethiopia in Case of Southern District
American Journal of Civil Engineering, 2017
One of the problems has been broadly published in different literature related to construction project management is project cost overrun. To fill this gap, the study on causes of cost overrun was conducted. It was conducted on 18 road construction projects with eight case studies which is found under the southern district of Ethiopian Road Authority. Based on a comprehensive literature review and archives, 40 factors linked to project cost performance were acknowledged for analysis. Based on the percentage of maximum score rank of 40 identified factors, six top rated factors were identified. These are material price fluctuation, cost underestimation, delay in supply of raw materials, inadequate review of contract documents, lack of coordination at the design phase and lack of cost planning during pre-and post-contract stage have the highest impacts on the performance of project costs from the client's, consultants' and contractors' perspective. This study has been done through survey and case study to generate raw data. The questionnaires were distributed to 54 practitioners to evaluate the significance of the factors that causes the project cost overrun. In addition, case studies were used to find the magnitude of cost overrun on selected projects by an in-depth analysis of an archive of each project. The magnitude of cost overrun among selected project extended from 4.16% to 83.2%. While the average magnitude of cost overrun was nearly 21.52%, this is a significant amount when it compared with the number of projects.
Cost Overrun Causes in Road Construction Projects : ‘ ’ Consultants ’ Perspective ’ ’
This study is conducted to identify the cost overrun causes in road construction projects in the West Bank in Palestine from consultants’ view. A questionnaire survey of 40 consultants from was performed. The survey included 51 suggested factors through literature review. The factors are ranked according to the degree of importance as assessed by the respondents. The findings reveal that the top five affecting factors are: materials price fluctuation, insufficient time for estimate, experience in contracts, size of contract, and incomplete drawings.
Controlling Measures for Cost Overrun Causes in Highway Projects of Sindh Province
Engineering, Technology & Applied Science Research
Cost overrun is a serious issue in the construction industry worldwide, including Pakistan. Cost overrun is a critical and serious issue found in highway projects among all construction projects in Pakistan. Cost overrun occurs when the final cost of the projects exceeds the actual cost of the project. The main objective of this research is to identify the main causes of cost overrun and to determine possible mitigation measures of the identified main causes of cost overrun from contractors of highway/road projects of Pakistan. In this study, a mixed mode (quantitative and qualitative) approach was used. A deep literature review helped to identify the 30 most common causes of cost overrun in the construction industry. In the first stage, a questionnaire was developed, and a survey was carried out among professional and experts who were working with contractors in highway projects. In the second stage, a semi-structured questionnaire was developed, and a survey was carried out to det...
Conceptual Framework for Minimising Road Projects' Cost Overruns
Journal of Applied Sciences & Environmental Sustainability, 2019
Cost overruns in constructions have been studied by many scholars but the problem remain pervasive. Cost overruns in road construction projects are large leading to huge waste of financial resources, time and even abandonment of projects. Although there are studies explaining the causes of construction cost overruns, road construction cost overruns studies are subdued. This paper is part of an ongoing Ph.D. research which aims at identifying ways to minimise cost overruns of road construction projects in Nigeria. The conceptual framework, which is based on the review of literature, has been developed to aid in the identification of major causes of road construction cost overruns. Three different theories were explored; Multiple causation and Chaos Theories were used in explaining the occurrence of cost overruns while System Theory explained how it could be minimised. These theories guided in the development of the conceptual framework. The conceptual framework developed can be used in assessing the relationships between the causes of cost overruns for road construction projects in order to minimise their occurrence.