Budget overrun issues in construction projects of southern part of Malaysia (original) (raw)
Related papers
2013
Construction cost overrun has become a global concern amongst the practitioners and academic researchers because the construction projects are very rarely completed within the estimated cost limit. There are various contributing factors to cost overrun. This study focuses on cost overrun encountered in large construction projects. Data was gathered using structured questionnaire survey among clients, consultants and contractors in the states of Johor, Melaka and Negeri Sembilan of Peninsular Malaysia. Statistical methods were used to analyze the data. The survey results show that 96% of the respondents agreed that most construction projects face cost overrun with an average amount ranging from 5% to 10% of the contract sum. Investigation on the causes of cost overrun involves 35 common factors identified through the literature. Results indicate that fluctuation in materials price, cash flow and financial difficulties faced by contractors, delay in progress payment by owner, and frequent design changes were most dominant factors causing cost overrun. Spearman correlation test was conducted on the factors showing that slow information flow was highly correlated with the lack of communication between parties (with a correlation value ρ = 0.787). Standardized design practices, efficient resource planning and management and proper financial management should be considered as effective tools in controlling cost overrun especially in large construction projects.
AN ANALYSIS OF COST MANAGEMENT STRATEGIES EMPLOYED BY BUILDING CONTRACTORS ON PROJECTS IN ZIMBABWE
The construction industry is a major consumer of capital resources by virtue of the magnitude, complexity and nature of the works it executes. Yet improving cost performance still remains a chronic challenge facing the construction industry worldwide. Apart from advances made by contractors to devise mechanisms to manage project cost, studies across the world reveal that construction projects are hardly completed within budget. The Zimbabwean construction industry has not been spared either. However, this background is considered unhealthy for an industry whose capital consumption is heavy and concomitant cost overruns spell disastrous financial consequences on the investor. This study explored cost management strategies employed by contractors on building projects and also investigated the challenges that contractors encounter in managing project cost. Exploratory research design was employed making use of both questionnaires and interviews to collect data from selected contractors registered under category A, B and C of the Construction Industry Federation of Zimbabwe (CIFOZ). The study observed that in the majority of cases, contractors' efforts to manage projects costs are centred on management of project resources. Additionally, monthly cost reports, variance management, project budgets and cash flow forecasting are among the other strategies. However, in spite of the growing trend to automate cost control systems, there is evidence to suggest that the traditional paper based systems of storing and managing information is widely used in the industry. Contrary to having cost management systems in place, contractors admit experiencing cost overruns on their projects. These cost overruns are attributable to organizational related challenges, shortage of skilled personnel, and unavailability of some building materials on the local market, variations and deficiency in cost control systems.
—The paradigm shift in construction cost estimation is attributed to technological innovations in the spheres of building information modelling (BIM) and industrialised building systems (IBS). Majority of construction projects experience cost overruns which affect project objectives. The outcome of cost overruns invariably leads to disputes and further delays. Similarly, cost estimators resistance to overcoming the inertia to leap from traditional estimation methods to advanced methods further exacerbates the issues of cost estimation. This paper aims at comparing cost estimate between traditional cost estimation and advanced cost estimation. Data was collected via questionnaire from registered quantity surveying companies with the Board of Quantity Surveying Malaysia (BQSM). Subsequently, real time simulation was carried out on a sample IBS project using Autodesk Revit and Navisworks to compare cost estimates. The results revealed that BIM is accurate than bill of quantity (BOQ) as this difference results in a critical factor for large construction projects. The study was limited in terms of cost standard and database in Autodesk Navisworks. Future research can improve on the quantity coding for BIM in Malaysia. Keywords—building information modelling (BIM); industrialised building systems (IBS); cost estimation; Malaysia.
Empirical study of schedule delay in Moroccan construction projects
International Journal of Construction Management , 2018
As a chronic and a common problem worldwide, most construction projects suffer from schedule delay and construction projects in Morocco are not an exception. The aim of this study is to determine the critical causes affecting projects delays in Moroccan construction industry. Fortynine causes of delay were identified from the literature review and redefined through interviews with Moroccan experts. These causes are classified according to nine categories: client, contractor, consultant/designer, finance, planning and scheduling, communication and contractual relationship, material, labours and equipment, and external. A questionnaire survey was conducted with public and private contractors and consultants in order to assess the relative importance of construction delay causes in Morocco. A total of 330 valid responses were collected. Statistical analysis of data collected from this survey study reveals that the top-10 delay causes are: delay of progress payment, lack of training for employees, lack of waste management strategy, unrealistic contract duration imposed by clients, rework due to the construction errors, excessive subcontracting, delay in obtaining permits from governmental agencies, ineffective planning and scheduling, lack of collective planning, and unskilled workforce. These findings can be helpful for construction project managers to guide efforts in improving the performance of the Moroccan construction industry.
Controlling Cost Overrun Factors in Construction Projects in Malaysia
Research Journal of Applied Sciences, Engineering and Technology
Poor cost performance in construction project is a common problem worldwide resulting in significant amount of cost overrun. This led us to explore the major contributors of cost overrun and propose mitigation measures to control cost overrun factors. Since, there were very few studies on cost issues in construction projects in Malaysia, hence this study was carried out in Malaysia using qualitative research method using semi-structured interview with experienced personnel’s involved in handling construction projects. A total of 21 respondents from client, consultant and contractor organizations were interviewed and requested to evaluate the eight (8) categories of cost overrun factors determined from the author’s previous work. Out of the eight categories of cost overrun factors, the respondents had ranked “contractor's site management” as most severe contributor of cost overrun and followed by “information and communication” category while the least severe category is financia...