Analysis of Time and Cost Overrun in Malaysian Construction

Ramanathan, Chidambaram; Potty, Narayanan Sambu; Idrus, Arazi

doi:10.4028/scientific5/amr.452-453.1002

Cited by 13 publications

(21 citation statements)

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“…The Malaysian construction industry acts as the country's epicenter of growth (Memon et al, 2013) and has been propelled by demand for projects (Endut, 2008). Hence, it offers a significant contribution towards developing the nation (Sambasivan and Soon, 2007;Ramanathan et al, 2012), but the industry is plagued with delays in project delivery. Delays in construction projects have been a research topic for decades (Doloi et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Factors contributing to project time and hence cost overrun in the Malaysian construction industry

Shehu¹,

Endut²,

Akintoye

2014

Journal of Financial Management of Property and Construction

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Purpose – The delivery of construction projects in Malaysia is plagued by time overruns, which turns what should have been successful projects into those incurring additional costs, or money-losing ventures; as well as leading to various other unexpected negative effects and faute de mieux situations. The purpose of this research is to assess those factors leading to time overrun in Malaysian construction projects. The perceptions of public and private sectors, contractors, clients, and consultants are compared relative to a list of factors derived from the review of extant literature in project delay. Design/methodology/approach – The research data were collected through an industry-wide questionnaire survey circulated across the Malaysian construction industry. The research develops a list of 84 time overrun factors. Responses were collected from 49 clients, 51 contractors, and 105 consultants, to explore and analyse the major factors that are responsible for causing time overrun based on sectors (public and private), organisations (clients, contractors and consultants) and professional roles. Findings – Project delays beyond contract dates are predominantly caused by contractors and are usually associated with financial factors. “Cash flow problems faced by the contractors” was found the major factor, which contributed to project delays, whereas “storage on site” was seen as the least significant factor. Practical implications – It is noteworthy that the findings in this research have a regional focus; it is, therefore, suggested that readers from other sections of the world exercise caution in applying the findings. As it is believed that every construction industry has its nature, culture and regulations, these factors can change as a result of such differences. Originality/value – This research provides stakeholders with information on factors, which, if properly understood, can make project delays less likely.

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Section: Introductionmentioning

confidence: 99%

Factors contributing to project time and hence cost overrun in the Malaysian construction industry

Shehu¹,

Endut²,

Akintoye

2014

Journal of Financial Management of Property and Construction

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“…Problem prekoračenja vremena i troškova u građevinarstvu se smatra globalnim fenomenom [7] kako u razvijenim, tako i u zemljama u razvoju. Građevinska industrija igra vitalnu ulogu u socioekonomskom napretku zemlje [8] te je stoga potreba za rješavanjem problema prekoračenja prilično izražena i važna.…”

Section: Uvod I Cilj Istraživanjaunclassified

Prekoračenja rokova i proračuna građevinskih projekata – studija slučajeva

Tijanić

Car-Pušić

2019

Zb. rad. (Građev. fak. Rij., Online)

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Građevinski projekt je nerutinski, neponovljivi i jedinstveni pothvat koji ima zasebne vremenske, financijske i tehničke izvedbene ciljeve. Upravljati građevinskim projektom znači primijeniti znanja, vještine i tehnike radi regulacije tijeka projektnih aktivnosti kako bi se ostvarili ciljevi projekta. To primarno znači završetak unutar ugovorenog roka i proračuna projekta, uz zadovoljavajuću kvalitetu izvedbe. Problem prekoračenja ugovorenog roka i proračuna globalna je pojava, kako u razvijenim, tako i u zemljama u razvoju. Stoga je i često u središtu istraživačkog interesa s različitih aspekata promatranja. Pritom se koriste razne istraživačke metode i matematički alati obrade podataka. Cilj ovog rada je prepoznati veličine i uzroke prekoračenja u projektima te dati smjernice za njihovo smanjenje. U svrhu istraživanja korištena je „multiple case-study“, tj. studija više slučajeva. Prikupljeni su podaci za dvanaest različitih projekata koji su se izvodili na području Republike Hrvatske u 2018. godini. Podaci uključuju tehničke karakteristike objekata, ugovorene rokove i troškove, kvalitetu izvedbe, veličine prekoračenja te uzroke njihovog nastanka. Podaci su prikupljeni uvidom u dokumentaciju te intervjuiranjem voditelja svakog pojedinog gradilišta. Analizom i obradom podataka prepoznati su trendovi prekoračenja, kao i slabe točke u planiranju i vođenju navedenih projekata, na temelju čega su dane smjernice i preporuke u svrhu smanjenja prekoračenja rokova i troškova u budućim projektima.

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“…Several authors considered conflict, dispute, arbitration, and costly litigation as a result of this delay and cost overrun. 12,13 An examination of the Malaysian annual audit report from 2006 to 2014 confirmed that the aforementioned problems still have remained in the industry. The abovementioned problems increased the rate of the claims as the main problematic issues in this industry.…”

Section: Introductionmentioning

confidence: 99%

Building information modeling in construction conflict management

Charehzehi

Chai

Yusof

et al. 2017

International Journal of Engineering Business Management

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Dispute is recognized as critical cause of deficiency and low performance in construction projects. Plenty of studies have been done in construction dispute management recently; however, there are no studies on construction dispute elimination. This study aims to propose a building information modeling (BIM) approach to control conflict causes before the occurrence of dispute. BIM is one of the latest platforms that promote a high level of collaboration, information sharing, and coordination where its implementation ranges from project initialization to completion stage. The circumstances associating with BIM technology can be utilized to explore the possibilities in conflict and dispute resolution system. Questionnaire surveys are used to collect the primary data. Analytical hierarchy process (AHP) and multi attribute utility technique (MAUT) are adopted to develop an algorithm and a decision-making framework to manage and resolve the potential conflict causes, particularly for the Malaysian construction industry. Data analysis emerged that five critical conflict factors in Malaysian construction industry are insufficient monitoring of CPM scheduling and updates requirements; failures to understand and correctly bid or price the works; delay in running bill payment; inadequate contractors' management, supervision, and coordination; and error and omission in design that are originated from time, cost, quality, and documentation. Further analysis to prioritize BIM functions in construction conflict management has been done by the combination of AHP and MAUT results. Consequently, it is affirmed that clash detection and cost estimating, 4D scheduling, 3D visualization and structure analysis as BIM functions obtained the highest score to control conflicting factors.

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Analysis of Time and Cost Overrun in Malaysian Construction

Cited by 13 publications

References 0 publications

Factors contributing to project time and hence cost overrun in the Malaysian construction industry

Factors contributing to project time and hence cost overrun in the Malaysian construction industry

Prekoračenja rokova i proračuna građevinskih projekata – studija slučajeva

Building information modeling in construction conflict management

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