Categorization of potential project cost overrun factors in construction industry

Karunakaran, Prashobh; Abdullah, Abd Halid; Nagapan, Sasitharan; Sohu, Samiullah; Kasvar, K K

doi:10.1088/1755-1315/140/1/012098

Cited by 13 publications

(7 citation statements)

References 12 publications

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“…The first stage of synthesizing the 152 literatures is dividing them according to 2 classifications, literatures from the developed countries and literatures from developing countries as presented in Table 2 & 3. (Afzal et al, 2019;Anish et al, 2019;Bhangale, 2016;Chandramohan et al, 2012;Cindrela Devi & Ananthanarayanan, 2017;Ghumare et al, 2019;Kant, 2018;Muthu Venkata Sekar & Mahalakshmi, 2018;Pai et al, 2018;Raju et al, 2017;Shaktawat & Vadhera, 2017;Shanmuganathan & Baskar, 2015;Sharma et al, 2020;Sharma & Goyal, 2019;Shrivastava et al, 2019;Subramani & Sivakumar, 2018;Velumani & Nampoothiri, 2019;Venkateswaran & Murugasan, 2017;Wanjari & Dobariya, 2016) Malaysia 20 (Abdullah et al, 2018;Afzal et al, 2019;Akram et al, 2017;Asmi et al, 2013;Azis et al, 2013;Hameed Memon et al, 2014;Haslinda et al, 2018;Ismail et al, 2013;Karunakaran et al, 2018;Liew et al, 2019;Memon et al, 2011Memon et al, , 2012Rahman et al, 2013;C. Ramanathan et al, 2012;C.…”

Section: Synthesis Of Resultsmentioning

confidence: 99%

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

Ismail

Ramly

Hamid

2021

IJSCET

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For decades, reputation of the construction industry has been tainted by poor cost performance caused by project cost overrun. In addition, studies by scholars worldwide have also found cost overrun to be more serious in developing countries compared to the developed countries. Despite the numerous researches addressing the issue of cost overrun in the construction industry through the years, the issue remains. Acknowledging that maintaining good cost performance is a key factor of project success and that the issue has persisted for decades, this study aims to explore the distinction of cost overrun studies that has been conducted between developed nations and developing nations. In achieving this aim, a systematic literature review is performed by following the integrative steps of PSALSAR (Protocol, Search, Appraisal, Synthesis, Analysis and Report) and PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) for screening and selecting the retrieved studies. The synthesis and screening of literatures have yielded with 152 articles which are then classified into their countries, developed countries (44) and developing countries (108). The results indicated a significant difference in the domain of research on cost overrun between the 2 nations. Despite the numerous studies on cost overrun in the developing nations compared to developed nations, the majority of the studies are not directed to any specific type construction while developed nations have moved forward to focus on more specific projects. The project with the highest attention in the developed nations is transport infrastructure construction projects, particularly rail infrastructure projects. The findings of this study have shown that there have been broad studies conducted on cost overrun in both developing nations and developed nations. However, there is a slight lacking in comprehensiveness of cost overrun studies in the developing nations, perhaps future studies on cost overrun in developing nations can be directed to more specific areas of construction projects such as those that have been performed by researchers of the developed nations.

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Section: Synthesis Of Resultsmentioning

confidence: 99%

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

Ismail

Ramly

Hamid

2021

IJSCET

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“…Flyvbjerg et al (2004) highlighted the challenges of attributing the causes of cost escalation if it was linked with ownership alone or whether the geographical location. Another study by Karunakaran et al (2018) claimed geographical location/project topology, inaccurate site investigations are common critical factors that affect cost overrun of infrastructure projects.…”

Section: Literature Review On Factors Affecting Cost Overrun In Road Constructionmentioning

confidence: 99%

Construction cost performance under quality-gated framework: the cases of Norwegian road constructions

Belay

Torp

2021

International Journal of Construction Management

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Cost increase during the planning phase of major infrastructure projects is a crucial challenge which is typical in construction management. This research aims to provide a better understanding of the cost development of road-construction projects and enhance the knowledge on various project attributes that affect cost development. A detailed cost development study (quantitatively chart the cost-trends) and analysis on cost departures at each key-milestone starting from the initial to the final cost is conducted. The impact of different project attributes/settings (size, location, and quality assurance) on cost development are investigated. The research used a dataset of 110 projects from the last two-decades and analyzed using various statistical tests such as trend-analysis, probability-plots, and cost development overtime at the different project milestones. The results showed a decrease in cost-deviation after quality assurance scheme implemented (except few projects). The overall cost development showed an average increase of 5%. The research found different project-setting affect cost development at different magnitude. It provides new insight for construction managers, quality assurers, and cost-estimators to consider different project settings at the early-phases of the project. It helps to understand the individual and combined effects of project-settings and enable decision-makers to act proactively in cost decisions.

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“…It is undoubtful that construction industry not only contributes to the growth of economy but also promotes other industries of a country [1]. Construction industry of developed and developing countries has been facing problems to achieve its construction project goals due to the highly unpredictable and variable causes like availability of resources, financial problems, environment and political conditions, contractual relations and low productivity [2]. Successful project must fulfil the prime factors of construction management including cost, time and quality [3,4].…”

Section: Introductionmentioning

confidence: 99%

Stakeholders’ Management Approaches in Construction Supply Chain: A New Perspective of Stakeholder’s Theory

Shahbaz

Chandio

Oad

et al. 2018

IJSCET

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Construction is dependent on accurate, timely and safe supply chain, otherwise whole project will be halted. Previously, it has found that most construction projects failed to complete on designated time that ultimately surges the cost as well. Although there are various approaches to deal with the situation, there is evidence that collaboration among stakeholders would reduce the risks and enhance the performance. Therefore, the aim of this study is to verify the relationship between the supply chain performance (SCP) with three stakeholder management approaches, namely supplier relationship (SR), customer relationship (CR), and risk and reward sharing (RRS). A total of 585 questionnaires were distributed using systematic probability sampling of listed construction organizations and only 258 responses were returned. The data were analyzed through the Smart PLS Software using two types of function i.e. PLS Algorithm and Bootstrapping. Based on the PLS Algorithm, the path coefficient results confirm that SR, CR, and RRS influence the SCP. It also has found that all three approaches have 56% of explaining power on SCP (R 2 value = 0.560). The bootstrapping function revealed that the three hypotheses supported and this confirmed the hypotheses are true. This study enhances the relationship among stakeholders beyond the traditional collaboration to risk and reward sharing simultaneously. This integration will provide a competitive position as all members share their expertise that will ultimately improve the quality and lead time and enrich the flexibility. Thus, it can be concluded that long-term success is heavily dependent on relationships with the suppliers, customers, risk and reward sharing. This study will help construction managers to understand the importance of good relationships while doing strategic decision making.

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Categorization of potential project cost overrun factors in construction industry

Cited by 13 publications

References 12 publications

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

Construction cost performance under quality-gated framework: the cases of Norwegian road constructions

Stakeholders’ Management Approaches in Construction Supply Chain: A New Perspective of Stakeholder’s Theory

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