Critical Factors Influencing Cost Overrun in Construction Projects: A Fuzzy Synthetic Evaluation

Abstract

Construction industries have poor cost performance in terms of finishing projects within a budget. A fuzzy model for evaluating the critical factors of cost overrun for construction projects in China is developed by identifying, classifying and ranking cost overrun factors of the construction industries. Sixty-five cost overrun factors are identified and classified into four clusters (project macro, project management, project environment, and core stakeholders) through a detailed literature review process and a discussion with experts from the Chinese construction industry. A questionnaire survey was conducted for data collection to calculate an index of the project-influenced factors and clusters in the construction industry in China. With the help of the proposed model, it is possible to guide project managers and decision makers to make better informative decisions such as project macro, project management, project environment, and core stakeholders.

The Potential Causes of Contractual Change Orders Sourced from The Construction Phase of The Building Project

“…The lack of a soil investigation process causes inaccurate data that requires re-investigation during the work. Soil conditions are one of the factors that can cause cost overrun in building projects, especially when they are not properly investigated or accounted for in the design and planning phases [18,19]. In a building project, poor soil conditions may result in a contract change order.…”

Causas De Retraso Y Sobrecoste en Contratos De Obras Y Metodologías Utilizadas Para Su Mitigación

“…Por ejemplo, en un estudio realizado en 2021 (Durdyev, 2021) se estableció que los errores de diseño, la entrega de diseños incompletos, la estimación y planificación inexacta del proyecto, la comunicación deficiente entre las partes, la experiencia y competencia inadecuada de los participantes del proyecto, los problemas financieros del cliente y contratistas, las fluctuaciones de precios, la gestión inadecuada de contratos y las condiciones adversas del clima son las principales causas de sobrecostos en proyectos de construcción. Igualmente, una investigación reciente (Xie et al, 2022) determinó que los cambios en la política nacional, la fluctuación del tipo de cambio de moneda, la gestión inadecuada de riesgos, las enfermedades infecciosas, el incremento en los precios de materiales, la gestión inadecuada de contratos, los cambios de diseño, los diseños deficientes, y la corrupción son también los factores que más ocasionan sobrecostos en proyectos de construcción.…”

Research on the Production Capacity Evaluation of Prefabricated Component Manufacturing Enterprises

“…The research on PCP evaluation mainly considers the establishment of an evaluation index system and an evaluation method and usually focuses on the PCP evaluation that affects other industries or other aspects of the construction industry. The existing research on the establishment of an evaluation index system introduces numerous methods: literature surveys [32], field investigations, expert consultation [33], the anti-interpretive structural model method [34], and a word frequency analysis that is based on CiteSpace visualization software (5.7.R4, 2019) [35]. Thus, the research preliminarily determines factors such as the indicators, factor analysis, cluster analysis [36], principal component analysis [37], and system dynamics [38].…”