Factors influencing construction time and cost overruns on high-rise projects in Indonesia

Abstract

Many variables have an impact upon construction time and cost overruns in Indonesia. A questionnaire survey was undertaken of project managers working on high-rise construction projects in two Indonesian cities: Jakarta and Yogyakarta. The variables identified were ranked according to their perceived importance and frequencies of occurrence. Inflationary increases in material cost, inaccurate material estimating and project complexity are the main causes of cost overruns. The predominant causes of delay are design changes, poor labour productivity and inadequate planning. Using factor analysis techniques, delay and cost overrun variables were grouped into factors, and their relationships analysed. Although Indonesia specific, the results reflect construction management problems common to developing countries.Delays, Cost Overruns, Productivity, High-rise, Indonesia,

Financial-related causes contributing to project delays

“…According to Kaming et al (1997) , one of the most important factors causing delays in high-rise projects in Indonesia is the shortage of resources. In addition, Noulmanee et al (1999) investigated the causes of delays in highway construction in Thailand and concluded that one of the main causes of delays is the insuffi cient resources of an organisation.…”

A Conceptual Framework for Managing Design Changes in Building Construction

“…Josephson et al [42] note the contributing factors of design to rework in Swedish construction industry are lack of co-ordination, unsuitable design, faulty design and incomplete drawings. Kaming et al [14] describe the magnitude of design changes depend upon pre-design site investigation, the completeness of working drawings available at the time of proposal and unpredictable circumstances during construction. Consultant's inability [55], design omission [15], [27], incomplete drawings [17], design errors [51] and quality of design [44] caused cost and schedule increases.…”

“…Although design change has tremendous negative effects [64], attention paid to proactively manage the impact of these changes is limited [65]. There has been considerably research undertaken that has sought to determine the causes of time delays and cost overruns in construction projects [6], [14], [18], [22], [56], [63], [66]- [69]. Research into determining the causes of time delays and cost overruns has reached saturation point; consistently the same causal variables are identified.…”

“…[17], [19], [21], [39]- [46]) ii. Design-related [1], [14], [15], [17], [19], [21], [27], [41], [42], [44], [47]- [54] iii. Project-related [2], [21], [26], [55], [56] iv.…”

“…Design changes in building construction projects will inevitably degrade project performance [7], [11], [14], [20], [43], [63]. Although design change has tremendous negative effects [64], attention paid to proactively manage the impact of these changes is limited [65].…”