Major cost-overrun risks in construction projects in China

Wang, Jia Yuan; Yuan, Hong

doi:10.1504/ijpom.2011.042030

Cited by 14 publications

(12 citation statements)

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“…Several studies have been conducted worldwide to investigate and attempt to minimize the severity of the project cost overrun problem. These studies analysed cost overruns in projects in many different industries including civil and structural engineering construction (Mansfield et al 1994;Kaming et al 1997;Frimpong et al 2003;Flyvbjerg et al 2004;Koushki et al 2005;Creedy 2006;Azhar et al 2008;Enshassi 2009;Kaliba et al 2009;Le-Hoai et al 2008;Ali and Kamaruzzaman 2010;Wang and Yuan 2011). One of the common objectives of these studies was to identify the major factors causing project cost overruns in a particular country through opinion surveys of contactors, clients, and consultants.…”

Section: Introductionmentioning

confidence: 99%

Applying Interpretive Structural Modeling to Cost Overruns in Construction Projects in the Sultanate of Oman

2015

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Cost overruns in construction projects are a problem faced by project managers, engineers, and clients throughout the Middle East. Globally, several studies in the literature have focused on identifying the causes of these overruns and used statistical methods to rank them according to their impacts. None of these studies have considered the interactions among these factors. This paper examines interpretive structural modelling (ISM) as a viable technique for modelling complex interactions among factors responsible for cost overruns in construction projects in the Sultanate of Oman. In particular, thirteen interrelated factors associated with cost overruns were identified, along with their contextual interrelationships. Application of ISM leads to organizing these factors in a hierarchical structure which effectively demonstrates their interactions in a simple way. Four factors were found to be at the root of cost overruns: instability of the US dollar, changes in governmental regulations, faulty cost estimation, and poor coordination among projects’ parties. Taking appropriate actions to minimize the influence of these factors can ultimately lead to better control of future project costs. Thisstudy is of value to managers and decision makers because it provides a powerful yet very easy to apply approach for investigating the problem of cost overruns and other similar issues.

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Section: Introductionmentioning

confidence: 99%

Applying Interpretive Structural Modeling to Cost Overruns in Construction Projects in the Sultanate of Oman

2015

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“…Ramanathan et al, 2012;C. T. Ramanathan et al, 2011;) Pakistan 9 (Afzal et al, 2019;Akram et al, 2017;Choudhry et al, 2014Choudhry et al, , 2018Choudhry & Rehman Nasir, 2012;Hanif et al, 2016;Maqsoom et al, 2018;Samiullah Sohu et al, 2017;Zafar et al, 2016) China 6 (Afzal et al, 2019;Lou & Yin, 2010;Ma, 2011;Mansur et al, 2019;Wang & Yuan, 2011;Yuanyue & Huimin, 2018) Ghana 5 (Asiedu et al, 2017;Asiedu & Adaku, 2019;Coffie et al, 2019) Nigeria 4 (Akinradewo et al, 2019;Akinsiku et al, 2014;Amadi & Higham, 2019;Amusan et al, 2018;Hingham, 2016) Saudi Arabia 4 (Alghonamy, 2015;Mahamid, 2013Mahamid, , 2018Seddeeq et al, 2019) South Africa 4 (Khabisi, 2012;Monyane et al, 2018;Mulalo et al, 2018 (Jung et al, 2016;Kavuma et al, 2019;Qiao et al, 2019) Vietnam 3 (S. Kim et al, 2017;S. Y. Kim et al, 2018;Pham et al, 2020) Others 21 (Afzal et al, 2019;Al-hazim et al, 2017;Alzebdeh et al, 2015;Apolot & Tindiwensi, 2013;…”

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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“…Sedangkan Mahamid & Dmaidi (2013) melakukan penelitian peningkatan biaya dari sudut pandang konsultan, hasilnya menunjukkan bahwa lima faktor teratas yang mempengaruhi adalah: situasi politik, fluktuasi harga bahan, ketidakstabilan ekonomi, pertukaran mata uang, dan tingkat pesaing. Isamil (2014), melakukan analisa risiko cost overun pada sejumlah proyek konstruksi di Malaysia dari hasil penelitiannya terdapat 9 faktor risiko tinggi terjadinya cost overrun, yaitu: manajemen dan pengawasan lokasi yang buruk, subkontraktor yang tidak kompeten, keterlambatan jadwal, perkiraan waktu dan biaya yang tidak akurat, kesalahan selama konstruksi, desain yang tidak lengkap pada saat tender, desain dan keterlambatan desain yang buruk, klaim kontrak, seperti, perpanjangan waktu dengan klaim biaya, dan kontrol keuangan yang buruk di lokasi Wang & Yuan (2011), melakukan penelitian di sejumlah proyek konstruksi di China hasil penelitian mengidentifikasi faktor risiko penyebab pembengkakan biaya pada proyek konstruksi di China adalah ketersediaan modal klien, perubahan design, variasi order, Inflasi harga material bangunan, dan Management yang buruk.Chen, (2016) menyatakan bahwa ada tiga faktor penyebab utama pembengkakan biaya dalam proyek konstruksi sektor publik di Afrika Selatan yaitu pesanan variasi, perubahan ruang lingkup proyek dan arus kas dan kesulitan keuangan yang dihadapi oleh kontraktor. Gupta & Kumar (2020) dalam penelitiannya menyatakan bahwa faktor signifikan dari pembengkakan biaya yang diidentifikasi adalah Inflasi dan eskalasi harga material, perubahan oleh pemilik, biaya transportasi tinggi, sering rusaknya pabrik dan peralatan konstruksi dan pengerjaan ulang karena kesalahan selama konstruksi.…”

Section: Hasil Dan Diskusiunclassified

Analisis Risiko Cost Overrun (Pembengkakan Biaya) Pada Proyek Konstruksi: Kajian Literatur

Puteri

Dhiu

Syharto

et al. 2022

JRSL

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Cost is a fundamental component of any construction project. Observations show that cost overrun is a significant phenomenon in the construction industry worldwide. Therefore, it is essential to know the factors that cause cost swelling. This paper aims to identify the recent top significant factors causing the swelling of construction project construction costs in both developed and developing countries (in particular) according to many variables over the last three decades. Through a comprehensive literature review, the most common and most common causes of cost swelling worldwide and developing countries, in particular, are listed; the factors are: Estimation Errors, Addition of items/VO, Finance, Team Participation, and environment, respectively factors are prioritized according to their emergence, and it is concluded that cost overrun factors vary significantly across countries. The studies on cost overrun factors in construction projects provide a reference for other projects that may be executed under similar circumstances and provide valuable information for international companies intending to provide construction projects. ABSTRAK Biaya adalah komponen mendasar untuk setiap proyek konstruksi. Hasil pengamatan menunjukkan bahwa pembengkakan biaya (cost overrun) adalah fenomena utama dalam industri konstruksi di seluruh dunia. Oleh karena itu, penting untuk mengetahui faktor yang menyebabkan pembengkakan biaya. Tujuan penelitian ini adalah untuk mengidentifikasi faktor-faktor utama teratas terbaru penyebab pembengkakan biaya proyek konstruksi baik di negara maju dan berkembang (khususnya) menurut banyak variabel selama tiga dekade terakhir. Melalui tinjauan literatur yang komprehensif, yang paling umum dan penyebab pembengkakan biaya yang sering terjadi di seluruh dunia dan negara-negara berkembang khususnya, faktor-faktornya adalah: Kesalahan Estimasi, Penambahan item/VO, Finance, Partisipasi Tim dan lingkungan, masing-masing faktor diprioritaskan menurut kemunculannya dan disimpulkan bahwa faktor penyebab cost overrun sangat bervariasi di seluruh negara. Studi tentang faktor penyebab pembengkakan biaya dalam proyek konstruksi akan memberikan referensi untuk proyek lain yang mungkin dieksekusi dalam keadaan serupa dan juga akan memberikan informasi berharga bagi perusahaan internasional yang bermaksud untuk menyediakan proyek konstruksi.

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Major cost-overrun risks in construction projects in China

Cited by 14 publications

References 0 publications

Applying Interpretive Structural Modeling to Cost Overruns in Construction Projects in the Sultanate of Oman

Applying Interpretive Structural Modeling to Cost Overruns in Construction Projects in the Sultanate of Oman

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

Analisis Risiko Cost Overrun (Pembengkakan Biaya) Pada Proyek Konstruksi: Kajian Literatur

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