Showing papers on "Cost overrun published in 2018"

Five things you should know about cost overrun

Abstract: This paper gives an overview of good and bad practice for understanding and curbing cost overrun in large capital investment projects, with a critique of Love and Ahiaga-Dagbui (2018) as point of departure. Good practice entails: (a) Consistent definition and measurement of overrun; in contrast to mixing inconsistent baselines, price levels, etc. (b) Data collection that includes all valid and reliable data; as opposed to including idiosyncratically sampled data, data with removed outliers, non-valid data from consultancies, etc. (c) Recognition that cost overrun is systemically fat-tailed; in contrast to understanding overrun in terms of error and randomness. (d) Acknowledgment that the root cause of cost overrun is behavioral bias; in contrast to explanations in terms of scope changes, complexity, etc. (e) De-biasing cost estimates with reference class forecasting or similar methods based in behavioral science; as opposed to conventional methods of estimation, with their century-long track record of inaccuracy and systemic bias. Bad practice is characterized by violating at least one of these five points. Love and Ahiaga-Dagbui violate all five. In so doing, they produce an exceptionally useful and comprehensive catalog of the many pitfalls that exist, and must be avoided, for properly understanding and curbing cost overrun.

The Impacts of Transportation Infrastructure on Sustainable Development: Emerging Trends and Challenges.

Abstract: Transportation infrastructure has an enormous impact on sustainable development. To identify multiple impacts of transportation infrastructure and show emerging trends and challenges, this paper presents a scientometric review based on 2543 published articles from 2000 to 2017 through co-author, co-occurring and co-citation analysis. In addition, the hierarchy of key concepts was analyzed to show emerging research objects, methods and levels according to the clustering information, which includes title, keyword and abstract. The results expressed by visual graphs compared high-impact authors, collaborative relationships among institutions in developed and developing countries. In addition, representative research issues related to the economy, society and environment were identified such as cost overrun, spatial economy, prioritizing structure, local development and land value. Additionally, two future directions, integrated research of various effects and structure analysis of transportation network, are recommended. The findings of this study provide researchers and practitioners with an in-depth understanding of transportation infrastructure’s impacts on sustainable development by visual expression.

Critical factors affecting cost performance: a case of Ethiopian public construction projects

Abstract: A striking feature of public construction projects worldwide has been the occurrence of cost overrun, and the Ethiopian construction industry is no exception. The purpose of this study is to determ...

Cost Overrun Factor Analysis for Hospital Projects in Vietnam

Abstract: Many governments in the world are now under heavy pressure for improving services of health care whilst always attempt to use their scarce resources efficiently. Hospital buildings are basically one of the important elements of health care systems. This paper aims to determine factors causing cost overrun in Vietnamese hospital projects. Survey questionnaire and Exploratory Factor Analysis (EFA) are two main methods. The finding indicates that main groups causing cost overrun in hospital projects are: additional work, material cost, and delays. Based on groups of cost overrun, twenty factors were also discovered as well as ranked. In addition, solutions were suggested to solve the cost overrun issue, and then comparisons with previous studies were presented. Results of the study could be applied to monitor policies for the management of hospital projects, and support practitioners in attaining the success of hospital projects.

Repercussion of Large Scale Hydro Dam Deployment: The Case of Congo Grand Inga Hydro Project

Abstract: The idea of damming the Congo River has persisted for decades. The Grand Inga project, of up to 42 GW power generation capacity, can only be justified as part of a regional energy master plan for Africa, to bridge the energy gap on the continent. Proponents of very large dams have often exaggerated potential multiple benefits of a mega dam, marginalise environmental concerns and neglect the true risk of such projects, in particular for the fragile economies of developing countries. Studies have reported the financial risks, cost overruns and schedule spills associated with very large dams. In addition, most of the dams in the region are poorly managed. Therefore, the type and scale of Grand Inga is not the solution for millions of not yet electrified people in Sub-Saharan Africa. In this research, scenarios are defined based on announced costs and expected costs. Cost escalations in the range from 5% to 100% for the Inga project in 2030 and 2040 are considered, as average cost overruns are typically at about 70% or higher for similar mega-dams. It was found that when the cost overrun for the Grand Inga project exceeds 35% and −5% for 2030 and 2040 assumptions, respectively, the project becomes economically non-beneficial. In all scenarios, Sub-Saharan Africa can mainly be powered by solar photovoltaics to cover the electricity demand and complemented by wind energy, supported by batteries. Hydropower and biomass-based electricity can serve as complementary resources. The grid frequency stability of the power system is analysed and discussed in the paper. Benefits of the Inga hydropower project have to be increasingly questioned, in particular due to the fast cost decline of solar photovoltaics and batteries.

Improving cost and time control in construction using building information model (Bim): A review

Abstract: The control of cost and time in construction projects is one of the most important issues in construction since the emergence of the construction industry. A successful project should meet not only quality output standards, but also time and budget objectives. The management and control of cost and time in construction is fundamental in every project. An effective cost and time management and control technique for construction projects is important in managing risk of cost overrun and delay in completion of projects. Construction projects are becoming more complex as they now involve many stakeholders from different disciplines. The emergence of Building Information Model (BIM), an alternative technology is believed to solve issues related to project cost and time control as it efficiently increases collaboration between stakeholders. The aim of this paper is to review and summarise the causes of delay and cost overrun in construction industries, which are the main causes of disputes and abandonment of projects in the industry. It was found that delays and cost overrun eat deep into the industry and leave the construction industry with a bad image for decades even with rapid advancement in technology. The review of the applications of BIM showed that most of the applications are geared towards minimising construction cost and time spent on projects. This means that the use of BIM in the management of construction projects has great impact on project cost and time.

Model of Predicting Cost Overrun in Construction Projects

Abstract: During the construction phase, significant differences between the planned and actual costs of construction projects frequently occur. The paper describes the concept of a model of prediction of the increase in the costs of construction works in relation to those planned. The assumption of the model is to determine the probability of the cost increase for the elements of the object for which it is the largest. A fuzzy Mamdani inference method was proposed for the selection of the elements to be evaluated. In the cost prediction model, fuzzy relations and the compound max-min relations were used. The result of the model are the probabilities of cost overrun for works most exposed to changes in costs. The model can be helpful mainly for the contractor who wants to know not only the probability of the total cost overrun but also the possibility and amount of increase in the costs of individual packages of works or detailed construction works necessary to complete a construction project. Such an approach may help to properly plan expenses related to the implementation and schedule of works along with the cash flow for the project.

Effect of Change Orders on Cost and Schedule Overruns of School Building Renovation Projects

Abstract: Change orders are common problems in construction projects, and the effect of change orders on cost and schedule have been studied. However, few studies have considered the effect of change...

Investigation on the Factors Influencing Construction Time and Cost Overrun for High-Rise Building Projects In Penang

Abstract: Time and cost overruns have become one prominent issue for most construction projects around the world. Project costing and timeframe extension had been causing a lot of wastage and loss of opportunity for many parties involved. Therefore, this research was carried out to investigate the factors influencing time and cost overruns for high-rise construction projects in Penang, Malaysia. A set of questionnaires survey was distributed to the project managers who had been or currently involved in the high-rise building projects in Penang to get their input and perceptions for each factor identified as well as its frequency of occurrence. In order to rank all the factors gathered, the mean index of the most distinguishing factors and its frequency of occurrence were multiplied to get the severity index. The results revealed that for time overrun, the most predominant causes were due to design changes, inadequate planning and scheduling and poor labor productivity. Meanwhile, the predominant causes of cost overrun were poor pre-construction budget and material cost planning, inaccurate quantity take-off and materials cost increased by inflation. The significance of establishing the issues related to time and cost overruns for the high-rise building construction project is to provide a greater insight and understanding on the causes of delays, particularly among the main project players: contractors, client, and consultants.

Road Design Layer Detection in Point Cloud Data for Construction Progress Monitoring

Abstract: Poor performance in transportation construction is well documented, with an estimated $114.3 billion in global annual cost overrun. Studies aimed at identifying the causes highlighted tradi...

Assessing the risk perception of cost overrun through importance rating

Abstract: Cost overrun in construction projects is a common issue affecting project performance. After a review of the literature, a list of 39 cost overrun attributes were gathered and presented in a survey. The survey was distributed online to construction professionals. 101 complete responses were received and analyzed by importance index, frequency index, cost index, frequency adjusted cost index, Spearman’s rank correlation, student’s t-test, risk assessment and factor analysis. The results of the survey revealed that the main causes of cost overrun in construction industry include inaccurate cost estimation, improper planning and scheduling, unrealistic contract duration and requirements, frequent changes to the scope of work, frequent design changes, inadequate labor/skill availability, inflation on costs of machinery, labor, material and transportation.

Delays and Cost Overruns Causes During Construction of Palm Oil Refinery Projects

Abstract: Delays and cost overruns are obviously common problems in the construction industry in several developed and developing nations. The purpose of this study is to identify factors cause delays and cost overruns in the construction of palm oil refinery projects in Malaysia. A questionnaire survey of a randomly selected sample was filled by 89 respondents. The questionnaire included 179 factors which classified into 13 groups. The degree of importance of the delays and cost overrun factors were evaluated and ranked by importance degree, based on the viewpoints of stakeholders. The data was analytically investigated by descriptive statistic methods and Relative Important Index (RII). The results of RII showed that Delays in subcontractor’s work, Lack of subcontractor skill, and Poor/inadequate planning and scheduling with RII 0.78, 0.77, and 0.75, respectively, are the most important causes. These causes represent the baseline margin for project management of palm oil refinery construction and development. According to these results, it is suggested that: project client should collaborate with contractors and simplify payments procedures to mitigate delays; coordinate continuously and enhance the association among project stakeholders are obligatory in order to improve the project performance.

Renewable energy alternatives to mega hydropower: a case study of Inga 3 for Southern Africa

Abstract: Author(s): Deshmukh, R; Mileva, A; Wu, G C | Abstract: We assess the feasibility and cost-effectiveness of renewable energy alternatives to Inga 3, a 4.8-GW hydropower project on the Congo River, to serve the energy needs of the host country, the Democratic Republic of Congo (DRC), and the main buyer, South Africa. To account for a key uncertainty in the literature regarding the additional economic impacts of managing variable wind and solar electricity, we built a spatially and temporally detailed power system investment model for South Africa. We find that a mix of wind, solar photovoltaics, and some natural gas is more cost-effective than Inga 3 to meet future demand except in scenarios with pessimistic assumptions about wind technology performance. If a low load growth forecast is used, including Inga 3 in the power mix results in higher system cost across all sensitivities. In our scenarios, the effect of Inga 3 deployment on South African power system cost ranges from an increase of ZAR 4300 (US$ 330) million annually to savings of ZAR 1600 (US$ 120) million annually by 2035. A cost overrun as low as 20% makes the Inga 3 scenarios more expensive in all sensitivity cases. Including time and cost overruns and losses in transmission from DRC to South Africa make Inga 3 an even less attractive investment. For DRC, through analysis of spatial datasets representing technical, physical, and environmental constraints, we find abundant renewable energy potential: 60 GW of solar photovoltaic and 0.6–2.3 GW of wind located close to transmission infrastructure have levelized costs less than US$ 0.07 per kWh, or the anticipated cost of Inga 3 to residential consumers.

Causes of Construction Projects Cost Overrun in Brazil

Abstract: This paper presents a survey on construction projects cost performance in Brazil with an analysis of cost overrun causes of the works based on the contractors’ point of view After a literature review and field research, several causes were identified and evaluated by frequency, severity, and importance through a questionnaire The field survey conducted included 11 directors, 17 project managers and 19 area managers of different construction companies Eighty-five causes of cost overrun were identified and classified in 11 departments with internal and external influences The research shows that 71% of the 238 contracts of the study have their costs exceeded, being 82% in amounts up to 25% of the initial agreement and 18% above 25% The most striking causes identified by the three parties were the change of scope, lack of design detail during budgeting, and high indirect cost in a period of low productivity

Optimal cost overruns: procurement auctions with renegotiation

Abstract: Cost overrun is ubiquitous in public procurement. We argue that this can be the result of a constrained optimal award procedure: The procurer awards the contract via a price-only auction and cannot commit not to renegotiate. If cost differences are more pronounced for a fancy than a standard design, it is optimal to fix the standard design ex ante. If renegotiation takes place and the fancy design has higher production costs or the contractor's bargaining position is strong, the final price exceeds the initial price. Moreover, the procurer cannot benefit from using a multi-dimensional auction, i.e., under the optimal scoring auction each supplier proposes the standard design.

Accidents in Construction Sites: A Study on the Causes and Preventive Approaches to Mitigate Accident Rate

Abstract: Accidents occur at construction sites are due to the faults of either the construction companies or the workers themselves (Wahab, 2017). It is disheartening that the victims suffer injuries, death, loss or damage of properties. At the same time, construction accidents also has the cost and time implication on the projects. These can cause cost overrun and delay in completion of projects(Asanka and Ranasinghe,2015).The purposes of this study are to obtain the feedback from the respondents in Klang district, Selangor on the causes of construction accidents, identifying the more prevalent types of accidents occurring at the sites and suggesting preventive actions to mitigate accident rate at the sites. The targeted respondents are professionals in CIDB registered construction companies under category G7.This study will focus on the construction accidents caused by human errors which can be prevented. Construction accidents caused by natural disasters are unpredictable and at best, the contractor can only make resolution to minimise damages and injuries (Perecmen, 2018).

Factors Affecting Performance and Time Extension of ongoing Construction Projects under Town Development Fund, Nepal

Abstract: Problems related to performances of the construction projects appear through different directions. Most of the projects fail either in time performance or in cost performance or both. So, the factors assessment in contemporary condition is most. This research was designed to conduct study of ten numbers of underconstruction projects funded by German government-owned development bank, KfW (Kreditanstalt fur Wiederaufbau) via TDF. Questionnaire surveys were conducted and examination of records from concerned representatives of the client, consultants and contractors within the research area has been carried out. The factors affecting the overall project performance were ranked using ‘five-point’ scale ranged from 1 (not important) to 5 (extremely important) and transformed to Relative Importance Index (RII). All projects under study have been granted extension of time based on the Public Procurement Act (PPA) 2063 and Public Procurement Regulation (PPR) 2064.This study shows material related factors as the most important factors among 8 numbers of groups for time overrun in projects. The potential effect of the time overrun in project is cost overrun followed by arbitration, Litigation, Dispute arousal and Total abandonment. The major factors that affect the performance of the project according to the ranking based on RII value for the perceived view of the client, consultants and the contractors on factors affecting the performance are Design related issues, shortage of materials, Quality related issues, slow decision making, construction methodology, labour supply, payment related issues, site management ,discrepancies in contract documents, flaws in organisational structure, interfaces, productivity, change orders, unforeseen site condition, weather conditions and regulatory changes that affect the overall project performance. The major factors identified needs to be addressed to minimize the project time overrun and hence its effects on the Project.

Assessing Egyptian construction projects performance using principal component analysis

Abstract: Purpose The construction sector is a major contributor to the Egyptian economy and gross domestic products, plus considered as one of its fastest-growing sectors. Various deficiencies such as low productivity, delays, cost overrun, poor quality, etc. have plagued the construction sector, leading to undesirable project performance across Egypt and several other countries. One of the best methods to measure and improve performance evaluation and consequently a step toward industry improvement is key performance indicators (KPIs). The paper aims to discuss this issue. Design/methodology/approach A questionnaire survey was conducted to identify the importance index for 35 KPIs. The KPIs were identified and selected based on an extensive literature review and one on one interview with expert construction professionals. Moreover, exploratory factor analysis method has been used to analyze and determine the inter-relationships between the set of indicators. Findings Seven indicators that have the highest importance indicator were selected to create project overall performance indicator assessment models to consistently measure the performance of different construction projects. Seven equations are introduced reflecting the output of the research while considering both organization size and project type. Practical implications The proposed evaluation assessment models can be used to: evaluate the relative success of projects; indicate the areas of strengths and weaknesses in performance and establish company benchmarking. Three projects were selected to validate the performance evaluation models. Originality/value This paper provides mathematical assessment models for evaluating overall construction project performance in Egypt, taking into consideration organization size and project type. Previously published research works on the subject matter are quite limited, and frequently deal with only one or two selected aspects.

Factors Influencing the Construction Time and Cost Overrun in Projects: Empirical Evidence from Pakistani Construction Industry

Abstract: Construction industry plays critical role in the development of any country. Construction projects in developing countries usually face the time and cost overrun, hence affecting the profit and overall performance of the contractors. This paper aims to analyze the factors influencing the time overrun and cost overrun in Pakistani construction projects. The data in this research was collected by means of questionnaire survey from 113 construction projects. Regarding the design and documentation related issues, design changes during construction and improvements to standard drawings are critical factors influencing time overrun and cost overrun. Whereas for the labor related issues, bad performance of subcontractors and nominated suppliers and poor technical performance and shortage of technical staff are found to be critical factors. Among procurement issues, material fluctuation and shortage of material is found to be critical factor. Whereas for site operation issues, problem in land acquisition is the critical factor influencing time and cost overrun.

Improving the accuracy and operational predictability of project cost forecasts: an adaptive combination approach

Abstract: Conducting an early warning forecast to detect potential cost overrun is essential for timely and effective decision-making in project control. This paper presents a forecast combination model that adaptively identifies the best forecast and optimises various combinations of commonly used project cost forecasting models. To do so, a forecast error simulator is formulated to visualise and quantify likely error profiles of forecast models and their combinations. The adaptive cost combination (ACC) model was applied to a pilot project for numerical illustration as well as to real world projects for practical implementation. The results provide three valuable insights into more effective project control and forecasting. First, the best forecasting model may change in individual projects according to the project progress and the management priority (i.e. accuracy, outperformance or large errors). Second, adaptive combination of simple, index-based forecasts tends to improve forecast accuracy, while mit...

Influential Factors in Construction Industry of Yemen

Abstract: Delay in the construction industry is a global phenomenon and are considered as one of the most persistent problems throughout the world. Its persistence lie in its significant cause to cost overrun which most often than not lead to abandoning the project. Although such in present more in some countries as against others, the construction industry of Yemen is no exception to it. The key controlling features of project success—time, cost, quality and safety—for a project are adversely affected by the impacts of such delays. The time extension in construction projects has many after effects among which the main are time extension, cost overrun, disputes, arbitrations and litigations. Previous studies have mostly emphasized on the major causes or the effects of project delays. The main purpose of this study is to identify the influential factors negatively affecting project successful completion on time. Using a picked set of 33 factors, this investigation at first recognized the key components influencing project completion in Yemen. A study has surrounded the reason of this survey and distributed to study. The result covers that the 5 critical factors which significantly impact to project successful completion including money cash flow during construction, the conflict between owners and other parties, delay in running bill payments for the contractor, poor project management, and slow decisions from the owner. The impact of (IF) contrarily impacts to time extension cost overrun, adversely influence to the fulfillment of the stakeholder, adversely influence to specialized specification and adversely influencing to satisfaction all meeting all the project goals/safety. These revelations are required to be basic obligations to Yemen construction industry in controlling the time and cost overpower being created.

Process Information Modelling (PIM) Concept for On-site Construction Management: Hong Kong Case

Abstract: When compared to the manufacturing industry, the advances of intelligent and seamless project management approaches lag behind in the construction industry. This is due to the complexity of the construction projects as well as various stakeholders who acquire specific interest of the project. For instance, public building construction has many sub-tasks and numerous systematised working processes such as planning, mobilisation, scheduling, procurement and controlling. The management of the processes of each phase of the project life cycle is of great importance in order to prevent project delay and cost overrun. A particular importance is required if construction robotics is involved since precise process and scheduling information as well as feedback are critical to ensure each task is completed accordingly. This paper proposes a holistic system approach, which focuses on the process-oriented management for on-site construction. To succeed, the Process Information Modelling (PIM) concept is introduced. The main goal of PIM is to integrate Building Information Modelling (BIM) for extensible solutions with a process-based database platform, which allows for smooth data transfer and supports continuous data sharing among all stakeholders. The overall aim is to develop a collaborative way of planning, designing, producing, assembling and managing the entire project life cycle strategy. Digital documentation, simulation and real-time data are produced progressively to facilitate decision-making. A case study applying the PIM concept for the facade painting task by a painting robot for an on-going consultancy project commissioned by the construction industry council (CIC) in Hong Kong is presented. This paper is the revised version of the paper that has been published in the proceedings of the Creative Construction Conference 2018 (Pan et al., 2018).

Categorization of potential project cost overrun factors in construction industry

Abstract: Cost overrun has been severely hit down the economy and reputations for many construction industry around the world. Many project management tools developed to control the budget of a project. However, the cost management is still considered poor as there are many cost overrun issues occurred in the construction industry. Thus, this paper aims to identify and cluster the potential construction project cost overrun factors according to their originating groups using the thematic approach. Basically, through literature review, all the potential factors that may cause cost overrun were screened thoroughly before they were clustered into seven (7) groups of the originating factors, namely project, contract, client, contractor, consultant, labour and external. Each potential factor was explained clearly with some examples based on the Malaysian case studies to illustrate the cost overrun scenario. These findings may aid in the future to highlight on how to mitigate the critical potential factors of cost overrun to reduce or overcome its impact on all the stakeholders involved.

The need for a competencies' assessment framework for the malaysian construction project managers

Abstract: For decades, as a developing country, construction industry remains as one of the largest and most important industries in Malaysia especially in terms of job creation. However, project failures in terms of project delay and cost overrun are observed more severe than the global average. While there are many reasons that may contribute to these problems, but recent studies carried out globally by the well-known researchers in project management have found that the competency of project manager, being one of the most important persons from initiating, to closing of the project, is one of the most crucial factor affecting project success. Many developed nations have come out with their project management assessment and certification standards, in order to train, assess, and certify the qualified project managers that are equipped with the necessary and required competencies and skills, but there is an absence of project manager’s competencies assessment and certification standards in Malaysia until to date. This paper presents the literature review that have been carried out on the need for a competencies assessment framework for the Malaysian construction project managers.

An Investigation on Virtual Information Modeling Acceptance Based on Project Management Knowledge Areas

Abstract: In the contemporary construction management, poor project performance, cost overrun, and low-quality construction have become a central point of attention for improving project performance including information, interaction and communication management. Virtual design and building information modeling play indispensable role in improving the project performance. The aim of this study is to investigate the benefits and challenges of Virtual Information Modeling as a novel information and communication technology method on project management knowledge areas in the construction industry. Using one-sample T test with Kolmogorov-Smirnov approach, we analyzed data collected from structured questionnaire survey involving project managers working at architecture, engineering and construction industries in Tehran, Iran. The results with 64% response rate suggest that the most important benefits and challenges of using Virtual Information Modeling are related to the area of integration, and implementation of Virtual Information Modeling has significant impact on project integration management knowledge in compare with other project management knowledge areas. Thus, integration should be considered a top priority for construction companies implementing Virtual Information Modeling in their projects. Policymakers should understand that careful management of virtual information is essential for improving the performance of projects and enhancing the process efficiency.

Risk Attributes, Influencing the Time and Cost Overrun in Joint Venture Construction Projects of Pakistan

Abstract: Business collaborations formed by construction contractors to enhance their abilities and effectiveness in large construction projects are known as construction joint ventures (CJVs). It is widely used as a way of merging assets, capitals, funds, resources and expertise of different organizations. It helps business to grow faster, increase efficiency and generate greater profits without borrowing money. Though it is useful and beneficent for the vendors, it may contain several types of risk. It is both beneficial and stimulating due to differing technical skills, economic and political atmospheres, and cultural and legal backgrounds. Recent development and modernization in Pakistan have led it towards a new construction phase, which involves national and multinational joint venture projects. Global and local CJVs have become gradually prevalent to produce mega construction projects. Current research aims to investigate and to identify the communal, ecological, political, legal, economic and other external risks associated with CJV projects in Pakistan. The study was carried out by literature review and a few national and international guidelines. Interviews were conducted with relevant professionals, experts, and owners of the organizations working on CJV projects. Data was collected in the form of a questionnaire from relevant professionals. The descriptive analysis was performed through SPSS using average index (A.I) technique. This study is helpful for the Government of Pakistan, public and private construction firms working under JV to reduce the emerging risks of construction projects.

Validating the Influence of Effective Communication, Team Competency and Skills, Active Leadership on Construction Risk Management Practices of Nigerian Construction Companies

Abstract: he purpose of stressing the importance of risk management among construction companies is to reduce the effects of risk on projects and make the construction activities more profitable, completed to quality standards, time and budget. This significant deliberation has stimulated various research interests by construction companies, specifically viewing the risk in construction activities that affect project performance; (time overrun, cost overrun and low quality) as the significant risks attached to the projects from the global point of view. Using Partial Least Squares- Structural Equation Modeling approach, this study validates construction risk management (CRM) as a construct from the perspectives of 238 local, national and multi-national construction companies in Nigeria. A cross-sectional survey was conducted where data was gathered from companies through a structured questionnaire. Findings from this study disclosed that effective communication, team competency and skills with active leadership have a significant influence on construction risk management (CRM) practices of the Nigerian construction companies.

An Investigation into Cost Overrun in Construction Projects in United Arab Emirates

Abstract: The construction industry contributes to the overall economy of United Arab Emirates (UAE) significantly, but it is plagued by cost overrun due to various factors. This paper looks at the, various factors influencing cost overrun in UAE construction industry and the mitigation measures. The most important causes of cost overrun are poor productivity, insufficient early planning, delayed completion, and lack of skilled resources and motivation. The most effective mitigation measures for cost overrun are detailed estimation, conducting brain storming sessions for cost control, procurement planning, mobilizing resources at the right time and training of workers. The paper recommends that higher management should focus and provide more support to Human resource related issues for controlling cost overrun, as they are the predominant causes of cost overrun. In addition, improving productivity, efficient estimation process, value management, change management and procurement management are also crucial to minimize cost overrun in construction industry in the United Arab Emirates.