Showing papers on "Cost overrun published in 2022"

BIM and Digital Tools for State-of-the-Art Construction Cost Management

Abstract: Cost overrun has remained a key risk of construction projects that can be prevented by utilizing new technologies. This paper aims to identify the gap in the literature, which can potentially be addressed by using digital tools and technologies, by reviewing the current and state of the art practices. The paper presents the results of a systematic and critical content reviews on cost overruns, to address the question of what factors are affecting the cost overrun. This paper also reviews how building information modeling (BIM) in conjunction with other tools, such as the common tools in the Asia and Asia Pacific regions, are used for cost estimation and monitoring. The paper presents the results of the content review, including their contributions and limitations, which are also used to set key directions for future investigations. A total of 176 papers was identified to develop the construction cost management (CCM) dataset. The method was a mix of systematic reviews, including co-authorship network analyses, co-occurrence analytical map development covering 5671 keywords, and content analysis including theme identification and a critical review of selected papers. The paper critically reviewed 63 selected papers from CCM, which are divided into four clusters based on their scopes: BIM adoption for cost estimation and quantity surveying; BIM implementation for a bill of quantity, risk paths, and cost overruns; cost control and management; and, finally, BIM, virtual design, and value management. A trend analysis using a set of 16 themes (e.g., 3D model, BIM, Decision, Energy, and Life Cycle) for all the papers over the past ten years was developed. The content of each cluster of papers was reviewed based on the frequency of the selected themes in each cluster. The content of each cluster of papers was also reviewed critically and gaps were identified, so a set of directions for future investigations are presented.

Analysis of Construction Project Cost Overrun by Statistical Method

Abstract: Abstract: Most of the construction projects suffer from cost overruns due to a multiplicity of factors. The present work is carried out on studying significant factors causing cost overruns in construction projects. A questionnaire for the survey has been prepared by Authors based on 45 common factors for cost overruns identified from literature review and discussion with experts. These factors are related with Owner, Contractor, Consultant, and Management, Material, Equipment, Labor and External. The cost overrun methodology presented in this study gives statistical method which is used in construction sector for computing impact of project cost overruns. The finding of the paper will help the project manager to act on critical causes and further try to reduce cost overrun of project. Keywords: Construction projects, Factors of cost overrun, Relative important index

Causes of delays in construction projects in the Province of Aceh, Indonesia

Abstract: Implementations of construction projects in Indonesia, especially in Aceh Province, are often delayed. Time, quality, and cost are three important components of planning a construction project. The benchmark for a successful construction project is the project completion time being in accordance with the time period specified in the contract. In project implementation, there is often a risk of delays in completing construction projects that can cause losses and fines; therefore, it is necessary to know the risk factors potentially causing project delays. The purpose of this study was to identify the risk factors causing delays greatly affecting construction projects in Aceh Province. The data used in this study were questionnaire data distributed to 68 respondents. The data processing methods included validity tests, reliability tests, and the construction of descriptive statistics. Ultimately, 60 delay factors were obtained; of these, 30 risk indicators were included in the very influential category with a mode value of (= 5), 29 delay risk indicators were in the high influence category with a mode value of (= 4), and one indicator was included in the category of medium influence (= 3).

Causes of cost overruns in building construction projects in Asian countries; Iran as a case study

Abstract: PurposeCost overruns have been identified as the most significant challenge for construction sector stakeholders. Like many developing countries, the Iranian construction industry suffers from poor cost performance. So, the current research aims to investigate the causes of cost overrun in Iranian construction projects. This paper also reviews the findings of similar studies conducted in several Asian countries.Design/methodology/approachThis paper includes a literature review and a quantitative method with a questionnaire survey. The review is limited to the studies investigating the causes of cost overrun in an Asian country in the last decade. Moreover, the current research was conducted through a questionnaire prepared based on 43 common factors identified through the literature review. The required data were gathered from the representatives involved in handling construction activities in Iran. The collected data were analyzed based on relative importance index (RII), using the SPSS software package.FindingsThe results showed that poor site management, improper planning, fluctuation of prices of materials, lack of experience, and poor economic condition are the critical reasons for cost overrun in Iranian construction projects. The findings also indicated that among the studies conducted in Asian countries, the first three factors have the highest frequency.Originality/valueThis paper highlighted most studies concerning the cost overrun factors in construction projects in different Asian countries in recent years. Up-to-date knowledge helps to understand the complexity of this field in various periods and therefore minimizes the risk of cost overrun. This research can also be used as a benchmark for further studies to clarify similar issues in other developing countries.

Rationalizing Critical Cost Overrun Factors on Public Sector Housing Programmes

Abstract: The cost overrun phenomenon on projects worldwide creates a major source of risk that warrants investigation. The prevailing factor school of thought provides strong empirical evidence that critical factors contributing to cost overruns are both context-specific and project-specific. Although many studies have been conducted identifying factors and causes of cost overruns, very few studies have investigated root causes. Additionally, a limited body of knowledge is available within the context of Small Island Development States (SIDS). To fill this gap, the objectives of this study were to identify and determine the main critical factors contributing to the cost overrun phenomenon in public sector social housing programmes (PSSHPs). These selected factors were thereafter categorized under leading root causes, and their severity was determined based on primary stakeholders’ perspectives. One hundred and twenty-three factors were identified from the literature, of which forty-one critical factors were extracted and grouped under four root causes based on a pilot survey of relevant public sector housing experts in the Trinidadian and Jamaican construction sectors. These refined factors and root causes were formulated into a questionnaire survey. One hundred and five responses were obtained from professionals who had a minimum of five years’ experience in various phases of public housing delivery. The severity of these critical factors was evaluated, ranked, and categorized using the relative importance index (RII) approach. The findings uncovered the leading root cause, which is political in nature. The top five critical factors are the selection of politically aligned contractors, the intentional design of inadequate contracts, the project actors' deliberately underestimating costs, the partisan project management team, and strategic misrepresentation. These findings are unique to SIDS and contribute to knowledge to reframe contemporary project management practices, which focus mainly on technical causes. Finally, as existing technical solutions are ineffective in curbing cost overruns in PSSHPs, these findings also inform public sector policymakers to focus on prioritization, control, and mitigation of political risks in formulating effective governance mechanisms. Doi: 10.28991/ESJ-2022-06-03-016 Full Text: PDF

Cost Overrun Risk Assessment and Prediction in Construction Projects: A Bayesian Network Classifier Approach

Abstract: Cost overrun risks are declared to be dynamic and interdependent. Ignoring the relationship between cost overrun risks during the risk assessment process is one of the primary reasons construction projects go over budget. Conversely, recent studies have failed to account for potential interrelationships between risk factors in their machine learning (ML) models. Additionally, the presented ML models are not interpretable. Thus, this study contributes to the entire ML process using a Bayesian network (BN) classifier model by considering the possible interactions between predictors, which are cost overrun risks, to predict cost overrun and assess cost overrun risks. Furthermore, this study compared the BN classifier model’s performance accuracy to that of the Naive Bayes (NB) and decision tree (DT) models to determine the effect of considering possible correlations between cost overrun risks on prediction accuracy. Moreover, the most critical risks and their relationships are identified by interpreting the learned BN model. The results indicated that the 18 BN models demonstrated an average prediction accuracy of 78.86%, significantly higher than the NB and DT. The present study identified the most significant risks as an increase in the cost of materials, lack of knowledge and experience among human resources, and inflation.

Re-analysis, measurement and misperceptions of cost overruns at Olympic Games

Abstract: ABSTRACT The so-called ‘Oxford Study’ by Flyvbjerg et al shows Olympic cost overrun of 170-750% with a substantial risk of a further cost overrun above this range in the future. The aim of this paper is to re-analyse the results by using a method in accordance with the international convention of comparing across time and geographies. The dataset used has abundantly more governmental data than in the Oxford Study. The results of the Oxford Study for the period of 2000–2016 could not be replicated. It is argued why the statistical analysis and their data reliability are misleading, thus leading to a discovery of six typical misperceptions. In contrast to those authors, this paper shows cost overruns (Olympics 2000–2014) for direct non-OCOG investments in the range of 13–178%. Further, it shows that the costs of the Olympic Games represent less than 0.28% of the GDP; hence, it is clear that the Games cannot cause a severe national economic crisis. This paper provides a discussion on the underlying assumptions of the Oxford study, thus providing valuable insights for politicians who intend to submit an Olympic bid, and contextualises cost overruns caused by fixed deadlines and long planning horizons. I disagree with the claim by Flyvbjerg et al. that hosts give a blank cheque to the IOC and I contend that demands and a tight coupling are fixed in the Host City Contract, thus negating the blank cheque assertion.

Sustainable Project Management: Reducing the Risk of Cost Inaccuracy Using a PLS-SEM Approach

Abstract: Determining the factors leading to cost inaccuracy in infrastructure projects relates to sustainability by improving the cost performance of the projects (economic sustainability) and reducing the waste of available resources (environmental sustainability). This study investigates the effects of various factors affecting the cost performance of large-scale road projects in Norway in both the planning and construction phases. To this aim, a quantitative approach using a questionnaire survey was employed to understand the attitude of practitioners towards various factors causing cost increases. An advanced multivariate statistical approach of Partial Least Square Structural Equation Modeling (PLS-SEM) and Relative Importance Index (RII) was utilized to analyze the questionnaire responses. The results of the RII analysis show that local wishes, defective estimations, and long processing times had the most impact on the cost increase during the planning phase. At the same time, scope changes, market conditions, and unforeseen ground conditions were the most influential parameters in the construction phase. Moreover, the results obtained from PLS-SEM reveal that external related factors had the most influence among the other grouped factors (i.e., pre-construction, project management and contractual relationship, contractor’s site management, and external) on cost overrun during the construction phase. Increasing the knowledge of these factors will allow for developing relevant project management approaches targeted at improving economic and environmental sustainability within both the planning and construction phases.

Structural Relationship of Causes and Effects of Construction Changes: Case of UAE Construction

Abstract: Changes during construction is one of the critical issues faced in the construction industry. Effective management of construction changes will reduce the financial burden faced in construction projects due to cost overrun, and practitioners will be able to complete projects on time. On the other hand, construction changes exert severe effects on project performance. Hence, this paper uncovers several changes occurring in construction projects. It also evaluates the effect on various parameters of project performance due to changes. This was done by uncovering the underlying causes and effects of changes through the PLS method of structural equation modeling technique. SmartPLS software was used to develop and evaluate the study model based on 58 change causes and 48 change effects that were identified from the literature review. Causes of changes were categorized into three constructs which are client-related causes (CLE), consultant-related causes (COS), and contractor-related causes (CON). At the same time, the effects variables were grouped as Time Overrun (TO), Cost Overrun (CO), and Quality (QA). The survey data for generating the model was collected from 218 practitioners working on construction megaprojects of the UAE. Assessment on the constructed model found that the contractor (CON) group is the most influential group of causes with the highest values of the model’s predictive explanatory power (accuracy), which is 0.396, 0.339, and 0.410 to time overrun, cost overrun, and quality assurance of the effects groups, respectively. At the same time, the Quality Assurance (QA) group is considered the most substantial parameter which are affected due to changes occurring in construction projects of UAE. This model is deemed beneficial for the UAE construction industry in facilitating the effective recognition of possible causes and effects of change among the UAE construction projects. As a result, the practitioners will make necessary arrangements to control the potential changes in future projects.

Comparative analysis of managers’ perception in overseas construction project risks and cost overrun in actual cases: a perspective of the Republic of Korea

Abstract: the number of overseas projects increase, capabilities of managers should be comprehended by handling risks. Therefore, comparison of project managers’ risk perception and risk handling costs from actual cases is necessary to set the management direction. Thus, eleven risk factors that occur frequently in overseas construction were classified into three categories . Perception of 54 international construction managers were collected by survey and ranked by using relative importance index. Consequently, managers perceived that the impact of risks occurring due to the wrong plan was high and conflict risk was low. Then, the data from 20 cases were amplified by applying Monte-Carlo simulation with statistical verification of reliability and normality . Through multivariable regression analysis, the cost impact of the legal conflict risks with the local subcontractors and engineers was the highest,intensely differed with managers’ perception. Specifically, the risks involving various stakeholders with sufficient time to resolve were not recognized, despite the high-cost impact. Though, fully understanding perception of the host-clients or site labors was difficult, this study is vital in that the conceptual gap was narrowed by numerically comparing the difference between risk perception of managers and actual risk cost. , It would be used as a guideline by focusing on factors with high impact for educating managers at overseas sites.

A Coupled Genetic Programming Monte Carlo Simulation–Based Model for Cost Overrun Prediction of Thermal Power Plant Projects

Abstract: Globally, power projects are prone to cost overrun projects. Within the body of knowledge, previous studies have paid less attention to predicting the cost overruns to assist contingency cost planning. Particularly, in thermal power plant projects (TPPPs), the enormous risks involved in their delivery undermine the accuracy of cost overrun prediction. To prevent cost overrun in thermal power plant projects, these risks need to be accounted for by employing sophisticated cost overrun prediction techniques. This study aims to develop a hybrid predictive-probabilistic-based model (HPPM) that integrates a genetic programming technique with Monte Carlo simulation (MCS). The HPPM was proposed based on the data collected from TPPPs in Bangladesh. Also, the sensitivity of the HPPM was examined to identify the critical risks in cost overruns simulation. The simulation outcomes show that 40.48% of a project’s initial estimated budget was the most probable to cost overrun, while the maximum cost overrun will not exceed 75% with 90% confidence. Practically, the analysis will sensitize project managers to emphasize thermal plants’ budget accuracy not only at the initial project delivery phase but throughout the project life cycle. Theoretically, the HPPM could be employed for cost overrun prediction in other types of power plant projects.

Selection of Best Practices that Enhance Phase-Based Cost and Schedule Performances in Complex Construction Projects

Abstract: Abstract A common assumption made by construction professionals is that complex projects are more likely than simple ones to entail cost overruns and delays. Although several researchers have studied the critical causes of complexity and have identified their indicators (CIs), few of them have investigated how they actually impact a project’s schedule and cost performance during the design, procurement, and construction phases. This research aimed to study the impact of each CI and determine the most effective best practices (BPs) for preventing it. Data from 44 case studies were collected and analyzed, and the results revealed that implementing the BPs of team building, front-end planning (FEP), constructability, alignment, partnering, and change management significantly reduces cost overruns and delays in all three phases of complex construction projects and, in fact, can improve the cost and schedule performance, due to fewer complex challenges. The outcomes of this research will help project managers identify the challenges that stem from complex aspects of projects and lead to phase-base cost overruns and time delays. They will also assist decision-makers in deciding which are the most effective BPs for mitigating challenges stemming from the characteristics that make projects complex and will them improve phase-based cost and schedule performance in complex construction projects.

Risks assessment using structural equation modeling: mega housing projects construction in Egypt

Abstract: The Mega Housing Projects (MHP) construction in Egypt is saddled with numerous risks that emerged from the risk knowledge dearth, steering these projects to elusive failure apropos to completion time and construction cost. The research's novel contribution is a risk assessment Structural Equation Modeling (SEM) approach that spotlights the critical risk factors confronting MHP in Egypt concerning Probability of Occurrence (POO), Impact on Time (IOT), and Impact on Cost (IOC), from the contractors perspective. Forty-three risk factors were amassed from the literature and lessened to 25, delineating the significant risks impacting the MHP schedule and budget resentfully. The primary paper's objectives are determining the captious risk factors and ranking their relative importance weights. A questionnaire survey was conducted, and distinctive construction professionals solicited feedback. Quantitative data obtained from 103 valid responses were analysed using SEM, and the measurement and structural models were validated. Data analysis revealed that the project management risks procure the prime relative importance weight concerning POO, IOT, and IOC at 32.09%, 26.04%, and 32.93% mutually. Findings will equip contractors with a model to pinpoint and rank the censorious risk factors impacting the MHP to prioritise allotting budgetary scenarios among risks to vanquish cost and time overruns.

Unearthing direct and indirect material waste-related factors underpinning cost overruns in construction projects

Abstract: Despite the roles of construction projects in socio-economic development, expanding number of projects suffer chronic problems of cost overruns. However, approaches to unravelling the antecedents of this problem remain vastly nonspecific and lack a pertinent characterisation of issues with direct and indirect linkages between material waste factors and cost overruns. This study modelled the direct and indirect effects of six dimensions of material waste-related factors contributing to construction projects’ cost overrun: unanticipated site conditions, material management, site management, workforce factors, material theft, design and contract documentations. The hypothesised recursive model of direct and indirect effects was validated using data from 200 valid responses of experts in the Nigerian construction industry. The results showed that the total effects of direct and indirect contributions of materials waste-related factors paths to project cost overrun are 55.38% and 44.62% respectively. Among the six dimensions of materials waste-related factors modelled, site management-related issues emerged as the most significant, contributing 9.23% of the total effect. Based on these results, effective cost performance in building project delivery is achievable by curbing materials waste-related concerns. Developing pertinent strategies to curb identified construction material waste, is necessary for achieving direct and indirect reductions in projects’ cost overruns.

Major Factors of Delay in Developing Countries Construction Projects: Critical Review

Abstract: Delays in Construction projects have been unfortunately the norm especially in developing countries. Such Delays lead projects to miss their targets of schedule and budget. This paper reviews the performance of those countries and analyzes the major time overrun factors. Although there are some similarities in few countries, it is safe to conclude that the most important factors causing time overrun are different from one country to another. Moreover, the industry type project sometimes dictates the highest ranked factors causing the delay. Omani Construction Projects are no different; they suffer from the same phenomena as well. This paper also generates a project management conceptual framework to be used in future research by the author.

Managing Cost Risks in Oil and Gas Construction Projects: Root Causes of Cost Overruns

Abstract: This study identifies and classifies the root causes (i.e., the primary precursors) of cost overruns in oil and gas construction projects. Past studies generally focused on identifying the most immediate precursors of cost overruns and failed to address the need to identify their root causes. Specific root causes are inherent in projects with certain characteristics (e.g., projects in a particular domain or sector). Accordingly, research is needed to identify various cost overrun factors and their root causes in a context-specific manner. This study used content analysis to identify 38 recurrent cost overrun factors and 11 root causes in oil and gas construction projects. The cost overrun factors were classified based on their common root causes. The Delphi method was used to verify this classification. The evidence from 12 construction projects in the oil and gas sector that had faced cost overruns was used to verify the outcome of this study. The findings of the study will assist practitioners in mitigating the risk of cost overruns in oil and gas projects and meeting their budget goals.

Exploring the Nature and Impact of Client-Related Delays on Contemporary Saudi Construction Projects

Abstract: In rapidly developing countries such as the Kingdom of Saudi Arabia (KSA), where the construction of buildings and supporting infrastructure is critical to achieving strategic developmental milestones, delays to capital projects can derail other sectors of the economy and could derail the Vision 2030 agenda. Attempts have been made over the years to explore the causes of construction project delays, including those in Saudi Arabia. Many of these studies are either outdated, narrow in scope, or tend to use only qualitative data, and not many have focused on the client-related delay factors affecting projects critical to Vision 2030. This study investigates client-related delay factors in terms of their correlation with key characteristics of recently completed construction projects in KSA. This objective necessitated the use of historical data; hence, an archival analysis was conducted for 37 projects among three different public sector ministries. The data were subjected to manual extraction, descriptive statistical analysis, and the use of established models such as schedule performance index (SPI) and cost performance index (CPI), and inferential (correlation) in Statistical Package for the Social Sciences (SPSS) using point-biserial correlation coefficient (rpb, where p > 0.05) to explore association and impact of project characteristics on themselves and on client-related causes of delay. Results revealed eight unique client-related causes of delay, with SPI values of 0.71 to 0.82, as well as CPI values ranging from 0.84 to 0.89, suggesting very poor time and cost performance across all projects, as well as the magnitude of correlation of key project characteristics (cost, duration, additional time, and additional cost) with the eight client-related causes of delay. The findings can help the client (authorities) understand and curb delays that are due to their own making, and it is recommended that such delay factors, whose likelihood are now established and whose potential impact can be measured against key project characteristics, be developed into a delay risk impact tool. International joint ventures can bring technical expertise for Vision 2030, but they cannot eliminate delays due to government practices.

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.

Stakeholders Opinion on Selected Effects of Road Construction Delay in the Niger Delta Region of Nigeria

Abstract: Many variables are involved in the construction of road projects. These variables changes with project types and sizes, thus challenging management of these projects to uncertainties. The resulting effects of schedule overrun may be reduced but cannot be completely depleted or eliminated. At these times of scarce and competing resources, critical effects of construction delay are prompted for effective resource deployment in making investment decisions. Eleven important effects of construction delay of road projects awarded by the Niger Delta Development Commission (NDDC) derived from literature and desk file review were identified. These factors which can be linked with stakeholders in the NDDC’s road construction industry i.e., client, contractor, consultant and estate valuer were evaluated by utilising quantitative analysis to get the stakeholder’s opinions on the critical effects from the selected array. Analysis of the questionnaire was also done to assess its statistical significance. To achieve this objectives, exploratory factor analysis (EFA) which includes; Cronbach Alpha Coefficient (CAC) calculation, reliability analysis, multivariate and inferential statistics were employed. The most critical effects of construction delay of road projects awarded by NDDC in the Niger Delta Region of Nigeria are: time overrun, cost overrun, litigation and Disruption to traffic movement. The next critical effects are obstruction of economical and urban movement, total abandonment, dispute, delay of other projects related to the main one, and breach of contract.

Assessing Risk Factors Affecting the Accuracy of Conceptual Cost Estimation in the Middle East

Abstract: The construction industry is subjected to more risk and uncertainty than many other industries, in addition to poor risk-tracking records. This usually causes the late completion of projects, surpassing their estimated budgets even without achieving the desired quality and operational requirements. This study first identified the most critical factors affecting the accuracy of cost estimates. A questionnaire has been designed and distributed to construction experts; the results indicated stakeholders’ perception to improve their cost estimation using a proper and predefined risk management plan. Following the respondents’ judgment, this study identified 51 risk factors and their potential root causes and presents a response plan for the most critical risks that might affect cost estimates to improve construction-industry performance. Then, a new simple model has been developed to analyze risk factors affecting the accuracy of conceptual cost estimates, from both clients’ and contractors’ perspectives. The developed model will provide the decision-makers with a list of risks accompanied by guidelines/response plans to mitigate their effect on project cost to help the estimators identify the most effective cost contingency against the project’s scope creep.

The Weak Spot of Infrastructure BCA: Cost Overruns in Seven Road and Railway Construction Projects

Abstract: This article describes the process from first proposals in the early 1990s to project completion many years later for seven large Swedish road and railway projects. The purpose is to find reasons for the massive cost overruns as well as explanations for why projects are brought to completion despite much higher costs than when the decision to build was made. Cost overruns are set in an institutional context to highlight the interplay among national, regional, and local policymakers. National investment programs are seen as promises by other parts of society, irrespective of whether project costs increase during the process toward procurement and implementation. Another aspect is that the infrastructure manager’s administrative framework currently makes it impossible to compare costs in contracts with final cost, meaning that there is no institutionalized learning process in place. Design preparations and the estimation of costs for new projects must therefore be done without an understanding of what has been working well in the implementation of previous projects. While Benefit-Cost Analysis (BCA) played no role in the planning of the seven projects, the article sends a stark warning that early cost estimates provide poor input for assessing project rate of return.

The Role of Construction Cost Management Practices on Construction Organisations’ Strategic Performance

Abstract: Cost management practices have remained a vital aspect of project management functions. Despite the efforts of project management, construction projects are still being delivered above budget, with schedule overrun, poor quality and amongst other problems. Poor cost management approaches have been blamed for these problems. Effective cost management improves project performance and the strategic performance of construction organisations. This study aims to assess the role of cost management practice on construction firms' strategic performance in Nigeria. The objectives of the study are to determine the benefits of cost management of the project on the competitive position of construction firms, and the factors influencing cost management strategies of construction firms. This study adopted a well-structured questionnaire administered to construction professionals via electronic means and using snowball sampling technique in the six states of the south-south geopolitical zone of Nigeria. With a response rate of 65.48% and a reliability of index of over 0.70, the gathered data were analysed using frequency, percentage, and relative importance index (RII). It was found that major factors influencing construction cost management are; experience and competence of the project managers, weak management support and control, poor project communications, external economic environment, and lack of use of project management tools (technology). Also, effective cost management was found to play a critical role in the strategic performance of construction organisations; with most benefits being in the areas of waste and expenses reduction, improves operational efficiency need, helps to predict future expenses, ensures procurement effectiveness, and improve profit maximization. Project managers should continuously upgrade their skills for effective cost management to boost the strategic competitive position of their firms.

Fighting Corruption in Public Works: The Use of Cost Engineering in Criminal Investigation

Abstract: Cost engineering aims to obtain reliable cost and schedule estimates. However, many public works demand additional costs that are considerably higher than the initial cost estimates. In Brazil, this can be partially explained by how the government hires public works services. Because of the high frequency of this problem and the associated damage, the aspects that impact overpricing should be better understood, including fraudulent acts. This paper presents a case study to demonstrate how cost engineering can be used to identify frauds in Brazilian public works. The research method was based on a quantitative approach to describe the estimated overbilling through bibliographic and documentary analysis of forensics engineering expert reports. Data from public works contracts were obtained for a 4-year period, which resulted in an average percentage of overbilling. This index enabled identifying fraudulent evidence in Brazilian public works that match a period of highly corrupt practices in the country.

Managing Cost Risks in Oil and Gas Construction Projects: Root Causes of Cost Overruns

Abstract: This study identifies and classifies the root causes (i.e., the primary precursors) of cost overruns in oil and gas construction projects. Past studies generally focused on identifying the ...