Indexing of Factors Affecting Time and Cost Overrun in Construction Projects

Abstract

In a construction project, time overrun occurs when the work specified in the contract is not executed within the specified time frame and when the entire project cost exceeds for whatever causes, this is referred to as cost overrun. This study aim to analyze these factors that cause above delays in construction projects. A total 47 such factors were identified and classified into 8 segments, which are then indexing by using the method Relative Importance Index (RII).

Introduction

I. INTRODUCTION

The construction industry is a veritable importance part of the moderation development for any developing country. In India, the construction industry plays a veritably important part for the moderation. It provide the physical structure, which is primary for the country’s development. The time required to finish construction for both public and private projects is typically longer that the time stipulated in the contracts [1]. If the project costs and schedules exceed their planned targets, client satisfaction would be compromised [2]. This study makes an attempt to find the critical factors impacting resource-related detention in construction systems.

A. Cause Of Cost Overruns

Cost overrun may be a quite common development and the majority of comes in industry face this drawback. Cost happens once the last word price or expenditure of the projects exceeds the initial estimation price [3]. Author in [4] discovered that cost is one in all the most issue in industry. The matter is also found in each developing and developed countries. This drawback is kind of serious and additional study in this issue is required to cut back the issue. There square measure some factors that contributes to cost in industry that square measure found from the research study.

B. Factors Affecting Cost And Time Overrun

There are total 47 such factors were identified and classified into 8 segments as shown in table no. 1

TABLE-1

DELAYS CAUSING FACTORS.

II. OBJECTIVE

To evaluate the time delay and cost increase in the construction projects.

III. LITERATURE REVIEW

Raut S. P.1 , Gohatre V. S. 2 , Nistane H.P (2014) -. This study focus on the delay may be defined as exceeding the completion date specified in the contract or exceeding the date on which the parties agreed to the delivery of the project. The purpose of this paper is to examine ways to minimize the cause of build delays. Project delays include several factors such as missing funds, changes in the drawings, lack of effective communication and inadequate project management.

Madan Kumar Sha, et.al (2015)- The study of  objective of the this research paper is ‘To explore all the important factors contributing the cost overrun and identifying the critical factors of cause and effect of delay in construction project. Consultants and Contractors have been interviewed personally to get the practical problems through a survey questionnaire. The answers have been grouped and suitable methodologies for solving the problems have been formulated which are suitable for our Nepali Scenario.

Shabbab Al Hammadi1, M. Sadique Nawab (2016) –This study focus on unexpected problems encountered during Conception, designing & construction phase often led to unwanted delay in project completion. A survey was conducted in Saudi Arabia to determine exact factors responsible for project delay. This was achieved by carrying a critical analysis of the literature and carrying out a questionnaires survey among consultants, project managers and engineers involved in construction projects and collecting their responses. The importance of Project owner‘s role, contractor related, Financing related, Materials related, Design documents have been cited as main delay factors.

Shruthi Sivaprakasam, S.Dinesh, J. Jayashree (2017) - Construction Delays are the time

Over run either beyond date specified in a contract.  Delays exceed initial time and cost estimates.  Delays can be minimized only when their causes are identified and analyzed. The causes of delay in construction projects are taken from the past literature review. The literature reviews are summarized and various causes related to the delays based on literature review summary.

Mohammad Al-Mohammad, Omar Bin Jamaludin (2018)- This  study review also discussed the groups causing delay based on the source of delay. The top five delay factors related to contractor, owner and consultant have been discussed within each category. This paper revealed that previous researches are regarded as the main source for causes of delay identification. Moreover, questionnaire and the relative importance index are the most frequent methods for collecting data and ranking delay factors, respectively.

Mohd Danish, Dr. Syed Khursheed Ahmad (2019) - This paper study has carried out based on literature review and a questionnaire survey. The eighty-three questionnaire has been made on the basis of pilot study, which has been distributed on various construction sites. Interview has been taken on each construction sites, also take photos of any ongoing activity on that site. Then ranked on their importance index by the data collection in India.

Ludwig Rivera , Hilario Baguec, Jr. and Chunho Yeom(2020)- This study aims to determine the ten principal causes of delay in road construction projects in twenty five  developing countries across the globe. The study involves two steps. First, the authors compiled information regarding the most frequent delays in a road construction project. Second, they analyzed the intensity of each cause of delay in these projects. Being more accurate in the methodology, given the nature of the information, the researchers used a quasi-meta-analysis for processing the data. Half (50%) of the countries have similar causes of delay, and likewise, 50% of the countries identified the top ten primary causes of delay in road construction projects based on the intensity results.

Mr. Aishwarya Avinashe.1, Prof. S.Sabihuddin (2021) - This study focus is to fill in a critical information gap. By identifying various factors that cause construction problems and using them as a starting point, we consider the construction of objects, housing construction. Provided are the results of a survey that was conducted on the relative importance of entrepreneurs and consultants that were determined using the Relative Importance Index. (RII)

IV. METHODOLOGY

A questionnaire survey was conducted by construction professionals representing various stakeholders involved in construction projects in India. Data collection is the most critical part since the accuracy of the data obtained will determine the success or failure of this research. The data of this research are collect through the literature review, survey questionnaires and Google from or through mail from public and private bodies. The information gotten in the survey was broke down by Relative Importance Index Method and indexing them to find the factor effecting time and cost overrun.

A. Questionnaire Survey

The questionnaire was designed based on critical factors were identified that contributed to the construction projects as. A questionnaire survey was developed to assess the perceptions of various construction professionals of the relative importance of causes and the effects of construction projects. The questionnaire was designed into two sections: Section A; section B. Section A is to obtain the requested background information about the respondents. Section B is to obtain information on the factors that contribute to the causes of factors in construction projects from the perspective of construction professionals. Total forty seven resources related factors were identified under eight broad categories. A five point Likert scale (1 very low, 2 low, 3 medium , 4 high , 5 very high) was adopted where respondents were asked to rank the importance and impact of a particular factor on risks in one of their selected projects.(Appendix 1).

B. Analysis Data

The data obtained was analyses to determine the relative importance of the various factors that contribute to cause of construction project.

C. Relative Importance Index

The contribution of each factor to overall delays was examined and the ranking of the attributes in term of their critically as perceived by  the respondent was done by use of Relative importance index (RII) which was computed using equation (1) and the result of the analysis are presented in table 2, indexing and ranking is shown in Table 3. [25]

Where, n5 = No of respondents for very high importance,

n4 = No of respondents for high importance,

n3 = No of respondents for medium importance,

n2 = No of respondents for low importance,

n1 = No of respondents for very low importance,

A = 5 (Highest value i.e. very high importance),

N = Total no of respondents (i.e. 71 in this case).

V. SUMMARY

From the above indexing and ranking of forty seven factors it concluded that most significant factors causing delays in time and cost overrun in construction projects, are cost and leadership skill for project management with RII 0.834 and on 1st rank. Before awarding the project owner and client should focus on cost control because it helps to complete the project within scheduled and within in the budget while leadership skill is proper planning and monitoring and, helps to run projects very effectively. Factors whose RII is 80 and above is considered as a most critical that impacting delays in construction projects. These factors  are Cost control, leadership skill for project manager, Quality of equipment’s and raw material, easiness to reach to the site (location of project), information coordination between owner and project parties, participation of managerial levels with decision making, Average delays because of closure and material shortage and quality assessment system in organization.

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Copyright

Copyright © 2022 Kumar Gourav Shakya, Er. Himmi Gupta. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.