Causes of Construction Projects Cost Overrun in Brazil

França, Alda; Haddad, Assed

doi:10.30880/ijscet.2018.09.01.006

Cited by 12 publications

(13 citation statements)

References 10 publications

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“…Numerous authors also analyzed cost overrun factors from the point of view of various participants of the investment process. The study of [18] showed the point of view of 47 professionals in the construction area, with many years of experience and experience in works of various sizes throughout 16 states of Brazil. The result of project managers group shows that customer is the major causer in cost overrun of the work and secondly the production department.…”

Section: Factors Influencing Cost Overrunmentioning

confidence: 99%

Prediction of Cost Overrun Risk in Construction Projects

Plebankiewicz

Wieczorek

2020

Sustainability

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The paper proposes a cost overrun risks prediction model, the structure of which is based on the fuzzy inference model of Mamdani. The model consists of numerous inputs and one output (MISO, multi-input-single-output), based on processes running consecutively in three blocks (the fuzzy block, the interference block, and the block of sharpening the representative output value). The input variables of the model include the share of element costs in the building costs (SE), predicted changes in the number of works (WC), and expected changes in the unit price (PC). The developed rule base makes it possible to determine the risk of cost overruns in the following categories: “very low”, “quite low”, “average”, “quite high”, and “very high”. Twenty-seven rules were assumed in the interference block. The operation of the model was illustrated by the example of selected elements of a road object and was validated by checking the correctness of the assumptions made at the design stage of the inference block rule base. It has been proven that with the increase of the share of element costs in the building costs (SE), predicted changes in the number of works (WC), and expected changes in the unit price (PC), the value of the risk exceeding the costs of a given element of the construction project (R) increases naturally and smoothly. It was emphasized in the conclusions that the cost overrun risks prediction model is intended for general contractors who subcontract many stages of works to their subcontractors in accordance with the agreed division into work elements.

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Section: Factors Influencing Cost Overrunmentioning

confidence: 99%

Prediction of Cost Overrun Risk in Construction Projects

Plebankiewicz

Wieczorek

2020

Sustainability

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“…Poor cost control during construction [94], [80], [78], [46], [47], [48], [82], [95], [55], [83], [57], [96], [60], [20], [57], [86], [97], [98], [99], [65], [11], [89], [100], [90], [72], [93], [74], [76] 37 4 Poor owners' financial status which leads to delay due payments [41], [102], [80], [42], [46], [47], [45], [103], [82], [50], [52],…”

Section: Rank the Top Five Critical Cost Overrun Causesmentioning

confidence: 99%

Cost Overrun Gap Analysis in Construction Projects: State -of-the-Art

Abd‐Elmonem

El-Mohr

El–Dash

2022

Engineering Research Journal - Faculty of Engineering (Shoubra)

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Poor cost performance is a typical problem in construction projects where few projects were completed within the original estimated cost. The previous researches (literature) show that up to 90% of construction projects suffer cost overrun with amounts ranged from 5% to 200%. This paper first utilizes a literature review to identify cost overrun causes and categorizes such causes based on stakeholder, country, and project type. Secondly, an indepth review was conducted to identify the contractors' cost overrun root causes. Thirdly, contractors' gaps and shortage of cost management processes have been identified. Finally, guidelines were concluded to resolve the identified gaps and enhance cost performance. The research conclusions depict that the top five cost overrun causes were inflation and fluctuation of construction resources, inaccurate cost estimates, poor cost control, poor owners' financial status, and work scope change. In addition, this research manifests that two top contractors' related cost overrun factors, inaccurate cost estimate, and poor cost control, were deemed the main elements of the cost management system. Another major contribution of this research is addressing the gaps in cost management processes to pave the way for future studies on identified gaps

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“…By the other side, Semple et al [80] present a study of the causes of claims related to cost overruns in construction projects in Canada, in which some factors coincide with those reported in Table 11: 'project scope changes', 'unrealistic contract duration', and 'inadequate project planning'. Other studies focused on cost overruns on construction projects in the North American region are Jergeas and Ruwanpura [81], Knight and Fayek [82], Shalwani and Lines [83], related to the South America region: França and Haddad [84], Lozano et al [85], and Ellis et al [86]; however, these studies were classified in the background category for not meeting any of criteria 2 or 3. Despite the existing studies, it is evident that in the regions of both North America and South America, studies of cost overruns factors in road infrastructure projects are lacking, which allow a better characterization of the cost overrun phenomenon.…”

Section: Cost Overrun Factors By Region: Limitations and Challengesmentioning

confidence: 99%

Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

et al. 2020

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Road infrastructure projects are essential for a country’s economic and social development. Due to the magnitude, the projects are associated with considerable economic investments that in the case of failure can seriously affect regions’ economies. Despite the importance, roads from different countries are affected by cost overruns, hence, it is essential to identify and analyze the causative factors to focus the search for mitigation solutions. There are several studies focused on the cost factors identification, however, studies are lacking that synthesize and analyze the frequency and importance with which the factors have been reported to obtain a phenomenon overview. Therefore, this paper focuses on analyzing the frequency and importance with which cost overrun factors are reported in road projects. The research method consisted of a systematic review compound of five principal stages: (1) question formulation; (2) searching of relevant documents; (3) document selection; (4) evidence collection, analysis and synthesis; and (5) results’ report. Thirty-eight cost overrun factors were identified and classified into 14 categories. According to the Influence Index, the five most important and frequent cost overrun factors were: (1) failures in design, (2) price variation of materials, (3) inadequate project planning, (4) project scope changes, and (5) design changes.

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Causes of Construction Projects Cost Overrun in Brazil

Cited by 12 publications

References 10 publications

Prediction of Cost Overrun Risk in Construction Projects

Prediction of Cost Overrun Risk in Construction Projects

Cost Overrun Gap Analysis in Construction Projects: State -of-the-Art

Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

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