Identifying the risk factors affecting the overall cost risk in residential projects at the early stage

Badawy, Mohamed; Alqahtani, Fahad K.; Hafez, Hisham

doi:10.1016/j.asej.2021.09.013

Cited by 19 publications

(8 citation statements)

References 35 publications

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“…The results of the questionnaire survey were given to this panel of experts as a report. Similar to the previous study, which employed the RII (Shoar and Chileshe, 2021; Badawy et al , 2021) and based on a consensus among the third panel of experts, the causes were categorized into five groups based on their RII value as follows (0 < RII<20, unimportant causes; 20 < RII<40, slightly important causes; 40 < RII<60, moderately important causes; 60 < RII<80, important causes; 80 < RII<100, very important causes). They concluded an agreement to include causes having RII more than 60 (two last groups) representing important and very important causes in the ISM model.…”

Section: Discussionmentioning

confidence: 99%

“…Viswanathan et al (2020) developed ECAM 30,2 a hierarchical model of factors leading to construction disputes and revealed that delay in payments and delay in work progress are two main factors that are directly related to cost overrun. Badawy et al (2021) investigated factors affecting the total cost of residential projects and revealed that price fluctuation, which is mainly due to the high rate of inflation and economic instabilities in developing countries, is the key factor influencing these projects total cost. Likewise, Asiedu and Ameyaw (2021) directly related price fluctuations, execution delays and claims to cost overrun.…”

Section: Discussionmentioning

confidence: 99%

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Modeling cost overrun in building construction projects using the interpretive structural modeling approach: a developing country perspective

Shoar

Yiu

Payan

et al. 2021

ECAM

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PurposeAlthough several studies have been conducted on the causes of cost overrun, they have mainly assumed that the causes of cost overrun are independent of each other, and few of them scrutinized the complex interrelationships between the causes. To fill the gap, this study aims to investigate the mutual interactions between the causes of cost overrun using interpretive structural modeling (ISM) and proposing strategies to tackle the causes considering their interactions.Design/methodology/approachCritical causes of cost overrun were identified through a comprehensive literature review. In total, 22 key causes are then refined based on the opinions of relevant experts involved in the Iranian building and construction sector. Using the nominal group technique, the causes' interactions were examined and represented via the ISM diagram. The causes were also classified using “matrix cross-reference multiplication applied to a classification (MICMAC)” technique.FindingsThe results showed that price fluctuation, claims, execution delay, delay in payment and change order positioned at the highest level of the obtained model can directly result in cost overrun, and corruption and poor contract management located at the base of the model are two major root causes of cost overruns. It was also concluded that more attention should be paid to the precontract phase of the project to address and prevent corruption and managerial issues deeply rooted in this stage.Originality/valueThe findings of this study provide a clear understanding of how different causes of cost overrun are related to each other and can ultimately assist project managers of different parties in choosing strategies to mitigate cost overrun in building construction projects.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Modeling cost overrun in building construction projects using the interpretive structural modeling approach: a developing country perspective

Shoar

Yiu

Payan

et al. 2021

ECAM

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“…Whilst this technique has a strong pedigree in related studies (e.g. Ameyaw and Chan, 2015;Soon et al, 2012;and Badawy et al, 2022) a number of limitations in its application have been identified and need to be acknowledged. For example, Woudenberg (1991), in his review of the Delphi method, argues that human judgement is necessary to draw conclusions where uncertainty exists and that statistical (aggregate) judgement based on the input of a group of people is more accurate than the conclusions of a random individual.…”

Section: Empirical Methodologymentioning

confidence: 99%

Evidence on optimal risk allocation models for Indonesian geothermal projects under PPP contracts

2023

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“…Badawy et al described the project risk factor as an event that may take place causing a positive or negative influence on one or more project objectives such as time, cost, and quality [22]. To identify critical risks that impact the cost performance of residential projects, three steps are carried out.…”

Section: Cost Risks Identificationmentioning

confidence: 99%

“…(1) Project scope subsystem: changes in the owner's requests, design drawings, unique construction circumstances, and other change orders might cause changes in the project scope, causing schedule delays and cost overruns [22]. In the early phases of the project, the boundaries and constraints are evident, but as the construction develops, scope changes arise, thus the percentage of scope change and the time required to demand scope changes are established in the model from the beginning.…”

Section: Model Stock-flow Diagrammentioning

confidence: 99%

Overall Cost Overrun Estimate in Residential Projects: A Hybrid Dynamics Approach

Taha

Sherif

Badawy

2022

Applied Computational Intelligence and Soft Computing

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Residential projects are described as complex, dynamic systems that are subject to uncertainty. Cost performance is a fundamental challenge. As a result, project managers must adequately identify risks that might lead to cost overruns in residential construction projects. Simulation is noticed to be a useful technique for dealing with these complications. Therefore, this study developed a hybrid dynamic approach to study the effect of different risks on the cost performance of construction projects. The proposed approach combines system dynamics (SD) and discrete event simulation (DES), which can take into consideration the dynamics of the project environment, which contains various continuous influencing factors as well as the construction operations. The developed hybrid model is validated through serial model structure tests and model behavior tests, with the aid of data collected from a real construction project used in the simulation process. Based on the simulation results, it is concluded that the proposed hybrid dynamic approach is helpful to enhance the process performance by permitting construction managers to identify possible process improvement areas that traditional methods may miss.

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Identifying the risk factors affecting the overall cost risk in residential projects at the early stage

Cited by 19 publications

References 35 publications

Modeling cost overrun in building construction projects using the interpretive structural modeling approach: a developing country perspective

Modeling cost overrun in building construction projects using the interpretive structural modeling approach: a developing country perspective

Evidence on optimal risk allocation models for Indonesian geothermal projects under PPP contracts

Overall Cost Overrun Estimate in Residential Projects: A Hybrid Dynamics Approach

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