Role of Inflation in Construction: A Systematic Review

Jaya, Indra; Alaloul, Wesam Salah; Musarat, Muhammad Ali

doi:10.1007/978-981-33-6311-3_80

Cited by 10 publications

(8 citation statements)

References 31 publications

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“…Globally, new pavement projects face delays and cost overruns, which lead to the inefficient use of public resources [48][49][50][51]. The root causes include the lack of transparency in project selection, the lack of project preparation, the silo approach by public entities in assessing feasibility studies, and the lack of public sector capacity to fully develop a bankable pipeline of projects [52][53][54].…”

Section: Introductionmentioning

confidence: 99%

Systematic Review of Life Cycle Assessment and Life Cycle Cost Analysis for Pavement and a Case Study

et al. 2021

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Development of the pavement network systems, which is inevitable due to the rapid economic growth, has increasingly become a topic of significant concern because of the severe environmental impacts of road expansion. For achieving the sustainable development goals (SDGs), the policies and actions towards the pavements’ life cycle assessment (LCA) and life cycle cost analysis (LCCA) must be carefully assessed. Consequently, the purpose of this review is to present an overview of LCA and LCCA used in pavement engineering and management. Through the quality control of PRISMA, fifty-five most relevant documents were extracted for a thorough investigation. The state of the art review reveals that a limited number of the papers considered environmental impacts of the pavements. Consequently, to assess the environmental impact cost, a conceptual framework was developed to better consider the LCA and LCCA on various aspects of the pavement projects including the sustainability aspects. Besides, a case study was given to validate the literature review towards proposing a novel framework for the incorporation of environmental impact cost.

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Section: Introductionmentioning

confidence: 99%

Systematic Review of Life Cycle Assessment and Life Cycle Cost Analysis for Pavement and a Case Study

et al. 2021

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“…The inflation rate influences the anticipated budget by changing the machinery hire rates annually with lead to the cost overrun. The effect of inflation is not restricted to deviating the rates, but it also affects the construction industry performance and the country's economy [27][28][29]. In both private and public construction projects, a noteworthy connection between the inflation rate and cost overrun exists [30].…”

Section: Introductionmentioning

confidence: 99%

Influence of Inflation Rate on Machinery Hire Rates in Construction Industry

Alaloul¹,

Musarat²,

Liew³

et al. 2021

JCEST

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Cost overrun is encountered in various construction projects and even with various advancement, the issue remains. When cost overrun occurs in any construction project, it not only affects the project also leaves marks on the construction industry as well. Machinery hire rates are important while finalizing the project budget and when the rates change annually it may result in project cost overrun. Due to these facts, this study investigates the effect of inflation rate on machinery hire rates. Inflation is a powerful influencing factor in deviating the prices and the rates which result in cost overrun. Statistical analysis was performed where the Spearman correlation was used as the data possess a nonlinear behaviour. The overall result came significant as the inflation rate showed a strong relationship with 9 machinery hire rates demonstrating that the inflation rate is the most prominent factor in deviating the rates. Three (3) machinery hire rates showed a moderate relationship, whereas 1 showed a weak relationship with the inflation rate. Therefore, a consideration of the inflation rate should be made in budget estimation.

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“…However, due to various management and financial issues, construction projects are marked with low performance Erusta & Sertyesilisik, 2019;Le et al, 2020;Musarat & Ahad, 2016;Ranjithapriya & Arulselvan). Usually, the risk of cost overrun is involved in the construction projects which is major distress for the stakeholders (Abd Rahman, 2020;Alaloul et al, 2021;Jaya et al, 2021;Le et al, 2020). Project success can only be achieved if the project budget is viable.…”

Section: Introductionmentioning

confidence: 99%

“…Hence, it is evident that the reason behind the cost overrun is greatly due to the inflation rate which changes annually. With time the inflation rate changes, leaving an adverse effect on the project cost (Jaya et al, 2021;Musarat et al, 2020a). The project cost gets affected when machinery rates changes and the reason behind it is the inflation rate (Alinaitwe et al, 2013;Amusan et al, 2018;Olawale & Sun, 2010).…”

Section: Introductionmentioning

confidence: 99%

Construction machinery hire rates deviation in Malaysia: an inflation rate effect analysis

Musarat

Alaloul

Liew

2021

rdlc

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Machinery has been used in the construction industry in both small and large scale projects for a long time. Machinery is one of the main components of any construction projects and rates deviation within the hiring of the machinery can result in cost overrun of the project. To deal with the issue of deviating the machinery hire rates in the construction industry, this study has been conducted. The study accesses the machinery hire rates and aims to investigate the percentage deviation from 2013 to 2018, where statistical analysis was performed to identify the influence of the inflation rate in deviating the machinery hire which results in cost overrun. The analysis shows that the inflation rate possesses a weak relationship with nine of the machinery hire rates, where five shows a moderate relationship. It is therefore recommended to observe other factors which deviate the machinery hire rates within the construction industry.

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Role of Inflation in Construction: A Systematic Review

Cited by 10 publications

References 31 publications

Systematic Review of Life Cycle Assessment and Life Cycle Cost Analysis for Pavement and a Case Study

Systematic Review of Life Cycle Assessment and Life Cycle Cost Analysis for Pavement and a Case Study

Influence of Inflation Rate on Machinery Hire Rates in Construction Industry

Construction machinery hire rates deviation in Malaysia: an inflation rate effect analysis

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