Stakeholders’ Perception on Critical Cost Variation Factors in Malaysian Building Projects

Sohu, Samiullah; Abdullah, Abd Halid; Nagapan, Sasitharan; Ali, Ahsan; Kaleemullah, Kaleemullah

doi:10.28991/cej-03091140

Cited by 7 publications

(11 citation statements)

References 13 publications

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“…The cost overrun causes previously identified in Table 1 have been analyzed to rank the top five cost overrun causes based on the number of studies that cited these factors as the critical factors that lead to cost overrun. [40], [15], [41], [42], [43], [44], [45], [46], [47], [48], [49], [50], [51], [52], [53], [20], [54], [14], [55], [56], , [57], [58], [59], [60], [59], [61], [25] [62], [10], [63], [64], [65], [65], [66], [67], [11], [12], [68], [69], [70], [71], [72] [41], [15], [78], [79], [80], [81], [44], [47], [48],…”

Section: Rank the Top Five Critical Cost Overrun Causesmentioning

confidence: 99%

“…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%

“…Poor planning and scheduling [16], [114],[26], [31], [115], [13], [116], [40], [102], [79], [80], [81], [110], [44], [47], [117], [51], [52], [20], [56], [112], [59], [86], [25], [99], [65], [100], [91], [72] [115], [116], [80], [118], [103], [109], [117], [50], [52], [14], [58], [87], [104], [61], [97], [59], [63], [65], [66], [107], [11], [69], [91], [93] [40], [43], [7...…”

Section: Rank Cost Overrun Causes Based On the Related Stakeholder Ca...mentioning

confidence: 99%

See 2 more Smart Citations

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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Section: Rank the Top Five Critical Cost Overrun Causesmentioning

confidence: 99%

Section: Rank the Top Five Critical Cost Overrun Causesmentioning

confidence: 99%

Section: Rank Cost Overrun Causes Based On the Related Stakeholder Ca...mentioning

confidence: 99%

See 1 more Smart Citation

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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“…Regrettably, Malaysia's construction industry showing low performance to encounter the cost overrun where the average overrun is 5-10% of the initial price. On the other hand, 53.2% of the public sector and 62.8% of private-sector construction projects are over-budgeted (Abdul Rahman et al, 2012;Endut et al, 2009;Sohu et al, 2018). Even in Malaysia, construction projects are facing cost overrun and machinery rates are considered as one of the critical factors .…”

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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“…Construction industry plays a major role in enhancing socio-economic development of a county since it contributes to Gross Domestic Product (GDP)and generates greateremployment opportunities [1][2][3][4]. For a vibrant construction industry, successful completion of construction projects is vital.…”

Section: Introductionmentioning

confidence: 99%

Measures to Mitigate Causative Factors of Budget Overrun in Malaysian Building Projects

Ullah

Abdullah

Nagapan

et al. 2018

IJIE

Self Cite

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Completion of a construction within planned budget is one of the main criteria of project success. However, budget overrun has become a recurring phenomenon in construction industry, which can result in multiple negative effects such as loss of economy, disputes among construction stakeholders, project abandonment, and drop in construction activities. This study aims to identify factors causing budget overrun in Malaysian Building projects and then to establish mitigation measures for the identified significant causative factors. Literature review, questionnaire survey and interviews were used in this study. Detailed literature review results in identification of 28 causative factors of budget overrun. The significant causative factors of budget overrun in building projects in Malaysia were investigated through a questionnaire survey of 83 contractors, 57 clients and 40 owners. The feedback of questionnaire survey was analyzed statistically. It was revealed that the significant causative factors of budget overrun include improper planning, variation in materials price, poor site management, lack of communication between parties, frequent design changes, incompetent contractors, mistakes during construction, shortage of site workers, delay in material procurement, and low speed of decisions making. After questionnaire survey, interviews with 16 construction experts were carried out in order to develop mitigation measures for the top ten significant causative factors. Based on semi-structured interviews, a list of mitigation measures for each of the top ten significant causative factors were derived. The findings of this study can be useful for construction practitioners in controlling budget overrun and to achieve project success.

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Stakeholders’ Perception on Critical Cost Variation Factors in Malaysian Building Projects

Cited by 7 publications

References 13 publications

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

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

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

Measures to Mitigate Causative Factors of Budget Overrun in Malaysian Building Projects

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