Study and analysis of factors affecting the performance of. The aim of this study is to identify and evaluate the main factors affecting the performance of construction projects in this country which suffers unstable political and economic circumstances that occurred after the year 2003 and still affecting. However, many factors might affect the accuracy of a cost estimate. Doc factors affecting cost estimating joseph jacob. Summary of relative importance index and rank for factors affecting the performance of construction projects owner consultant contractor performance factors rii rank rii rank rii rank 1 cost factors market share of organization 0. Chapter 2 factors affecting the selection of construction. Analysis of the factors that affects the road construction projects. Cost implications of design variables springerlink. Pdf critical factors affecting construction cost in albania. Construction cost is influenced by several factors, therefore is more important to asses. Dod unit cost area cost factors and facilities pricing guides click the title or date heading to sort by ascending or descending order. Yadav, national institute of technology, india sardar vallabhbhai, national institute of technology, india abstract internationally projects exhibit time and cost overrun. Construction cost is a major concern to both clients and contractors.
Humber bridge in the uk 175% overrun and the paris nord abstract construction industries have a poor reputation in terms of finishing projects on budget. Size the smaller the project in terms of scope or the. Clients and consultants do not generally agree on the severity rank of the factors affecting construction cost in nigeria 3. Hence the need to understand the causes of delays and cost overrun in the construction. The purpose of this study is to determine the factors responsible for impacting the cost performance of ethiopian public construction projects. Comprehensive information, expanded knowledge, considerable expertise, and continuous improvement are needed to obtain accurate cost estimation. Factors affecting construction cost estimation of building projects. The issue of the cost of construction work is one that is rarely far from the minds of construction clients, design teams, constructors and, of course, quantity surveyors.
An investigation into factors influencing construction. Pdf factors affecting construction cost performance in. Factors affecting construction cost are identified through. Such factors should be taken into consideration when preparing cost estimating for any future project. Other factors affecting cost include the form of contract, period for completion, structural form, extent of prefabrication and standardisation and consideration of maintenance and running costs, all of which will be considered in subsequent chapters. Index termsanalysis of performance factors, construction industry, performance indicators. Materials for a construction range from large items such as concrete, steel, timber, gravel.
Critical factors affecting construction cost in albania. Evaluation of construction cost estimation methods in nigeria 7444 olufemi oyedele nigeria fig working week 2015 from the wisdom of the ages to the challenges of the modern world sofia, bulgaria, 1721 may 2015 evaluation of factors affecting construction cost estimation methods in nigeria olufemi adedamola oyedele, nigeria. A structured interview was conducted in order to identify the need for the study. However, the analysis indicated that the top ten 10 factors that have the highest average index showed how these factors are affecting construction. A study of risk factors affecting building construction.
These parameters affect the cost in vast manner so they are responsible for deviation of cost of road projects. A striking feature of public construction projects worldwide has been the occurrence of cost overrun, and the ethiopian construction industry is no exception. Factors affecting the success of a construction project. Factors contributing to cost overruns of construction projects durban south africa isbn. Factors affecting cost of construction fluctuation in currency exchange ratethe production of basic components requires importation of some materials, in time of downfall in naira to dollar, we can see the effect in the immediate 100% rise in price of cement and other materials. Cost, time and quality are the prime factors for project management success. Factors affecting cost of construction fluctuation in currency exchange ratethe production of basic components requires importation of some materials, in time of downfall in naira to. Study of factors affecting performance of construction project. Historical bid data is commonly used to define parameters related to the cost of a typical transportation facility construction, such as cost per lane mile, cost per interchange or cost per square foot. Factors affecting building construction projects cost. Various parameters affecting the road project cost. Critical success factors for planning, scheduling and control.
Factors affecting cost of construction building contractor. M tech scholar,department of civil engineering,mes college of engineering. Introduction cost and time affecting of the construction projects is the universal phenomenon that mostly occurs in the construction road projects. The study has examined risk factors in cost estimation of building construction projects. The issue of the cost of construction work is one that is rarely far from the minds of construction. All feedback from respondent tabulated and tries to find out critical factors which severely affect performance of construction.
Pdf factors affecting building construction projects cost. This chapter represents some cost estimating definitions. Factors affecting construction labor productivity 6 6. Any material used for a construction purpose in the form of solid, semisolid or liquid, processed or unprocessed raw material is known as construction material. Evaluation of construction cost estimation methods in nigeria 7444 olufemi oyedele nigeria fig working week 2015 from the wisdom of the ages to the challenges of the modern world sofia, bulgaria, 1721 may 2015 evaluation of factors affecting construction cost. Hence, there is a need of study in understanding the reasons and factors affecting project cost performance of construction projects. A perspective from india devanshu pandit, cept university, india sanjay m. Pdf factors affecting construction cost in mara large. Figure 1 summarises all the construction cost tender price influencing factors identified from the literature under six main categories. This paper presents the findings of a questionnaire survey conducted on the factors affecting cost performance of indian construction projects. Factors affecting schedule delay, cost overrun, and. Design not only affects relative cctet in a given quantity but also may affect the shape of the curve which shows the variation of cost with quantity. Environmental factors contributed to the 18% while political factors affecting to construction costs by 19%. Factors contributing to cost overruns of construction projects.
Sep 04, 2016 factors affecting cost of construction fluctuation in currency exchange ratethe production of basic components requires importation of some materials, in time of downfall in naira to dollar, we can see the effect in the immediate 100% rise in price of cement and other materials. Lower costs could be due to lower wages, lower raw material costs. Some factors can individually affect construction cost estimating include the project. Evaluation of factors affecting construction cost estimation. The purpose of this paper is to identify the critical factors that affect accuracy of cost estimation and evaluate the degree to which these factors are important from contractors and consultants viewpoints. Regression analysis is simple technique for determining the influence of these factors on cost. Tony cunningham school of surveying and construction management dublin institute of technology. It is therefore important that factors affecting cost of the road projects are well identified so that efforts can be made to improve the situation. From thorough literature study a set of 42 factors are selected for the questionnaire. Two economic factors affecting your construction business. Factors influencing the construction cost of industrialised building. The factors recognized as least important factors in cost of construction are currency exchange and waste. In ghana, the duration of construction projects from inception to completion is becoming a great concern, recently, especially among clients and beneficiaries, because of the rising interest rates, inflation, development plan targets, among other factors. Construction cost is influenced by several factors.
Exploratory factors influencing building development costs. A thesis submitted to aastmt for partial fulfillment of the requirements for the award of the degree of. Pdf factors affecting cost construction project in nigeria a case. These can be used as factors in analyzing construction project performance. Critical success factors for planning, scheduling and control in design and construction elias bjarnason thesis of 30 ects credits submitted to the school of science and engineering at reykjavik university in partial ful.
A survey of 60 contractors and 45 consultants from the west bank in palestine was performed. A study of risk factors affecting building construction projects patel kishan1 1student of final year, m. For improving cost performance, it is very important to identify the reasons affecting cost performance of mara projects. Cunninggham, 20 in assessing the factors affecting the cost of building work within the irish context established that the clients priorities in relation to quality, cost and time constraints, appointment of the design team, location physical. For example, a new machine which enables more of the good to be produced for the same cost. Factors affecting the performance of construction projects. Consultants and contractors do not generally agree on the severity rank of the factors affecting construction cost. Based on a hypotheticalconstruction project a sixstorey concrete framed office building, cost and otherrelated. Shows list of factors affecting performance construction and group of respondent whit the relative importance index and rank. Factors affecting construction cost estimation of building. In addition, other local factors have been added as recommended by local experts. These are generally set forth in publications or manuals made available through associations like the mechanical contractors association of america mcaa and other organizations.
Yadav, national institute of technology, india sardar vallabhbhai, national institute of technology, india abstract internationally projects exhibit time and cost. Whereas the extremely significant factors affecting cost performance were design changes, fluctuations in the cost of most significant factors affecting quality performance were construction project educated personnel, relevant work experienced personnel, quality of materials and equipment used in the project construction and conformance to. Critical factors influencing quality performance in. This paper presents the results of a survey of factors influencing the construction costs of industrialised building system ibs projects in malaysia.
Likewise fluctuation of prices of materials also has a very significant effect on the cost of construction. This study aims at identifying the factors affecting the accuracy of cost estimating construction projects in the west bank in palestine. Research approach the project was carried out through interviews and survey using. The top 5 factors affecting the performance of projects were identified as increase in material cost, inadequate supply of labour, incorrect planning, wrong method of estimation, and poor financial control on site. Factors affecting selection of construction materials for. Data analysis method to measure the importance of the factors affecting cost estimation, relative importance index rii was measured for each factors. Factors that affect the cost of owning and operating construction. Identifying and evaluating the factors that influence cost are critical issues faced by construction managers. An investigation was made of risk emanating from risk factors as perceived by building contractors. A general survey was distributed to examine the correlation between the identified delay factors and the seven most important critical success factors.
Factors contributing to poor performance in construction. The aim of this study is to identify and evaluate the main factors affecting the performance of construction projects in this country which suffers unstable political and economic circumstances that occurred after the year 2003 and still affecting the performance. Percentages can also be used to estimate the cost of project elements based on historical cost. Nigerian construction industry, the challenge of high construction cost, the factors affecting construction cost and the solutions on how to minimize construction cost. This occurs when firms supply more goods even at the same price. A specific survey was distributed to owners, contractors and engineers to examine the most critical delay factors. Factors affecting the cost of airplanes 123 design factors type of construction is obviously one factor which governs cost. Factors affecting the selection of construction equipment 2. However, they also identified several other factors that need to be considered in evaluating construction project success, such as resources and manpower. Different researchers have tried to determine the factors for a successful project for a. The construction industry in india suffers from cost overruns. Factors affecting the cost of building work an overview.
International journal of science and engineering research. Two economic factors affecting your construction business using these two economic factors to price your work will help you not only keep profits in your business, but also increase the value of your services to your clients. Factors affecting construction cost estimation the constructor. Factor affecting construction cost and time in road project. Respondents identified factors affecting cost performance, 31 factors affecting time performance, 5 factors affecting quality performance and 3 factors affecting leadership performance for under oromia industry and urban development bureau building construction. Pdf critical factors affecting construction cost in. Many factors affect accuracy of construction projects cost estimating. Consultants and contractors do not generally agree on the severity rank of the factors affecting construction cost in nigeria 3. Building material cost the cost of building materials in a project is influenced by the requirements of the design and the specifications. Dod unit costarea cost factors and facilities pricing. The literature thus far on the factors affecting the overall cost of construction projects include studies by memon et al. Major causes of construction time and cost overruns. Cost estimating process is an important element within the project life cycle. These documents are available in the following format.
Perspective of project management consultant article pdf available december 2010 with 2,559 reads how we measure. Pdf factors affecting construction cost performance in project. Factors affecting the cost of housing construction projects the cost of housing projects can be broken down into land acquisition, building materials, labour plants and machinery. Design not only affects relative cctet in a given quantity but also may affect the shape of the curve which shows the variation of cost. In the early days, the socalled stickandwireandfabric construction. Introduction materials management is the system for planning and. Factors affecting construction cost estimate free download as pdf file. However, the problem of poor performance in construction projects is a global phenomenon and the construction. Factors affecting labor productivity there are many factors that affect the productivity of labor in construction. Factors affecting the success of a construction project albert p. Two economic factors affecting your construction business using these two economic factors to price your work will help you not only keep profits in your business, but also increase the value of your. The main objective of this paper is to identify the critical factors affecting quality performance in construction projects and to suggest ways to improve the quality performance of construction projects. Factors affecting construction cost performance in project management projects. Factors affecting the performance of construction project.
A study of risk factors affecting building construction projects. Factors affecting performance of construction project. The critical result of the time and cost affecting is time and cost overruns. Generally, a combination of some factors can affect the building development costs.
The cost effect of the main design variables will be examined and compared in this chapter. The final design of a building will be influenced by a variety of factors, including users wishes, planning and building regulations requirements, site factors. The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut the cost. Factors affecting the performance of construction projects in. There are many factors which affect the construction cost estimate and have significant impact on project cost and they are as following. An assessment of major factors affecting construction, project cost. The purpose of this paper is to identify the critical factors that affect accuracy of cost estimation and evaluate the degree to which these factors. Ch 3 identifying considerations affecting cost allowability. Pdf factors affecting construction cost estimating antonius. Site factors affecting construction cost of heavy civil projects.
The purpose of this study is to identify the factors in. Case of mara large projects article pdf available january 2014 with 11,244 reads how we measure reads. Factors affecting construction cost estimate cost insurance scribd. For the construction estimate, the best reference will be similar construction projects. Factors affecting the cost of construction project in akure a case of building and construction projects i table of contents table of contents. It also identified various factor affecting construction cost performance of mara large construction projects. Data was collected by use of questionnaires were a total of 61 questionnaires were administered to building contractors. Case of mara large projects as many subfactors such as availability, quality and order size play a major role in the price of a material.
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