Cost Overruns Delays and Risks in Construction Management
2015-09-01 Posted By:Infrabazaar
Cost overrun and controlling time of construction projects is very determining in achieving successful competition of any projects. However at present construction industry is facing a major risk in achieving completion of project within the estimated time and cost. This risk caused by various factors, targeting to solve this problem, as per the studies the present framework for web based expert and decision support system in order to review the causative of level factors and cost overrun on project success throughout the lifecycle of construction process. This process is included with estimate project schedule and consequences of various factors and to forecast the risk factors, loss of time and cost which are not controlled. This would be helping us to achieving by implementing the different technique of relating network. This program will be able to suggest the curative actions and indentified risk factors to control, based on the various reports which can be generated in presenting the associated problems of factors and their relative impact of project performance.
Time and Cost overrun problem in Construction Project
Cost and time overrun in construction projects can occur due to several reasons and factors. Therefore these factors are considered as risk of time and cost performance of project. Hence, an inclusive literature review on causative risk factors, concerning cost and time overrun is carried out to understand these issues. This is important as cost and time performance cannot be improved without controlling the causative risk factors. In this regard, various researches have highlighted numerous factors.
As per “Jackson” studies in 2002 reasons for budget overrun in UK through questionnaire survey were found major reasons for overrun is design developments factors, design changes, information availability, performance of design team, methods of estimation, and project management.
Later on as per Olawale & Sun (2010) investigated cost overrun and time factors through administered questionnaire and found that cost control prevent factors were (in raking order) risk and uncertainty, design changes, difficulty of works, conflict between project parties, discrepancies in contract documentation, contract and specification interpretation disagreement, lack of proper training and experience of project manager, inflation of prices, financing and payment for completed works, low skilled manpower, unpredictable weather conditions, addiction on imported materials, lack of appropriate software, unbalanced interest rate, fluctuation of currency/exchange rate, weak instruction and control, project fraud and corruption, associated with projects, inaccurate estimate of project’s time/duration, non-performance of subcontractors and nominated suppliers and unstable government policies.
The above article will help you indentify the factors, the system that suggests a suitable corrective action and controlling the risk factors, improve time and cost performance.