scholarly journals Identification and Assessment of Uncertainty Factors that Influence the Transaction Cost in Public Sector Construction Projects in Pakistan

Buildings ◽  
2018 ◽  
Vol 8 (11) ◽  
pp. 157 ◽  
Author(s):  
Zaigham Ali ◽  
Fangwei Zhu ◽  
Shahid Hussain

Like other kinds of projects, construction projects are exposed to uncertainty, which plays a critical role in determining the transaction cost (TC). This study explores the uncertainty factors that are associated with construction projects that substantially influence the TC. To obtain the opinions of construction professionals, a survey questionnaire was developed after identifying 30 relevant causes of uncertainty from the literature. A survey of 216 professionals was conducted in Pakistan, and the relative importance index (RII) was used to prioritize the significant uncertainty factors that escalate the TC. Based on the responses from various construction professionals, this study determined that the most significant uncertainty factors that influence TC are: competitive tendering, incomplete design and specifications, late payments, conflict management, delayed possession of sites, force majeure, and work acceleration. This study also compared and analyzed the views of project managers and consultants and found that uncertainty from internal sources has a more significant influence on TC than that from external sources. The political and environmental groups do not contribute much escalating the TC. However, uncertainties that arise from the commercial, project site, and technical groups are more of an influence on TC. This research helps practitioners and professionals to adopt integrative systems in most uncertain situations proactively to find opportunities in volatile markets to reduce the impact of uncertainty on the total project cost.

2020 ◽  
Vol 38 (7A) ◽  
pp. 1069-1076
Author(s):  
Layth T. Ali ◽  
Raid S. Abid Ali ◽  
Zeyad S. M. Khaled

Cost overrun in construction projects is a common phenomenon in Iraq. This might occur due to diversity of factors. This study aims to identify the factors influencing construction projects cost that are potentially controllable by main contractors. A field study through a questionnaire survey was directed to a sample of related Iraqi professional engineers from general contracting companies at both public and private sectors. Their opinions on the impact and frequency of each factor were investigated. The questionnaire offered (59) factors classified in (8) categories namely; legislations, financial and economic, design, contractual, site management, material, labor and equipment. The factors were ranked according to the highest Relative Importance Index (RII). The study revealed (10) major factors that are potentially controllable by main contractors namely; labor productivity, sub-contractors and suppliers performance, equipment productivity, site organization and distribution of equipment, experience and training of project managers, scheduling and control techniques, planning for materials supply, planning for equipment supply, materials delivery and planning for skilled labor recruitment. Recommendations to aid contractors and owners in early identification of these factors are also included in this study.


2020 ◽  
Vol 12 (20) ◽  
pp. 8614
Author(s):  
Murat Gunduz ◽  
Abdulrahman Abu-Hijleh

Labor constitutes a significant portion of the overall cost of a construction project, where labor productivity is often the main driver of the cost. Although studies on labor productivity factors exist, their frequency of occurrence in terms of their ranking remains unexplored. This study differs from other studies in the literature by introducing the frequency component to the productivity factors, a more realistic ranking of the factors by adjusting the importance by frequency (frequency adjusted importance index) and risk mapping of the factors. Moreover, this study is the first to apply risk mapping on labor productivity drivers. The aim of this paper is to identify the project factors affecting the labor productivity in construction projects and to rank these factors considering the perception of the industry on project performance. A literature review of past relevant studies was performed to identify and draft a list of factors affecting labor productivity in construction projects. Thirty-seven labor productivity factors were presented in a questionnaire to investigate the impact and frequency of their occurrence in construction projects. A 9-point scale structured questionnaire was constructed to measure the importance and the frequency of the factors and to evaluate the ranking for different categories. The frequency adjusted importance index (FAII), Spearman’s rank correlation, and risk mapping were used to study and analyze the 105 completed responses. The participants rated the following factors as the five most significant labor productivity-influencing factors: (1) poor labor supervision, (2) delays in payments, (3) poor work environment, (4) lowly skilled labor, and (5) bad weather conditions.


2020 ◽  
Vol 3 (1) ◽  
pp. 199
Author(s):  
Alexander Junius ◽  
Mega Waty

In a construction project, changes during the construction period are common. This change can be in the form of an increase or decrease in volume and type of work, changes in work specifications, or changes in the schedule for implementation. Changes in projects are often known as change orders. Change orders must be approved by all parties in a project namely, contractors, owners, and consultants. Change orders are caused by several factors such as changes in design, delays in procurement of goods, differences in field conditions, and others. The impact of this change order is felt by all parties involved in a project, but the change order has a different impact on each party involved. This study aims to determine the biggest impact of change orders from the contractor. In the questionnaire submitted the impact of change order is divided into several variables namely, the cost of quality, time, organization, and others. From the responses of respondents regarding the impact of change orders on road construction projects, an analysis was performed with the calculation of the Relative Importance Index (RII), and the biggest impact was obtained. Before the data is processed with RII, the validity and reliability tests are performed first. The biggest impact of change orders caused by change orders is that change orders increase the budget for contractors, change orders increase overhead costs, increase project duration, cause project costs overruns, and change orders cause a decrease in project profits. AbstrakPada suatu proyek konstruksi, perubahan selama masa konstruksi merupakan hal yang umum terjadi. Perubahan ini bisa berupa penambahan atau pengurangan volume dan jenis pekerjaan, perubahan spesifikasi pekerjaan, maupun perubahan jadwal pelakasnaan. Perubahan dalam proyek sering dikenal change order. Change order harus disetujui oleh semua pihak yang ada dalam suatu proyek, yaitu kontraktor, pemilik, dan konsultan. Change order disebabkan oleh beberapa faktor seperti perubahan desain, keterlambatan pengadaan barang, perbedaan kondisi lapangan, dan lain-lain. Dampak dari change order ini dirasakan seluruh pihak yang terlibat dalam suatu proyek, namun change order menimbulkan dampak yang berbeda pada tiap pihak yang terlibat. Penelitian ini bertujuan untuk mengetahui dampak change order terbesar dari pihak kontraktor. Dalam kuesioner yang diajukan dampak change order dibagi menjadi beberapa variabel yaitu, biaya mutu, waktu, organisasi, dan lainnya. Dari hasil tanggapan responden mengenai dampak change order pada proyek konstruksi jalan, dilakukan analisis dengan perhitungan Relative Importance Index (RII), dan didapat dampak terbesar. Sebelum data diolah dengan RII dilakukan uji validitas dan uji reliabilitas terlebih dahulu. Dampak change order terbesar yang ditimbulkan oleh change order adalah change order menambah anggaran untuk kontraktor, change order meningkatkan biaya overhead, menambah durasi proyek, menyebabkan biaya proyek membengkak, dan change order menyebabkan penurunan keuntungan proyek.


2021 ◽  
Vol 16 (1) ◽  
pp. 77-88
Author(s):  
Abdullateef Adewale Shittu ◽  
Mercy Oiseruimen Evborokhai ◽  
Abel John Tsado

Studies have attributed project failure to poor communication management. This research assessed the impact of communication management on the delivery of construction projects in Abuja, with a view to proposing strategies for improving communication management. The quantitative research method was adopted for the study. Data collection was done through questionnaire survey. Analysis of data was carried out using Mean Item Score (MIS) and Relation Importance Index (RII). Results of the study revealed that the most important causes of poor communication management on construction projects range from Poor feedback (RII = 0.89) to Lack of training (RII = 0.82). The influence of communication management on the cost (MIS = 3.80-4.55), time (MIS = 3.83-4.50) and quality (MIS = 3.53-4.25) delivery of construction projects is significant. Based on these findings, it was concluded that the impact of communication management on the delivery of construction projects in Abuja is significant. It was recommended that project managers should avoid the major causes of poor communication management which range from “Ineffective communication channel used” to “Lack of training” in order to minimise potential dispute, misunderstanding and project failures as a result of poor management of communication on project sites. Keywords: Communication, Communication Management, Construction Projects, Cost. Quality, Time.


sjesr ◽  
2021 ◽  
Vol 4 (1) ◽  
pp. 528-538
Author(s):  
Zaigham Ali ◽  
Dr. Ammar Hussain ◽  
Mehfooz Ullah

The purpose of this paper is to ascertain practitioners’ perception of the critical determinants of uncertainty factors on the transaction cost (TC) in highway construction projects. A survey questionnaire is used to collect data from the 230 practitioners of public-sector construction organizations in Pakistan to identify those factors. The partial least square structural equation modeling (PLS-SEM) is tested on the collected data. This research investigates that TC borne by the owner can be reduced when the owner minimizes inherent uncertainties. To reduce uncertainty, the owner needs to ensure a good relationship with the contracting parties, make a timely payment to the contractor, complete work scope to reduce change orders, enhancing the owner’s experience in similar projects which increase the organizational efficiency hence reduce in TC. This empirical study was conducted from an organizational perspective which helps the project owners to overcome the issues under uncertainty that influence the Transaction cost (TC) in highway construction projects in developing countries. It demonstrates that the uncertainty that causes to enhance the TC is due to the uncertainty of the owner’s behavior. This study provides a guideline for the practitioners of the public sector construction industry to bring cost efficiency under the uncertain circumstance.


Author(s):  
Van Tam Nguyen ◽  
Bao Ngoc Nguyen ◽  
Toan Quoc Nguyen ◽  
Hai Tuan Dinh ◽  
Anh Tung Chu

The COVID-19 pandemic has generated a wide range of socio-economic disruption, which causes devastating in numerous aspects. Our knowledge of the true health of the construction industry under the ravage of COVID-19 outbreak is largely based on very limited data. This study aims to assess the impact of pandemic on the construction industry through an investigation in Vietnam. Data were collected through 129 respondents whose online questionnaire survey completed according to their recent direct or indirect participation in delivering construction projects during the spread. The implications of COVID-19 on the construction industry were examined based on simple percentage analysis and Relative Importance Index approaches. Three principal facets of the construction industry were considered: firms' business activities, project performance, and workforce demand. The findings highlighted the multilevel, multidimensional nature of the epidemic consequences on the construction sector. Notably, the revenue and profitability, in a general sense, have decreased during the COVID-19 period, while most of the production and business costs had remained unchanged. Further, the pandemic was argued to impair construction practitioners' incomes and mental health and sabotage projects' schedule and cost.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khalid Naji ◽  
Murat Gunduz ◽  
Fatema Salat

PurposeThe construction sector has a global reach, and construction professionals worldwide often encounter challenges in delivering a project on time and within the assigned budget. Hence, this paper aims to investigate the preproject factors that most affect the performance of construction projects.Design/methodology/approachA literature review was conducted to identify these factors from previous research, after which a questionnaire was developed and distributed to construction industry professionals worldwide. The response data were collected and analyzed using several methods, including Cronbach’s alpha, Relative Importance Index (RII), Kruskal–Wallis test, and Spearman’s and Pearson correlations.FindingsThe results highlight four categories of significance, namely design, stakeholder, engineering, and procurement, with 31 factors being assigned to these categories. The relationships between each factor based on the categories established in the survey are then presented. With the help of data analysis, focusing on these significant preproject factors will help management teams to evaluate and improve the preconstruction process to achieve a higher project success rate.Originality/valueThis study differs from other studies in the literature by gathering all relevant preconstruction success factors by an extensive literature review. Finally, highly ranked factors are studied in detail for a better understanding of the impact of preconstruction factors on project performance. This study is supported by powerful tests such as Kruskal–Wallis test and Spearman’s correlation to study the perception of different groups on preconstruction factors. Furthermore, the data analysis will help in identifying and avoiding the failure part of the previous projects and will improve the planning and/or forecasting of the new projects.


2021 ◽  
Vol 12 (1) ◽  
pp. 32-38
Author(s):  
Wesam Salah Alaloul ◽  
Muhammad Ali Musarat ◽  
Hussain Mehmood ◽  
Muhammad Altaf

Road construction in Pakistan is booming because of China’s One Belt One Road program. Pakistan is in a developing stage and facing a lot of challenges in construction projects, primarily in labour productivity. This research focuses on the factors affecting labour productivity in road construction projects of Pakistan. A questionnaire was developed to observe the impact of critical factors on labour productivity. Based on the gathered responses, the factors were ranked using the Relative Importance Index (RII). The analysis shows that out of thirty (30) factors, the most important five (5) factors that affect labour productivity on road construction are unskilled workforce, payment delays to labour, tools and equipment shortages, poor communication of supervisor with labours and financial difficulties of owner/contractor. By focusing on these critical issues’ betterment can be made in labour productivity which will directly enhance the projects’ performance.


2011 ◽  
Vol 21 (3) ◽  
pp. 112-117 ◽  
Author(s):  
Elizabeth Erickson-Levendoski ◽  
Mahalakshmi Sivasankar

The epithelium plays a critical role in the maintenance of laryngeal health. This is evident in that laryngeal disease may result when the integrity of the epithelium is compromised by insults such as laryngopharyngeal reflux. In this article, we will review the structure and function of the laryngeal epithelium and summarize the impact of laryngopharyngeal reflux on the epithelium. Research investigating the ramifications of reflux on the epithelium has improved our understanding of laryngeal disease associated with laryngopharyngeal reflux. It further highlights the need for continued research on the laryngeal epithelium in health and disease.


2015 ◽  
Vol 3 (2) ◽  
pp. 69-84
Author(s):  
Wadhah Amer Hatem ◽  
Samiaah M. Hassen Al-Tmeemy

     Suicide attacks, bombings, explosions became the part of daily life in Iraq. Consequently, the threat of terrorism put the Iraqi construction sector in the face of unique and unusual challenges that not seen on other countries. These challenges can have extensive impact on construction projects. This paper seeks to examine the impact of the terrorist attacks on construction industry and determine the extent to which the impact of terrorism on construction projects in terms of cost, schedule, and quality. This study adapted quantitative and qualitative approaches to collect data using questionnaire survey and interviews, as well as historical data. The study focused on projects that have been the target of terrorist strikes in Diyala governorate. A variety of statistical procedures were employed in data analysis. The results revealed the extent to which terrorist attacks impact construction projects in terms of cost, time, and quality. The results of this study will enhance the awareness of all construction parties to the impact of the terrorist attacks against construction projects. Eventually, this can develop a risk management assessment and assist contractors to properly protect projects and buildings to minimize injuries and fatalities in the event of terrorism.


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