Identification and ranking significant factors causing cost overrun in the design and construction process of buildings using the BWM method (Case study: City of Mashhad)

Document Type : Research Paper

Authors

1 Department of Architecture, Faculty of Art and Architecture, Islamic Azad University, Mashhad Branch, Mashhad, Iran

2 Department of Architecture, Faculty of Art and Architecture, Islamic Azad University of Mashhad, Mashhad, Iran

Abstract

Introduction and purpose of the research: One of the main criteria to measure the success of a building project is completing it in accordance with the predicted costs.  In Iran, like many undeveloped and developing countries, the construction cost overruns are among the key issues many sections face. The city of Mashhad, as the second largest city in Iran, in the last two decades, has faced rapid urban growth and an increase in the construction, and ignoring the causes of cost overrun has led to an increase in the price of buildings. This study is aimed at identifying and ranking the factors influencing the cost overrun in construction projects in Mashhad to allow for improving the construction condition and achieve higher economic productivity.
Research Method: The research has a quantitative approach and an applied objective. The components of the study, i.e., the factors influencing the cost overrun in building projects, were extracted using library studies and reviewing similar studies. Then ranked using the Relative Importance Index (RII) and the Best-Worst Technique (BWM) with the help of Excel, SPSS and Lingo software.
Findings: The findings of RII method show that according to consultants and contractors, the three factors of “poor project management, material price fluctuations and inflation” are the main causes of cost overrun in Mashhad. Owners believe that the “lack of contractor experience” factor also has a significant impact. The findings of the BWM method indicate that in addition to poor management, “poor initial planning” and “inflation” are of great importance.
Conclusion: The results show that the factors such as “poor project management, poor initial planning, market inflation, and mistakes during construction” are the main reasons for the cost overrun in the production procedure of building projects in Mashhad.
 

Keywords


  1. Abd-Karim, A., Memon, A. and Abdul-Rahman, I. 2013. Relationship between Factors of Construction Resources Affecting Project Cost, modern applied science. Vol 7. No.1.
  2. Acharya, N.K., Lee, Y.D. & Im, H.M. 2006. Investigating delay factors in construction industry: A Korean perspective. Korea Journal of Construction Engineering and Management, 7(5): 177-190.
  3. Adugna, Nafkote Tesfahun. 2015. A study of causes of delay and cost overrun in office construction projects in the eThekwini Municipal Area, South Africa, Thesis of Master of Technology in Construction Management, Durban University of Technology, South Africa.
  4. Aibinu.  A.A., G.  O.  J.  2002.  The  effects  of  construction  delays  on  project  delivery  in  Nigerian construction industry. International Journal of Project Management 20, 593–599.
  5. Al-Momani, A.H. (2000). Construction delay: a quantitative analysis. Int. J. Proj. Manag. 18 (1): 51–59.
  6. Al‐Khalil M, A.G. M. 1999. Important causes of delay in public utility projects in Saudi Arabia. construct management economics, 647‐55.
  7. Alaghbari, W., Kadir, M.A. and Salim, A. 2007. The significant factors causing delay of building construction projects in Malaysia. Engineering Construction and Architectural Management, 14(2):192-206.
  8. Alwi, S. and Hampson, K. 2003. Identifying the important causes of delays in building construction projects. Proceedings of 9th East Asia-Pacific Conference on Structural Engineering and Construction, Bali, Indonesia.
  9. Ameh, O. J., Soyingbe, A. A., & Odusami, K. T. 2010. Significant factors causing cost overruns in telecommunication projects in Nigeria. Journal of Construction in Developing Countries, 15.
  10. Arditi, D., Akan, G. T. and Gurdamar, S. 1985. Reasons for delays in public projects in Turkey. Construction Management and Economics, 3(2): 171–181.
  11. Assaf SA, A.‐K. M.‐H. 1995. Causes of delays in large building construction projects. ASCE journal management engineering, 45‐50.
  12. Assaf SA, Al‐Hejji S. 2006. Causes of delay in large construction projects. Int J Project Manage, 349–57.
  13. Azhar, N., Farooqui, R. U., & Ahmed, S. M. 2008. Cost overrun factors in construction industry of Pakistan. In First International Conference on Construction In Developing Countries, Advancing and Integrating Construction Education, Research & Practice. 4-5.
  14. Aziz, Remon Fayek. 2013. Factors causing cost variation for constructing wastewater projects in Egypt, Alexandria Engineering Journal, 52 (1), 51–66.
  15. Bubshait AA, Al-Juwait YA. 2002. Factors contributing to construction costs in Saudi Arabia. Journal of Cost Engineering; 44(5):30–34.
  16. Cantarelli C, Flyvbjerg B, Wee van B, Molin EJE. 2009. Lock-in and its influence on the project performance of large-scale transportation infrastructure projects. Investigating the way in which lock-in can emerge and affect cost overruns. Washington: Transportation Research Board.
  17. Chan, D., W.; Kumaraswamy, M. W. 2002. Compressing construction durations: lessons learned from Hong Kong building projects, International journal of project management, vol. 20, pp. 23-35.
  18. Cheng, Ying-Mei. 2014. An exploration into cost-influencing factors on construction projects, International Journal of Project Management 32, 850–860.
  19. Durdyev, Serdar; Ismail, Syuhaida; Bakar, Nooh abu. 2012. Factors causing cost overruns in construction of residential projects; case study of Turkey, International Journal of Science and management, 1 (1). 3-12.
  20. Doloi, H., 2013. Cost overruns and failure in project management: understanding the roles of key stakeholders in construction projects. J. Constr. Eng. Manage. 139 (3), 267–279.
  21. Enshassi A, Sherif M, Saleh A. 2009. Factors affecting the performance of construction projects in the Gaza strip. Journal of Civil Engineering and Management; 15(3):269–280.
  22. Eshofonie, B. and Patience. F. 2008. Factors affecting cost of construction in Nigeria presented to the department of building university of Lagos Akoka, Lagos in partial fufilment of the requirements for the award of masters in construction management.
  23. Faridi, A.S., El-Sayegh, S.M. 2006. Significant factors causing delay in the UAE construction industry. Constr. Manag. Econ. 24 (11):1167–1176.
  24. Farooqui, R. U.; Hussain, E.; Umer, M.; Lodi, S. H. 2012. Factors Affecting Construction Cost in the Pakistani Construction Industry, Third International Conference on Construction in Developing Countries (ICCIDC–III) “Advancing Civil, Architectural and Construction Engineering & Management” July 4-6, 2012, Bangkok, Thailand
  25. Frimpongs Y, Oluwoye J, Crawford L. 200). Causes of delay and cost overruns in construction of groundwater projects in a developing Countries; Ghana as a case study. Int. Journal of Project Management; 21(5):321–326.
  26. Gardezi, S.S., Manarvi, I.A. and Gardezi, J.S. 2014. Time Extension Factors in Construction Industry of Pakistan. Procedia Engineering, 77: 196 – 204
  27. Gunduz, M., Nielsen, Y., Ozdemir, M. 2013. Quantification of delay factors using the relative importance index method for construction projects in Turkey. J. Manag. Eng. 29 (2):133–139.
  28. Harisweni. 2007. The Framework for Minimizing Construction time and Cost Overruns in Padding and Pekanbaru, Indonesia. Unpublished, Universiti Teknologi Malaysia.
  29. Hussin, J. M., Rahman, I. A., & Memon, A. H. 2013. The Way Forward in Sustainable Construction: Issues and Challenges. International Journal of Advances in Applied Sciences (IJAAS), 1.(3)
  30. Iyer L, Jha K. 2005. Factors affecting cost performance: evidence from Indian construction projects. International Journal of Project Management; 23(4):283–295.
  31. Kaming, P.F., Olomolaiye, P.O., Holt G.D, Harris F.C. 1997. Factors influencing construction time and cost overruns on high-rise projects in Indonesia. Construction Management and Economics; 15(1):83–94.
  32. Kasimu, M. A. 2012. Significant factors that causes cost overruns in building construction projects in Nigeria, J. contemporary research in business, Vol. 3, No. 11.
  33. Kazaz, A., Ulubeyli, S., Avcioglu-Tuncbilekli, N. 2012. Causes of delays in construction projects in Turkey. J. Civ. Eng. Manag. 18 (3):426–435.
  34. Koushki PA, A.‐R. K. 2005. Delays and cost increases in construction of private residential projects in Kuwait. Construct manage economics, 285‐94.
  35. Lawshe, C.H. 1975. A Quantitative Approach to Content Validity. Personnel Psychology, 28, 563-575.
  36. Le-Hoai, L., Lee, Y. D., & Lee, J. Y. 2008. Delay and Cost Overruns in Vietnam Large Construction Projects: A Comparison with Other Selected Countries. KSCE Journal of Civil Engineering, 12(6), 367-377.
  37. Lo, T.Y., Fung, I.H. and Tung, K.F. 2006. Construction Delays in Hong Kong Civil Engineering Projects. Journal of Construction Engineering and Management, 132(6): 636- 649.
  38. Long, N. D., Ogunlana, S., Quang, T. and Lam, K.C.  2004.  Large construction projects in developing countries:  a case study from Vietnam. International Journal of Project Management, 22(7): 553-561.
  39. Mezher, T.M. and Tawil, W. 1998. Causes of delays in the construction industry in Lebanon. Engineering, Construction and Architectural Management, 5(3): 252-260.
  40. Niazi, Ghulam Abbas; Painting, Noel. 2017. Significant Factors Causing Cost Overruns in the Construction Industry in Afghanistan, 7th International Conference on Engineering, Project, and Production Management, Procedia  Engineering  182, 510  –  517.
  41. Odeh, A.M., Battaineh, H.T. 2002. Causes of construction delay: traditional contracts. Int. J. Proj. Manag. 20 (1): 67–73.
  42. Ogunlana, S.O. Promkuntong, K. and Jearkjirm, V. 1996. Construction delays in a fastgrowing economy: comparing Thailand with other economies. International Journal of Project Management, 14(1): 37-45.
  43. Olawale YA, Sun M. 2010. Cost and time control of construction project: Inhibiting factors and mitigating measures in practice. Constr Manage Econ;28: 509–520
  44. Omoregie.  A, Radford D. 2006. Infrastructure delays and cost escalation: Causes and effects in  Nigeria. Proceedings of the 6th International Conference on Postgraduate Research in the Built and Human environment, Deltf, Netherland; p. 73–93.
  45. Pourrostam, T. and Ismail, A. 2012. Causes and Effects of Delay in Iranian Construction Projects. IACSIT International Journal of Engineering and Technology, 4(5): 201-203.
  46. Rafieizonooz, M.; Salim, M. R.; Khankhaje, E.and et al., 2015. Determining the causes of delay by using factor analysis in Tehran’s construction projects.  Applied Mechanics and Material, 735, 109-116.
  47. Rahman, I.A., Memon, A.H., Karim, A.T.A. 2013. Significant factors causing cost overruns in large construction projects in Malaysia. J. Appl. Sci. 13 (2), 286–293.
  48. Rezaei, j. 2016. Best-worst multi-criteria decision-making method: Some properties and a liner model, Omega, 64, 126-130.
  49. Sambasivan, M. and Soon, Y.W. 2007. Causes and effects of delays in Malaysian construction industry. International Journal of Project Management, 25(5): 517–526.
  50. Shanmugapriya, S. & Subramanian, K. 2013. Investigation of significant factors influencing time and cost overruns in Indian Construction Projects. Int. J. Emerging Technol. Adv. Eng.
  51. Sharma, S. and Goyal, P. K. 2014. Cost overrun factors and project cost risk assessment in construction industry—A state of the art review.Int. Acad. Sci. Eng. Technol. ISSN (P): 2.
  52. Shehu, Z., Endut, I.R. and Akintoye, A. 2014. Factors contributing to project time and hence cost overrun in the Malaysian construction industry. Journal of Financial Management of Property and Construction, 19(1): 55-75.
  53. Sweis, G.; Sweis, R.; Hammed, A.; Shboul, A. 2008. Delays in construction projects: The case of Jordan, International journal of project management, vol. 26, pp. 665- 674.
  54. Toor, S.R. and Ogunlana, S. 2008. Problems causing delays in major construction projects in Thailand. Construction Management and Economics, 26(4): 395-408
  55. Wanjari, P. Swapnil & Dobariya, G. 2016. Identifying factors causing cost overrun of the construction projects in India, Sadhana, Vol. 41, No. 6, June 2016, pp. 679–693.
  56. Yaghmaie, F. 2003. Content Validity and its estimation. Journal of Medical Education, 3(1): 25-27. (Persian).
  57. Yakoub, W. 2016. New Approach to control the cost of construction projects in Egypt. M.Sc. Thesis, Faculty of Engineering, Port Said, Egypt.
  58. Yang, J., Wei, P. 2010. Causes of delay in the planning and design phases for construction projects. J. Archit. Eng. 16 (2): 80–83.