Analysis of Various Costs in Construction Management
Singh, Sukhdeep (2024)
Singh, Sukhdeep
2024
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202404025518
https://urn.fi/URN:NBN:fi:amk-202404025518
Tiivistelmä
Most of the projects in construction industry suffers from actual costs exceeding projected budgets, which causes cash flow problems not only for the clients but also for the contractors because their cash circle is split among several projects. As a result, everything for the contractor gets disrupted, including labor, employee wages, machinery, and project materials, which ultimately results in bankruptcies for the contractor company. Therefore, it is of vital importance that project management personnel are aware of all the relevant costs which may or may not encounter during the project along with criticality of each type of cost. Only then, they can be able to make well-informed and realistic decisions in a proactive manner.
This study focuses on high-rise buildings projects in United Arab Emirates (UAE). In order to identify potential costs which may encounter on a construction project, a comprehensive literature review was carried out and 23 types of costs were retrieved. Then depending upon the nature of these costs, they were classified into 9 cost categories such as Direct Costs, Legal Costs and Overhead Costs. A questionnaire was formulated covering all the costs that had already been identified and it was distributed among diverse fraternity of construction professionals including contractors, clients, and consultants to obtain a holistic view of all stakeholders. Likert scale was used to mark the significance of each cost towards project success. Then, based on the responses received from the targeted respondents, data was analyzed to establish a Relative Importance Index (RII) of each cost so that a meaningful comparison could be drawn. Results show that the most critical cost factors for high-rise building projects are Material Cost (RII=3.877), Land Acquisition Cost (RII=3.754) and Equipment Cost (RII=3.385). Likewise, in Cost Categories, Land Acquisition and Direct Costs are the most significant costs followed by Utilities/infrastructure Costs.
This study focuses on high-rise buildings projects in United Arab Emirates (UAE). In order to identify potential costs which may encounter on a construction project, a comprehensive literature review was carried out and 23 types of costs were retrieved. Then depending upon the nature of these costs, they were classified into 9 cost categories such as Direct Costs, Legal Costs and Overhead Costs. A questionnaire was formulated covering all the costs that had already been identified and it was distributed among diverse fraternity of construction professionals including contractors, clients, and consultants to obtain a holistic view of all stakeholders. Likert scale was used to mark the significance of each cost towards project success. Then, based on the responses received from the targeted respondents, data was analyzed to establish a Relative Importance Index (RII) of each cost so that a meaningful comparison could be drawn. Results show that the most critical cost factors for high-rise building projects are Material Cost (RII=3.877), Land Acquisition Cost (RII=3.754) and Equipment Cost (RII=3.385). Likewise, in Cost Categories, Land Acquisition and Direct Costs are the most significant costs followed by Utilities/infrastructure Costs.