[SOLVED] BLDG4150 – Capstone Industry Research 2

BLDG4150 – Capstone Industry Research 2
In-class Assignment – Preparing a research analysis
STUDENT NAME & ID
Study the Literature Review and the Primary Research Data, and prepare your analysis by addressing the following three components: (1) identify the main research findings, (2) interpret the results to show what they mean, and (3) link the results to secondary research.
Research Topic: Causes of Construction Cost Overruns
Research Objective: To identify and quantify the factors causing construction cost overruns
Literature Review:
Delay and cost overrun are inherent part of most projects despite the much acquired knowledge in project management (Doe, 2017). Much research has been done to identify the major causes of cost overruns in construction projects (Doe, 2021; Smith, 2020; Jones, 2019). In a study conducted in Raptorsville, Smith (2020) identified fluctuations in material cost and additional work caused by changes to the work as being the two most important causes of cost overrun. Doe (2017) found that design errors, inaccurate budgets, incorrect method of project delivery, project delays, unforeseen events, poor project reporting and performance monitoring contributed to project cost overrun. Jones (2019) investigated some factors that influence cost overrun of construction projects such as inadequate project planning, delay in construction, changes in scope of the project, planning and implementation, supply of raw materials and equipment by contractors, and resource constraints, and concluded that excessive change orders were the main reason for cost overruns.
Research Results:
A total of 500 construction professionals were surveyed to identify and quantify the primary causes of cost overruns on construction projects. These factors included mistakes and errors in design, changes in project scope, inaccurate cost and time budgets, high labour costs, lack of communication, poor site supervision, inadequate project control, payment delays, material price fluctuations, and poor financial control. Inadequate cost and time budgeting was identified as the leading factor causing cost overruns, as shown in Figure 4.1, with a 95 percent relative importance. Poor jobsite financial control was the second most important factor, accounting for 90% of the relative importance. Inadequate project monitoring and control, mistakes and errors in design, payment delays, changes in the work, and material price fluctuations were also identified as causes of cost overruns by respondents, with a relative importance of more than 70%. The least significant factors, accounting for 50% of the importance, were identified as a lack of communication between parties and a high cost of labour.
Figure 4.1 Main Causes of Construction Cost Overruns
Research Analysis: