Structural modelling of cost overrun factors in construction industry
Construction industry contributes significantly in improving socio-economic growth of a country. However, this industry usually faces chronic problems such as time overrun, cost overrun, poor quality and others. Of all these, cost overrun is a major problem that occurs globally including Malaysia...
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| Format: | Thesis |
| Language: | English English English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/2190/1/24p%20AFTAB%20HAMEED%20MEMON.pdf http://eprints.uthm.edu.my/2190/2/AFTAB%20HAMEED%20MEMON%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/2190/3/AFTAB%20HAMEED%20MEMON%20WATERMARK.pdf http://eprints.uthm.edu.my/2190/ |
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| Summary: | Construction industry contributes significantly in improving socio-economic growth
of a country. However, this industry usually faces chronic problems such as time
overrun, cost overrun, poor quality and others. Of all these, cost overrun is a major
problem that occurs globally including Malaysia. Cost overrun is resulted from
various factors which are essential to identify for improving cost performance in
construction project. Hence, this study focused on identifying and modelling the
factors of cost overrun for construction projects in Malaysia. Data collection was
done through structured questionnaire, which was designed based on 78 factors
found from the literature. Qualitative pilot study was done based on the opinions of
15 experts in the construction industry to improve the questionnaire by reducing the
factors to 58. The questionnaire survey was carried out among clients, consultants
and contractors. A total of 231 questionnaires were collected of which 213 responses
were found valid. Partial Least Square Structural Equation (PLS-SEM) model was
developed based on 8 categories/constructs generated through factor analysis test and
found that Global Fit Index (GOF) of the model to be 0.37. The findings from the
model indicate that all the 8 categories have significant effect on the cost overrun.
The most significant category is contractor's site management related issues with
path co-efficient value of 0.448. The developed model was validated statistically
(using power analysis and predictive relevancy) and through interviewing 21
experienced practitioners. Statistical validation tests showed that the developed
model had achieved substantial power in explaining cost overrun problem. All the
experts agreed with the factors and also categories of the model have significant
impact to cost overrun. |
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