IDEAS home Printed from https://ideas.repec.org/a/ibn/masjnl/v7y2013i1p67.html
   My bibliography  Save this article

Relationship between Factors of Construction Resources Affecting Project Cost

Author

Listed:
  • Ismail Abdul Rahman
  • Aftab Memon
  • Ahmad Tarmizi Abd. Karim

Abstract

The success of any construction project highly depends on how proper and effective the management of construction resources flow. Studies show that various resources factors affected cost management and have resulted to significant amount of cost overrun worldwide. However, a few investigations had been carried out in Malaysia regarding the effect of resources in construction industry. Hence, this study focuses on identifying significant resource factors causing construction cost overrun and also assessing the relationship between these factors. Data collection was carried out through a structured questionnaire survey consisting of 20 factors identified through a comprehensive literature review. Data was analyzed using statistical software package SPSS. The Cronbach’s alpha of the data was 0.910 which means that the collected data was highly reliable. The factors were ranked through mean rank approach and it was found that 3 most significant factors are “fluctuation of prices of materials†, “cash flow and financial difficulties faced by contractors†and “shortages of materials†. While the least significant factors in causing cost overrun are “insufficient numbers of equipment†, “relationship between management and labour†, and “labour absenteeism†. The result of Spearman test indicates that “cash flow and financial difficulties faced by contractors†with “financial difficulties of owner†correlate strongly at a significant level of 0.752. This identification of factors and relationships will help construction community in controlling resopurce factors for achieving project completion within the budget.

Suggested Citation

  • Ismail Abdul Rahman & Aftab Memon & Ahmad Tarmizi Abd. Karim, 2013. "Relationship between Factors of Construction Resources Affecting Project Cost," Modern Applied Science, Canadian Center of Science and Education, vol. 7(1), pages 1-67, January.
    • Handle: RePEc:ibn:masjnl:v:7:y:2013:i:1:p:67
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/mas/article/download/21614/14979
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/mas/article/view/21614
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. P. A. Koushki & K. Al-Rashid & N. Kartam, 2005. "Delays and cost increases in the construction of private residential projects in Kuwait," Construction Management and Economics, Taylor & Francis Journals, vol. 23(3), pages 285-294.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mauro Bambi & Cristina Girolami & Salvatore Federico & Fausto Gozzi, 2017. "Generically distributed investments on flexible projects and endogenous growth," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(2), pages 521-558, February.
    2. Edwin Thomas Banobi & Wooyong Jung, 2019. "Causes and Mitigation Strategies of Delay in Power Construction Projects: Gaps between Owners and Contractors in Successful and Unsuccessful Projects," Sustainability, MDPI, vol. 11(21), pages 1-16, October.
    3. Ihsan Issa Ahmad Hosani & Fikri T. Dweiri & Udechukwu Ojiako, 0. "A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-10.
    4. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad M. E. Sepasgozar & Nicholas Chileshe, 2021. "Triggers of Delays in International Projects Using Engineering Procurement and Construction Delivery Methods in the Belt and Road Initiative: Case Study of a High-Speed Railway Projects," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    5. Aftab Memon & Ismail Rahman, 2013. "Analysis of Cost Overrun Factors for Small Scale Construction Projects in Malaysia Using PLS-SEM Method," Modern Applied Science, Canadian Center of Science and Education, vol. 7(8), pages 1-78, August.
    6. Goutom K. Pall & Adrian J. Bridge & Jason Gray & Martin Skitmore, 2019. "Causes of Delay in Power Transmission Projects: An Empirical Study," Energies, MDPI, vol. 13(1), pages 1-29, December.
    7. Ihsan Issa Ahmad Hosani & Fikri T. Dweiri & Udechukwu Ojiako, 2020. "A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(6), pages 1250-1259, December.
    8. A .Q. Adeleke* & Abimbola Olukemi Windapo & Muhammad Waris Ali Khan & J.A. Bamgbade & Maruf Gbadebo Salimon & Gusman Nawanir, 2018. "Validating the Influence of Effective Communication, Team Competency and Skills, Active Leadership on Construction Risk Management Practices of Nigerian Construction Companies," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 460-465:6.
    9. Myung-Hun Kim & Eul-Bum Lee & Han-Suk Choi, 2019. "A Forecast and Mitigation Model of Construction Performance by Assessing Detailed Engineering Maturity at Key Milestones for Offshore EPC Mega-Projects," Sustainability, MDPI, vol. 11(5), pages 1-21, February.
    10. Tirataci Hakan & Yaman Hakan, 2023. "Estimation of ideal construction duration in tender preparation stage for housing projects," Organization, Technology and Management in Construction, Sciendo, vol. 15(1), pages 192-212, January.
    11. Mauro Bambi & Cristina Di Girolami & Salvatore Federico & Fausto Gozzi, 2014. "On the Consequences of Generically Distributed Investments on Flexible Projects in an Endogenous Growth Model," Discussion Papers 14/15, Department of Economics, University of York.
    12. Oke Ayodeji Emmanuel, 2016. "Effect of bond administration on construction project delivery," Organization, Technology and Management in Construction, Sciendo, vol. 8(1), pages 1390-1396, December.
    13. Edyta Plebankiewicz, 2018. "Model of Predicting Cost Overrun in Construction Projects," Sustainability, MDPI, vol. 10(12), pages 1-14, November.
    14. S M Renuka & S Kamal & C Umarani, 2017. "A Model To Estimate The Time Overrun Risk In Construction Projects," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 12(2), pages 64-76, April.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:masjnl:v:7:y:2013:i:1:p:67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.