Construction Cost Overruns of Residential Building Projects in Oman: Root Cases and Mitigation Strategy
Keywords:cost overrun, residential projects, financial risks, corrective actions
Characteristics of construction project includes a specific purpose and it must meet the requirements and expectations of the client. The construction project activities are always linked together and the time required for each activity does vary. The working on the project will not complete unless there are experts from different departments ranging from site workers, civil engineers, architects, electricians, designers, project engineer, site engineer, project manager and administrative staff such as procurement department and others. One of the primary objectives is to finish the project within budget. Excess of construction costs has a negative impact on project parties. Therefore, the causes of these abuses must be identified, especially in the Sultanate of Oman. This research investigates and evaluates the root causes of the cost overrun, cost trend and financial risks related to the residential projects in Sultanate of Oman. A questionnaire has been designed to collect the primary data and literatures are studied to collect the related secondary data. The causes are categorized into three groups according to the responses of the specialists with the contractor, consultant and client .Aspects of agreement between groups were identified after analyzing the questionnaire.
References or Bibliography
Abdel-Hafeez, M. M., El-Attar, S. S., & Abdel-Hafeez, W. A. (2016). Factors Leading to Cost Overrun Occurrence in Construction Projects. Port Said Engineering Research Journal, 20(1).
Abusafiya, H. A., & Suliman, S. M. (2017). Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part I (Ranking of Cost Overrun Factors and Risk Mapping). Modern Applied Science, 11(7), 20.
Al-Hazim, N., & Salem, Z. A. (2015). Delay and cost overrun in road construction projects in Jordan. International Journal of Engineering & Technology, 4(2), 288.
Aljohani, A., Ahiaga-Dagbui, D., & Moore, D. (2017). Construction projects cost overrun: What does the literature tell us? International Journal of Innovation, Management and Technology, 8(2), 137.
Alzahrani, J. I., & Emsley, M. W. (2013). The impact of contractors’ attributes on construction project success: A post construction evaluation. International Journal of Project Management, 31(2), 313–322.
Daniel, E. (2016). The Usefulness of Qualitative and Quantitative Approaches and Methods in Researching Problem-Solving Ability in Science Education Curriculum. Journal of Education and Practice, 7(15), 91–100. https://doi.org/2222-288X
Jia, L. Z. (2015). Impact Of The Cost Overrun Factors On The Project Delay In Construction Industry, Pahang, Malaysia. Doctoral Dissertation, Universiti Malaysia Pahang.
Kim, S., Chang, S., & Castro-Lacouture, D. (2020). Dynamic modeling for analyzing impacts of skilled labor shortage on construction project management. Journal of Management in Engineering, 36(1), 4019035.
Memon, A. H., Rahman, I. A., & Azis, A. A. A. (2011). Preliminary study on causative factors leading to construction cost overrun. International Journal of Sustainable Construction Engineering and Technology, 2(1).
Plebankiewicz, E. (2018). Model of predicting cost overrun in construction projects. Sustainability, 10(12), 4387.
Reina, P., & Angelo, W. J. (2002). Megaprojects need more study up front to avoid cost overruns. ENR, 249(3).
Reiter, S., Stewart, G., & Bruce, C. (2010). Integrating qualitative and quantitative approaches in cross-cultural research. 16th Americas Conference on Information Systems 2010, AMCIS 2010, 6(June 2014), 4172–4180.
Roslan, N., Zainun, N. Y., & Memon, A. H. (2015). Relevancy of factors and mitigation measures in controlling time and cost overrun towards Malaysian environment. Applied Mechanics and Materials, 773, 1007–1011.
Shehu, Z., Endut, I. R., Akintoye, A., & Holt, G. D. (2014). Cost overrun in the Malaysian construction industry projects: A deeper insight. International Journal of Project Management, 32(8), 1471–1480.
Siemiatycki, M. (2018). The making and impacts of a classic text in megaproject management: The case of cost overrun research. International Journal of Project Management, 36(2), 362–371.
Stuchlík, J. (2018). THE MAIN RISK FACTORS LEADING TO COST OVERRUN IN DELIVERY OF CZECH PUBLIC BUILDING PROJECTS.
Subramani, T., Sruthi, P. S., & Kavitha, M. (2014). Causes of cost overrun in construction. IOSR Journal of Engineering, 4(6), 1–7.
How to Cite
Copyright (c) 2021 Mohammed Al Jabri ; Mahmoud Dawood
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright holder(s) granted JSR a perpetual, non-exclusive license to distriute & display this article.