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Effective control measures to minimize cost overrun during construction phase of high-rise residential building projects in Chongqing, China

Wang Yue, Ghazali Farid Ezanee Mohamed

Archives of Civil Engineering

2023

Vol. 69, nr 3

79--94

Cost overrun during construction is one of the most common problems occur in construction projects around the world, which also includes the area of Chongqing in China. At present, there are few studies related to cost overruns at the construction stage of high-rise residential building projects (HRBPs) in Chongqing. The purpose of this study is to develop effective control measures from the contractor’s perspective to help projects to minimize cost overruns during the construction phase of HRBPs in Chongqing. Firstly, through the literature review and semi-structured interviews, 65 cost overrun-related risk factors in construction projects were identified. All the risk factors have been prioritized through the analytic hierarchy process (AHP) based on their importance to project success. Out of the 65 factors identified, 12 were classified as the critical ones that have a great potential to instigate a cost overrun during construction to take place in the real project. There were four risk factors that have the greatest impact on cost overruns, and their weights were 0.04 or above, including low bid, force majeure, undetailed/inaccurate geological survey data, and increased loan interest rates. Finally, control measures were developed for these four critical cost overrun risk factors (CCORFs). The measures developed provided a guideline to control the risk of cost overruns and clear control key points to help contractors minimize cost overruns on construction projects.

Analiza ryzyka przedsięwzięć budowlanych

Kasprowicz T.

Zeszyty Naukowe Politechniki Rzeszowskiej. Budownictwo i Inżynieria Środowiska

2011

z. 58, nr 3/III

233-240

Analiza ryzyka prowadzona jest dla całego cyklu realizacji przedsięwzięcia budowlanego. Ocenia się efektywność ekonomiczną oraz ryzyko czasu i kosztów realizacji przedsięwzięcia. Miarą ryzyka czasu i kosztów jest prawdopodobieństwo przekroczenia określonych limitów czasu i kosztów, gdy przedsięwzięcie budowlane realizowane będzie zgodnie z opracowanym kosztorysem i wyznaczonym harmonogramem. Wyniki obliczeń przedstawia się na wykresach kontyngencji czasu i kontyngencji kosztów przedsięwzięcia.

Risk analysis is conducted for the whole life cycle of construction projects. The method allows for calculation the economic effectiveness as well as the risk of time overrun and the risk of cost overdraft of the projects execution. In order to evaluate the risk of time overrun and the risk of cost overdraft of the projects execution, the probability that the duration and the cost of the project execution will exceed specified limits is calculated. As the results of the analysis charts of time contingency and cost contingency of projects are plotted.