Background of the Study
The construction industry helps in influencing the economies of most of the countries, as it provides the factors that are important for the growth of the economy. The World Bank had shared a report stating that the annual growth of the Gross Domestic Product for a country is between 6-9 percent due to the factors that help in influencing the construction industry (Salunkhe & Patil, 2014). A report shared by United Nations Economic Commission for Europe (UNECE) stated that the growth in GDP was around 4.5 percent in Turkey due to the construction industry. This industry plays an important role within the economy, as it helps in creating an impact on the output and the efficiency of the different industries (Gonzalez et al., 2013)
The infrastructural development is one of the important things that helps in the growth of the commercial sector, as it helps in meeting all the requirements that are present in the infrastructural projects. The source of the funds mainly comes from the Public Private Partnerships (PPP), which helps in taking in to account the investments done by the private and the public firms so that road or rail construction can be done in an efficient manner (Ngacho & Das, 2014). The cost overruns and delays have various implications on the economic and political aspect of the countries, as the provisions of goods and services that are necessary for the common public takes longer than the expected time. The present projects that are being done in Melbourne are also facing serious issues from the government that is causing the projects to get delayed and leading to an increase in the cost. The increase in the paper works regarding the safety protocols that are to be maintained to undertake the construction projects by the companies. Cost overruns also result in reducing the factor of competition within the industry, as it leads to an increase in the ratio of capital and output within the economy (Narbaev & De Marco, 2013). Most of the important projects that are funded by the government are done based on the money that they earn from collecting taxes from the citizens of the country and therefore most of the taxpayers have the right to have a better knowledge regarding the proper use of the money for the goods and services (Fulford & Standing, 2014). The lack of proper identification results in delaying the projects, which leads to cost overruns and the policymaking guidelines are also mislead. Most of the citizens of the country are of the perception that governments are not capable of delivering the goods and services within the time that has been allotted by them and this results in relying more on the private sectors. This also results in excess privatization in most of the sectors, which also increases the cost within the economy (Ling et al., 2013).
Research Problem
An example of this would be the Australian city Melbourne, with its economy at a booming level that has led to the rise in the infrastructural projects. This has led the government of that place to allow a 100 percent Foreign Direct Investment (FDI) within the industry so that the activities of construction can be carried out in a proper manner (Iqbal et al., 2015). The real estate sector within Australia has grown from approximately 25 billion in the year 2005 to 80 billion in the year 2015. The development of the information technology facility has helped the infrastructure companies in showing a major jump in its activities, as the efficiency of communication has helped in easing out the procedure (Marzouk, El Kherbawy & Khalifa, 2013). The current project that is being undertaken in the city is Melbourne Metro Rail Tunnel that will be one of the largest projects in construction that the city has ever had. The completion of this project will help the citizens significantly. The place known as City Square will be fenced so that the machineries can be installed in the area and the construction of the project can start. The project will be based on widening the roads and leveling the crossing intervals in the Blackburn Road area, Mitcham and Heatherdale Road. The transport minister of the area had stated that the construction will play a pivotal role in changing the situation of the local people. The project will help the locals in reaching to their friends and relatives at a faster rate due to the construction. Some of the places will remain closed, as it would help in completing the projects within the stipulated time. The construction had already started from the end of 2017 and up on its completion, it will help the locals in commuting the places at a faster manner. Presently, most of the roads and the public transport system present in the area had been diverted to another route so that the construction does not get hampered (Dow, 2018).
There are many risks in the administration of the construction projects with respect to budget and the scheduled delivery of the work within the stipulated period. The presence of these problems such as the cost and over time has led to a delay in the construction projects. A report prepared by Asian Development Bank (ADB) and African Development Bank (AFDB) showed that most of the infrastructural projects were having cost overruns and it was in countries like Pakistan, China, Korea and Iran (Narbaev & De Marco, 2013). The failures and the other weak spots have to be taken in to consideration so that the research can be conducted in a better manner. Melbourne has seen a rise in the cost overrun due to the failure of the companies in meeting the deadlines under which the project had to be completed. This has led to the decrease in the competition in the real estate market as well (Salunkhe & Patil, 2014).
Research Objectives
The research will be based on the objectives that are as follows:
- To evaluate the causes that leads to cost overruns in construction projects
- To analyze the measures that will help in reducing and mitigating the cost overruns in construction projects
The research will be based on the following hypothesis:
H0– The cost overrun in the construction projects does not hamper the quality of work within the company
H1– The cost overrun in the construction projects does hamper the quality of work within the company
According to Sovacool, Gilbert and Nugent (2014), most of the infrastructural projects need to pass through several stages that is the project needs to be planned along with the approval of the concerned authority so that the construction work can take place within a particular area. It is seen that the lifecycle of these projects are divided in to three phases such as the development of the concept, construction of the project and the maintenance of the work that has been completed.
The development phase deals with the project being sponsored so that the cost and the funds can be estimated, which will be required so that the project can be completed. The date within which the project is expected to be completed is announced as well. However, the date of completion tends to be different than the date that was announced for completing the project (Salunkhe & Patil, 2014). Time overrun can be defined as the delay that is present between the initial planned dates of completing the project with that of the actual date when the project has been completed. The difference in the time is measured in months. Thus the percentage of time overrun can be defined as the ratio between the project implementation phase and time overrun. Additionally, cost overrun can be defined as the difference between the initial cost of the project and the actual cost that was incurred for completing the project (Flyvbjerg, 2014).
The problems of procurement on the infrastructural projects that are larger in nature is of an epidemic nature on a global scale. Most of the projects are completed either by the local or national government along with the help of the organizations that are present in the private sector. The escalations that are present in cost and the miscalculations in the estimation of time can take place in the planning of the project in the initial stages than the time the project gets approved from the authorities (Gonzalez et al., 2013). A research conducted by the international bodies such as Nils Bruzelius and Bent Flyvbjerg across five continents and 20 countries concluded that almost nine of the ten projects had a cost overrun and the escalation of cost on an average was around 29 percent. It was seen that individually the rail projects had the largest escalations in cost with an average of 46 percent and the cost overrun of bridges and tunnels were estimated to be around 35 percent on an average. Another study that was published in the Harvard Business Review showed that the cost overrun in countries like the United States and Europe was estimated to be on an average of 27 percent (Flyvbjerg, 2014).
Research Hypothesis
It can be grouped in to three categories such as the technical challenges, over-optimism and the strategic misrepresentations.
These challenges can take place in many ways, which are as follows:
- Scope for changes- It is seen that the orders where the changes are done based on the decisions may lead to the escalations in costs. The changes may be inclusive of the alterations within the facility such as the addition of transit lines, tunnels or stations that were not earlier in the plan. These changes are often instigated by the politicians, which will help their constituencies in getting the benefit of the changes or the harm that can be mitigated in the neighboring communities (Ngacho & Das, 2014). The orders of change can also take place due to the variations in the initiation process of the contractors so that the errors can be corrected and the facilities can be built in a better manner. The infrastructural projects that are large in nature require many changes that are initiated by the request of the stakeholders. These changes have to be negotiated and the approval of the clients has to be sought, which is a costly and time-consuming process (Narbaev & De Marco, 2013).
- Problems of handover- The construction projects that are larger in nature has to be based on the involvements between the client of the government and the contractors along with the subcontractors as well. There may be disputes between the parties, which may affect the quality of the work in between the partners and may lead to minor errors in the project that can cause delays and a rise in the cost of the projects (Ngacho & Das, 2014).
- Incomplete studies before approaching the project- The approval of the projects before the process of construction in infrastructures often starts before the feasibility of the technicalities and the studies made by the engineers are completed. This leads to the escalations in cost, as the details regarding the projects are not confirmed earlier. These problems occur mainly because of the government, as they accelerate the approval process for the projects that are required on an urgent basis (Fulford & Standing, 2014).
- Material and labor cost escalations- The cost of the projects depend mainly on the construction materials that are important so that the workers can start the project without any delay. This occurs mainly during the time when the projects were built at the time of growth within the economy and employing the correct people so that the work can be completed within a stipulated time (Kerzner & Kerzner, 2017).
- Inaccurate forecasting- The infrastructure projects that are large and complex in nature may have certain uncertainties prediction of which can be difficult that affects the cost of the final project. The problem of forecasting includes the inappropriate methods of assuming the incomplete data, which leads to the quality of work being poor in nature (Ling et al., 2013).
- Delays in project- The unforeseen situations such as strikes, inadequacy of skilled workers, disputes among the contractors and the continuous sourcing of the materials may lead to the delay in the completion of the projects. It may also affect the scheduled date of completing the project, as the relocation of telecommunication, water, sewer and electricity are also some of the major things that causes delay in the projects (Subramani, Lishitha & Kavitha, 2014).
- Unforeseen events- The occurrence of bad weather conditions may lead to the delay in the project, which in turn results in increasing the cost of the projects. The accidents in the construction site will also lead to the delay in the process of construction and additional costs have to be incurred as well (Ling et al., 2013). After digging the site, there may be artifacts that may be important in history, which can also cause a delay in the start and completion of the projects, as the cost of the project may tend to be higher (Kerzner & Kerzner, 2017).
- Poor monitoring of performance and project reporting- The monitoring system of the government does not always have the system to support the decision or keep a track on the performance of the contractor regarding the progress of the job. They may also lack the system of managing the quality of work that is being delivered for the projects, which is within the schedule and budget as well (Weisheng et al., 2013).
Technical problems are often used by the stakeholders, which is regarding the delivery of the project that helps in minimizing their level of responsibility towards the projects. However, it is not only the problems in technicality that are major issues for the cost overruns.
For a long period, it is seen that a majority of studies by the researchers have shown that people are more prone towards optimum biases, which leads to the underestimation of time and cost for the completion of the task. According to the Nobel prize winner Daniel Khaneman who published an article in the Harvard Business Review stated that most of the people are highly optimistic at all times regarding the completion of the tasks within the assigned deadline (Fageha & Aibinu, 2013). Most of the people tend to show overconfidence in their abilities regarding the skills and talents so that the work can be completed within the assigned deadline. This will help most of the people in taking credit personally that are associated with positive outcomes. This leads to the exaggeration of the level of control that the people possess on starting up the events that is associated with chance or luck for the outcome to be successful in nature (Marzouk, El Kherbawy & Khalifa, 2013).
The individuals try to accentuate the positive outcomes within the organization by taking the help of the positive forces that are available within the organization so that the work can be done in an appropriate manner. Most of the organizations who take up the projects do not have unlimited resources, which will stop them from taking up new initiatives (Radujkovic, 2013). The promoters of the projects along with the politicians may underestimate the cost of the plans present in the infrastructure project so that it can attract the potential voters that are present in the area. The limited source of funds within the organization also gives rise to strong competition, which leads to the planning of better options in the project and emphasizes on the positive outcome for the project (Iqbal et al., 2015).
The condition of the humans is that they are always optimistic regarding the outcome of the events in the future. These are sometimes combined with the pressures that are given by the organization so that it can lead to a positive and underestimated amount of cost.
Literature Review
According to Taroun (2014), the infrastructure projects helps in creating winners, as the organizations try to gain prestige or become financially independent by delivering projects on a larger scale. These are inclusive of the lawyers, consultants, bureaucrats, politicians and owners of property depending on the type of the project that is being undertaken. However, there are direct consequences as well, which may happen when the expectations of the budget are not met in a proper manner.
According to Rajan, Gopinath and Behera (2013), the construction of the projects is sometimes financed entirely by the government, which makes the government borne the delays that may happen and the cost overrun. This results in misrepresenting the data and the budgets in an initial manner with respect to the approval, funds and start of the projects. Most of the promoters of project and politicians try to underestimate the cost for planning of the infrastructure, which helps them in attracting the voters towards them. The contractors try to bid for the projects in a competitive manner by underestimating the costs in a strategical manner, as they are of the knowledge that after they get the bid they can increase the costs by changing the orders. The escalations in cost happen due to the misinformation that is done willfully so that the contractors can gain maximum benefits by investing in the project.
According to Nawaz, Shareef and Ikram (2013), the cost overrun in the infrastructure projects that are large in nature may have different problems such as complex technology, economic and political issues along with the psychological concerns. There are various measures that can be taken up for handling these situations, which will help in reducing the cost escalations and improve the technical management as well. There are five different approaches that can be taken up for reducing the cost overrun that are as follows:
- Ø Performance monitoring enhancement and sharing of information- With the help of big data, which is being used by most of the organization in the modern world, the performance of the projects can be improved in a statistical manner. The delivery of the infrastructure projects is a sector that has not used the benefits of big data. The lack of tracking the work in a systematic manner so that the cost of the project along with the time of completing the work can be estimated in a proper manner is missing in the infrastructure projects (Peckiene, Komarovska & Ustinovicius, 2013). This has resulted in harnessing the information within the proper time period so that it can be used effectively within the system for taking the decisions. The process of collecting the data needs to be coordinated with the main department so that with the help of single software the work can be done. The project managers need to put all the information within the software such as the details of cost at the time of approval so that it can be monitored on a constant manner. Other details such as the type and size of the projects along with the delivery model of the project has to be tracked as well so that it can help in managing the costs in an effective manner. The input of the cost within the software will help in reducing the cost that is associated with retrieving the information so that the cost overrun can be mitigated in the process (Amandin & Kule, 2016).
- Ø Good performance rewards- The improvements in a sustainable manner needs to be provided with rewards for the firms so that they can be motivated and can work again in a proper manner. Keeping a proper record of the work will help the organizations in gaining more number of contracts in the future with respect to the quality of procurement in the infrastructure projects (Sears et al., 2015). Most of the organizations that can meet to minimum requirements that are set by the government will be able to bid for the government projects in Melbourne. With respect to the countries like Hong Kong and Singapore, it is seen that the organizations need to give a higher level of performance on a consistent manner, which will help in earning better points for the next bids as well (Nassar & AbouRizk, 2014). The firms that are not performing in a better manner regarding the timely delivery of the projects may lose out on the next bids, as quality of the work may be hampered. The process of ranking is based on the results that are taken from the organization based on the works that are completed earlier so that it can provide a better understanding to the government regarding the quality that has been delivered by them (Amandin & Kule, 2016).
- Ø Enhancing the capabilities of staffs- Managing the projects in a weak manner has been considered to be the most common source of cost overruns. Thus it is necessary for the staffs present in the government bodies with higher skills to manage the relationship between the private and the public sectors. The skills that are necessary within the project manager will provide them the ability to form better requests according to the demands of the clients. It will also provide a competitive process of managing the tenders so that better values can be provided at the lowest bid. The organizations also have to keep a provision for the changes that will be ordered by the government so that it can help in avoiding the conflicts between the partners and the work can be completed in a smoother manner (Nawaz, Shareef & Ikram, 2013). Apart from this, sufficient resources need to be present so that it can help in supporting the functions that are related to drafting of the contract along with managing and monitoring the programs that will help in training the workers in an effective manner.
- Ø Application of modern forecasting techniques- There are various techniques that are innovative in nature so that it can help in delivering the estimates of cost for the projects. The concept of benchmarking the projects with the projects that have been completed recently will helps in assessing the cost of the projects and the probability of cost overrun. The use of forecasting the techniques through the collection of data will help in implementing better system of monitoring the performance. The use of the modern techniques of assessing the risks and predicting the situations in a correct manner are also limited on the allocation of budget and the expertise that is present among the staffs. A way of lessening the burden of modern technologies can be done by standardizing the parts that are present within the process (Finnerty, 2013). An example of this would be collecting the data in an enhanced manner with respect to cost overruns so that dynamic registries can be developed in a better way and the assessment of benchmarking can be done efficiently as well. Another method is that a common set of assumptions, procedures and instructions need to be taken so that the estimation of cost can be done in an accurate manner (Tran & Molenaar, 2013).
- Ø Using the public-private relationship selectively- The Public-Private Partnership (PPP) is a popular tool that is used in the model of procurement. The provincial governments are mostly the users of PPPs, as it is based on two features that helps in designing the budget and the time of the project so that it can help them in earning incentives. Firstly, the delivery of project is based on the design of facility, maintenance and the operations in to a singular contract (Samarghandi et al., 2016). This helps in creating a integration level between the operators of the facility, builders and the designers of the project from an initial stage. The responsibility is linked directly with the flaws that may be present within the designers along with the challenges between the subcontractors that are present within the job. Secondly, the function of PPPs helps in managing the cost of the construction in the project at an initial stage. The private sector partner can be repaid the investment with the help of the fees that is provided by the government so that the standards of quality in the work can be met in a proper manner (Beckers et al., 2013).
The cost overruns have decimated the infrastructure of the government for a long period of time. The rise in the cost of construction has been due to the challenges that are present in technology with respect to the delivery of complex and large projects, which needs to be solved. The policies and procedures that will help in minimizing the cost overruns can be done in three ways with respect to the delivery of the project. Firstly, the use of big data needs to be applied to make the patterns more apparent. Secondly, the procurement and the contract models need to be designed in such a manner so that it can provide motivation to the stakeholders so that the delivery of the project can be done in a timely manner. The concessions that are present in PPP need to be financed through private organizations so that the operations and maintenance of the infrastructure can be done so that the impact of the cost can be studied in a proper manner. Thirdly, the procurement model that will be used needs to be done by using the best technologies that are available so that the methods of forecasting can be accurate in nature.
Accuracy of Cost Estimates
Some of the research works on the following topic has been provided in a proper and effective tabular format.
Authors |
Key Aspects |
Research Questions |
Summary |
MM Amandin & JW Kule |
Key Aspects Author 1 1. The authors in this particular work have determined the different aspects that lead to the cost and time overrun in different infrastructural projects. The researchers have mentioned the cases of African countries which are still in the process of development. It was found that in Zambia financial issues, delays in payment, material procurement problems, frequent changes in the design, economic inefficiency, workplace unrest, management problems were some of the main problems that caused major delays in the construction of roads. Similar to Zambia Uganda also faced problems to implement a number of construction projects. This included specific managerial problems, improper designs and also problems with the management of the workplace. The key issues faced b y the countries in Africa are almost similar to the problems faced by other developing countries in other continents. The common problems again included the use of faulty techniques, improper and poor designs, management failures, economic problems, financial inefficiencies, delayed payments and many more as such 2. Similar to the aspect of time overruns cost overruns is one of the main issues that directly affect the development process in the different developing countries of the globe. The researchers have studied the work of Kaming, Olomolaiye, Holt & Harris (1997). The following researchers have done a detailed research on the construction projects in Indonesia. There are a number of different factors that leads to the cost overruns. The main factors of cost overruns in countries like Vietnam are inflation, increase in the cost of labor, environmental restrictions and wrong calculation of quantity of materials. Apart from this the lack of productivity, economic instability, time miscalculations, inadequate production standards and similar factors are the cause of such issues. As mentioned earlier change in design, fluctuation in the cost of materials, improper supervision can also lead to the increase in the cost of the projects. 1. The consequences of such cost and time overruns can lead to disruptions in the projects and the clients will be left unsatisfied. The increase in the budget of the projects can lead to financial constraints and the quality of the projects may be hampered. Apart from this such mismanagement of cost and time can lead to strained relationships between the contractors and the clients. |
1. What are the causes of cost overruns in dev eloping countries? 2. What are the main consequences of cost and time overruns? 3. How can the problems be solved? |
The developing countries of the world mainly face issues regarding the smooth operations of construction projects. There are different issues that lead to the increase in both the time and cost of the projects. These overrun can lead to severe problems that may force the construction company in charge of the product to compromise on the quality. The study showed that the use of Gantt charts in major projects led to such delays and overruns. Therefore it is utmost important for all the concerned parties to establish suitable measures to avoid such happenings in the future. |
Beckers, F., Chiara, N., Flesch, A., Maly, J., Silva, E., & Stegemann, U. |
1. Different infrastructure projects are high on the government agenda and thus carry a lot of importance. The developed countries have a much more efficiency in managing the infrastructure projects than the developing economies especially in Asia. But most of the projects in the developing economies have a history of cost and time overruns. However there are instances where even the developed countries face similar issues. 2. Poor management skills and improper structuring and delivery of the products are the main concerns that hits the infrastructural projects 3. The paper has also estimated the different causes for the infrastructural disasters. This includes overestimated revenue, failure of the engineering companies to provide a proper and efficient plan and many others as such. 4. It is also seen that the investment from private sectors is becoming rare and cost of major projects have to be raised from Government funds. |
1. Why do the developed economies fail to deliver the projects at a certain time and within the estimated cost? 2. What are the main causes of project delays? 3. Why are the private investors moving away from sponsoring infrastructure projects? |
The sector that deals with large scale infrastructural projects generally fails to properly calculate risks and lacks the skills to formulate a proper risk management framework. Such an absence makes the organization vulnerable to huge cost overruns and delay in completion of the project. The construction companies must make sure to construct a solid plan to increase their efficiency and complete all such projects on time. |
Mohammed K. Fageha & Ajibade A. Aibinu |
1. There are a large number of different construction organizations in Saudi Arabia and a large number of different projects are carried out in the country. But some of the major problems like scheduling, productivity, lack of innovation, mismanagement and other such factors have contributed to the degradation of the service provided by these companies 2. A proper and efficient pre project measure can help to save both cost and timings of different new projects. 3. The researcher in this particular project has given importance to the use of PDRI and has described it as one of the best measurement tool for planning pre project details. 4. The construction companies will be successful only if they ensure the satisfaction of the clients and customers. |
1. What are the problems faced by Saudi companies in carrying out large scale infrastructure projects? 2. What is pre plan scheduling? 3. What is the software that may be used to increase the efficiency of pre planned scheduling? |
The following research is based on the scope of a particular project which helps to decide whether or not to proceed with the project. The absence of an incomplete scope in the early stages of product life cycle is seen as the most generalized source of difficulty that hampers the construction project. The research is able to develop a particular process by which the team of individuals who manages the Gantt Chart of the project can measure the amount of completion of the project. |
JD Finnerty – 2013 |
1. Project Financing is said to be undertaken when a particular set of assets or a facility is able to operate smoothly and earn enough profits to sustain itself in the future. 2. Project financing may include a legal agreement of two parties to complete the project on a certain cost and within the specified time. It also involves the financial cost bearing responsibilities of the company which undertakes the project. 3. The researcher has evaluated the use of PURPA act which is an act in USA that has helped the local electricity companies to purchase electric outputs of independent producers for a particular product. |
1. What do you mean by project financing? 2. When is project financing undertaken? 3. What is PURPA act and how does it helps the investors or the project financers in USA? |
The thorough analysis of the particular paper shows the involvement of raising funds on a limited basis or non limited basis to sponsor a particular project ensuring proper security measures. All the different terms of the amount invested are mentioned in the deed. The additional source of funding will be provided only when the project is said to earn quality profits. |
Iqbal, S., Choudhry, R. M., Holschemacher, K., Ali, A., & Tamošaitien?, J. (2015) |
1. Risk management is one of the most important factors of the modern day construction industry 2. The modern day rise in the construction projects has increased the importance of risk management 3. Risk is mitigated by considering different factors like the origin of the risk, identification of the risk, assessment and evaluation of the risk, function of the risk and many more as such. 4. Different types of risk are associated in the following sector which includes cost overrun, labor crisis, workplace problems, client satisfaction, time delay and many more. 5. Two of the main risk management techniques are risk avoidance and risk mitigation 6. The paper has identified and discussed the main types of risk management techniques and their effectiveness |
The following research deals with the different types of risk that are involved with the construction projects especially in Pakistan. The researcher has identified the top ten risks among the different types of risks occurring in the country. This includes payment delays, exchange rate fluctuation, design flaws, poor quality of materials and many more as such. A thorough analysis of the results will show that in most of the cases it was the contractors who were the main defaulters. The results that were published showed the production of accurate schedule once a proper and effective production plan is in place. Therefore care should be taken to prepare a proper and effective Gantt Chart for completing the project in time as well as mitigating all the risks that may occur during the construction process. |
This chapter deals with the proper methodological methods that are available to the researcher so that the research process can be completed in a proper manner. The researcher has used the positivism philosophy, deduction approach and the design of the research is descriptive in nature (Mackey & Gass, 2015). The researcher has also taken the help of secondary and primary modes for collecting the data. The use of the proper methods of research will help the researcher in establishing accurate results and the methods that have been have been properly justified as well (Taylor, Bogdan & DeVault, 2015).
This process helps the researcher in gathering and evaluating the data that are authentic and are relevant to the topic of the research. There are various research philosophies such as interpretivism philosophy that helps the researcher in gathering the information that are constructed socially that is also called as reality (Mackey & Gass, 2015). The positivism philosophy allows the researcher in collecting the information that are based on facts and are relevant to the topic of the research. The realism philosophy is a mixture of the two philosophies, which states that it helps in gathering the information that are authentic in nature along with the facts that are social in nature as well (Brinkmann, 2014).
This research has been based on positivism philosophy, as it has helped the researcher in collecting the information that is authentic in nature along with the and the researcher has also been able to collect the data that will influence the quality of the result for the research in an overall manner.
This helps the researcher in gaining knowledge regarding the topic of the research. The researcher has to select the approach based on the variables that has been taken up and the topic if the research (Flick, 2015). The inductive approach in the research helps the researcher in incorporating new models and theories so that it can fulfill the requirements of the research. The deductive approach helps the researcher in using the theories and models that are relevant with the variables that have been taken up in the research (Silverman, 2016).
The research has been done by using the deductive approach. The reason for choosing this approach by the research was that it has helped the researcher in reducing the time that the process will take up. Additionally, it also allowed the research in keeping the requirements of the budget under control as well.
For the research to be conducted in an effective manner, it is necessary to understand the topic in a proper way. The topic of the research will help in collecting the information that are based on the variables taken up for the research. The explanatory purpose allows the researcher in establishing the relationship among the variables taken for the research (Vaioleti, 2016). The exploratory purpose helps the researcher to assess the background of the research in a proper manner. The descriptive purpose of the research helps in providing an explanation for the topic of the research and collects the purpose of the research as well (Smith, 2015).
The research has been based on the descriptive purpose, as it helps in analyzing the variables taken up for the research in a proper manner. This research purpose helps the researcher in gathering insights regarding the topic so that the questions and objectives of the research can be framed accordingly.
The strategy, which helps in collecting the information that are relevant to the topic of the research is known as the research strategy. There are various strategies of research that can be taken up by the researcher for completing the process of research (Panneerselvam, 2014). The research that is based on the collection of primary data will use the survey and interview as the strategy. Use of focus groups and case studies help the research in analyzing the news articles and journals that are authentic in nature (Gast & Ledford, 2014).
This research has been based on primary data. The use of case studies and focus groups helps the researcher in gathering the data from the secondary sources. The researcher has used the survey method for communicating with the respondents so that it can help in analyzing the objectives taken up in the process of the research.
It is one of the important activities that has to be carried out by the researcher. The literature review has been conducted by investigating the journal articles in a careful manner that is relevant to the topic of the research (Panneerselvam, 2014). The quantitative technique for collecting the data has been done with the help of survey questions for the employees of ongoing construction projects in Melbourne. The researcher has taken random respondents so that it can help in increasing the quality of the data, which will help in the process of evaluation (Tarone, Gass & Cohen, 2013).
The research has been conducted by gathering the responses from 100 employees who are working in various construction projects in Melbourne regarding the cost overrun that the infrastructural companies face (Bauer, 2014).
This helps the researcher in selecting the useful tools of analytics that will help in analyzing the results of the survey. The research has been done using the Chi-Square test, which helps in establishing a statistical association between the dependent and the independent variables. This process has helped the researcher in converting the information that are general in to specific (Tuohy et al., 2013).
The researcher has abided by all the guidelines while completing this process of research. The researcher did not force any respondents who participated in the survey that can influence the responses so that the result can be tampered. The data that has been gather from the respondents will not be published anywhere from where it can be used commercially. Additionally, the researcher did not influence the respondents with his own point of views that may influence the process of survey.
What is your gender? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Male |
51 |
51.0 |
51.0 |
51.0 |
Female |
49 |
49.0 |
49.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that inadequate planning in the beginning can lead to cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
52 |
52.0 |
52.0 |
52.0 |
No |
27 |
27.0 |
27.0 |
79.0 |
|
Maybe |
21 |
21.0 |
21.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the gender of the participants and their insights regarding the planning of the projects in an inadequate manner that can lead to cost overrun. It can be seen that most of the employees who are male have agreed to the fact that inadequate process of planning leads to cost overrun.
What is your gender? * Do you think that inadequate planning in the beginning can lead to cost overrun? Cross tabulation |
|||||
Count |
|||||
Do you think that inadequate planning in the beginning can lead to cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your gender? |
Male |
29 |
11 |
11 |
51 |
Female |
23 |
16 |
10 |
49 |
|
Total |
52 |
27 |
21 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
1.627a |
2 |
.443 |
Likelihood Ratio |
1.633 |
2 |
.442 |
Linear-by-Linear Association |
.300 |
1 |
.584 |
N of Valid Cases |
100 |
||
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 10.29. |
The Chi-Square test of Pearson shows the statistical association between the dependent and the independent variables. From the above test, it can be seen that the asymptotic value has come to .443 where as the minimum value that was expected from the test has to be 10.29. This shows that there is no statistical association between a particular gender and inadequate process of planning. Therefore it can be stated that both the genders are of the opinion that inadequate planning leads to cost overrun.
Which age group do you belong to? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
18-24 |
24 |
24.0 |
24.0 |
24.0 |
25-30 |
37 |
37.0 |
37.0 |
61.0 |
|
31-36 |
26 |
26.0 |
26.0 |
87.0 |
|
37 and above |
13 |
13.0 |
13.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that it is necessary to estimate the cost and scope of the project in the initial stages? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
62 |
62.0 |
62.0 |
62.0 |
No |
17 |
17.0 |
17.0 |
79.0 |
|
Maybe |
21 |
21.0 |
21.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the age of the employees and their thoughts regarding the necessity to estimate the costs at the initial stages of the project development. It can be seen that most of the employees belonging within 25-30 years have agreed to the fact that estimating the cost at the beginning of the project will help in decreasing the cost overrun by a sufficient amount.
Which age group do you belong to? * Do you think that it is necessary to estimate the cost and scope of the project in the initial stages? Cross tabulation |
|||||
Count |
|||||
Do you think that it is necessary to estimate the cost and scope of the project in the initial stages? |
Total |
||||
Yes |
No |
Maybe |
|||
Which age group do you belong to? |
18-24 |
13 |
3 |
8 |
24 |
25-30 |
27 |
4 |
6 |
37 |
|
31-36 |
15 |
8 |
3 |
26 |
|
37 and above |
7 |
2 |
4 |
13 |
|
Total |
62 |
17 |
21 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
9.053a |
6 |
.171 |
Likelihood Ratio |
8.534 |
6 |
.202 |
Linear-by-Linear Association |
.037 |
1 |
.848 |
N of Valid Cases |
100 |
||
a. 4 cells (33.3%) have expected count less than 5. The minimum expected count is 2.21. |
The result from the Chi-Square test has come to be .171 where as the minimum result that was expected from the test was 2.21. This shows that there is no statistical association between the variables. Therefore, it can be stated that employees of different ages feel that cost estimates needs to be done at the initial stages of developing the project so that it can help in reducing the cost overrun of the projects.
Which age group do you belong to? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
18-24 |
24 |
24.0 |
24.0 |
24.0 |
25-30 |
37 |
37.0 |
37.0 |
61.0 |
|
31-36 |
26 |
26.0 |
26.0 |
87.0 |
|
37 and above |
13 |
13.0 |
13.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that communicating with the partners will help in decreasing the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
64 |
64.0 |
64.0 |
64.0 |
No |
20 |
20.0 |
20.0 |
84.0 |
|
Maybe |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the age of the participants and their insights regarding communicating with the important stakeholders that will help in decreasing the cost overrun of the projects. It can be seen that employees belonging to 25-30 years have agreed to the fact that communicating with the stakeholders/partners will help in reducing the cost overrun.
Which age group do you belong to? * Do you think that communicating with the partners will help in decreasing the cost overrun? Cross tabulation |
|||||
Count |
|||||
Do you think that communicating with the partners will help in decreasing the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
Which age group do you belong to? |
18-24 |
12 |
5 |
7 |
24 |
25-30 |
26 |
6 |
5 |
37 |
|
31-36 |
19 |
6 |
1 |
26 |
|
37 and above |
7 |
3 |
3 |
13 |
|
Total |
64 |
20 |
16 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
7.515a |
6 |
.276 |
Likelihood Ratio |
8.088 |
6 |
.232 |
Linear-by-Linear Association |
1.055 |
1 |
.304 |
N of Valid Cases |
100 |
||
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is 2.08. |
The result of the test has come to .276 where as the minimum value that was expected from the test has to be 2.08. This shows that there is no statistical association between the variables and employees of all the age groups feel that it is important to communicate with the important partners so that it can help in reducing the cost overrun of the infrastructural projects.
What is your work experience? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
0-2 years |
33 |
33.0 |
33.0 |
33.0 |
2.1-4 years |
27 |
27.0 |
27.0 |
60.0 |
|
4.1-6 years |
24 |
24.0 |
24.0 |
84.0 |
|
6.1 and above |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think passing of information among the participants is necessary within the infrastructure projects? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
64 |
64.0 |
64.0 |
64.0 |
No |
20 |
20.0 |
20.0 |
84.0 |
|
Maybe |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship the level of experience that the employees have in the infrastructural projects and their thoughts regarding passing of information within the participants of the projects to decrease the cost overrun. It can be seen that most of the employees who have an experience of 0-2 years have agreed to the fact that passing of information within the stakeholders will help in decreasing the cost overrun.
What is your work experience? * Do you think passing of information among the participants is necessary within the infrastructure projects? Cross tabulation |
|||||
Count |
|||||
Do you think passing of information among the participants is necessary within the infrastructure projects? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your work experience? |
0-2 years |
20 |
4 |
9 |
33 |
2.1-4 years |
15 |
9 |
3 |
27 |
|
4.1-6 years |
16 |
5 |
3 |
24 |
|
6.1 and above |
13 |
2 |
1 |
16 |
|
Total |
64 |
20 |
16 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
9.172a |
6 |
.164 |
Likelihood Ratio |
8.854 |
6 |
.182 |
Linear-by-Linear Association |
3.362 |
1 |
.067 |
N of Valid Cases |
100 |
||
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is 2.56. |
The result of the test has come to be .164 where as the minimum count of the test had to be 2.56. This shows that there is no statistical association between the level of experience that the employees have within the work place and their insights regarding the passing of information among participants so that it can help in decreasing the cost overrun. Therefore it can be stated that employees of different work experience are also of the view that communicating with the participants will help in decreasing the cost overrun in the projects.
What is your work experience? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
0-2 years |
33 |
33.0 |
33.0 |
33.0 |
2.1-4 years |
27 |
27.0 |
27.0 |
60.0 |
|
4.1-6 years |
24 |
24.0 |
24.0 |
84.0 |
|
6.1 and above |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that managing many infrastructure projects can lead to cost overruns? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
62 |
62.0 |
62.0 |
62.0 |
No |
19 |
19.0 |
19.0 |
81.0 |
|
Maybe |
19 |
19.0 |
19.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the levels of experience the employees have in the work and their knowledge regarding managing many projects at the same time can lead to increase the cost overrun. It can be seen that most of the employees who are in the system for 0-2 years have agreed to the fact that involving too many infrastructural projects at the same time can lead to cost overrun for the company.
What is your work experience? * Do you think that managing many infrastructure projects can lead to cost overruns? Cross tabulation |
|||||
Count |
|||||
Do you think that managing many infrastructure projects can lead to cost overruns? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your work experience? |
0-2 years |
20 |
5 |
8 |
33 |
2.1-4 years |
16 |
6 |
5 |
27 |
|
4.1-6 years |
13 |
7 |
4 |
24 |
|
6.1 and above |
13 |
1 |
2 |
16 |
|
Total |
62 |
19 |
19 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
5.221a |
6 |
.516 |
Likelihood Ratio |
5.474 |
6 |
.485 |
Linear-by-Linear Association |
1.136 |
1 |
.287 |
N of Valid Cases |
100 |
||
a. 4 cells (33.3%) have expected count less than 5. The minimum expected count is 3.04. |
The Chi-Square test helps in establishing a statistical association between the dependent and the independent variable. The result of the test has come to be .516 where as the minimum value that was expected from the test had to be 3.04. This shows that there is no statistical association between the particular years of experience and taking up many infrastructural projects will increase cost overrun for the company. Therefore it can be stated that employees who have different work experiences also feel that taking up too many projects will lead to cost overrun for the company.
What is your educational background? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Illiterate |
7 |
7.0 |
7.0 |
7.0 |
Graduate |
43 |
43.0 |
43.0 |
50.0 |
|
Post-graduate |
39 |
39.0 |
39.0 |
89.0 |
|
Diploma |
11 |
11.0 |
11.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Does inflation increases the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
56 |
56.0 |
56.0 |
56.0 |
No |
17 |
17.0 |
17.0 |
73.0 |
|
Maybe |
27 |
27.0 |
27.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the educational background of the employees and their insights regarding inflation that may increase the cost overrun for the infrastructure companies. It can be seen that most of the graduate employees have agreed to the fact that inflation tends to increase the cost overrun for the infrastructure companies.
What is your educational background? * Does inflation increases the cost overrun? Cross tabulation |
|||||
Count |
|||||
Does inflation increases the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your educational background? |
Illiterate |
5 |
0 |
2 |
7 |
Graduate |
20 |
8 |
15 |
43 |
|
Post-graduate |
23 |
8 |
8 |
39 |
|
Diploma |
8 |
1 |
2 |
11 |
|
Total |
56 |
17 |
27 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
5.464a |
6 |
.486 |
Likelihood Ratio |
6.700 |
6 |
.349 |
Linear-by-Linear Association |
1.517 |
1 |
.218 |
N of Valid Cases |
100 |
||
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is 1.19. |
The result of the test has come to be .486 where as the minimum value that was expected from the test had to be 1.19. This shows that there is no statistical association between the particular variables. Therefore, it can be stated that employees of other educational backgrounds also feel that inflation has an effect on the cost overrun for the ongoing infrastructural projects.
What is your work experience? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
0-2 years |
33 |
33.0 |
33.0 |
33.0 |
2.1-4 years |
27 |
27.0 |
27.0 |
60.0 |
|
4.1-6 years |
24 |
24.0 |
24.0 |
84.0 |
|
6.1 and above |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that the fast decision-making process of the owner will decrease the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
61 |
61.0 |
61.0 |
61.0 |
No |
18 |
18.0 |
18.0 |
79.0 |
|
Maybe |
21 |
21.0 |
21.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The table shows the relationship between the experience level of the employees and their insights regarding faster process of decision-making that will help in decreasing the cost overrun. It can be seen that employees with an experience of 0-2 years have agreed to the fact that faster decision-making process will help in decreasing cost overrun of the ongoing construction projects.
What is your work experience? * Do you think that the fast decision-making process of the owner will decrease the cost overrun? Cross tabulation |
|||||
Count |
|||||
Do you think that the fast decision-making process ofthe owner will decrease the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your work experience? |
0-2 years |
15 |
8 |
10 |
33 |
2.1-4 years |
18 |
4 |
5 |
27 |
|
4.1-6 years |
16 |
5 |
3 |
24 |
|
6.1 and above |
12 |
1 |
3 |
16 |
|
Total |
61 |
18 |
21 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
6.594a |
6 |
.360 |
Likelihood Ratio |
7.011 |
6 |
.320 |
Linear-by-Linear Association |
3.659 |
1 |
.056 |
N of Valid Cases |
100 |
||
a. 4 cells (33.3%) have expected count less than 5. The minimum expected count is 2.88. |
The result of the Chi-Square test has come to be .360 where as the minimum value that was expected from the test had to be 2.88. This shows that there is no statistical association between the variables. Therefore it can be stated that employees of different level of work experience within the construction sector are also of the view that faster decision-making will help in decreasing the cost overrun of the construction projects.
What is your work experience? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
0-2 years |
33 |
33.0 |
33.0 |
33.0 |
2.1-4 years |
27 |
27.0 |
27.0 |
60.0 |
|
4.1-6 years |
24 |
24.0 |
24.0 |
84.0 |
|
6.1 and above |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that replacement, addition and change in resources will help in decreasing the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
61 |
61.0 |
61.0 |
61.0 |
No |
19 |
19.0 |
19.0 |
80.0 |
|
Maybe |
20 |
20.0 |
20.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the work experience of the employees and their idea regarding replacing, adding or changing the resources that will help in decreasing the cost overrun of the projects. It can be seen that most of the employees having an experience of 0-2 years have agreed to the fact that adding, changing or replacing some of the resources will help in decreasing the cost overrun of the infrastructural projects.
What is your work experience? * Do you think that replacement, addition and change in resources will help in decreasing the cost overrun? Cross tabulation |
|||||
Count |
|||||
Do you think that replacement, addition and change in resources will help in decreasing the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your work experience? |
0-2 years |
18 |
6 |
9 |
33 |
2.1-4 years |
15 |
7 |
5 |
27 |
|
4.1-6 years |
15 |
5 |
4 |
24 |
|
6.1 and above |
13 |
1 |
2 |
16 |
|
Total |
61 |
19 |
20 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
5.031a |
6 |
.540 |
Likelihood Ratio |
5.346 |
6 |
.500 |
Linear-by-Linear Association |
2.830 |
1 |
.093 |
N of Valid Cases |
100 |
||
a. 4 cells (33.3%) have expected count less than 5. The minimum expected count is 3.04. |
The result of the test has come to .540 where as the minimum value that was expected from the test had to be 3.04. This shows that there is no statistical association between the variables and employees who have more experience in the construction sector also feels that replacing, adding or changing the resources will help in decreasing the cost overrun for the ongoing infrastructure projects.
What is your gender? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Male |
51 |
51.0 |
51.0 |
51.0 |
Female |
49 |
49.0 |
49.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Does the slow procedure of payment affect the standard of work? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
61 |
61.0 |
61.0 |
61.0 |
No |
17 |
17.0 |
17.0 |
78.0 |
|
Maybe |
22 |
22.0 |
22.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The Table shows the relationship between the gender of the employee and the slow process of payment affects the quality of work within the construction sector. It can be seen that most of the male employees have agreed to the fact that payment has to be given at a faster rate so that the quality of work does not get hampered within the construction companies.
What is your gender? * Does the slow procedure of payment affect the standard of work? Cross tabulation |
|||||
Count |
|||||
Does the slow procedure of payment affect the standard of work? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your gender? |
Male |
34 |
6 |
11 |
51 |
Female |
27 |
11 |
11 |
49 |
|
Total |
61 |
17 |
22 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
2.235a |
2 |
.327 |
Likelihood Ratio |
2.258 |
2 |
.323 |
Linear-by-Linear Association |
.565 |
1 |
.452 |
N of Valid Cases |
100 |
||
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 8.33. |
The result of the test has come to be .327 where as the minimum value that was expected from the test has to be 8.33. This shows that there is no statistical association between the variables. Therefore it can be stated that employees of both the gender feel that slow payment affects the standard of work in the ongoing infrastructural projects.
What is your work experience? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
0-2 years |
33 |
33.0 |
33.0 |
33.0 |
2.1-4 years |
27 |
27.0 |
27.0 |
60.0 |
|
4.1-6 years |
24 |
24.0 |
24.0 |
84.0 |
|
6.1 and above |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that approval is required for drawing of resources in crisis situations? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
52 |
52.0 |
52.0 |
52.0 |
No |
28 |
28.0 |
28.0 |
80.0 |
|
Maybe |
20 |
20.0 |
20.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the years of experience that the employees have in the work place and their insights regarding the approval that is needed from the senior management for taking out the resources during the time of crisis. It can be seen that most of the employees who have an experience of 0-2 years have agreed to the fact that approval is required from the higher authorities during crisis situations for drawing out the resources required in the construction projects.
What is your work experience? * Do you think that approval is required for drawing of resources in crisis situations? Cross tabulation |
|||||
Count |
|||||
Do you think that approval is required for drawing of resources in crisis situations? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your work experience? |
0-2 years |
16 |
8 |
9 |
33 |
2.1-4 years |
10 |
9 |
8 |
27 |
|
4.1-6 years |
14 |
8 |
2 |
24 |
|
6.1 and above |
12 |
3 |
1 |
16 |
|
Total |
52 |
28 |
20 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
9.498a |
6 |
.147 |
Likelihood Ratio |
10.241 |
6 |
.115 |
Linear-by-Linear Association |
5.344 |
1 |
.021 |
N of Valid Cases |
100 |
||
a. 3 cells (25.0%) have expected count less than 5. The minimum expected count is 3.20. |
The result of the test has come to be .147 where as the minimum value that was expected from the test has to be 3.20. This shows that there is no statistical association between the variables. Therefore it can be stated that employees of different work experience are also of the view that approval is required regarding taking out of the resources during the situations of crisis.
Which age group do you belong to? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
18-24 |
24 |
24.0 |
24.0 |
24.0 |
25-30 |
37 |
37.0 |
37.0 |
61.0 |
|
31-36 |
26 |
26.0 |
26.0 |
87.0 |
|
37 and above |
13 |
13.0 |
13.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that the design should be allowed to change during the construction process? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
55 |
55.0 |
55.0 |
55.0 |
No |
29 |
29.0 |
29.0 |
84.0 |
|
Maybe |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the age of the employees and their idea regarding the allowance that needs to be given for changing the design during the process of construction. It can be seen that employees belonging to 25-30 years of age have agreed to the fact that changes need to be allowed during the process of construction.
Which age group do you belong to? * Do you think that the design should be allowed to change during the construction process? Cross tabulation |
|||||
Count |
|||||
Do you think that the design should be allowed to change during the construction process? |
Total |
||||
Yes |
No |
Maybe |
|||
Which age group do you belong to? |
18-24 |
12 |
5 |
7 |
24 |
25-30 |
19 |
12 |
6 |
37 |
|
31-36 |
13 |
11 |
2 |
26 |
|
37 and above |
11 |
1 |
1 |
13 |
|
Total |
55 |
29 |
16 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
10.999a |
6 |
.088 |
Likelihood Ratio |
11.308 |
6 |
.079 |
Linear-by-Linear Association |
4.286 |
1 |
.038 |
N of Valid Cases |
100 |
||
a. 4 cells (33.3%) have expected count less than 5. The minimum expected count is 2.08. |
The result of the above test has come to be .088 where as the minimum value that was expected from the test has to be 2.08. This shows that there is no statistical association between the variables. Therefore it can be stated that employees of other age groups also feel that changing the design needs to be allowed during the construction process, which will help in decreasing the cost overrun for the company.
What is your educational background? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Illiterate |
7 |
7.0 |
7.0 |
7.0 |
Graduate |
43 |
43.0 |
43.0 |
50.0 |
|
Post-graduate |
39 |
39.0 |
39.0 |
89.0 |
|
Diploma |
11 |
11.0 |
11.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Does the slow inspection of work increase the cost overruns for the project? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
63 |
63.0 |
63.0 |
63.0 |
No |
19 |
19.0 |
19.0 |
82.0 |
|
Maybe |
18 |
18.0 |
18.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the educational background of the employees and their thoughts regarding the slow inspection of work that tends to increase the cost overrun for the company. It can be seen that most of the employees who are graduate have agreed to the fact that inspecting the work at a slower pace will lead to increase the cost overrun of the companies.
What is your educational background? * Does the slow inspection of work increase the cost overruns for the project? Cross tabulation |
|||||
Count |
|||||
Does the slow inspection of work increase the cost overruns for the project? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your educational background? |
Illiterate |
6 |
0 |
1 |
7 |
Graduate |
27 |
8 |
8 |
43 |
|
Post-graduate |
21 |
9 |
9 |
39 |
|
Diploma |
9 |
2 |
0 |
11 |
|
Total |
63 |
19 |
18 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
5.990a |
6 |
.424 |
Likelihood Ratio |
9.151 |
6 |
.165 |
Linear-by-Linear Association |
.013 |
1 |
.909 |
N of Valid Cases |
100 |
||
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is 1.26. |
The result of the test has come to be .424 where as the minimum value that was expected from the test had to be 1.26. This shows that there is no statistical association between the variables. Therefore it can be stated that employees of different educational backgrounds also feel that inspection of the work at a slower pace will lead to increasing the cost overrun of the construction projects.
What is your gender? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Male |
51 |
51.0 |
51.0 |
51.0 |
Female |
49 |
49.0 |
49.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Does the delay in delivery of materials increase the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
63 |
63.0 |
63.0 |
63.0 |
No |
21 |
21.0 |
21.0 |
84.0 |
|
Maybe |
16 |
16.0 |
16.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the gender of the employees and the increase in cost overrun due to the delay caused in delivering the materials to the construction sites. It can be seen that most of the male employees have agreed to the fact that delays in delivering the materials increases the cost overrun for the construction companies.
What is your gender? * Does the delay in delivery of materials increase the cost overrun? Cross tabulation |
|||||
Count |
|||||
Does the delay in delivery of materials increase the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your gender? |
Male |
33 |
10 |
8 |
51 |
Female |
30 |
11 |
8 |
49 |
|
Total |
63 |
21 |
16 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
.151a |
2 |
.927 |
Likelihood Ratio |
.151 |
2 |
.927 |
Linear-by-Linear Association |
.074 |
1 |
.786 |
N of Valid Cases |
100 |
||
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 7.84. |
The result of the test has come to be .927 where as the minimum value that was expected from the test has to be 7.84. This shows that there is no statistical association between the variables. Therefore it can be stated that both the genders feel that delay in delivering the materials will lead to increasing the cost overrun in the ongoing construction projects.
What is your gender? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Male |
51 |
51.0 |
51.0 |
51.0 |
Female |
49 |
49.0 |
49.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do you think that the poor and unsafe conditions of the workers help in increasing the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
56 |
56.0 |
56.0 |
56.0 |
No |
22 |
22.0 |
22.0 |
78.0 |
|
Maybe |
22 |
22.0 |
22.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the gender of the employees and their insights regarding the poor and unsafe conditions that are provided to the workers that tend to increase the cost overrun. It can be seen that most of the male employees have agreed to the fact that unhealthy working conditions will lead to increasing the cost overrun of the infrastructural projects.
What is your gender? * Do you think that the poor and unsafe conditions of the workers help in increasing the cost overrun? Cross tabulation |
|||||
Count |
|||||
Do you think that the poor and unsafe conditions of the workers help in increasing the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your gender? |
Male |
31 |
9 |
11 |
51 |
Female |
25 |
13 |
11 |
49 |
|
Total |
56 |
22 |
22 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
1.331a |
2 |
.514 |
Likelihood Ratio |
1.335 |
2 |
.513 |
Linear-by-Linear Association |
.422 |
1 |
.516 |
N of Valid Cases |
100 |
||
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 10.78. |
The result of the test has come to be .514 where as the minimum value that was expected from the test has to be 10.78. This shows that there is no statistical association between the variables. Therefore it can be stated that both the genders feel that providing unhealthy conditions to work increases the cost overrun for the construction companies.
What is your educational background? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Illiterate |
7 |
7.0 |
7.0 |
7.0 |
Graduate |
43 |
43.0 |
43.0 |
50.0 |
|
Post-graduate |
39 |
39.0 |
39.0 |
89.0 |
|
Diploma |
11 |
11.0 |
11.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
Do the political changes affect negatively in the cost overrun? |
|||||
Frequency |
Percent |
Valid Percent |
Cumulative Percent |
||
Valid |
Yes |
58 |
58.0 |
58.0 |
58.0 |
No |
22 |
22.0 |
22.0 |
80.0 |
|
Maybe |
20 |
20.0 |
20.0 |
100.0 |
|
Total |
100 |
100.0 |
100.0 |
The above frequency table shows the relationship between the educational background of the employees and the negative effect that political change in the cost overrun for the companies. It can be seen that most of the graduate employees have agreed to the fact that political changes affect the companies in a negative manner.
What is your educational background? * Do the political changes affect negatively in the cost overrun? Cross tabulation |
|||||
Count |
|||||
Do the political changes affect negatively in the cost overrun? |
Total |
||||
Yes |
No |
Maybe |
|||
What is your educational background? |
Illiterate |
4 |
1 |
2 |
7 |
Graduate |
22 |
10 |
11 |
43 |
|
Post-graduate |
23 |
10 |
6 |
39 |
|
Diploma |
9 |
1 |
1 |
11 |
|
Total |
58 |
22 |
20 |
100 |
Chi-Square Tests |
|||
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson Chi-Square |
4.715a |
6 |
.581 |
Likelihood Ratio |
4.980 |
6 |
.546 |
Linear-by-Linear Association |
2.812 |
1 |
.094 |
N of Valid Cases |
100 |
||
a. 5 cells (41.7%) have expected count less than 5. The minimum expected count is 1.40. |
The result of the test has come to be .581 where as the minimum value that as expected from the test has to be 1.40. This shows that there is no statistical association between the variables. Therefore it can be stated that employees of different educational backgrounds feel that political changes affect in a negative manner on the cost overrun for the construction companies.is chapter will allow the researcher in linking the objectives that have been taken up in the research process along with the analysis that has been conducted from the responses and reviewing the literature as well. The collection of the data has been done through quantitative method, as it has allowed the researcher in getting a better idea regarding the topic that has been taken up in the research process. The survey has helped in getting a better perspective regarding the objectives that has been set for the research.
To evaluate the causes that leads to cost overruns in construction projects
The analysis of the data has shown that there are various factors that lead to cost overruns in the construction projects. It can be seen that the delay in taking the decisions regarding allocation of resources for the construction projects results in cost overruns. The unhealthy working conditions that are given to the workers in the construction sites also add to increasing the cost overrun. The resources are not used in the optimum manner, which results in the wastage of the resources. This also leads to increasing the cost overrun for the construction companies.
To analyze the measures that will help in reducing and mitigating the cost overruns in construction projects
From the review of literature and analyzing the data, the performance of the construction companies has to be monitored and the information needs to be shared with the important stakeholders of the project. The construction plans need to be changed according to the situations that may arise in the project that is due to lack of funds, which will help in decreasing the cost overruns. The employees need to be paid on a timely manner so that they can feel motivated within the organization and work in a better manner. Providing proper training to the employees will also result in increasing their level of skills so that they can increase the productivity in the work place as well.
The researcher has undergone many problems during the process of the research with respect to completing the study. The main limitation faced by the researcher was the factor of cost, as it was limited in the hands of the researcher. This posed a problem for the researcher while gathering the data, as the cost had increased to a great extent. The respondents had to be given a reminder for undertaking the survey, as they were very busy with their work. Time was another factor that was faced by the researcher, as the survey participants took up a mjor time in completing the survey.
The research has been completed in a successful manner that can be taken up as reference by other researchers for their future studies. The research has been done regarding cost overrun in construction companies in Melbourne and the research can be used for other sectors as well and not only be restricted to construction companies only.
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