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Investigation on the Factors Influencing Time and Cost Overrun in Vertical Construction in Pampanga

Rovert Danny D. Bascon Rachel L. Gangcuangco Angelika V. Carreon Maika D. Morales Aaron Jhess R. Alejandrino Nathaniel I. Nuqui Carl Jason A. Coronel John Vincent G. Tongol

Subject area: Science,Engineering and Technology  ·  Area of research: Engineering Management

Abstract

The construction industry in the Philippines has been experiencing significant challenges in recent years due to various events and happenings that have resulted in cost overruns and time overruns or delays. The aim of this study is to identify the factors behind the occurrence of time and cost overruns in construction projects in the province of Pampanga. Furthermore, to determine the level of significance of each factor causing time and cost overruns in a construction project. From this study, the contractors? perception on the risk factors would help in the improvement of the management system of any construction site which helps reduce loss and damages acquired from overruns. A total of 63 factors applicable to the study were identified from the literature review and were grouped into 8. Survey questionnaires were distributed to 116 different contractor companies within the province of Pampanga. 69 responses remained after removing those that are not inclined toward vertical construction and respondents that failed to respond. The perception of the risk factors was divided into two parameters: (1) the severity of the risk factor; (2) the frequency of the risk factor. These variables were subjected to statistical analysis. The Statistical Package for Social Sciences (SPSS) was used to calculate Cronbach?s Alpha. The survey had an excellent level of internal consistency based on the Cronbach?s Alpha. Spreadsheet was utilized to compute for the severity index, frequency index, and relative importance index. The results of the survey revealed that the most significant risks factors contributing to the overruns of vertical construction are inflation, high-cost fluctuation, delay in manufacturing of materials, material damage, client's lack of construction project experience, decision-making that is slowly approved, delays caused by sub-contractors or suppliers, delay in transportation of materials, lack and shortage of construction supplies, and construction change/variation orders. The common risk factors were then analyzed further by identifying possible causes and some of the ways to mitigate such risks. The possible solutions highlighted the importance of collaboration among stakeholders, proactive risk management, and flexible planning to ensure successful project delivery in the face of unexpected events.

Keywords

Contractors, General Building, Inflation, Philippines, Relative Importance Index

References

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How to cite this paper

Rovert Danny D. Bascon, Rachel L. Gangcuangco, Angelika V. Carreon; Maika D. Morales, Aaron Jhess R. Alejandrino; Nathaniel I. Nuqui, Carl Jason A. Coronel; John Vincent G. Tongol "Investigation on the Factors Influencing Time and Cost Overrun in Vertical Construction in Pampanga" Iconic Research And Engineering Journals Volume 6 Issue 12 2023 Page 730-752
Rovert Danny D. Bascon, Rachel L. Gangcuangco, Angelika V. Carreon; Maika D. Morales, Aaron Jhess R. Alejandrino; Nathaniel I. Nuqui, Carl Jason A. Coronel; John Vincent G. Tongol "Investigation on the Factors Influencing Time and Cost Overrun in Vertical Construction in Pampanga" Iconic Research And Engineering Journals, vol. 6, no. 12, Jun. 2023
Rovert Danny D. Bascon, Rachel L. Gangcuangco, Angelika V. Carreon; Maika D. Morales, Aaron Jhess R. Alejandrino; Nathaniel I. Nuqui, Carl Jason A. Coronel; John Vincent G. Tongol (2023). Investigation on the Factors Influencing Time and Cost Overrun in Vertical Construction in Pampanga. Iconic Research And Engineering Journals, 6(12).
Rovert Danny D. Bascon, Rachel L. Gangcuangco, Angelika V. Carreon; Maika D. Morales, Aaron Jhess R. Alejandrino; Nathaniel I. Nuqui, Carl Jason A. Coronel; John Vincent G. Tongol "Investigation on the Factors Influencing Time and Cost Overrun in Vertical Construction in Pampanga" Iconic Research And Engineering Journals, vol. 6, no. 12, Jun. 2023.
@article{1704711,
      author = {Rovert Danny D. Bascon, Rachel L. Gangcuangco, Angelika V. Carreon; Maika D. Morales, Aaron Jhess R. Alejandrino; Nathaniel I. Nuqui, Carl Jason A. Coronel; John Vincent G. Tongol},
      title = {Investigation on the Factors Influencing Time and Cost Overrun in Vertical Construction in Pampanga},
      journal = {Iconic Research And Engineering Journals},
      year = {2023},
      volume = {6},
      number = {12},
      pages = {730-752},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1704711.pdf},
      abstract = {The construction industry in the Philippines has been experiencing significant challenges in recent years due to various events and happenings that have resulted in cost overruns and time overruns or delays. The aim of this study is to identify the factors behind the occurrence of time and cost overruns in construction projects in the province of Pampanga. Furthermore, to determine the level of significance of each factor causing time and cost overruns in a construction project. From this study, the contractors? perception on the risk factors would help in the improvement of the management system of any construction site which helps reduce loss and damages acquired from overruns. A total of 63 factors applicable to the study were identified from the literature review and were grouped into 8. Survey questionnaires were distributed to 116 different contractor companies within the province of Pampanga. 69 responses remained after removing those that are not inclined toward vertical construction and respondents that failed to respond. The perception of the risk factors was divided into two parameters: (1) the severity of the risk factor; (2) the frequency of the risk factor. These variables were subjected to statistical analysis. The Statistical Package for Social Sciences (SPSS) was used to calculate Cronbach?s Alpha. The survey had an excellent level of internal consistency based on the Cronbach?s Alpha. Spreadsheet was utilized to compute for the severity index, frequency index, and relative importance index. The results of the survey revealed that the most significant risks factors contributing to the overruns of vertical construction are inflation, high-cost fluctuation, delay in manufacturing of materials, material damage, client's lack of construction project experience, decision-making that is slowly approved, delays caused by sub-contractors or suppliers, delay in transportation of materials, lack and shortage of construction supplies, and construction change/variation orders. The common risk factors were then analyzed further by identifying possible causes and some of the ways to mitigate such risks. The possible solutions highlighted the importance of collaboration among stakeholders, proactive risk management, and flexible planning to ensure successful project delivery in the face of unexpected events.},
      keywords = {Contractors, General Building, Inflation, Philippines, Relative Importance Index},
      month = {June},
  }