INTERNATIONAL JOURNAL OF SCIENTIFIC DEVELOPMENT AND RESEARCH International Peer Reviewed & Refereed Journals, Open Access Journal ISSN Approved Journal No: 2455-2631 | Impact factor: 8.15 | ESTD Year: 2016
open access , Peer-reviewed, and Refereed Journals, Impact factor 8.15
Analysis of Cost Variation between Actual Cost and Estimated Cost of Building Project
Authors Name:
Chougule Padmesh Sudarshan
, Desai D. B. , Patil S. S.
Unique Id:
IJSDR1709007
Published In:
Volume 2 Issue 9, September-2017
Abstract:
Construction can be considered as a dynamic industry which is constantly facing uncertainties. A construction project is usually considered successful if it is completed within its time, budget & quality targets. Cost-variation has become an integral part of construction projects worldwide. Cost variation can be explained as an instance in which the provision of contracted goods or services are claimed to require more or less financial resources than was originally agreed between a project sponsor and a contractor, i.e. the difference between the original cost and the actual cost when the project is completed. This thesis presents a study made on causes, effects and controls of cost variations in building projects. To achieve the study objective, I carried a literature review of the subject covering periodicals, dissertations, previous research studies and books written on the subject of change in cost variation orders as well as discussions with the practioners in construction industry. In light of the literature study I developed a survey questionnaire. The questionnaire was distributed to all building contractors and consultants, builders and developers and architects. The first included questions on the general market characteristics and general information. The second included questions on the possible causes of cost variations as divided into six different categories which are finance, management, labour, material, project and other. Response from 31 participants working in the field of building construction projects was analyzed. For the analysis of this dissertation work relative importance index (RII) method is used. Analysis of data indicated that cost variations due to change orders were in magnitude of about 10% of the original estimated value. The study concluded various causes of cost variation and which are the most effective causes of variation. The causes which are having RII more 0.6 are considered as severe causes and the problem statement and its recommendations are described. Liquidity of organization, design change or change orders, shortage of materials, number of workers, cost of rework and project size are found tobe the main causes of change in cost variation between estimated and actual cost of building projects. After analyzing causes of cost variation of building projects it will be easy to manage the project effectively so as to minimize the possibilities of cost variation. This study will provide a solution for management of construction project cost by minimizing the cost variation possibilities in construction industry.
Keywords:
Cite Article:
"Analysis of Cost Variation between Actual Cost and Estimated Cost of Building Project", International Journal of Science & Engineering Development Research (www.ijsdr.org), ISSN:2455-2631, Vol.2, Issue 9, page no.54 - 58, September-2017, Available :http://www.ijsdr.org/papers/IJSDR1709007.pdf
Downloads:
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Publication Details:
Published Paper ID: IJSDR1709007
Registration ID:170754
Published In: Volume 2 Issue 9, September-2017
DOI (Digital Object Identifier):
Page No: 54 - 58
Publisher: IJSDR | www.ijsdr.org
ISSN Number: 2455-2631
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