AN EXPERIMENTAL STUDY FOR EVALUATION OF TIME AND COST DRIVEN FACTORS ANALYSIS OF A COMMERCIAL COMPLEX

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1 International Journal of Civil Engineering and Technology (IJCIET) Volume 8, Issue 5, May 2017, pp , Article ID: IJCIET_08_05_017 Available online at aeme.com/ijciet/issues.asp?jtype=ijciet&vtyp pe=8&itype=5 ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed AN EXPERIMENTAL STUDY FOR EVALUATION OF TIME AND COST DRIVEN FACTORS ANALYSIS OF A COMMERCIAL COMPLEX Chandrahas Sai B M. Tech Student, Departmentt of Civil Engineering, K L University, Andhra Pradesh, India. SS. Asadi Professor & Associate Dean Academics, Department of Civil Engineering, K L University, Andhra Pradesh, India. ABSTRACT A lot of studies and research have been done to identify the root cause of the time overrun and cost overrun in construction projects which lead to the delay in the project completion. It is of paramount important to find the factors leading to these constraints and suggest some mitigation measures to overcome time and cost overrun constraints. This thesis emphasis on the various aspects of technical and managerial issues which are responsible for time and cost overrun and suggest some mitigation measures for a commercial complex under construction located in Vijayawada which is undertaken by AmarChandrahas Developers. The analysis is done by using EVA (Earned Value Analysis). Key Words: Cost Control, EVA, Time Overrun, Cost Overrun. Cite this Article: Chandrahas Sai B and SS. Asadi An Experimental Study for Evaluation of Time and Cost Driven Factors Analysis of A Commercial Complex. International Journal of Civil Engineering and Technology, 8(5), 2017, pp IET/issues.asp?JType=IJCIET&VType=8&ITy ype=5 1. INTRODUCTION Now a day s many commercial complex is being constructed. People with busy time schedule show a lot of interestt in visiting these malls, so that a lot of time is optimally utilised and every item is made available in the commercial complex. There are 20 major malls in and around Hyderabad which operate at peak during weekends.constructionn industry is highly dynamic sector and plays very important role in the development of country and hence in India, construction industry started a rapid+ growth since its independence. However, construction industry in India is facing chronic problems including poor performance of time and cost, construction waste, poor productivity and over dependent of workers. Of these editor@iaeme.com

2 An Experimental Study for Evaluation of Time and Cost Driven Factors Analysis of A Commercial Complex challenges, poor time and cost performance is considered as a critical issue. A successful project is the only project which has accomplished its technical performance, maintained its schedule, and remained within budgetary costs. Project management tools and techniques play an important role in the effective management of a project. 2. OBJECTIVES To identify the major factors of cost and time overrun in construction sector and can serve as the way forward for future work in coping with these overruns. To ensure and to control the projects finish on time, within budget and achieve other project objectives. 3. METHODOLOGY Step 1: Performance is assessed mathematically and expressed in Key Performance Indicators They are: How much work SHOULD have been done so far? Budgeted Cost of Work Scheduled (BCWS) How much money ACTUALLY has been spent to progress of the project so far? Actual Cost of Work Performed (ACWP) What is the VALUE of the work that has been accomplished so far? Budgeted Cost of Work Performed (BCWP) Step 2: Cost and Schedule Variance are the two primary measures of project progress. This can be determined by: Cost Variance (CV) = BCWP- ACWP Schedule Variance (SV) = BCWP-BCWS If CV/SV = 0; then project is on track If CV/SV = +; then project is under budget and ahead of schedule If CV/SV = -; then project is over budget and behind schedule Step 3: Cost and Schedule Performance Indices: Two indices that are useful for communicating progress status are the Cost Performance Index and Schedule Performance Index. They are determined by: Cost Performance Index (CPI): The efficiency factor representing the relationship between the actual costs expended and value of the physical work performed. CPI = BCWP/ACWP Schedule Performance Index (SPI): The planned schedule efficiency factor representing the relationship between the value of initial planned schedule and the value of physical work performed. SPI = BCWP/BCWS If, CPI and SPI=1, then the project is on budget and on schedule editor@iaeme.com

3 Chandrahas Sai B and SS. Asadi CPI and SPI <1, then the project is over budget and behind the schedule CPI and SPI >1, then the project is under budget and ahead of schedule Budget at Completion (BAC) - Original Estimate of Completed Project Costs Estimate at Completion (EAC) is a projection of the final costs of work at project completion EAC=BAC/CPI Here, BCWS = Budgeted cost for work scheduled BCWP = Budgeted cost of work performed ACWP = Actual cost of work performed Figure 1 Indicating the step by step Processing of Methodology editor@iaeme.com

4 An Experimental Study for Evaluation of Time and Cost Driven Factors Analysis of A Commercial Complex 4. RESULTS & DISCUSSIONS As per the above methodology, the estimated budget of the proposed project is as in the table below., S.No Work item Table 1 Details of budget according to prescribed work Budgeted cost (in lakhs) % Scheduled completion % Actual completion Scheduled cost (in lakhs) Actual cost (in lakhs) BCWS BCWP 1 Earth work- Excavation Filling Pile breaking Total cost of 2 concreting including formwork Total cost of 3 post tension work 4 Masonry work Internal plaster Water proofing Doors Windows Vitrified tiles Toilet finishing Terrace and paving Staircase finishing Grills and railing Painting M.S. Shutter Miscellaneous Total BAC = Budgeted cost = 16731lakhs = crores 1. Scheduled variance (SV) = BCWP - BCWS = = lakhs Project is behind scheduled editor@iaeme.com

5 Chandrahas Sai B and SS. Asadi 2. Cost variance (SV) = BCWP - ACWP = = lakhs Project is into cost overrun 3. Schedule performance index(spi) = BCWP BCWS = = <1 Project is behind scheduled 4. Cost performance index(cpi) = BCWP ACWP = =0.845<1 Project is into cost overrun 5. Critical ratio(cr) = SPI * CPI =0.919* = <1 Overall project performance is poor. 6. Estimate at completion (EAC) = BAC CPI = = 198 crores Cost escalation = EAC Budgeted Cost = Cost escalation =30.69 crores 7. Construction started on Sept-2013 and the expected completion of project is on April But due to the time overrun the project is expected to be completed by April-2018 Time escalation = 2 years 4.2. MITIGATION MEASURES The findings of study revealed that 92% of construction projects were time overrun and only 8% of project could achieve completion within contract duration. The amount of time overrun was in between 5-10% as agreed by respondents. In terms of cost performance only 11% of respondents mentioned that normally their projects are finished within the budgeted cost while 89% of respondents agreed that their projects were facing the problem of cost overrun with average overrun at 5-10% of contract price. The major contributors of this poor performance include design and documentation issues, financial resource management and project management and contract administration issues. Mitigation measures to improve higher productivity, quality, and faster project completion time Construction management Construction time performance can be improved through enhancing the communication system between the project team using IT system as one of a way to communicate to ensure editor@iaeme.com

6 An Experimental Study for Evaluation of Time and Cost Driven Factors Analysis of A Commercial Complex the information among project team. Other important aspects is close monitoring that can improve the construction time performance as well as improving documentation system traceability and access. The best method to be considered is using information technology for record system or using construction documentation management system (CDMS) for proper record keeping Factors for construction time performance To minimize the impact on CTP, project manager have to manage factors that influence delays. The factors highlighted in this study and required proper handling includes construction management, financial, materials at site, equipment and machineries, workers, weather and safety precautions at construction site Financial The reduction of costs involves reducing man power, material costs, and operating costs. Financial problem is one of the causes that effecting CTP. Cash flow need to be concerned in improving time performance by chasing payment from client or main contractor and cut-off unnecessary expenses Materials In addition, the execution time of the project may be extended due to delay in the delivery of the material to the site. The most important factors which contribute to delay of the project is quality of material. Material need to be checked upon delivery to ensure material defect is identified at early stage, thus replacement of the defect material can be done Equipments and Machineries It is important to have proper equipment available for construction workers to perform their work adequately. Due to that, schedule maintenance is a must to ensure maintenance of the equipments and machineries is done on time to avoid delay Safety Precautions at Construction Site The evaluation measures involve the availability of safety shoe, gloves, safety helmet, specifying speed limits in the construction site, providing first aid supplies, provide clear safety program and conducting regular meetings to explain the safety program. Other than that, there are many guideline can be adopted to construction site such as NIOSH, OSHA, CIDB, etc ABC (Always Better Control) Technique Materials should be managed by using ABC (Always Better Control) technique in which class-a items which cost 70% cost of materials should be stored very less, class-b items which cost 20% cost should be stored in minimum quantity and class-c items which cost 10% cost should be stored maximum. Though the IBS ( Industrialized building system) is having several advantages, ABC technique is most successful method in Time & Cost analysis Proper project planning and scheduling Planning and Scheduling can be done with the help of software packages such as Microsoft Project, Primavera, Asta Power Project editor@iaeme.com

7 Chandrahas Sai B and SS. Asadi Frequent Progress Meetings To avoid confusions at site that what are the activities to concentrate and to avoid confusion in the mind of the labour. To ensure whether the labour have good knowledge on the activity that they are executing so that no material and resources are over used. By this we can control cost Inventory Control Inventory control also plays a crucial role in minimizing the cost. If we maintain good inventory control 10% of the cost can be reduced. As per the above analysis of project is facing cost overrun and time overrun we have used EVA (Earned Value Analysis). The main cause for the cost overrun and time overrun in this case are frequent design changes, poor project management, inappropriate contractors, unskilled manpower, inaccuracy of material estimate, lack of appropriate software, complexity of works. To overcome these problems the firm, have to focus on better inventory control, use of adequate software and focus on activity based control. So that the project is transparent enough to rectify or overcome their mistakes at the time of work progress itself. REFERENCES [1] Olawale, Y., and Sun M. (2010). Cost and time control of construction projects: Inhibiting factors and mitigating measures in practice. [2] Aftab Hameed Memon., Ismail Abdul Rahman., Ade Asmi Abdul Azis. (2012). Time and Cost Performance in Construction Projects in Southern andcentral Regions of Peninsular Malaysia. International Journal of Advances in Applied Sciences (IJAAS)March 2012, pp. (45-52) [3] Abedi, M., Fathi, M. S. & Mohammad, M. F. (2011). Major Mitigation Measures for Delays in Construction Projects. [4] Nida Azhar., Rizwan U. Farooq, Syed M. Ahmed. (2008). Cost Overrun Factors In Construction Industry of Pakistan. First International Conference on Construction In Developing Countries (ICCIDC I) Advancing and Integrating Construction Education, Research & Practice [5] Ghaleb J. Sweis (2013). Factors Affecting Time Overruns in Public Construction Projects: TheCase of Jordan International Journal of Business and Management; Vol. 8, No. 23; 2013 [6] Agataa Czarnigowska (2008). Earned value method as a tool for project control Budownictwo Architektura (2008) [7] Joseph M.Schoenborn (2012). A Case Study Approach to Identifying the Constraints [8] and Barriers to Design Innovation for Modular Construction [9] Marchesan, Formoso. Cost Management and Production Control for Construction Companies [10] Deepak p. patil, Pankaj P.Bhangale, Swapnil S.Kulakarni.(2014) Study of cost control on construction project international journal of Advance engineering and research studies [11] Aibinu, A. and Jagboro, G. (2002) The effects of construction delays on project delivery in Nigerian construction industry. International Journal of Project Management, 20 (8), [12] Akinsola, A., Potts, K., Ndekugri, I., Harris, F. (1997) Identification and evaluation of factors influencing variations on building projects. International Journal of Project Management, 15 (4), [13] Al-Momani, A. (2000) Construction delay: a quantitative analysis. International Journal of Project Management, 18 (1), editor@iaeme.com

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