Asiedu, R O and Ameyaw, C (2021) A system dynamics approach to conceptualise causes of cost overrun of construction projects in developing countries. International Journal of Building Pathology and Adaptation, 39(5), pp. 831-851. ISSN 23984708
Abstract
Purpose: This study aimed at developing and empirically testing a system dynamics causal loop (SDCL) model for investigating factors related to the risk of cost overruns, associated with the performance of construction projects in developing countries. Design/methodology/approach: Using data derived from the Ghanaian construction industry (GCI), a conceptual system dynamics model was hypothesised and empirically tested. Findings: Supported by empirical evidence, the study established that the low technical capacity of consultants is the underlying cause of cost overruns in government projects. There is a strong proof of the relationship between the results of the SDCL model and poor contract planning and supervision, change orders, competence of the project team and the lack of effective coordination amongst the contractual parties. Practical implications: The final SDCL model has revealed key risk components that would require standard mitigation measures in order to achieve “acceptable success” in construction projects. Originality/value: The study presents an interactive approach for construction practitioners in developing countries to prioritise the causes of cost overruns in order to initiate quick responses.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; cost overrun; system dynamics |
| Index terms: | methodology, system dynamics, construction project, competence, mitigation, evidence, developing country, construction practitioner, testing, construction industry, project team, coordination, supervision, cost overrun, government project, change order |
| Subjects: | professional practice, project delivery, financial and cost management, computing systems, control systems, evaluation and assessment methods, administrative law, industry analysis, production management, contractual condition, professional development, development economics, personnel development, financial risk, management, research methods |
| Topics: | Contract Administration, Organizational Design, Digital Applications, Legal Issues, International Construction, Human Resources, Cost Management, Engineering Principles, Information Management, Research Practice, Project Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here