Atapattu, C N; Domingo, N and Sutrisna, M (2023) Significant factors affecting the New Zealand transportation infrastructure project cost: quantity surveyors' perception. Built Environment Project and Asset Management, 13(5), pp. 756-777. ISSN 2044-124X
Abstract
Purpose: Cost overrun is one of the critical issues faced in construction projects, as nine out of ten projects will likely go over the budget. In particular, transportation infrastructure (TI) projects, such as roads and bridges, are vastly affected by cost overruns, which can delay the entire project. This research intends to identify the factors affecting the cost overruns in New Zealand (NZ) TI projects. Design/methodology/approach: The research was conducted using a questionnaire survey involving ninety-two participants experienced in infrastructure project estimation in NZ. Quantitative methods were used to analyse the data. Findings: Fifty-three factors were identified through literature under ten categories. Based on the survey, ten significant factors were identified with a high grade of importance. The three most critical factors were “frequent design changes,” “poor planning and scheduling” and “inadequate tender documentation.” It was found that the cost overrun is primarily affected by the pre-contract stage causes. Research limitations/implications: The data were collected from professionals involved in NZTI projects. Therefore, the implications may be different for other contexts. Practical implications: The results will improve the current estimation practice by developing a new statistical model considering all the significant variables for NZTI projects. Originality/value: Although much research is done to identify these factors, they are only considered in a few statistical cost models. These new statistical models mainly focused on technical variable factors similar to the current standard estimation process. However, the results of this research, qualitative and quantitative factors, will be used for the future cost model.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction industry; cost estimation; cost overruns; New Zealand; transportation infrastructure projects |
| Index terms: | construction project, transportation infrastructure, methodology, questionnaire, cost model, quantitative method, statistical model, infrastructure project, construction industry, critical issue, quantity surveying, cost estimating, scheduling, New Zealand, cost overrun, design change, estimation, critical factor, documentation, project cost, survey |
| Subjects: | industry analysis, infrastructure and transport systems, research methods, economics, production management, Geography, professional development, operations research, data science, data analysis and analytics, contractual arrangements, financial and cost management, data collection methods, risk assessment, profession |
| Topics: | Research Practice, Project Management, Geographical Context, Engineering Principles, Information Management, Cost Management, Procurement, Risk Management, Roles and Professions, Time Control |
| Descriptive scope: | 5 PCTEA |
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