Overrun In Construction Industry

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Introduction 1.1 GENERAL From the beginning of the mankind construction industry is the backbone of the growing economy of the world. In Indian scenario it contributes around 7.5% of the total GDP.In construction industry time delay and cost overrun impacts negatively on the project, which indirectly affect the growing economy of the India. The problem of delays in construction industry is a global phenomenon and there is no exception. The major concern of the construction industry is to get quality outcome, which is in the hand of contractors. As a civil engineer, it’s our duty to complete the project within the time and specified budget. 1.2 AIMS • To analyze & determine the causes and effect of delay and cost overrun of the project…show more content…
• Cost overrun is common in infrastructure and building construction projects. Researches on construction projects in some developing countries indicate that by the time a project is completed, the actual cost exceeds the original contract price by about 30%. One of the most comprehensive studies of cost overrun that exists found that 9 out of 10 projects had cost overrun. Overruns of 50 to 100% were common Studies of construction projects in Madhya Pradesh, for example, found that more than 60 % of projects experienced up to 200 % time overrun and 75 % cost…show more content…
As-Built Method This method is used in the absence of reliable schedules on the job. In this case, the analyst recreates a schedule based on actual information. The analyst determines the logical ties between the activities to form a retrospective schedule, which becomes the basis for analysing the effect of the delays. Durations are given to the activities based on reasonable time to finish the various activities. The delays are then inserted in the newly created schedule and then compared with the actual as-built durations to calculate the number of delay days. The sources of error in the method are these: • The analyst has to be very experienced in construction means and methods. • There are a lot of judgment calls by the analyst that need to be examined. 6. Contemporaneous
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