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STUDY ON TIME AND COST MANAGEMENT IN CONSTRUCTION

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International Journal of Civil Engineering and Technology (IJCIET)
Volume 10, Issue 03, March 2019, pp. 679-690. Article ID: IJCIET_10_03_066
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=10&IType=03
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
© IAEME Publication
Scopus Indexed
STUDY ON TIME AND COST MANAGEMENT
IN CONSTRUCTION
K. Venkat Raman
Assistant Professor, Bharath Institute of higher education and research, Chennai.
P. Dayakar, Dr. R. Venkatkrishniah and Dr. A. Mani
Professor, Bharath Institute of higher education and research, Chennai.
ABSTRACT
In India large construction projects are inherently complex and dynamic. Many
projects start with good ideas, huge investments and great efforts. However, most of
them do not achieve much success. A major contribution to unsuccessful projects is
the lack of understanding on scope, time, cost and quality. This project Projects as
powerful strategic weapons when initiated create economic value and competitive
advantage. The objective of the research is to explicitly declare the scope of the
research to by considering only the scope, time, cost and quality as process success
parameters and how specifically the cost element would influence the project success
when all other elements or factors other than cost are represented in terms of cost
factor along with the contract conditions as basic rules or constraints that drive the
strategic cost based on applying the analysis methodology concept. The concept of
benchmarking would provide right meaning of project success when allowing to
properly distributing the meaning of customer profitability to the project providers
(project owner and contractors). In this discussion, we emphasize the project
management uses of accounting information. Interpretation of project accounts is
generally not straightforward until a project is completed, and then it is too late to
influence project management.
Keywords: Time and Cost Management.
Cite this Article: K. Venkat Raman, P. Dayakar, Dr. R. Venkatkrishniah and
Dr. A. Mani, Study on Time and Cost Management in Construction, International
Journal of Civil Engineering and Technology, 10(3), 2019, pp. 679-690.
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1. INTRODUCTION
Project costs management is one of the main and undeniable components in the project
management processes, which becomes more important in costly and long-term projects such
as major construction projects. Cost-time balancing is one of the important issues in project
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control and planning. The purpose of this issue is the transactional analysis of a variety of
project costs and project execution time. In computing the project scheduling, the earliest
completion time of the last activity is usually considered as the project delivery date.
On the other hand, the project completion time is met based on a series of internal or
external restrictions or requirements. In most cases, the completion time is determined longer
than the project delivery date by these restrictions. In such conditions, the project completion
time can be reduced using some methods. Shortening the duration of the critical path method
(CPM) is one of those cases by spending more cost or compressing them. However, the
question that always involves the managers and planners‟ mind in various stages of projects
is that how can achieve a proper balance between the estimated time and cost (which
certainly are not certain) so that the project to be completed at the estimated time and proper
quality while using the maximum available resources. The aim of this control is not just
comparing the current and estimated performance, but also concentrates on value generation.
2. TIME MANAGEMENT
Time management is the process of organizing and implementing a strategy related to the
time required for work activities on a project. Effective time management is essential to
successfully and efficiently meeting budget and program targets, as well as achieving
profitability. Projects can risk incurring unnecessary costs and delays as a result of ineffective
time management, either by failing to allow for the full complexity of a project, or by failing
to effectively manage scheduled work or unexpected events. On large projects, the client
may appoint a program consultant to prepare a detailed program for the project including an
outline program for construction if a contractor has not been appointed. Once the contractor
is appointed, they will take responsibility for programming the construction works, but the
program consultant may continue to develop an overall program for the client. During the
planning stage, all work activities should be properly understood, and planned in detail to
optimize the allocation of resources and reduce the potential for „unknowns. Estimates can
then be made of how long each activity will take. This is critical to the setting of milestones
and deadlines, for allocation of resources, and for determining the pricing of contracts and
cash flow requirements.
3. COST MANAGEMENT
The cost control is a process that should be continued through the construction period to
ensure that the cost of the building is kept within the agreed cost limits. The cost control can
be divided into two major areas. Cost management is viewed as a managerial process, which
generates information to support decision-making, to stimulate cost reduction, value
improvement and continuous improvement in the organization. Cost planning means refining
the initial cost estimate and providing a project cash flow, build on extra information that is
generated along the project (like the deadlines of payments for the main material supplier)
which is formed on production plan. These additional processes should support the decisionmaking in a dynamic way, in order to raise the possibility to accomplish the business goals.
The cost control involves monitoring actual cost performance and identifies business
opportunities. Would deliver greater quality in the cost management by becoming proactive
and enabling the company to face the dynamic, uncertain and complex construction
environment that exists in many projects.
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SURVEY REPORT ON TIME COST MANAGEMNET IN CONSTRUCTION INDUSTRY
20 -30
31 - 50
More than 50
3.1. How employees do the company currently employed
The above analysis states that more than 50 companies currently employed 40 peoples and it
ranges about 40%. 31- 50 companies employed 26 peoples and it ranges 26% in the graph.2030 companies employed 34 peoples and it ranges 34% in the graph.The above analysis states
that intake has changed in annual period is 33 company says YES for the changed in the
intake. 67 companiessay NO for the changed in the intake.The above analysis states that
financial status of the companies for the past two years is 65 companies says YES for their
financial reporting for past two years 34 companies says NO for their financial reporting for
past two years.The above analysis says that aware of fraud, abuse and grant agreements by
the companies is 23 companies says YES for aware of illegal activates.77 companies says
NO for aware of illegal activates.
3.2. Which of the following benefits does your organization offer?
Is there any benefits like short or long term disability leave for the employees in the
organization, is there any sick leave provided to the employees, any vacation time provided to
the employees, during the time of retirement any investment is made for the employees. In
which the responders have stated that more than 38 of the responders have mention they have
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long term disability to their employees. In only 12% of the responders have stated that they
are been paid at the time of retirement.
Form the delay of the work in the construction site may cause an impact on the time and
the cost of the overall project. From the survey result it can be stated that more the 50% of the
responder strongly agree the statement and overall 70% of the responder have stated as yes
delay in the procession of the site make an effect in the time completion of the project and to
money effect of the cost of the project. For the question of is more number of the workers or
employees involved in a project or in a particular work can create a problem in the work
place and also leads to time delay and cost overrun in the project from the survey result it can
be stated that over 80% of the responders have stated that more no of participants can create
more problem in the site in which only 20% of the responders have states as no.
10%
16%
2 to 4
5 to 7
74%
more than 10
3.3. If Yes what is the minimum number of the labours engaged in a single work
To know what are the maximum number of labours involved in a particular work in the site
or in the construction field from the survey results it can be stated that more than 70% of the
responder have stated that only 2-4 labours are engaged in a work, 16% of the responder have
stated that 5-7 are engaged in a single work. So that the minimum no of labours will produce
more productivity in the construction.
40
35
30
25
20
15
10
5
0
1
2
3
4
5
Good
10
13
16
38
21
Satisfactory
7
9
31
28
23
Poor
3
2
3
1
3
3.4. How would you rate Sub - Contractor performance in terms of time of
Construction and Quality of Work?
Rate the sub-contractors performance and their quality of the work and the time of
construction and the quality of the work from the survey it can be stated that more than 40%
of the responder have stated that it is satisfactory for the sub contract and their work is up to
the standard 38% of the organization have rated 3 to sub-contractors work on a particular
construction work.
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30%
45%
Always
Sometimes
25%
Never
3.5. Does the Management provide the consultants with a outset of activities and
time conception of the project?
Do the management provides a training consultant to activities and time in the construction
project in which more than 40% of the responders have state that they are never been
provided to outset the consultant of the project and over 20% of them have stated that
sometimes the ousted consultant is done in their project and 30% of the responders have
stated that they have been outset of activities and consulted to the execute the work.
11%
17%
0-5 yrs
5-10 yrs
10-15 yrs
29%
19%
24%
15-20 yrs
3.6. How long have you been working with this organization?
Do the management provides a training consultant to activities and time in the construction
project in which more than 40% of the responders have state that they are never been
provided to outset the consultant of the project and over 20% of them have stated that
sometimes the ousted consultant is done in their project and 30% of the responders have
stated that they have been outset of activities and consulted to the execute the work.
14%
Improper
planning
11%
16%
27%
Environmental
reasons
Unskilled
workforce
32%
Lack of finance
Equipment
breakdown
3.7. Do you think projects are delayed due to following reasons?
What are the reasons for the delay of the project are enlisted below in which 32% of the
responder haves replied as unskilled workforce is the major reason for the delay of the
project, and 27% of the responder have stated that due to lack of finance is the next main
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reason for the delay of the project and 16% of the responder have stated that due to
environmental reason and 14% of the responder have mentioned as equipment breakdown is
the reason for the delay of the project.
Technical
Knowledge
39%
29%
Communication
skills
26%
Marketing skills
Innovation skills
6%
3.8. Which of these competencies is importance in your organization?
What are the competencies is important in your organization what are the main reasons for
compete the employees and in which 39% of the responders have stated that innovation skill
plays a major role in the surviving the organization, 29% of the responders have stated that
technical knowledge is one of the factor involved in the competency of the organization and
around 25% of the responders have stated that communication skill is important to compete
in the organization.
14%
17%
30%
Never
Rare
39%
Frequent
Always
3.9. How frequently training programs are organized in your organization?
Is there any training program organized by the organization and how frequently the training is
been done 39% of the responder have stated that the training is been organized is rare in an
organization and 30% from the total responder have stated there is no training provided by
the organization and more than 30% from the total responder have stated that the
organization have arranged training frequently to improve their standards as well as their
level of increment
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44%
35%
Timely
completion of
projects
Change of
environment
Growth of
organization
21%
3.10. What is the drivers for conducting training in your organization?
what are the drivers used in the training by the organization in which the main aspect of the
training is stated as 44% of the responder have mentioned that the growth organization is
been discussed in the training and 35% of the responder have stated that the timely
completion of the project of the project and 21% of the responder have stated that the change
in environment is the main aspect in the reason.
Strongly Agree
17%
33%
Agree
Strongly
Disagree
23%
27%
Disagree
3.11. Lack of top management commitment by the Project Management Team
would cause impact on time delay and cost overrun of the project.
Lack of top management commitment by the Project Management Team would cause impact
on time delay and cost overrun of the project more than 60% of the responder have stated that
Lack of top management commitment creates problem in the cost overrun and time delay in
which 33% of the responders have stated that they are strongly agreed the statement made,
and more than 35% of the responder have disagreed the statement and more than 15% of the
responder have strongly disagreed the statement.
50%
13%
Strongly Agree
7%
Agree
Strongly
Disagree
30%
Disagree
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3.12. Unrealistic project schedule by the Project Management Team would cause
impact on time delay and cost overrun of the project.
Unrealistic project schedule by the Project Management Team would cause impact on time
delay and cost overrun of the project more than 80% of the responder have stated that
Unrealistic project schedule creates problem in the cost overrun and time delay in which 50%
of the responders have stated that they are strongly agreed the statement made, and more than
20% of the responder have disagreed the statement and more than 10% of the responder have
strongly disagreed the statement.
18%
27%
Competitive
markets
Customer
satisfaction
39%
Client satisfaction
16%
Management
commitment
3.13. Which aspect is most important for maintaining quality management
System at construction projects?
From the construction quality management system what are the important aspect plays major
role in the construction field , customer satisfaction, client satisfaction, competitive market,
client satisfaction, from the survey result it can be revealed that more than 35% of the
responders have stated that due to customer satisfaction the quality of the project will be
increased and by proper management commitment by the organization will leads to a good
quality of the project is stated by more than 25% of the responders. Payment delays by the
Client would cause impact on time delay and cost overrun of the project by the construction
project more than 60% of the responder have stated that Payment delays by the Client creates
problem in the cost overrun and time delay in which 29% of the responders have stated that
they are strongly disagreed the statement made, and more than 35% of the responder have
disagreed the statement and more than 20% of the responder have strongly disagreed the
statement.
For the question of the project completed in time the responder have to state the
percentage of the project completed in time more than 30% of the responder have stated that
80-100% of the project they have handled have been completed in time, more than 20% of
the responders have stated that around 80% of their projects have been completed in time
given by the client and over 15% of the responders have stated that they have completed
only 60% of their project in time. 8% of the responders have stated that the only 20% of their
projects are been completed in time.
Does your organization use any software to monitor the progress of the project and from
which the progress of the project have been stated and the progress can be regularly
monitored and can provide solution to resolve the problem, from the survey it can be stated
that more than 50% of the responders have stated that they do not use any software
application to track the project progress and over 40% of the responders have mention that
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they are using software analysis to reduce the time delay and to rectify the cost overrun in the
project .
3.14. External factors influence project time planning
The external factors which are influencing the time planning of the construction are bad
weather, lack of communication between parties, slow decision making by parties and
conflict between the parties permission from the government. More than 38% of the
responders have rated 5 by them slow decision making by the parties, and more than 32%
from the total responder it can be stated that 5 rated that lack of commutation by the parties,
30% of the responders have stated that they are having problem in getting permission from
the government.
Poor efficiency of supervision by the contractor‟s staff would cause an impact on time
delay and cost overrun of the project by the construction project more than 65% of the
responder have stated that Poor efficiency of supervision creates problem in the cost overrun
and time delay in which 38% of the responders have stated that they are strongly disagreed
the statement made, and more than 30% of the responder have disagreed the statement and
more than 10% of the responder have strongly disagreed the statement.
Inadequate experience staff within the Project Management Team would cause impact on
time delay and cost overrun of the project by the construction project more than 70% of the
responder have stated that improper construction creates problem in the cost overrun and time
delay in which 40% of the responders have stated that they are strongly agreed the statement
made, and more than 25% of the responder have disagreed the statement and more than 10%
of the responder have strongly disagreed the statement.
In appropriate construction method will cause an major impact on the time delay and cost
overrun by the construction project more than 60% of the responder have stated that improper
construction creates problem in the cost overrun and time delay in which 35% of the
responders have stated that they are strongly agreed the statement made, and more than 35%
of the responder have disagreed the statement and more than 15% of the responder have
strongly disagreed the statement.
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delivery time
14%
20%
44%
quantities
quality
22%
relations with
suppliers
3.15. What are the major problems that you can identify in with the material
used in the site?
The major problems identified in the site while handling the materials related to the work and
consequences of the material in the handling and problem related to material from the survey
it can be stated that more then 40% of the responders have stated that the delivery time of the
material in the site is major problem for the delay of work, 22% of the responder have stated
that quantity of the materials supplied to the site is having problem, 20% of the responder
have stated that the relationship between the suppliers are also a major constrain for delay of
work in the site.
11%
39%
24%
Difficulties in
financing the
project by
contractor
Deficiency in
planning and
scheduling of
project
26%
3.16. Delays related to Contractor
Reasons to project completion delay by the contractors difficulties in financing the project by
contractor, deficiency in planning and scheduling the project unsafe practice at site and
inappropriate construction method from the result it can be stated that more than 30% of the
responder have stated that the contractors are facing difficulties in financing the project,
improper planning is one of the reason for the delay in the construction of the project, 24% of
them have responder have stated that stated that unsafe practice in site leads to delay of the
project.
9%
3%
10%
26%
27%
25%
50%
35%
75%
None
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3.17. In your experience, how many projects finish to the original budgeted cost?
How many project is been completed in time and as well as within the quoted budget was the
question and the from the total of 35% of the responder have stated that they are completing
the project in time and 26 % of the responder have stated as that they are completing the
project in the framed budget, and around 3% of the responder have stated that the project
could not be completed in time and with the framed budget of the project.
9%
After Major
changes to Scope
13%
45%
33%
For Every
Reporting Period
At the Clients
Request
Never
.
3.18. How frequently do you provide % progressed program?
How frequently do the percentage progress is been discussed in the organization for a project,
at the client requested, after major change to scope, for every reporting period and never,
from the result it can be stated as more than 40% of the responder have stated that at the time
of the client request the percentage progress is been explained to them, more than 30% of the
responder have stated that at every reporting period of time the progress is been discussed by
the management.
4. CONCLUSION
More than 60% of responders have stated the intake is less when compared to the last year.
65% of them have also resulted that there is no improvement in the financial status of their
organization. 32% of the responder haves replied as unskilled workforce is the major reason
for the delay of the project, and 27% of the responder have stated that due to lack of finance
is the next main reason for the delay of the project. 70% of the responder have stated as yes
delay in the procession of the site make an effect in the time completion of the project. 60%
of the responder has stated that improper construction creates problem in the cost overrun and
time delay, that more than 40% of the responders have stated that the delivery time of the
material in the site is major problem for the delay of work. More than 65% of the responder
has stated that Poor efficiency of supervision creates problem in the cost overrun and time
delay.
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