A Project On Comparative Analysis Of Cost Overrun And Time Delay In Road Construction

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056

Volume: 09 Issue: 07 | July 2022 www.irjet.net p ISSN: 2395 0072

A Project On Comparative Analysis Of Cost Overrun And Time Delay In Road Construction

Bhavesh Bhaskar Londhe1 Sanket Haribhau Deshmukh2 Apurva Rajendra Mahadik3 Prasad Dilip Desai4 , Yash. S. Shet5

1,2,3,4Student 5Assistant Professor 1,2,3,4,5Department of Civil Engineering 1,2,3,4,5G.M.Vedak Institute of Technology, Tala, Raigad, India ***

Abstract Now a days delay and cost overrun are the major problems of any construction project in India. These issues are causing the negative impact aftermath on the development of country prosperity and economic growth. This study aims to identify the most important factors that cause delay in road construction project in wakan khopoli road, which results in cost and time overrun allocated for these types of engineering project and causes critical problems for both the developer and the contractor. Present study work comparing cost overrun and time delay between two highway construction work which is, WAKAN KHOPOLI road and INDAPUR AGARDANDA road to finding out causes andfactor for overrun. In the first stage, a questionnaire was developed and survey was carried out expert who were working with contractor in highway project.

Key Words: Time Delay, Cost Overrun, Construction, Project, Datacollection.

1.INTRODUCTION

A cost overrun is also known as a cost increase or budget overrun,involvesunexceptedincurredcost.Theobjectiveof thisqualitativeprojectwastoexplorestrategiesthatuseto reducecostoverrunsandscheduledelay.Thecostoverrunis oneofthecriticalproblemsinnowadaysorequiresalotof researchandexplorationtoovercomeorreducethedelay and less variation in budget for the future projects. Macroeconomic factor that affects the cost of the constructionprojectaremostseverally.Timeoverruncanbe definedasthetimerequiredtocompletetheprojectwork beyondthecontracttime.Inhighwayconstruction,thedelay inconstructionisoneofthe majorproblemsthatbrought the department of highway concern. This caused the essentialofresearchonconstructiondelayinthisstudy.

(1)Examinetheextentofcostoverrunandschedule delaysininfrastructureprojects.

(2)Investigatetheriskfactorsleadingtobothchallenges.

(3) Provide comprehensive critical recommended actions andpracticalimplicationstocurbtheproblemsimposedby

potentialcostoverrunandscheduledelaysinconstruction projects

2. LITERATURE REVIEW

2.1 General

Whenthereisgrowthorincreaseincostorincreaseinthe budgetforaconstructionproject,itissaidthatthereisacost overrun and vice versa is referred to as cost underrun. However,costoverrunmustnotbemisinterpretedascost escalationwhichisanincreaseinthebudgetduetoinflation. Costoverrun/underruncanbeassessedindifferentforms looking at the base value it is evaluated from. It can be assessedbyfindingthedifferencebetweenthepreliminary constructionestimateandtheactualconstructioncost.Itcan also be assessed by finding the deviation of the actual construction cost from the contract award value. It is a general view that cost overrun is more experienced in constructionprojectscomparedtocostunderrun.Thishas been attributed mostly to underestimation which was presented at the decision making phase of construction projects and has thus affected proper budgeting for construction projects. It has also been attributed to decisionmakersnotconsideringthefuturevalueofaproject duringprojectviabilityexamination.

3.METHODOLOGY

3.1

General

3.1.1PreliminarydataInthesurveyofsiteselectionforroad construction project for cost overrun and time delay and data collected is as follows. The site location wakan to khopoli SH 92 is about 41 Km is length the sanctioned amountis376croreswithcompletedurationof30month from 2016. The road is WBM from wakan to khopoli and above from Pali. It is concrete till khopoli road is having severaldrainageculvertandbridgesandtwomajorbridges from wakan to Pali the width of road differs from Pali to khopoliroadduetoaggregatelandandforestareathewide of road is not possible as it is wide ahead from Pali. The constructionofroadwastakenbytotaltreecompanyfrom

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056

Volume: 09 Issue: 07 | July 2022 www.irjet.net p ISSN: 2395 0072

BBC,Varahainfralimited.Thesecompanyfailedtocomplete theworkofroadingiventime.

3.1.2Tofindthecausesofcostoverrunandtimedelay:

The main causes of cost overrun of road project is miscommunication between MSRDC authority and the contractorworkingonprojectduetowhichtherunningof costiscontinuouswhichleadstotimedelayalsoinimproper implementationofdesignheadtowardsthecostoverrunin project.Astheleadformaterialismorethetimerequired alsomorewhichmeanstimedelayforfurtherworkmanyof timethelabourconsumptionislessfromcontractorwhich alsograduallytaketimetocompletethedayscheduletask duetoinsufficientfundingfromgovernmentauthoritytothe paymentwhichautomaticallylowerdownthespeedofwork outthepointlabourdenytowork.

3.1.3Analysisandinterpretationcollecteddata:Byselecting various site of road construction, the data collected is in graphical form which helps to understand the total time required and cost overrun in various project. Thall data collectedinterpretatethatmanagedbyfixingtheproblems atthemomentwhenitoccurs.Theexecutionofworkistobe seen by the authorize person in every format as like designing, financial status, accommodation of baren land, agricultural field and forest area where the road construction is to be held. The lead for material can be managed by finding out nearest material contractor deals with minimum rate for road construction material as aggregate muroom soil, steel, sand, cement and other material required during project. This efficient person should bargain with high profile tools and machinery company for road construction which make construction easier.

3.1.4Strategiestoreducecostoverrun:Implementationof workistobedoneingiventimeschedule.Thearrangement toolsmaterialconsumptionandworkdonetoberecord.the book by engineers of the responsible person. The activity goingonshouldbesafe.Thewastageofmaterialshouldnot take place are the material management should as per required on site. Proper estimate can neglect the cost overrunwhileconstructionofroad.Thepaymentoflabour should be done monthly or weekly as per decided by contractor. Monthlyorweeklymaintenancetoreducethe cost.

3.2 Cost Overrun:

Acostoverrun,alsoknownasacostincreaseorbudget overrun, involve unexpected incurred cost. OR, is the phenomenoninwhichtheclienthastospendmoremoneyof thecompletionofprojectthantheoriginallyestimatedi.e., theprojectgoesoverthebudget.

Whenthesecostsareinexcessofbudgetamountdueto a value engineering underestimation of the actual cost

duringbudgeting,theyareknownbythisterm.Costoverrun are common in infrastructure, building and technology project. Many major construction projects have incurred cost overrun; cost estimate used to decide whether importanttransportationinfrastructureshouldbebuiltcan misled grossly and systematically. Cost overrun is distinguishedfromcostescalation,whichisananticipated growthinabudgetedcostduetofactorsuchasinflation.

CostOverruninConstructionProjects.Inthecontextof constructionprojects,costoverrunscanbeexpressedasthe excessofactualprojectcompletioncostovercontractbudget amount.Costoverruniscomputedbytheinitialestimated cost,andtotalcompletioncostincurreddecommissioningof the project. The difference between estimated and completion cost is termed as the magnitude of the cost overrun.Inrelationtothis,costoverruncanbeobtainedby the positive difference between the completion cost of a constructionprojectduringcommissioningandthecontract amount agreed by the major parties during the contract signing and commencement of projects. The difference betweenagreedcontractsumandfinalprojectcostcanbe expressedas, The ideal CR is 1.0, so, any value above this can be consideredasacostoverrun.

%

CostOverrun=

Thiscalculationcanbeconvertedtoapercentageforeaseof comparison.

Itisimportanttodenotethatdeliveringaconstruction projectwithintheplannedcontractbudgetisoneofthemain successcriteriainconstructionprojects

3.2.1 RiskFactorsLeadingtoCostOverrun:

Several factors affect the extent of cost overrun and scheduledelaysintheconstructionsector.Theseriskfactors could be classified as factors related to consultant, contractor, design parameters, and information, factors relatedtomarketconditions(externalfactors),andfactors relatedtoprojectcharacteristic.

3.3TimeDelay:

Timeoverrunisthephenomenoninwhichtheproject gets delayed beyond its expected completion time due to certaindifficulties.Moretimeisrequiredtofinishtheproject thaninitiallyplanned.

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056

Times delay refers to the late completion or late delivery,fromthetimespecifiedoragreedbypartiesofthe construction project. The main causes of the schedule overrunarefinancial problemslateongoingwork,change order,organizationalchanges,etc.

Preliminarydatacollection

Tofindoutcausesofcostoverrun

Analysisandinterpretationofcollecteddata

Strategiestoreducecostoverrunandtimedelay

Resultsanddiscussion

4. DATA COLLECTION

The various factor to be consider for the selection of data likeafuelprice,cementprice,steelprice,labourpricethere isfactortobeconsideredforthedatacollectionandtothe actual price to be calculated in percentage of that market price and various years that material market price as follows.

[A]4.1Fuelpricehike:

In2017fuelpricewere62Rs/litandcurrently in2022fuelpricewere94Rs/lit.Afterthatasgrowing priceoffuelindirectlyitaffectedthecostofroad.

transportation charges hike the raw material cost which affectthepriceprojectoverallcost.

4.2]

Chart.4.1Fuelpricehike

Cementpricehike:

Lookingfrom2017asprojectstartedfluctuation incementpricesarevisible.Duetorawmaterialrequiredfor cement production comes from different places so the

Chart.4.2Cementpricehike

4.3] Material price hike:

Material coming to RMC plant from quarry the leadforthematerialismore.Whereasthematerialrequired for base of road like Aggregate no.2, Aggregate no.3, Aggregateno.4andcrushedsandforconcretepurposewas to lead from quarry so due to fuel rates and commercial electricityrateincreasedautomaticallyitdiffersthechange inrate.

Chart.4.3Materialpricehike

4.4]Steelpricehike:

Chart.4.4Steelpricehike

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International Research Journal of Engineering and Technology (IRJET)

e ISSN: 2395 0056

Consecutivelyincreaseinrateofsteelpurchasingitgothard. Sudden shoot in price dislocated the cost margin which radicallyaffectedtheworkupon.Calculatingthebackyears rate,itfinanciallycreatedagaptomanageoverthecostofit. Neglecting the steel is not possible but to find negotiable valueforitistheway.

4.5]Labourpricehike:

Workers are not negligible factors for cost overrun. As their rates gets high more the cost of project. Living accessories puts their rate high even a unskilled labouri.e.mencoolieworkon500Rsperdaywhichmotion theincreaseincost.

Chart.4.5.1Labourpriceoverrun

B]QuestionnaireSurvey:

Chart.4.5Labourpricehikes

4.5.1]CalculationsforlabourExpenditureincreaseduring project

Totalprize 376crore

Totaldelay 205days

IfwetakeRs.700labourratefor205days

Totalnumbersoflabour 600onsite

700x600=420000

Delaytimexlabourcost

=205x420000

=86100000Rs.

Percentageofincreasefor205days

=86100000+500000(Equipmentcharges)

=86600000Rs.

=86600000/3760000000x100

=2.30%

Chart.[B]4.1Respondentproportionandresponse received

5. RESULTS AND DISCUSSION





The factor responsible for cost overrun in road constructionprojectwereheldbytakinginitiativefor everymodeofwork.

By studying the existing case study of the road concludesthattheroadprojectisgettingdelayintime and escalation for cost due to mis management. The studyevaluatesthetotaltimerequiredforcompletionof projectwhichresultsautomaticallyincreasingcost.



After reviewing the data collected from site come to knowthattheprocessofroadconstructionisdifferent fromotherconstructionwhichleadstotimedelayand costoverrun.Analysingtheprocessandmanagementof the road construction by the indigenous contractors heldduringtheproject.

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[6]SunilKage,Mahendramane,ArjunChougule,Abhishek kadam,RushikeshMajale,“Timedelayandcostoverrunin constructionindustryofIndia.”2018.

[7] Poonam Raykar, Ghadge A.N. “Analyzing the Critical FactorsInfluencingtheTimeOverrunandCostOverrunin ConstructionProject.”2016

[8]Nabilhazim,Zaydounabusalem,“Delayandcostoverrun inroadconsructionprojectinJordan.” 2015

[9]IbrahimMahamid,AmundBruland,“Costoverruncauses inroadconstructionprojectConsultantProject2011

Chart.5ComparisonOftotalDays

6. CONCLUSIONS

- Landacquisitionmadedelayinroadconstructionwork.

DuetoPandemicsituation construction stopped for8 months which held the reason for delay. Working method&changeinroutineafterpandemicresultsthe slowertheprogressofroad.Workingduringpandemic causedtransportationmodedisableforworkers&ifany thenitchargedhigherthanbefore.

Materialcost,Fuelcharges&labourratesgothikewhich unexpectedly increased in execution cost of road. Unavailabilityoffuelsduetohikesinratescauseddelay.

- Consecutively switch in contractor delayed work of road, Mismanagement & no pre scheduling of contractors is responsible for failure in completion in sanctionperiodoftime.Discussionmakingprocesstook toomuchtimeforfurtherworks.

REFERENCES

[1]JoseMatos“AnalysisofCostOverrunandScheduleDelay ofInfrastructureProjectsinLow IncomeEconomies:Case StudyinEthiopia”2021

[2]DouglasAghimien,“Comparativeanalysisofcostoverrun on road construction project executed by indigenous and expatriatecontractors.”2020.

[3] A.R.Vishweshwar, S. Janani, M.C.Akilarasu, “Study and analysisoftimeandcostoverrunin constructionsector.” 2020

[4]Zaynabbelelahmad,“Peculiaritiesofroadprojectcost overrun.”2018

[5]PranavK.Lende,AaradhanaD.Rathod,“Studyoffactor affectingcostoverruninroadconstructionproject.”2018.

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