- Volume 5 Issue 3
Project cost is an important concern in any construction project. Although there has been a lot of studies on factors affecting the cost of construction projects, there seems no consensus as what cost factors have direct influence on the cost of civil engineering projects. This study therefore aims to bridge the current knowledge gap by examining quantity surveyors' perception of the factor structure among nineteen costing attributes identified based on literature review. Questionnaire was used to elicit responses from quantity surveyors working in the Hong Kong construction industry. Principal component analysis is conducted to extract the factor structure of the cost attributes and the attributes are grouped into three factor components, namely the contract management factor, the project management factor and the monetary value factor. Understanding these cost impact factors could be crucial in managing civil engineering projects, since it allows the project stakeholders and quantity surveyors to take precautionary steps to identify the cost management problems and areas for improvement and could even help to avoid cost deviations in engineering projects.
Hong Kong;Cost Attributes;Civil Engineering Projects;Principal Component Analysis
- I. Mahamid and A. Bruland, "Cost deviation in road construction projects: the case of Palestine," Australasian Journal of Construction Economics and Building, vol. 12, no. 1, pp. 58-71, 2012. https://doi.org/10.5130/ajceb.v12i1.2427
- B. Flyvbjerg, M. Holm and S. Buhl, "Underestimating costs in public works projects, error or lie," Journal of the American Planning Association, vol. 68, no. 3, pp. 279-292, 2003.
- H. Akinci and C. Fischer, "Factors affecting contractors' risk of cost overrun," Journal of Management in Engineering, vol. 14, no. 1, pp. 67-76, 1998.
- T. Elhag, A. Boussabinaine and T. Ballal, "Critical determinants of construction tendering costs: Quantity surveyor's standpoint," International Journal of Project Management, vol. 23, no. 7, pp. 538-545, 2005. https://doi.org/10.1016/j.ijproman.2005.04.002
- E. Lau, "A review of cost planning methodology adopted in engineering projects," in 15th PAQS Congress, Sri Lanka, July, 2011.
- A. Akintoye, "Analysis of factors influencing project cost estimate practice," Cosntruction Management and Economics, vol. 18, pp. 77-89, 2000. https://doi.org/10.1080/014461900370979
- A. Warsame, "Construction Costs: Central Concepts, Categories and Determining Factors," Royal Institute of Technology, 2006.
- S. Trost and G. Oberlender, "Predicting accuracy of early cost estimates using factor analysis and multivariate regression," Journal of Construction Engineering and Management, ASCE, vol. 129, no. 2, pp. 198-204, 2003. https://doi.org/10.1061/(ASCE)0733-9364(2003)129:2(198)
- S. Chan and M. Park, "Project cost estimation using principal component regression," Construciton Management and Economics,, vol. 23, pp. 295-304, 2005. https://doi.org/10.1080/01446190500039812
- P. Kaming, P. Olomolaiye, G. Holt and F. Harris, "Factor influencing construciton time and cost overruns on high rise projects in Indonesia," Construction Management and Economics, vol. 15, pp. 83-94, 1997. https://doi.org/10.1080/014461997373132
- P. Williams, "Predicting final cost for competitively bid construction projects using regression models," International Journal of Project Management, vol. 21, pp. 593-599, 2003. https://doi.org/10.1016/S0263-7863(03)00004-8
- K. Iyer and K. Jha, "Factors affecting cost performance: evidence from indian construction projects," International Journal of Project Management, vol. 23, pp. 283-295, 2005. https://doi.org/10.1016/j.ijproman.2004.10.003
- C. Chan, "The principal factors affecting construction project overhead expenses: an exploratory factor analysis approach," Construction Management and Economics, vol. 30, pp. 903-914, 2012. https://doi.org/10.1080/01446193.2012.717706
- A. Elinwa and S. Buba, "Construction cost factors in Nigeria," Journal of Construction Engineering and Management, vol. 119, no. 4, pp. 698-713, 1993. https://doi.org/10.1061/(ASCE)0733-9364(1993)119:4(698)
- F. Gravetter and L. Forzano, Research Methods for Behavioral Science, 4th ed., Belmont, CA: Wadsworth, Cengage Learning, 2012.
- A. Field, "Factor analysis using SPSS: theory and application," [Online]. Available: http://www.sussex.ac.uk/users/andyf/factor.pdf. [Accessed 21 May 2013].
- R. Dogbegah, D. Owusu-Manu and K. Omoteso, "A principal component analysis of project management competencies for the Ghanaian Construction Industry," Australasian Journal of Construction Economics and Building, vol. 11, no. 1, pp. 26-40, 2011. https://doi.org/10.5130/ajceb.v11i1.1680
- J. Hair, R. Anderson and R. Tatham, Multivariate data analysis, 4th ed., Upper Saddle River: Prentice Hall, 1998.
- D. Fang, F. Xie, X. Huang and H. Li, "Factor analysis-based studies on construction workplace safety management in China," International Journal of Project Management, vol. 9, no. 3, pp. 458-467, 2004.
- Y. Lee and H. Lee, "Application of factor analysis for service R&D classification: a case study on the Korean ICT industry," Expert Systems with Applications, vol. 38, no. 3, pp. 2119-2124, 2011. https://doi.org/10.1016/j.eswa.2010.07.152
- J. Nunnally, Psychometric Theory, 2nd ed., New York: McGraw Hill, 1978.
- P. Spector, Summated rating scale construction: an introduction, Newbaury Park, California: Sage Publications, 1992.
- L. Stern, A visual approach to SPSS for Windows: a guide to SPSS 17.0, 2nd ed., Boston: Allyn and Bacon, 2010.
- D. George and P. Mallery, "Factor analysis," in SPSS for Windows Step by Step: A Simple Guide for Reference, Boston, Allyn& Bacon, 1999, pp. 231-246.
- J. Kim and C. Mueller, "Quantitative Applications in the Social Sciences," in Introduction to Factor Analysis: What It Is and How to Do It, London, Sage Publications, 1982.
- S. Wai, A. Yousf, S. Ismail and C. Ng, "Exploring Success Factors of Social Infrastructure Projects in Malaysia," International Journal of Engineering Business Management, vol. 5, no. 2, pp. 1-9, 2013. https://doi.org/10.5772/52800
- B. Manly, Multivariate Statistical Methods: A Primer, New York: Chapman & Hall, 1986.
- W. Ibbs and D. Ashley, "Impact of various construction contract clauses," Journal of Construction Engineering and Management, ASCE, vol. 113, no. 3, pp. 501-521, 1987. https://doi.org/10.1061/(ASCE)0733-9364(1987)113:3(501)
- M. Tagliaventi, Civil engineering contracts: organizational and managerial aspects and economic effects, Italy: Gangemi Editore, 1994.
- S. Naoum, "Critical analysis of time and cost management and traditional contracts," Journal of Construction Engineering and Management, vol. 120, no. 4, pp. 687-705, 1994. https://doi.org/10.1061/(ASCE)0733-9364(1994)120:4(687)
- A. Enshassi, J. Al-Najjar and M. Kumaraswamy, "Delays and cost overruns in the construction projects in the Gaza Strip," Journal of Financial Management of Property and Construction, vol. 14, no. 2, pp. 126-151, 2009. https://doi.org/10.1108/13664380910977592
- Y. Frimpong, J. Oluwoye and L. Crawford, "Causes of delay and cost overruns in construction of groundwater projects in a developing countries; Ghana as a case study," International Journal of Project Management, vol. 21, pp. 321-326, 2003. https://doi.org/10.1016/S0263-7863(02)00055-8
- L. H. Long, Y. Lee and J. Lee, "Delay and Cost Overruns in Vietnam Large Construction Projects: A Comparison with Other Selected Countries," KSCE Journal of Civil Engineering, vol. 12, no. 6, pp. 367-377, 2008. https://doi.org/10.1007/s12205-008-0367-7
- P. Hetland, "Toward ultimate control of megaprojects in the North Sea," in Global project management handbook, D. Cleland and R. Gareis, Eds., New York, McGraw-Hill, 1994.
Supported by : Hong Kong Institute of Surveyors (HKIS)