This document discusses factors that inhibit effective cost and time control on construction projects and measures to mitigate them. It identifies common issues like design changes, risks and uncertainties, inaccurate project duration estimates, complex work, and non-performing subcontractors. For each issue, it provides examples of preventive, predictive, corrective, and organizational measures that can be implemented. For instance, to address inaccurate estimates, it suggests preparing schedules using experienced planners with construction knowledge rather than relying on gut feelings. The document aims to help improve project cost and schedule performance through better risk management and control practices.

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COST AND TIME CONTROL OF CONSTRUCTION
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TAPESH AJMERA
Hydrogeologist Specialist

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Introduction
Factors Inhibiting Effective Project
Develop Mitigating Measures
Outline

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Project control: projects finish on time, within budget and achieving other
project objectives.
Constantly measuring progress; evaluating plans; and taking corrective
actions when required.
Methods: Gantt Bar Chart, Program Evaluation and Review Technique (PERT)
and Critical Path Method (CPM)
Software: Microsoft Project, Asta Power Project, Primavera, etc.
Introduction
Proportion of projects that encounter cost and time
overruns
Proportion of
project
Time overrun Cost overrun
>90% 2.90% 4.40%
60-90% 1.50% 7.40%
40-60% 8.80% 11.80%
10-40% 48.50% 35.30%
<10% 38.20% 41.20%

4. Design changes
Risk and uncertainty associated with projects
Inaccurate evaluation of projects time/duration
Non performance of subcontractors and nominated suppliers
Complexity of works
Discrepancies in contract documentation, and contract and specification
interpretation disagreement
Unpredictable weather conditions
Low skilled manpower and lack of proper training and experience on PM
Inflation of prices
Factors Inhibiting Effective Project
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5. Preventive measures
active measures that would be put in place during the planning stage of a
project
Predictive measures
utilise some tools or techniques to look into the current situation in a bid to
spot potential future problems.
Corrective measures
reactive measures that only act after the event
may not be as effective as preventive or predictive measures
corrective-preventive measures
Organisational measures
Develop Mitigating Measures
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6. Impact on project cost-> often underestimated.
Information don't provide in time-> difficulty of design management.
Lack of detailed design specification -> lead to contractor pricing the risk
Lack of clear distinction between design change and design development
Design Changes
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7. Type of
measure
Design Changes-Practice
Preventive
Clear distinction between a design change and a design development
at the outset of a project
Corrective-predictiveEnsuring the cause of a design change is always determined
Corrective
Determination of the provision of the design change within the building
contract
predictive
Identification of potential design changes as a risk and devising a
strategy for managing the risk especially in design and build projects
Corrective-predictive
Ensuring the time and cost implication of a design change is always
determined and agreed before going ahead with the change whenever
possible
Preventive
Notification of all the relevant project parties of how they will be
impacted and the schedule and cost implication of a design change
before going ahead with the change
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8. Early risk identification-> absolutely essential for effective project
Risk management-> allocated a cost and time for risk
Use
sophisticated quantitative risk management systems,
identified through brainstorming sessions,
risk workshops and analysed qualitatively.
risk register-should be live document
Risks and Uncertainties
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9. Type of
measure
Risks and Uncertainties-Practice
Preventive
Having a risk register in place for the project as early as possible (e.g.
from tender stage)
Preventive Proper identification, allocation and management of risks
Preventive
Assigning cost and/or time implication to all identified risks on the risk
register whenever possible.
Preventive
Ensuring the risk register is open to all relevant member of the project
team.
Corrective
Having a strategy already developed for solving each of the identified
risks in case they come to fruition
Preventive
Conducting a risk workshop involving all relevant project parties at the
outset of the project in order to identify potential risks.
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10. Evaluated without any scientific basis and but quite
Often programmes->on gut feeling.
Usually practitioners->under pressure from clients to deliver projects,
especially commercial speculative projects
unachievable time scales
Programme developed
inexperienced planners
don't have good understanding of construction process
Inaccurate Evaluation of Project Time Duration
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11. Type of
measure
Inaccurate Evaluation of Project Time Duration-Practice
Organisational Ensuring the project planner is well trained in the construction process
Preventive
Preparation of the project programme with input from the construction
site management/production team
Preventive
Developing the programme (schedule) using science based methods
augmented by experience and not relying on gut feeling alone
Preventive
Educating and advising client on alternative if an
unachievable/unrealistic project timescale is stipulated
Organisational
Having the courage to refuse unrealistic project timescale by clients
unwilling to yield to professional advise
Preventive
Developing the project programme of works using experienced
planners that have appreciation of the various construction disciplines
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12. Interface issues-> different project stages, phases or different trades
Not adequately understand the complex of projects
Not understanding how the complexities involved in a project are interrelated
Breaking down projects into manageable chunks-reduce complexity
Adequate planning->essential for mitigating
Complexity of Works
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13. Type of
measure
Complexity of Works-Practice
Preventive Breaking the project down into manageable chunks
Preventive Making sure the project is properly understood before embarking on it.
Preventive
Detailed review of the information relating to the work before
embarking on it
Preventive Development a project execution plan for the work before starting on it
Corrective Having enough resources to deal with the complexity
Preventive
Allocating to the project experienced personnel that have handled
similar type of complexity in the past
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14. Reiterated as a major obstacle to effective project control.
fault of the subcontractor-> lack of effective management by the main
contractor.
Working relationship: contractor and subcontractors -> essential in project
control.
Relationship exist in practice
Supply chain management: contractors, subcontractors and suppliers
Financial buoyancy of potential subcontractors
Non-performance of Subcontractors
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15. Type of
measure
Non-performance of Subcontractors-Practice
Preventive
Properly directing the subcontractor to ensure they know what is
expected of them in relation to the project
Organisational Developing a good working relationship with subcontractors
Predictive
Putting a system in place for early identification of non-performance in
subcontract works/packages in order to nip it in the bud as soon as
possible.
Predictive
Utilising performance measurements e.g. S-curve, KPI to monitor the
output/performance of subcontractors on their work package
Organisational Ensuring there is a committed supply chain that can be used
Corrective
Having a process in place that mutually allows non-performing
subcontractors to be removed from the supply chain
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16. Acknowledgement
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› Majority of material of this presentation have been taken from a journal paper
and report;
› Olawale, Y., and Sun M. (2010), Construction Management and Economics, 28 (5),
509 – 526.
› KMPG prepared a report (2012) "Study on project schedule and cost overruns to
Government of India"

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