Factors Affecting Project Outcomes

Topics: Project management, Cost overrun, Construction Pages: 21 (5413 words) Published: November 14, 2011
Factors Affecting Outcome of Construction Projects by Urban Local Bodies R. Saravanan (CE07M007)
Project Guide: Prof. K. N. Satyanarayana

Building Technology and Construction Management Division Department of Civil Engineering f Ci il i i

Indian Institute of Technology Madras

Outline
• • • • • • • • • • Background Need for study Objectives & Scope Methodology Urban Local Bodies (ULBs) Questionnaire data analysis Interview data analysis Case study analysis Measures to ensure project success Conclusions

Background
• Rapid urbanization – multi fold increase in urban population. • Need for civic infrastructure • 74th Constitutional Amendment Act (CAA) – Decentralization of governance • Jawaharlal Nehru National Urban Renewal Mission (JNNURM) – Provision of infrastructure through municipal services • Over Rs. 50,000 crores investment in urban infrastructure within five years

Need for Study
• Construction activity – subject to variations and uncertainties • Risks in public sector projects p p j • Extensive cost overruns and time delays in government p j projects • Effect of 74th CAA and JNNURM – ULBs execute large number of civic infrastructure projects p j • Heavy investment on civic infrastructure – Need to ensure success of projects p j • Need to identify and mitigate the various issues and bott e ec s e ecut o o U bottlenecks in execution of ULB projects p ojects

Objectives & Scope of the Study
Objectives 1. To identify various factors that affect the outcome of construction projects undertaken by urban local bodies. 2. To study the administration and execution of projects by ULBs 3. To analyze administrative processes in ULBs and suggest methods for mitigating factors hampering success. th d f iti ti f t h i Scope The Scope of this study shall be limited to data collection, study and analysis of the projects executed by Corporation of Chennai and other municipalities in the Chennai Metropolitan Area.

Methodology et odo ogy

Stages of Study
• Stage 1 - Literature Review g

• Stage 2 – Data Collection
– Questionnaire Survey, Interviews and Case Studies

• Stage 3 - Analysis and Inference

Problem Definition

Literature Review

STAGE 1
Interviews With Stakeholders

Preliminary Identification of Factors Affecting Outcome of Projects

Pilot Study

Questionnaire Design

Questionnaire Survey

STAGE 2

Data Collection from Projects

Meth hodology

Statistical Analysis of Survey Results

Ranking of Factors Based on Analysis Of Results

Identifying Measures to Enable Successful Execution of Projects

STAGE 3

Conclusions from Study

Literature Review - Overview
• The construction industry is very dynamic in nature and as the complexity of the projects increase, the th variability and uncertainties i bilit d t i ti also increases (Chan et al, 2004).

• Definition of “Project Success” varies with project participants like the owner, consultant and contractor. contractor

• Ashley (1987) refers to project y ( ) p j success as having results much better than expected or normally observed in terms of cost, schedule, quality, schedule quality safety and participant satisfaction. • Chua, D. K. H., Kog, Y. C., and Loh, P. K. (1999). “Critical success factors for different project objectives.”Journal of Construction Engineering and Management, Vol. 125, No. 3.

Literature Review - Overview
Factors Affecting Outcome of Projects • • • • Akinsola et al (1997) identified various factors influencing variations on building projects. Chua et al (1999) listed down various critical success factors based on project objectives of cost, time and quality. Iyer et al (2006) identified 55 attributes responsible for impacting schedule performance of Indian construction projects. Chan et al (2004) categorized success factors into five groups of independent variables, namely project-related factors, project procedures, project management actions, human related factors, and...

References: Akinsola, A. O., Potts, K. F., Ndekugri, I., and Harris, F. C. (1997). "Identification and evaluation of factors influencing variations on building projects." International Journal of Project Management, 14(3), pp.141151. Ashley, D. B., Jaselskis, E. J., and Lurie, C. B. (1987). "Modeling project performance for decision making." Journal of Construction Engineering and Management, XVIII(2), pp.69-79. Chan, A. P. C., and Chan, D. W. M. (2004). "Developing a benchmark model for project construction time performance in Hong Kong." Building and Environment 39 pp 339 349 Kong Environment, 39, pp.339-349. Chua, D. K. H., Kog, Y. C., and Loh, P. K. (1999). "Ctitical Success Factors for Different Project Objectives." Journal of Construction Engineering and Management, 125(3), pp.142-150. Iyer, K. C and Jh K N (2006) "C i i l f I K C., d Jha, K. N. (2006). "Critical factors affecting schedule performance: E id ff i h d l f Evidence f from I di Indian construction projects." Journal of Construction Engineering and Management, 132(8), pp.871-881. Low, S. P., and Tan, W. (1996). "Public policies for managing construciton quality:the grand strategy of Singapore. Singapore." Construction Managment and Economics, 14(4), pp.295-309. pp.295 309. Robinson, J. (1987). "Comparison of tendering procedures and contractual arrangments." Project Managment, 5(1), pp.19-24. Seng, N W Seng N. W., and Yusof, A. M. (2006). "The success factors of design and build procrement method: a literature Yusof A M (2006) The visit." 6th Asia-Pacific Structural Engineering and Construction Conference, Kuala Lampur, Malaysia.
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