Cost overruns in construction - Revision history

Designing Buildings: Reverted edits by 144.132.200.62 (talk) to last revision by Designing Buildings

2020-10-25T09:29:54Z

Reverted edits by 144.132.200.62 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 09:29, 25 October 2020
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−	~~Sam Lewis (Subba)~~

	In construction, cost overruns are relatively common, occurring when the costs being incurred are in excess of the amounts that have been budgeted for.		In construction, cost overruns are relatively common, occurring when the costs being incurred are in excess of the amounts that have been budgeted for.

144.132.200.62 at 09:26, 25 October 2020

2020-10-25T09:26:08Z

← Older revision		Revision as of 09:26, 25 October 2020
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	[[File:Graph.jpg\|link=File:Graph.jpg]]		[[File:Graph.jpg\|link=File:Graph.jpg]]
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		+	Sam Lewis (Subba)

	In construction, cost overruns are relatively common, occurring when the costs being incurred are in excess of the amounts that have been budgeted for.		In construction, cost overruns are relatively common, occurring when the costs being incurred are in excess of the amounts that have been budgeted for.

Designing Buildings: Reverted edits by 144.132.200.60 (talk) to last revision by Designing Buildings

2020-10-22T04:03:14Z

Reverted edits by 144.132.200.60 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 04:03, 22 October 2020
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	* Variations.		* Variations.

−	~~[[Category:Articles_needing_more_work]]~~ [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

144.132.200.60 at 00:41, 22 October 2020

2020-10-22T00:41:28Z

← Older revision		Revision as of 00:41, 22 October 2020
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	* Target cost for construction.		* Target cost for construction.
	* Variations.		* Variations.
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	[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]		[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

144.132.200.60 at 00:41, 22 October 2020

2020-10-22T00:41:01Z

← Older revision		Revision as of 00:41, 22 October 2020
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	* Target cost for construction.		* Target cost for construction.
	* Variations.		* Variations.
		+	* S

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Designing Buildings at 12:31, 1 October 2020

2020-10-01T12:31:03Z

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	* Variations.		* Variations.

−	[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Editor at 12:53, 8 January 2020

2020-01-08T12:53:53Z

Designing Buildings: Reverted edits by 77.247.181.162 (talk) to last revision by Editor

2019-08-25T06:37:26Z

Reverted edits by 77.247.181.162 (talk) to last revision by Editor

← Older revision		Revision as of 06:37, 25 August 2019
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	* Target cost for construction.		* Target cost for construction.
	* Variations.		* Variations.
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−	~~=== External references ===~~
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−	* [https://www.projectcubicle.com/cost-estimation-methods-project-management/ Cost Estimation Methods]

	[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

77.247.181.162 at 12:42, 23 August 2019

2019-08-23T12:42:02Z

← Older revision		Revision as of 12:42, 23 August 2019
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	* Target cost for construction.		* Target cost for construction.
	* Variations.		* Variations.
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		+	=== External references ===
		+
		+	* [https://www.projectcubicle.com/cost-estimation-methods-project-management/ Cost Estimation Methods]

	[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Editor at 18:07, 23 May 2019

2019-05-23T18:07:37Z

← Older revision		Revision as of 18:07, 23 May 2019
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	Construction contracts will generally provide for the contractor to claim direct loss and/or expense as a result of the progress of the works being materially affected by relevant matters for which the client is responsible.		Construction contracts will generally provide for the contractor to claim direct loss and/or expense as a result of the progress of the works being materially affected by relevant matters for which the client is responsible.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Causes of construction disputes.		* Causes of construction disputes.
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	* Contract claims.		* Contract claims.
	* Cost plans.		* Cost plans.
		+	* Direct cost.
	* Estimate.		* Estimate.
	* Initial cost appraisal.		* Initial cost appraisal.

← Older revision		Revision as of 12:53, 8 January 2020
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	* Construction contracts are often tendered and won on the basis of the lowest cost bid. Costs can then increase as contractors attempt to claw back some profit.		* Construction contracts are often tendered and won on the basis of the lowest cost bid. Costs can then increase as contractors attempt to claw back some profit.
−	* Construction projects are complex, involving a large number of different parties, components, requirements and ~~so on~~.	+	* Construction projects are complex, involving a large number of different parties, components, requirements and other factors.
−	* ~~They~~ can ~~last~~ a long time, during which costs may change.	+	* Projects can take a long time to complete, during which costs may change.
	* Deficiencies and inaccuracies in design.		* Deficiencies and inaccuracies in design.
	* Poor project management.		* Poor project management.
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	* Unforeseen costs that only become apparent as the works progress.		* Unforeseen costs that only become apparent as the works progress.
	* Poor communication between project team members.		* Poor communication between project team members.
−	* Tools ~~and~~ equipment and plant being unavailable, in poor condition, ~~and so on~~.	+	* Tools, equipment and plant being unavailable, in poor condition, etc.
	* Skilled workers being unavailable.		* Skilled workers being unavailable.
	* Inaccurate cost information that leads to incorrect pricing (e.g. material prices).		* Inaccurate cost information that leads to incorrect pricing (e.g. material prices).
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	* As a percentage of the cost overruns to the original budget.		* As a percentage of the cost overruns to the original budget.

−	In order to address and manage cost overruns, it is important to identify what the root ~~cause is~~. While specific events such as extreme weather conditions can cause delays or damage which may result in cost overruns, ~~cost overruns~~ are often the result of more complex project management issues that can be difficult to untangle.	+	In order to address and manage cost overruns, it is important to identify what the root causes are. While specific events such as extreme weather conditions can cause delays or damage which may result in cost overruns, they are often the result of more complex project management issues that can be difficult to untangle.

	The largest cost overruns tend to occur due to a change in requirements. If, for example, the client needs a space to be 20% larger than originally anticipated, then the cost is likely to increase by at least 20%. It is very important therefore to ensure that the project brief is comprehensive and that all project stakeholders accept it and agree on the specific scope of work and performance requirements.		The largest cost overruns tend to occur due to a change in requirements. If, for example, the client needs a space to be 20% larger than originally anticipated, then the cost is likely to increase by at least 20%. It is very important therefore to ensure that the project brief is comprehensive and that all project stakeholders accept it and agree on the specific scope of work and performance requirements.
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	Change orders may also be a reason for costs overrunning. A change order is work that is added to or deleted from the original scope of work of a contract, which alters the original contract amount and/or completion date.		Change orders may also be a reason for costs overrunning. A change order is work that is added to or deleted from the original scope of work of a contract, which alters the original contract amount and/or completion date.

−	If ~~the~~ one of the parties to a contract fails to perform as required by the contract, and this results in costs overrunning, ~~this~~ may constitute a breach of contract. A breach of contract may entitle the innocent party to make a claim for damages for the losses it has suffered.	+	If one of the parties to a contract fails to perform as required by the contract, and this results in costs overrunning, it may constitute a breach of contract. A breach of contract may entitle the innocent party to make a claim for damages for the losses it has suffered.

	Construction contracts will generally provide for the contractor to claim direct loss and/or expense as a result of the progress of the works being materially affected by relevant matters for which the client is responsible.		Construction contracts will generally provide for the contractor to claim direct loss and/or expense as a result of the progress of the works being materially affected by relevant matters for which the client is responsible.