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The Impact Of Cost Control Techniques On Construction Projects Delivery
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1.2 PROBLEM STATEMENT
Construction can be considered as a dynamic
industry which is constantly facing uncertainties. These uncertainties
and the many stakeholders in these kinds of projects, make the
management of costs difficult which consequently causes cost overruns.
Therefore, cost overruns are considered one of the most critical issues
during the execution of construction projects (Chan, et al., 2004;
Doloi, 2011).
As mentioned by Van Der Westhuizen and Fitzgerald
(2005), the presence of cost overruns can be a reason for project delays
or possible project failures. However this idea has been refuted by
many authors who considered that project success depends on many other
factors that should be assessed to conclude the success or failure of a
project (Chan, et al., 2004). Moreover, there have been many studies
that suggest that the success of a project depends on the presence of
certain critical factors which can also change depending on the
objective to be met (Iyer and Jha, 2005). In other words, some authors
ascertained that there are some critical success factors that help to
improve cost performance and prevent cost overruns.
1.3 OBJECTIVES OF THE STUDY
The
main aim of the study is to examine various cost control techniques
used in construction projects and the impact they have on project
delivery. Specific objectives of the study are:
To identify cost control technique frequently used by contractors in construction projects.
To examine problems encountered by contractors in managing construction project cost.
To determine the impact of costcontrol techniques on the duration of construction projects.
1.4 RESEARCH QUESTIONS
In-order to guide the study and achieve the above stated research objectives; the following research questions were formulated:
What cost control techniques are frequently used by contractors in construction projects?
What are the problems faced by contractors in controlling cost in the construction project process?
What impact does cost controlling techniques have on the duration of construction projects?
RESEARCH HYPOTHESES
Ho: Cost control problems lead to project delivery failures.
      Hi: Cost control problems do not lead to project delivery
failures.
Ho: Cost Control techniques lead to construction delivery failures
       Hi: Cost Control techniques do not lead to construction
delivery failures
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