Project management assignment on cost overrun in construction project

Question

Task: You are required to develop aproject management assignment research proposal discussing a viewpoint on a specific contemporary theme, approach or issue in project management that is important.

Answer

1. Introduction
It is predicated on the fact that many projects have experienced cost overruns, which forced them to go over the initial contract amount that was agreed upon. This project management assignmentstudy tries to determine the reasons behind the negative effects that can result from doing projects that run over budget and behind time. We want to learn what factors contribute to the cost going over budget on large-scale building projects, as well as which factors play a significant role in determining whether or not an effort to prevent cost overruns is successful. In this project management assignmentpaper, we discuss the extent of research that has been done thus far into the elements that cause cost overruns in construction projects. Building the United Kingdom Olympic Stadium, which hosted the opening and closing ceremonies of the Olympic and Paralympic Games, presented managers and leaders with a problem not dissimilar to the one they had to overcome in the past.

2. Rationale& Significance of the project management assignmentresearch
The project management assignmentresearch is based on the cost overrun of the cost of construction of the London Olympic stadium, the rationale of the research is to justify undertaken of the given study. On the other hand, the significance of the project management assignmentresearch is to determine the process of overcoming the challenges and issues due to cost overruns in construction projects.

3. The research problem of the project management assignment
During the construction of the project management assignmentresearch, the main issue and the challenge is to determine the proper core cause of the cost overrun of a construction project management. On the other hand, it becomes difficult to coordinate the gap in the knowledge regarding the aims and the objects of the project management assignmentresearch.

4. Aim and Objectives
Aims
The project management assignmentresearch proposal aims to determine the main cause and the effect of cost overrun in construction project management.

Objectives
? To determine the concept of cost overrun in the construction projects
? Figuring out the main reasons behind the improper management of the cost overrun
? To identify the role of the project manager in reducing the cost overrun in construction projects
? To understand the cost overrun concept with the help of a real-left project, the London Olympic

Stadium Construction delay, by analysing its causes
5. Literature Review
5.1 Concept of cost overrun in construction project management assignment
The amount by which actual expenses exceed the amount forecasted is referred to as a "cost overrun." Any one of the following could lead to a cost overrun: As the project in the project management assignmentprogressed, the scope grew larger without increasing the budget as originally planned. The first estimate of the cost was far out of line (Chadeeet al. 2021). It is a circumstance in which a client is forced to spend more money than intended to complete a project, which is another way of saying that the project exceeds its budget when the budget for a project is altered unexpectedly (Sanchezet al. 2020).

5.2 Causes of the cost overrun in construction project management
There is a significant difference in expenses between projects begun by the owner and those launched by contractors or designers (Kamaruddeen,Sung&Wahi,2020).As per the project management assignmentthis is due to changes in design, faulty predictions of the project's duration, hazards and uncertainties linked to the project, subcontractor failures, disagreements between parties involved, rate volatility, and a shortage of competent labour for funding, and payment.

After the 2012 London Olympics, the “Olympic Stadium” was converted into a “West Ham United football stadium”, complete with “retractable seats and a cantilever top”. However, further discoveries in the project management assignmenthave pushed the overall renovation cost to $397.5 million from the original $335 million estimate (infobae.com, 2022).

Reasons behind the cost overrun in a construction project are given below:
Inaccurate planning and scheduling of projects by contractors
Due to a lack of expertise in construction management techniques, "work programmers" frequently fail to be practical and user-friendly (Durdyev,2020). However, it is not correct as per the project management assignment, but it meets the terms of the contracts that they have signed with clients.

Non-availability of experienced technical staff of contractor
The contractor guarantees as per the project management assignmentthat there will be qualified workers available when the contract is signed. Do not have a sufficient number of personnel who possess the necessary technical skills. Additionally, foremen who do not possess the required level of technical ability are put in control of projects (Banobi& Jung,2019). The current demand is generating a delay in progress payments which is being caused by the retention of technical workers.

The unplanned cost of project management assignment
As per the findings of the project management assignmentunanticipated events could result in the initiation of a few actions that were not initially accounted for in the plan or the budget. It could be for a variety of reasons, including psychological, political, or technical (Dolage&Wijesinghe, 2022).

5.3. Role of the project manager in reducing cost overrun in construction project management
Preventing cost overruns and monitoring project progress are the primary responsibilities of the project manager in a project management assignment. Use project management tools to discover tiny problems before they escalate into larger difficulties that could jeopardise project success (Alenezi, 2020). Gantt charts give the manager a real-time view of the progress of the project, the workload of the team, and any delays.

Identify the vendors through the project management assignment
External vendors are often required in many project management assignment, either to assist with specific duties or to provide products and equipment (Dlamini&Cumberlege,2021, February). Cost overruns, which are typically out of the manager's control, can be avoided by establishing a relationship with outside providers. As a result, thorough research is essential before any partnerships are solidified.

Utilise the project planning tools in the project management assignment
Project managers will appreciate the added productivity and cost savings that come from using a sophisticated tool (Sanchezet al. 2020). It also helps to minimise project cost overruns. With the help of a Gantt Chart in theproject management assignment, users can keep their projects on schedule and avoid overspending.

Update the stakeholder
Delays are unavoidable if stakeholders and project managers cannot communicate effectively in a project management assignment. Cost overruns and the possibility that work may begin on the wrong task at the wrong time are the results of delays (Akinradewo&Aigbavboa,2019, November). This lost time has the potential to throw the entire project off course. There must be clear lines of communication between different groups within an organisation for everyone to receive the information they need.

Reassign resource
For maximum output and efficiency, the project manager of a project management assignmentshould assemble the most knowledgeable and qualified team members (Islamet al. 2019). However, if the management does the planning and sets aside monies, it will save money in the long run because there will be fewer problems to deal with.

5.5 Overview of a real-life project management assignment
An early analysis examined in the project management assignment, with the help of several presumptions regarding a specimen bid,' the question of whether or not a bid for the 2012 Olympics would cause the city of London to incur a total expense of less than £1.8 billion. This amount was revised and raised by an official government budget evaluation in 2007, bringing it up to £9.325 billion from the previous estimate of £4.2 billion that was included in the bid dossier that was presented to the International Olympic Committee (IOC) (researchgate.net, 2022). Since that evaluation in the project management assignment, increased costs has been factored into the significant construction and scheduling contingency that has been set up for the project (researchgate.net, 2022).

5.6 Strategy
The project management assignmentresearch proposal discusses the cost overrun and the mismanagement of project management in construction projects. To conducts the research data collection methods are the significant part. A secondary data collection method will be considered in the proposal. Even while collecting secondary data for the project management assignmentisn't as exciting as conducting original surveys or trawling the internet for information on online behaviours, it's a crucial aspect of any study. It will save time and money in the long run if secondary data is used in conjunction with primary research to enhance the findings. There is no requirement in the project management assignmentto verify the authenticity of secondary data sources. Secondary data analysis can use any information gathered as a source, for whatever reason. As a result, there are a lot of sources to choose from. Internal and external sources can be categorised as corporations and other organisations (Westonet al. 2019).

In order to find, analyse, and report on repeating patterns in a huge dataset in the project management assignment, it will be necessary to use a thematic analysis approach to analyse qualitative data. To depict data, code selection and theme creation are important, but they're not the only things to consider. According to its vast range of theoretical and epistemological frameworks, thematic analysis can be employed in a wide range of research questions and designs, as well as in various sample sizes (Kiger &Varpio, 2020). Some scholars of project management assignmentbelieve that thematic analysis is an ethnographic method, although others think otherwise. In a novel way, it obtains data, since qualitative research utilises encourages participants to be completely honest with them throughout the research process. It is for this reason that researchers are able to carry out more accurate investigations into technique (Kiger&Varpio, 2020).

6. Conclusion
The project management assignmentresearch is concluded about the cost overrun of the project management of a construction project. On the other hand, the project management assignmentresearch also concluded about the main cause of delay in the project and also the improper management of the project manager during the construction. Similarly, the role of the project manager helps to overcome the overrun cost in the project such as by utilising the project planning tools to schedule and track the project with the help of Chat Bots.

Reference:
Akinradewo, O., &Aigbavboa, C. (2019, November). Revisiting causative factors of project cost overrun in building construction projects in Nigeria. In IOP Conference Series: Materials Science and Engineering (Vol. 640, No. 1, p. 012002). IOP Publishing. https://iopscience.iop.org/article/10.1088/1757-899X/640/1/012002/pdf
Alenezi, T. A. N. (2020). Covid-19 causes of delays on construction projects in Kuwait. IJERGS, 8(1), 6-9. http://pnrsolution.org/Datacenter/Vol8/Issue4/5.pdf
Banobi, E. T., & Jung, W. (2019). Causes and mitigation strategies of delay in power construction projects: Gaps between owners and contractors in successful and unsuccessful projects. Sustainability, 11(21), 5973. https://www.mdpi.com/2071-1050/11/21/5973/pdf
Chadee, A. A., Chadee, X. T., Ray, I., Mwasha, A., & Martin, H. H. (2021). When parallel schools of thought fail to converge: The case of cost overruns in project management. Buildings, 11(8), 321. https://www.mdpi.com/2075-5309/11/8/321/pdf
Dlamini, M., &Cumberlege, R. (2021, February). The impact of cost overruns and delays in the construction business. In IOP Conference Series: Earth and Environmental Science (Vol. 654, No. 1, p. 012029). IOP Publishing. https://iopscience.iop.org/article/10.1088/1755-1315/654/1/012029/pdf
Dolage, D. A. R., &Wijesinghe, W. M. M. AN INVESTIGATION TO PROBLEMS FACED BY SPECIALIZED SMALL SCALE CONTRACTORS IN THE CONSTRUCTION INDUSTRY. https://scholar.archive.org/work/cahddajnorf5zigaiopcfkiiiu/access/wayback/https://s3-eu-west-1.amazonaws.com/pfigshare-u-files/15550061/ICSBE2018_191.pdf Durdyev, S. (2020). Review of construction journals on causes of project cost overruns. Engineering, Construction and Architectural Management. https://www.researchgate.net/profile/Serdar-Durdyev-2/publication/343341835_Review_of_construction_journals_on_causes_of_project_cost_overruns/links/ 5f3f13f292851cd3020df7f7/Review-of-construction-journals-on-causes-of-project-cost-overruns.pdf

Islam, M. S., Nepal, M. P., Skitmore, M., & Kabir, G. (2019). A knowledge-based expert system to assess power plant project cost overrun risks. Expert Systems with Applications, 136, 12-32. http://growingscience.com/jpm/Vol5/jpm_2020_1.pdf
Kamaruddeen, A. M., Sung, C. F., &Wahi, W. (2020). A study on factors causing cost overrun of construction projects in Sarawak, Malaysia. Civil Engineering and Architecture, 8(3), 191-199. https://pdfs.semanticscholar.org/67fc/a4b4bc2a116bb84be7dbd861298674319a2f.pdf
Kiger, M. E., &Varpio, L. (2020). Thematic analysis of qualitative data: AMEE Guide No. 131. Medical teacher, 42(8), 846-854. https://www.plymouth.ac.uk/uploads/production/document/path/18/18247/Kiger_and_Varpio__2020__ Thematic_analysis_of_qualitative_data_AMEE_Guide_No_131.pdf

Kiger, M. E., &Varpio, L. (2020). Thematic analysis of qualitative data: AMEE Guide No. 131. Medical teacher, 42(8), 846-854. https://www.plymouth.ac.uk/uploads/production/document/path/18/18247/Kiger_and_Varpio__2020__ Thematic_analysis_of_qualitative_data_AMEE_Guide_No_131.pdf

researchgate.net, 2022. Why costs overrun: Risk, optimism and uncertainty in budgeting for the London 2012 Olympic Games viewed on 07.08.2022, from:https://www.researchgate.net/publication/254252215_Why_costs_overrun_Risk_optimism_and_ uncertainty_in_budgeting_for_the_London_2012_Olympic_Games

Sanchez, F., Bonjour, E., Micaelli, J. P., &Monticolo, D. (2020). An approach based on bayesian network for improving project management maturity: An application to reduce cost overrun risks in engineering projects. Computers in Industry, 119, 103227. https://www.academia.edu/download/88067613/j.compind.2020.10322720220628-1-1cbqriy.pdf
Weston, S. J., Ritchie, S. J., Rohrer, J. M., & Przybylski, A. K. (2019). Recommendations for increasing the transparency of analysis of preexisting data sets. Advances in methods and practices in psychological science, 2(3), 214-227. https://journals.sagepub.com/doi/pdf/10.1177/2515245919848684

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