Uncertainties In The Construction Industry

There is no doubt that construction plays a significant role in a nation’s in a number of ways. With the increasing uncertainties in budget, technology as well as development process construction industry has become so dynamic. Additionally, the increasing complexity of the design and the involvement of diversified stakeholders has increasingly made it challenging for contractors and clients to successfully complete projects. Initially, achieving the desired goals of the project was deemed to be the fittest criteria to define project success. However, variation in project goals has made it more challenging to establish criteria for defining success. As a result, the purpose of this essay is to explore the criteria that can be used to define

Having many stakeholders in the same project has made it difficult to define success since every stakeholder has a different way of defining it. For instance, an architecture is likely to measure the success of a construction project based on its aesthetic performance while the contractor of the same project will look at the profit gained when defining success. A lot of research has been conducted in this area. Ramlee et al. (2016) explored the criteria for defining success by considering the perspectives of different stakeholders. The study identified a criteria consisting of cost, time, quality safety, employee’s satisfaction, client’s satisfaction, cash flow management, learning and development, environmental performance and profitability. The main limitation with this study is that, the success factors were largely dependent on different stakeholders. Munns, & Bjeirmi (2006) holds that the most optimal creteria should factor in almost all if not all stakeholders. Thus, the creteria is made up of the success factors that are shared among the majority of the stakeholders. The first factor which is shared among many if not all shareholders is the project’s capacity to meet technical performance specifications. Apart from the technical performance, cost, quality and time are factors that are

Most importantly, the complexity of costs and budget changes significantly with the complexity of the project where there are various factors such as sages, materials, and equipment of construction to consider. The cost of the project can affect the completion time as well as projects quality when it is not adjusted. However, it will only affect completion time if it is adjusted to meet the raising demands. This is what was witnessed in Sydney Opera House Project. The same aspect applies to time. It drastically failed in terms of cost and time. It was initially designed to take two years at a cost of AUS 7$ million. Contrarily, the final project took 13 years and a cost blowout of 1400 percent after being completed using AUS $102 million (Flyvbjerg, 2005). This is an evidence that there was poor planning in terms of cost and subsequent monitoring to ensure that cost remains within the estimated value. The differences between the stakeholders played a significant role it is delay. It shows that they were not adequately informed about the project status. According to Munns, & Bjeirmi, (2006) having an automated reporting system also helps the project manager to continuously update the stakeholders on the progress of the project. Despite the delay in time and escalated cost, the project met its technical specification. It is one of the best projects considering its intended use,