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Relationship between value and duration for construction projects

journal contribution
posted on 09.12.2016, 12:13 authored by Ammar P.F. Kaka, Andrew Price
A strong relationship exists between the cost and duration of construction projects. This relationship can be used in contractors' budgeting systems and the corporate financial model developed at Loughborough University (Kaka, 1990). The client can use this relationship to estimate the approximate duration of a project and compare it with the proposed ones. Two samples were collected to model this relationship. Sample 1 contained 661 building projects with a total value exceeding £695 million, which included all types of commercial, industrial, residential and public projects. Sample 2 included 140 road contracts with a total value exceeding £120 million. The average ratio of actual time to the agreed time for road work is 1.0351. The ratio varies between a maximum value of 2 and a minimum of 1/3. The following stage of the analysis involved modelling the relationship for civil engineering and different types of building contracts. The two samples were classified according to type of project, form of contract and type of competition. Seven groups were modelled and tested visually for the difference in these relationships. The type of competition was found to have no effect on the relationship. Finally, six groups were modelled and the results of the constants of the relationships are listed. Public buildings and civil engineering projects were shown to fit accurately, while private buildings varied considerably. Interesting conclusions were drawn on the logic behind these differences.

History

School

  • Architecture, Building and Civil Engineering

Published in

Construction Management and Economics

Volume

9

Pages

383 - 400

Citation

KAKA, A. and PRICE, A., 1991. Relationship between value and duration for construction projects. Construction Management and Economics, 9 (4), pp.383-400.

Publisher

© Taylor and Francis

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

1991

ISSN

0144-6193

eISSN

1466-433X

Language

en