commit to user ABSTRACT
THE CORRELATION BETWEEN TIME AND COST IN THE PERFORMANCE
OF BUILDING CONSTRUCTION MANAGEMENT
By:
Jilawi Ramadan Mohamed Jilawi
S941302037
Building construction is one of business that always show development because the number of people who need construction are increase. Unfortunately, this business often has problem especially on the success of building construction. Two problems that can influence the success of building construction are cost and time because those variables are relate each other. Therefore, this research will identify and analyze the correlation between time, cost and building construction.
This research was conducted with descriptive quantitative. This research used survey to 41 customers by questioonaire. Then, the answer of questionnaire was analyzed with SPSS and compare it to interview result.
Based on the questionnaire result, it was obtained that cost has 0,434 influence to building construction. It means that cost has middle influence on building construction. While time has 0.386 influence on building construction. Therefore, it can be concluded that cost gave higher impact on building construction than time because cost is correlate with quality of material, labor, heavy equipment and administration fee.
commit to user 1. BACKGROUND OF THE STUDY
Failure is unvoidable in the implementation of building construction management. Failure of construction can be caused by performance and productivity of workers and failure of planning. Although failure of project management construction is not visible physically but if the failure is not well managed it will influence to the end of success for project construction. Failure that usually happend in project construction such as the delay of time schedule, the increasing of budget because of overtime work, low quality and many other things.
The statement above is inline with statement of Carper (1989) that the potential causes of construction failure in general due to site selection and site developments errors, programing deficiencies, construction errors, material deficiencies and operational errors. Moreover, Wahyono (2011) also stated that factors which can influence project failure are cost of construction allocation, quality on working and time of construction. Building construction often face failure on several parts, such as structural elements with an average deviation of 4.36% of the contract value, roof elements 2.53%, 0.15% foundations, utilities and finishing 0.12% to 0.07%.
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recommended construction company. Based on the data from CV Irsyad Kurnia Design.
Therefore, in decision research at CV.Irsyad Kurnia Design, researcher wants to identify the impact of performance time and cost cv.irsyad kurnia design in the construction building management, it would be considered by CV.Irsyad Kurnia Design to makes good performance to makes customer satisfy. Based on the reason
above, the researcher choose the tittle “The Correlation between Time and Cost in the Performance of Building Construction Management”.
2.LITERATURE REVIEW
Time and cost are the two key parameters that plays significant role in a building construction management being success (Chidambaram, et all., 2014). Building construction project management should process to identify suitable construction activities for speeding up and for deciding by how much so as attain the best possible savings in both time and cost. Understanding the impact of time and cost can help building construction project management to finding the best solution. A few selected related articles were presented in this section on causes and effects of time and cost in building construction.
2.1.THE IMPACT OF TIME IN THE PERFORMANCE BUILDING
CONSTRUCTION MANAGEMENT
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There is an increasing need for prediction of construction time at planning and bid preparation stages for including a realistic building project duration in the bid package. It represents a problem of continual concern and interest to both researchers and contractors. It is also important for the studies related to estimating, scheduling, and management of building construction works taught both at the graduate and undergraduate levels in the schools of construction science.
Delay is one of the biggest problems often experienced on building construction project sites. Delays can investigating negative effects such as increased costs, loss of productivity and revenue many lawsuits between owners and contractors and contract termination. Managing time is good to makes building construction project management success.
2.2. THE IMPACT OF COST IN THE PERFORMANCE BUILDING
CONSTRUCTION MANAGEMENT
Cost have been typically used as key criteria for examining building construction project performance. Management and customers will want to know how much a project is going to cost so they can determine if the project is worth doing, if the project deliverable will be worth the cost, and if the project will be profitable. Although, the main problem however is when construction project management try to makes good budget with cost cutting the other side will be faced new problem for time construction management.
Chester, et all. (2005), finding that by cutting costs and going with a less experienced design firm, the owner saves a significant amount of design cost. Unfortunately, there are delays to the mechanical and electrical contractors. The mechanical and contractors are delayed as a result of the poor design. Also, the rework and machinery
on site are an additional cost to the two contractors and the designer‟s clarification of
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Chidambaran, et all., (2014) with qualitative method research was overrun due to the
„price fluctuation of raw material‟ because of company try to make building more
effective. Based on above literature review, the company which has spent least cost construction schedule can maximize profit.
3.PREVIOUS RESEARCH
[image:5.612.115.528.231.696.2]Futhermore, This research based on the previous research:
TABLE 1. RESUME OF THE PREVIOUS RESEARCH
No Author Research Problem Method Result
1 Chester, et all., (2005)
The purpose this research is quantify the costs and time overrun of specific schedule impact scenarios on a single project with examines seven common scenarios relating to schedule impacts on the construction site. The impacts include realistic scenarios for delay, cost cutting, resequencing of work, acceleration, change of scope (rework), defective work, and strikes. and to analyze possible claims for damages.
seven different mismana gement scenarios case study Construction mismanagement often results from changing plans at the last minute The biggest mistake the manager can make is assuming that the decision will be isolated to one construction team. A CPM analysis, labor productivity, and cost analysis should be
performed to isolate the effects of the decision.
2 Abbasnia ,et all. (2008)
This research finding new approach to investigated in solving time-cost trade off problem.
Fuzzy logic method
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contructor, etc) to solving time-cost trade off problem.
3 T.Hegaz y.(1999)
How to optimization of time and cost in construction project management
Genetic Algorith ms method
A practical model for time and cost optimization is developed using the principle of genetic algorithms (GAs) that can minimizes the total project cost and maximize benefits.
4 Chidamb aran, et all., (2014)
The study focuses on multiple Design and Build (D&B) project which has complicated risk and is governed by fixed contract sum (Lump sum) to finish delay and cost overrun in construction project management
Qualitativ e method research
This paper presents one aspect each for time delay and cost overrun. This benefits the industry in managing projects proactively with appropriate risk response plan to the respective region.
5 Love, et all., (2005)
Time and Cost Relationships in Australian Building Construction Project The multiple regressio n technique of weighted least squares
This research found that the new build projects experienced poor project time performance, when compared to
commit to user 4.HYPOTHESIS
Based on the literature review and basic theory, that can be present the hypothesis for this research as follow:
Ho = There are no significant correlation between cost and time in the performance building construction management.
Ha = There are significant correlation between cost and time in the performance building construction management
5.DATA COLLECTION METHOD
Data collection method that will be used in this research is questionnaire with Likert Scale, namely the data will be collected through the answer of statement or questions in the questionnaire (Azwar, 2011). The scale that will be used in this research has three points, namely cost, time and the performance of building construction. The three scale of questions points will be modify with Likert Scale with the following responds:
commit to user 6.VARIABLE AND PARAMETER RESEARCH
[image:8.612.107.554.189.614.2]The variable and parameter for this research are as follow:
TABLE 2. VARIABLE AND PARAMETER RESEARCH
Variable Parameter Related Analysis Method to Get
Time 1.Design changes
2.Inaccurate evaluation of projects time/duration
3.Complexity of works
4.Risk and uncertainty associated with projects
5.Non performance of subcontractors and nominated suppliersLack of proper training and experience of
6.Discrepancies in contract documentation
7.Low skilled manpower
8.Conflict between project parties
9.Unpredictable weather conditions
10.Financing and payment for completed works
11.Contract and specification interpretation disagreement
12.Lack of appropriate software
13.Weak regulation and control
14.Unstable government policies
The Performance of Time
Quantitative method research with Questionare
Cost The Peformance of Cost Quantitative method
research with Questionare
The Performance of Building Construction Management
The Performance of Building Construction Management
commit to user 7.DATA ANALYSIS
Hypothesis testing using the multiple regression analysis. The multiple regression analysis is used to determine the influence of independent variables: cost and time on the dependent variable: the performance of building counstraction management using SPSS 18.0 software for windows, regression models of this study as follows:
PBCM = α + β1 COST + β2 TIME (3.2)
Where:
PBCM : The Performance of Building Constraction Management
α : Constant for model
β1 COST : Constant for The Performance of Cost
β2 TIME : Constant for The Performance of Time
8.RESULT
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[image:10.612.112.532.164.681.2]The quality aim during the lifelong period of construction project is the unity of the work quality, the project quality, and the final quality of project functions, products, or services. It emphasizes more on project technology system‟s integrated functions, technological standards, and safety. In the context of CV. Irsyad Kurnia Design, the quality product was designed based on the quality of product was assure with the time aim, satisfaction and coordinate with environment and achieve sustainable development.
TABLE 3. THE REGRESSION OF TIME AND COST TO PERFORMANCE
BUILDING CONSTRUCTION MANAGEMENT
Model Summary
Model R
R Square
Adjusted R
Square Std. Error of the Estimate
1 .795a .632 .613 2.53977
a. Predictors: (Constant), COST, TIME
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
T Sig. B Std. Error Beta
1 (Constant) 61.972 5.564 11.138 .000 COST
TIME
.259 .478
.127 .070
.311 .738
2.043 6.834
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“THE MODEL OF MULTIPLE REGRESSION BETWEEN TIME AND COST IN THE PERFORMANCE OF BUILDING CONSTRUCTION MANAGEMENT”
THE PERFORMANCE BCM = 61.97 + 0.259 COST +0.478 TIME (4.1)
9. CONCLUSION
Based on the research, it can be concluded as follow:
1. Time and cost had significant correlation in the performance building construction management. Time variable had lower impact in the performance building construction management. Cost variable had medium impact in the performance building construction management. This research find that CV.Irsyad Kurnia Design Kendal can makes priority to finish the performance building construction management problem depending correlation interval degree. 2. The multiple linear regression result show that time and cost variable gives high contribution to performance of building construction variable due to the low value of R square with 0.632 or 63% while 37% is influenced by other factors.
10. RECOMMENDATION
Based on the research, it can be recommendedas follow:
1. Theory
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Time and cost as independent variables are the focus of this research, therefore, the next researcher can make other variables as independent variables which can influence the success of building construction, such as labor performance, risk management, and so on.
2. Practice
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