Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal

Surendra Kumar Karn; Khet Raj Dahal

doi:doi:10.11648/j.ajset.20210601.12

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Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal

Surendra Kumar Karn, Khet Raj Dahal

Published in American Journal of Science, Engineering and Technology (Volume 6, Issue 1)

Received: 4 January 2021 Accepted: 12 January 2021 Published: 26 April 2021

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Abstract

Cost optimization is a process that should be carried out throughout the construction period to ensure that the cost of the project is within an allotted budget. Time and cost are the two most significant factors in any construction project. Cost increases with the time of construction. The objective of this study was to find out the factors that contribute to the optimization of construction costs in building construction projects in Nepal. The study was conducted during the period from April 2019 to September 2020. Field observation, in-depth interviews, focus group discussions and questionnaire surveys were the major tools for the investigation of this study. The findings were analyzed in nine categories: project related factors, design related factors, owner related factors, consultant related factors, contractor related factors, material related factors, labor related factors, equipment related factors, and external factors. The study found some key factors related to time and cost overrun, optimizing cost of construction and the strategies to optimize project costs. The most important strategy to optimize the construction cost are effective cost planning and control, development of proper monitoring and tracking system, sound working environment, recording daily work progress, using time cost trade off, follow plan-do-check-act quality policy, hire skilled labor and effective supervision. The study suggests that constructability and value engineering principles should be adopted in construction projects.

Published in	American Journal of Science, Engineering and Technology (Volume 6, Issue 1)
DOI	10.11648/j.ajset.20210601.12
Page(s)	8-19
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Cost Optimization, Time Overrun, Cost Overrun, Constructability and Value Engineering

References

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APA Style

Surendra Kumar Karn, Khet Raj Dahal. (2021). Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal. American Journal of Science, Engineering and Technology, 6(1), 8-19. https://doi.org/10.11648/j.ajset.20210601.12

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ACS Style

Surendra Kumar Karn; Khet Raj Dahal. Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal. Am. J. Sci. Eng. Technol. 2021, 6(1), 8-19. doi: 10.11648/j.ajset.20210601.12

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AMA Style

Surendra Kumar Karn, Khet Raj Dahal. Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal. Am J Sci Eng Technol. 2021;6(1):8-19. doi: 10.11648/j.ajset.20210601.12

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@article{10.11648/j.ajset.20210601.12,
  author = {Surendra Kumar Karn and Khet Raj Dahal},
  title = {Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal},
  journal = {American Journal of Science, Engineering and Technology},
  volume = {6},
  number = {1},
  pages = {8-19},
  doi = {10.11648/j.ajset.20210601.12},
  url = {https://doi.org/10.11648/j.ajset.20210601.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajset.20210601.12},
  abstract = {Cost optimization is a process that should be carried out throughout the construction period to ensure that the cost of the project is within an allotted budget. Time and cost are the two most significant factors in any construction project. Cost increases with the time of construction. The objective of this study was to find out the factors that contribute to the optimization of construction costs in building construction projects in Nepal. The study was conducted during the period from April 2019 to September 2020. Field observation, in-depth interviews, focus group discussions and questionnaire surveys were the major tools for the investigation of this study. The findings were analyzed in nine categories: project related factors, design related factors, owner related factors, consultant related factors, contractor related factors, material related factors, labor related factors, equipment related factors, and external factors. The study found some key factors related to time and cost overrun, optimizing cost of construction and the strategies to optimize project costs. The most important strategy to optimize the construction cost are effective cost planning and control, development of proper monitoring and tracking system, sound working environment, recording daily work progress, using time cost trade off, follow plan-do-check-act quality policy, hire skilled labor and effective supervision. The study suggests that constructability and value engineering principles should be adopted in construction projects.},
 year = {2021}
}

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TY  - JOUR
T1  - Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal
AU  - Surendra Kumar Karn
AU  - Khet Raj Dahal
Y1  - 2021/04/26
PY  - 2021
N1  - https://doi.org/10.11648/j.ajset.20210601.12
DO  - 10.11648/j.ajset.20210601.12
T2  - American Journal of Science, Engineering and Technology
JF  - American Journal of Science, Engineering and Technology
JO  - American Journal of Science, Engineering and Technology
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AB  - Cost optimization is a process that should be carried out throughout the construction period to ensure that the cost of the project is within an allotted budget. Time and cost are the two most significant factors in any construction project. Cost increases with the time of construction. The objective of this study was to find out the factors that contribute to the optimization of construction costs in building construction projects in Nepal. The study was conducted during the period from April 2019 to September 2020. Field observation, in-depth interviews, focus group discussions and questionnaire surveys were the major tools for the investigation of this study. The findings were analyzed in nine categories: project related factors, design related factors, owner related factors, consultant related factors, contractor related factors, material related factors, labor related factors, equipment related factors, and external factors. The study found some key factors related to time and cost overrun, optimizing cost of construction and the strategies to optimize project costs. The most important strategy to optimize the construction cost are effective cost planning and control, development of proper monitoring and tracking system, sound working environment, recording daily work progress, using time cost trade off, follow plan-do-check-act quality policy, hire skilled labor and effective supervision. The study suggests that constructability and value engineering principles should be adopted in construction projects.
VL  - 6
IS  - 1
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Author Information

Surendra Kumar Karn

Department of Construction Engineering and Management, Lumbini International Academy of Science and Technology, Lalitpur, Nepal
Khet Raj Dahal

Department of Construction Engineering and Management, Lumbini International Academy of Science and Technology, Lalitpur, Nepal

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APA Style

Surendra Kumar Karn, Khet Raj Dahal. (2021). Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal. American Journal of Science, Engineering and Technology, 6(1), 8-19. https://doi.org/10.11648/j.ajset.20210601.12

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ACS Style

Surendra Kumar Karn; Khet Raj Dahal. Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal. Am. J. Sci. Eng. Technol. 2021, 6(1), 8-19. doi: 10.11648/j.ajset.20210601.12

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AMA Style

Surendra Kumar Karn, Khet Raj Dahal. Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal. Am J Sci Eng Technol. 2021;6(1):8-19. doi: 10.11648/j.ajset.20210601.12

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@article{10.11648/j.ajset.20210601.12,
  author = {Surendra Kumar Karn and Khet Raj Dahal},
  title = {Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal},
  journal = {American Journal of Science, Engineering and Technology},
  volume = {6},
  number = {1},
  pages = {8-19},
  doi = {10.11648/j.ajset.20210601.12},
  url = {https://doi.org/10.11648/j.ajset.20210601.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajset.20210601.12},
  abstract = {Cost optimization is a process that should be carried out throughout the construction period to ensure that the cost of the project is within an allotted budget. Time and cost are the two most significant factors in any construction project. Cost increases with the time of construction. The objective of this study was to find out the factors that contribute to the optimization of construction costs in building construction projects in Nepal. The study was conducted during the period from April 2019 to September 2020. Field observation, in-depth interviews, focus group discussions and questionnaire surveys were the major tools for the investigation of this study. The findings were analyzed in nine categories: project related factors, design related factors, owner related factors, consultant related factors, contractor related factors, material related factors, labor related factors, equipment related factors, and external factors. The study found some key factors related to time and cost overrun, optimizing cost of construction and the strategies to optimize project costs. The most important strategy to optimize the construction cost are effective cost planning and control, development of proper monitoring and tracking system, sound working environment, recording daily work progress, using time cost trade off, follow plan-do-check-act quality policy, hire skilled labor and effective supervision. The study suggests that constructability and value engineering principles should be adopted in construction projects.},
 year = {2021}
}

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TY  - JOUR
T1  - Cost Optimization in Building Construction Projects with Special Reference to Kathmandu Valley of Nepal
AU  - Surendra Kumar Karn
AU  - Khet Raj Dahal
Y1  - 2021/04/26
PY  - 2021
N1  - https://doi.org/10.11648/j.ajset.20210601.12
DO  - 10.11648/j.ajset.20210601.12
T2  - American Journal of Science, Engineering and Technology
JF  - American Journal of Science, Engineering and Technology
JO  - American Journal of Science, Engineering and Technology
SP  - 8
EP  - 19
PB  - Science Publishing Group
SN  - 2578-8353
UR  - https://doi.org/10.11648/j.ajset.20210601.12
AB  - Cost optimization is a process that should be carried out throughout the construction period to ensure that the cost of the project is within an allotted budget. Time and cost are the two most significant factors in any construction project. Cost increases with the time of construction. The objective of this study was to find out the factors that contribute to the optimization of construction costs in building construction projects in Nepal. The study was conducted during the period from April 2019 to September 2020. Field observation, in-depth interviews, focus group discussions and questionnaire surveys were the major tools for the investigation of this study. The findings were analyzed in nine categories: project related factors, design related factors, owner related factors, consultant related factors, contractor related factors, material related factors, labor related factors, equipment related factors, and external factors. The study found some key factors related to time and cost overrun, optimizing cost of construction and the strategies to optimize project costs. The most important strategy to optimize the construction cost are effective cost planning and control, development of proper monitoring and tracking system, sound working environment, recording daily work progress, using time cost trade off, follow plan-do-check-act quality policy, hire skilled labor and effective supervision. The study suggests that constructability and value engineering principles should be adopted in construction projects.
VL  - 6
IS  - 1
ER  -

Copy | Download