Analyzing the causes of budget changes in construction firm’s building construction projects

• Main Authors: Chen,Chien-Chung, 陳建中
• Other Authors: Shao-Tsai Cheng
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/25393327188985044236

碩士 === 中華大學 === 營建管理學系碩士班 === 100 === Modern construction management consists of some essential elements, including schedule, quality, cost, safety and environment protection. Among those elements, the performance of cost management directly impacts the profits of a construction firm, and even influences the firm’s survival. Therefore, how to successfully control the cost of construction projects is essential for construction firms. The amount of the construction firms in Taiwan is huge, but the enterprise scale of most construction firms is small-to-middle. In such circumstances, the management-related abilities of construction firms are limited. Most construction firms often cannot effectively control the cost of construction project due to inaccurate budget allocation; therefore, they cannot effectively forecast project profits or losses until construction project completion. This study analyzes three real cases and performs questionnaire survey to identify the main causes of budget changes in building construction projects. Research results reveal that “external factors,” “caused by the client,” “inaccurate quantity estimate,” and “improper budget allocation due to inexperience or external factors” are main causes of budget changes. Furthermore, this study tries to propose some corrective actions to prevent those causes from appearing. Research results provide not only a mean of correcting the causes of inaccurate budget allocation, but also a scheme of improving the profits, that is important to the construction firms in the low-profit era.