9th Annual International Conference on Industrial Engineering and Operations Management

Analyzing the Impact of Location Factors on Building Construction Cost in Sri Lanka

Damithri Melagoda, Thilini Jayawickrama & Thulasimaaran Parameswaran
Publisher: IEOM Society International
0 Paper Citations
Track: Material Flow Cost Accounting (MFCA)

Impact of location factors in building construction cost is increasing over past decades in all over the world. It draws the attention towards the concept of analysing the impact of location factors to determine how to estimate the building construction cost with a high level of accuracy to prevent client's money from unexpected fluctuations and provide most suitable design within client's budget. Even though location index is considered in most countries, Sri Lanka has failed to use it and still uses single cost index considering only the time factor where location index is vital. This necessitates the development of a holistic analysis on impact of location factors approach to the construction sector in Sri Lanka. Preliminary questionnaire survey validated and modified the location factors identified in literature review. Further, it is established the most significant factors based on respondents' comments towards impact on construction cost in building construction. Moreover, percentages of major cost elements in total construction cost were recognized as material (40%), labor (24%), plant and equipment (9%), preliminaries (10%), overheads and profit (17%). Detailed survey focused on prioritization of location factors with AHP tool for major cost elements of building construction; ground condition and climate are identified as most significant impact factors.

Published in: 9th Annual International Conference on Industrial Engineering and Operations Management, Bangkok, Thailand

Publisher: IEOM Society International
Date of Conference: March 5-7, 2019

ISBN: 978-1-5323-5948-4
ISSN/E-ISSN: 2169-8767