The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework
Cost overruns are a common problem for public works projects, often due to modifications to the original design. While the causes of these modifications have been studied, the legal framework’s impact and limitations on these modifications have received extensive treatment, with no specific case stu...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-10-01
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| Series: | Buildings |
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| Online Access: | https://www.mdpi.com/2075-5309/13/10/2626 |
| _version_ | 1827721406019796992 |
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| author | Guillermo Alonso-Iglesias Francisco Ortega-Fernández Vicente Rodríguez-Montequín Martin Skitmore Olabode Emmanuel Ogunmakinde |
| author_facet | Guillermo Alonso-Iglesias Francisco Ortega-Fernández Vicente Rodríguez-Montequín Martin Skitmore Olabode Emmanuel Ogunmakinde |
| author_sort | Guillermo Alonso-Iglesias |
| collection | DOAJ |
| description | Cost overruns are a common problem for public works projects, often due to modifications to the original design. While the causes of these modifications have been studied, the legal framework’s impact and limitations on these modifications have received extensive treatment, with no specific case studies from different countries. This paper explores the relationship between modifications in Spanish public works projects and their compliance with legal limits, investigating the alignment between base bidding prices and eventual costs after adjustments. The study also delves into the strategic behaviour of construction companies in Spain, which frequently involves manipulating project costs to match the initially proposed bidding price. Statistical methods, such as the Spearman correlation test and graphical analysis, confirm a nearly exact relationship between base bid price and final price. Also, a modification costs comparison for two different legal periods highlights the legal framework’s influence, as a less restrictive framework leads into higher average cost overruns. It provides valuable information to avoid malpractice for tendering institutions, practitioners, and legal developers, as well as those interested in the Spanish public works sector, and opens the door for future research on solving this problem. |
| first_indexed | 2024-03-10T21:23:02Z |
| format | Article |
| id | doaj.art-e161426e6db54822ba247d9a347d0830 |
| institution | Directory Open Access Journal |
| issn | 2075-5309 |
| language | English |
| last_indexed | 2024-03-10T21:23:02Z |
| publishDate | 2023-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Buildings |
| spelling | doaj.art-e161426e6db54822ba247d9a347d08302023-11-19T15:57:05ZengMDPI AGBuildings2075-53092023-10-011310262610.3390/buildings13102626The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal FrameworkGuillermo Alonso-Iglesias0Francisco Ortega-Fernández1Vicente Rodríguez-Montequín2Martin Skitmore3Olabode Emmanuel Ogunmakinde4Project Engineering Department, University of Oviedo, Calle Gonzalo Gutiérrez Quirós s/n, 33600 Mieres, SpainProject Engineering Department, University of Oviedo, Calle Gonzalo Gutiérrez Quirós s/n, 33600 Mieres, SpainProject Engineering Department, University of Oviedo, Calle Gonzalo Gutiérrez Quirós s/n, 33600 Mieres, SpainFaculty of Society and Design, Bond University, 14 University Drive, Robina, QLD 4226, AustraliaFaculty of Society and Design, Bond University, 14 University Drive, Robina, QLD 4226, AustraliaCost overruns are a common problem for public works projects, often due to modifications to the original design. While the causes of these modifications have been studied, the legal framework’s impact and limitations on these modifications have received extensive treatment, with no specific case studies from different countries. This paper explores the relationship between modifications in Spanish public works projects and their compliance with legal limits, investigating the alignment between base bidding prices and eventual costs after adjustments. The study also delves into the strategic behaviour of construction companies in Spain, which frequently involves manipulating project costs to match the initially proposed bidding price. Statistical methods, such as the Spearman correlation test and graphical analysis, confirm a nearly exact relationship between base bid price and final price. Also, a modification costs comparison for two different legal periods highlights the legal framework’s influence, as a less restrictive framework leads into higher average cost overruns. It provides valuable information to avoid malpractice for tendering institutions, practitioners, and legal developers, as well as those interested in the Spanish public works sector, and opens the door for future research on solving this problem.https://www.mdpi.com/2075-5309/13/10/2626cost overrunsproject modificationsconstruction projectsSpanish public workslegal framework |
| spellingShingle | Guillermo Alonso-Iglesias Francisco Ortega-Fernández Vicente Rodríguez-Montequín Martin Skitmore Olabode Emmanuel Ogunmakinde The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework Buildings cost overruns project modifications construction projects Spanish public works legal framework |
| title | The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework |
| title_full | The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework |
| title_fullStr | The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework |
| title_full_unstemmed | The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework |
| title_short | The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework |
| title_sort | relationship between cost overruns and modifications for construction projects spanish public works and their legal framework |
| topic | cost overruns project modifications construction projects Spanish public works legal framework |
| url | https://www.mdpi.com/2075-5309/13/10/2626 |
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