Updating Financial Contingency in Execution of Typologically Diverse Construction Projects
Abstract
:1. Introduction
2. Methods
2.1. Research Sample
2.2. Survey Tool
3. Results
3.1. Cost Performance Index (CPI) in Diversified Construction Projects
- The cost performance indexes in the various groups of facilities show great variation both in terms of the values obtained and the observed course;
- The values of the cost performance index are characterized by greater and more chaotic dynamics of variation than the corresponding values of the schedule performance index. This shows the absence of a direct relationship between cost and schedule overruns;
- The course of the values of the individual indicators shown in the charts indicates the values of the CPI at a given, well-defined moment in the life of the investment and does not directly indicate the ultimate cost and schedule overruns of the investment;
- The course of CPI volatility is complex in nature and shows great variation even within groups of facilities. This does not allow any trend to be determined.
3.2. Analysis of Cost Overruns by Investment Group
- The ranges of CPI values observed in the identified investment groups are characterized by wide variation between individual projects;
- Except for the group of logistics centres (L), it was observed that the number of projects with cost overruns above the financial contingency level was in the range of 30–50%. The exception was the group of hotel buildings (H), where more than 70% of the projects showed significant overruns of this parameter. Such a high number of overruns observed in each audit period had a significant impact on the final cost of implementation and its deviation from the planned cost and the financial contingency;
- The distribution of CPI values against the financial contingency, observed in the box plots, indicates the possibility that the final cost of the project may not be maintained at the planned level.
3.3. Analysis of the Relationship Between Planned Cost and Actual Cost in the Context of Financial Contingency
- Despite the slight variation in CPI, outliers were observed in the groups of residential buildings (M) and logistics centres (L), indicating the possibility of projects in which the actual cost differs significantly from the planned cost. As these values approach the level of the financial contingency, the real possibility of exceeding it emerges;
- The compact range of CPI values with no outliers, as seen in the group of office buildings (O), indicates a stable range of observed deviations of actual cost from planned cost, and a low probability of values significantly deviating from the range contained between quartiles Q1 and Q3;
- The breadth of the range of CPI values observed in the groups of hotel buildings (H) and shopping centres (G) shows high variability, as evidenced by the height of the boxes in the graphs for these groups of facilities. Both groups were also found to have maximum and minimum values that significantly deviate from the box. This allows us to assume that there may be projects in which the actual cost exceeds not only the planned cost, but also the value of the budget provision.
4. Summary and Discussion
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Category | Typological Group | Symbol According to PKOB | Measurement Period | Number of Construction Projects | Number of Measurements |
---|---|---|---|---|---|
M | Residential buildings | 1130 | 2006–2021 | 14 | 218 |
O | Office buildings | 1220 | 2008–2021 | 4 | 69 |
H | Hotels | 1211 | 2013–2020 | 9 | 110 |
G | Shopping centres | 1230 | 2008–2018 | 8 | 113 |
L | Logistics centres | 1252 | 2017–2024 | 6 | 37 |
Sum | 41 | 547 |
Category | Typological Group | Bottom Whisker Value | Quartile Q1 Median | Quartile Q3 Median | Top Whisker Value |
---|---|---|---|---|---|
M | Residential buildings | 0.96 | 0.98 | 1.00 | 1.03 |
O | Office buildings | 0.95 | 0.95 | 1.04 | 1.06 |
H | Hotels | 0.72 | 0.85 | 0.98 | 1.04 |
G | Shopping centres | 0.86 | 0.97 | 1.12 | 1.14 |
L | Logistics centres | 0.98 | 0.99 | 1.02 | 1.08 |
Category | Typological Group | Bottom Whisker Value | Quartile Q1 Median | Quartile Q3 Median | Top Whisker Value |
---|---|---|---|---|---|
M | Residential buildings | 0.96 | 0.98 | 1.00 | 1.03 |
O | Office buildings | 0.95 | 0.95 | 1.04 | 1.06 |
H | Hotels | 0.72 | 0.85 | 0.98 | 1.04 |
G | Shopping centres | 0.86 | 0.97 | 1.12 | 1.14 |
L | Logistics centres | 0.98 | 0.99 | 1.02 | 1.08 |
Category | Typological Group | Existing Level of Financial Contingency | Recommended Level of Financial Contingency |
---|---|---|---|
M | Residential buildings | 3% | 5% |
O | Office buildings | 3% | 5% |
H | Hotels | 3% | 30% |
G | Shopping centres | 3% | 25% |
L | Logistics centres | 3% | 3% |
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Stachoń, T.; Szóstak, M.; Konior, J. Updating Financial Contingency in Execution of Typologically Diverse Construction Projects. Appl. Sci. 2025, 15, 4445. https://doi.org/10.3390/app15084445
Stachoń T, Szóstak M, Konior J. Updating Financial Contingency in Execution of Typologically Diverse Construction Projects. Applied Sciences. 2025; 15(8):4445. https://doi.org/10.3390/app15084445
Chicago/Turabian StyleStachoń, Tomasz, Mariusz Szóstak, and Jarosław Konior. 2025. "Updating Financial Contingency in Execution of Typologically Diverse Construction Projects" Applied Sciences 15, no. 8: 4445. https://doi.org/10.3390/app15084445
APA StyleStachoń, T., Szóstak, M., & Konior, J. (2025). Updating Financial Contingency in Execution of Typologically Diverse Construction Projects. Applied Sciences, 15(8), 4445. https://doi.org/10.3390/app15084445