Factors Influencing Cost of Construction Projects in Australia

Running head: BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Business Research Method Research Proposal
Name of the Student
Name of the University
Author Note

1BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Table of Content
1.0 Introduction..........................................................................................................................2
1.1 Problem Statement...........................................................................................................2
1.2 Research Aims and Objectives.........................................................................................4
1.3 Research Questions..........................................................................................................4
1.4 Research Project justification and potential outputs........................................................4
2.0 Conceptual Framework........................................................................................................6
2.1 Impact of Rework on Construction Cost Performance....................................................7
2.3 Rework costs....................................................................................................................9
3.0 Methodology........................................................................................................................9
3.1 Data Collection.................................................................................................................9
3.2 Research Design.............................................................................................................10
3.3 Sampling method:..........................................................................................................11
References................................................................................................................................12

2BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Topic- Factors influencing the cost of building construction projects in Australia
1.0 Introduction
This research proposal investigates the factors influencing the cost of building
construction projects in Australia. It has been identified that due to changing market
environment in the construction sector, cost of project has been a significant issue. As the
demands of construction project relatively high, there is a persistent focus on the cost. It has
been identified that Australian cities are a fundamental part of enhancing economy in the
nation which pays attention on the residential construction in the cities. There are many
factors that influence cost and success of projects in the construction industry. So the major
purpose of the report is to investigate a research which would investigate the factors that
influence the cost of project in Australia. The following section of the report discusses how
the investigation will be performed to derive a desired outcome related to cost of the project.
This research proposal provide a detailed overview of research problems. On the basis of the
problems, research aim and objectives have been set in the following.
1.1 Problem Statement
Increasing growth in the global market with respect to construction project indicates
that there is a constant focus on minimization of production cost. Consequently, there is a
constant need of doing things in a more different way and delivering the project as per the
available resources. It has been identified that Australian cities are considered as the most
effective part of enhancing the economic figure in the nation which fundamentally pays
attention on the residential construction in cities. Nonetheless, the industry in the need of a
large investment. Moreover, Australia in the recent time have been the nation with highest
demand of construction compared to other cities of the world. Nevertheless, the evidence

3BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
related to cost of construction in the nation is considered to be conflicting. Moreover, in some
areas, it is found that cost of construction project has been found to be higher than the other
regions. This creates the concern about the resolution which would help to resolve the issues.
It has been identified that the expense of projects is a significant concern as they
determine whether the project could gain success (Cantarelli et al., 2013). Hence, some
major factors are responsible for the cost of major construction projects and some of these
factors include interest, costs, taxation arrangement, and cost of transport as well as
concession of tariff. Even though, many studies have been performed to investigate this issue
but plenty of time elapsed to identify the need of performing another study that influence the
cost of developing construction project in Australia. Taroun (2014) mentioned that cost
overrun in Australian construction project remain unclear for long period, even a mere
resolution to this problem took a lot of time to be revealed. Furthermore, Hwang, Zhao and
Gay (2013) performed a study and cost of total rework in the construction project in Australia
stated that organization in the construction industry were not aware of the cost of rework.
Consequently, estimates found by some respondents were more of subjective
evaluation as well as individual knowledge of respondents on projects. On the contrary,
Hwang, Zhao and Gay (2013) mentioned that overall cost of rework could differ significantly
but it entirely depends on the project. An extent of the variability in project estimates has
effectively disclosed the construction professional are lacking knowledge regarding the cost
of rework that are certainly incurred in the some particular project. Studies have revealed that
renovation and refurbishment projects are most likely to be higher compared to the cost of
rework compared to the new building projects. Even though the existing papers delivered
some significant insight on factors that influence the cost of construction projects, some of
the scholars paid attention to construction projects generally, therefore there is a constant
need of bridging the gap and undertaking a research that pays attention to development of