CHAPTER 5 FACTOR ANALYSIS AND MULTIPLE REGRESSION MODEL

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1 108 CHAPTER 5 FACTOR ANALYSIS AND MULTIPLE REGRESSION MODEL 5.1 GENERAL Two statistical tools, factor analysis and multiple regression, were used to analyse the data from the questionnaire. Factor analysis was used to identify the underlying dimensions whereas multiple regression, as a mathematical model, was used to seek the strongest predictors of cost management factors (Chan 1997). The analysis was conducted using the SPSS for windows software package that provides comprehensive range of statistical programs for manipulating the work of analysis. Similar research methodology has been applied by Chan (2001) for identifying success factors for design and build construction projects in Hongkong. 5.2 FACTOR ANALYSIS Factor analysis is a statistical technique used to identify a relatively small number of factors that can be used to represent relationship among sets of many interrelated variables (Norusis 1993). It was conducted to reduce the selected 89 items (Cost Reduction Success Factors) into a small number of underlying factors. The extraction and rotation of the factors were launched to generate a small number of factors and obtain a clear picture of what these factors represent. The basic steps followed in conducting factor analysis include

2 Initial extraction from all the items by Principal Component Method 2. Computation of the correlation matrix for all the success factors. 3. Extraction and rotation of each success factor. 4. Interpretation and labeling of principal (grouped) success factors as underlying factors. Principal Components Analysis was used to identify the underlying factors. To determine how many factors would be required to represent that set of data, the total percentage of variance explained by each factor was examined. Principal factor extraction with a Varimax Rotation was carried out through the SPSS FACTOR program on 84 items of Cost Management process factors from a sample of 150 responses. Table 5.1 contains the details and initial statistics for each of the 84 items. The total variance explained by each item was listed in the column under factor loading. The percentage of the variance and the cumulative percentage of the variance are tabulated in Table 5.2 and table 5.4. Twelve factors were extracted that accounted for 60.38% of the variance in responses. The first two factors accounted for 27.7%, 8.4% and other factors variance can be seen from table Communalities Principal component method is used in this analysis for extraction. Extraction of each factor was carried out and the results are tabulated (Table 5.1).

3 110 Table 5.1 Communalities Items Initial Extraction Organization's goals, mission, vision, values to formulate the project v1 Feeling about organization s selection of proper stakeholders v2 Level of suggestions at Initial Stage-Partnering members v Satisfaction with the functional requirement v Satisfaction about the financial background v Proper preparation of all architecture drawings v Preparation of Bill of Quantities (BOQ) v Preparation of cost plan against priced BOQs v Financial Budget Provision for various costs v Satisfactory level with all other collection of data v Teams-stakeholders, project members, for the successful completion of the project v Satisfaction with Time schedule v Preparations made to face all types of financial risk v Schedule-oriented work Break down structures v Deliverable-oriented WBS v Resource-Break down v Satisfaction with the final decision and cost v Frequent Design changes v Cash Flow according to the budget and cost schedule v Supply of men,materials,machine in time v Adhere the time-schedule v Feeling about the quality work v Involvement of the Labourers,Contractors and manufacturers v24 Commitment and win-win attitude of the project managers and team members v Crashing of activities by time reducing method v Use of alternate materials in the demand of regular materials v New techniques developed for potential cost advantage v

4 111 Table 5.1 (Continued) Items Initial Extraction New tooling provided to eliminate the expensive labour v Suggestions given by the suppliers, contractorsand site engineers v Proper money flow from management v Project-Performance on time, quality and cost v Interest taken by all the participants for the successful completion of project v Decisions taken up by various partners of the project v Parties encouraged the open airing of problems v Information on cash flow, procurement accounts v Wastages on labour,material procurement to usage v Time Management through PERT/CPM v Satisfactory level of external Communication v Maintenance of records for all the above communications v Communication made with the methodology of electronic media v Leadership in translating the documents v Leadership in identifying the strategic activities v Leadership in identifying the technical and work force requirement v Leadership in delegating the work v Leadership in motivating and developing the team spirit v Leadership in resolving differences/conflicts among participants v Relationships with clients, consultants and the contractor by project leader v Facilities in improving activities v Facilities to analyse the project performance v Maintenance of records of price escalations v Cost over run due to sudden extra materials,labour v Cost over run to improve in drawings, rectification of defective works v Increase in the Direct and Indirect costs v Cost over run due to delay in payment v Cost over run due to Government policies v

5 112 Table 5.1 (Continued) Items Initial Extraction Management support for success of the project v Causes of the success of the project v Understand the decisions that are responsible for cost overrun v Use of resources v Employee morale and turn-over v Failure due to poor creativity and visioning skills v Poor Communication skill v Ineffective work breakdown and cost management skills v Rating about poor process or methodology v Data collection on cost-return on investment after the project is completed v Job action plan is prepared for the post study after completion of the project v Change of application of knowledge and skills in the project v Feeling about the work or the project team v General support for the success of the project v Causes of failure of the project v Design changes during the project execution v Commercial pressures and claims from the contractors v Use of alternate materials v Use of costly tooling or equipment v Final account assessment of cost over run v Involvement of the architects in the project v Involvement of site Engineers in the project v Involvement of Builders/contractors in the project v Involvement of Chief management support in all the activities v General fraudulent practices that made cost overruns v Control of Direct and Indirect Costs in the project v Value Engineering studies made in your projects for the cost cut v Respondent s over all performance and involvement in the project v Improvements that can be done in any future projects v Extraction Method: Principal Component Analysis.

6 Total Variance The total variance of each item and the cumulative variance are calculated. The Eigen value greater than of 1.5 is taken since very few items are loaded on each of these items and only 12 items were taken from the analysis carried out, implies that twelve items are sufficient and those items are called underlying factors. The results are tabulated in Tables 5.2 and 5.3. Initially the total variance was explained for all the 89 items as in Table 5.2 and 12 underlying factors were extracted with the commulative variance of As a second step 5 items were removed from the 89 items, to keep those 5 items as dependent items (variables). Then the total variance was explained for the balance 84 items as in Table 5.3 and 12 underlying factors were extracted with the cumulative variance of %. It may be seen from both the tables that there is not much difference in cumulative variance, ( and %). So the cumulative variance of 60.38% for the twelve underlying factors was considered for all the further analyses.

7 Table 5.2 Total Variance Explained (For 89 items without taking dependent items) Component Extraction Sums of Squared Initial Eigenvalues Rotation Sums of Squared Loadings Loadings % of Cumulative % of Cumulative % of Cumulative Total Total Total Variance % Variance % Variance %

8 Table 5.2 (Continued) Initial Eigenvalues Component % of Cumulative Total Variance % Extraction Sums of Squared Loadings % of Cumulative Total Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 115

9 Table 5.2 (Continued) Initial Eigenvalues Component % of Cumulative Total Variance % Extraction Sums of Squared Loadings % of Cumulative Total Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 116

10 Table 5.2 (Continued) Initial Eigenvalues Component % of Cumulative Total Variance % Extraction Sums of Squared Loadings % of Cumulative Total Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 117

11 Table 5.2 (Continued) Initial Eigenvalues Component % of Cumulative Total Variance % Extraction Method: Principal Component Analysis. Extraction Sums of Squared Loadings % of Cumulative Total Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 118

12 Table 5.3 Total Variance Explained (For 84 items after taking out 5 dependent items) Component Extraction Sums of Squared Initial Eigenvalues Rotation Sums of Squared Loadings Loadings % of Cumulative % of Cumulative % of Cumulative Total Total Total Variance % Variance % Variance %

13 Table 5.3 (Continued) Initial Eigenvalues Component Total % of Cumulative Variance % Extraction Sums of Squared Loadings Total % of Cumulative Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 120

14 Table 5.3 (Continued) Initial Eigenvalues Component Total % of Cumulative Variance % Extraction Sums of Squared Loadings Total % of Cumulative Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 121

15 Table 5.3 (Continued) Initial Eigenvalues Component Total % of Cumulative Variance % Extraction Method: Principal Component Analysis. Extraction Sums of Squared Loadings Total % of Cumulative Variance % Rotation Sums of Squared Loadings Total % of Variance Cumulative % 122

16 Scree Plot In general, the loadings and the interpretation of the factors extracted were reasonably consistant. Figure 5.1 shown below is a plot of total variance associated with each factor. The plot shows a distinct break between the steep slope of the large factors and the gradual trailing off the rest. The gradual trailing off is caused by the Scree because it resembles the rubble that forms at the foot of a mountain (Norusis 1993). The figure confirms that a 12 factor model should be sufficient for the research model. 30 S c r e e P l o t E i g e n v a l u e C o m p o n e n t N u m b e r Figure 5.1 Scree plot for 84 items Rotated Component Matrix Principal Component Analysis was carried out in order to find the underlying factors. Rotation method chosen is Varimax with Kaiser Normalization. The results are tabulated in Table 5.4. The highest factors

17 124 loading value is identified from the bold values and those values are grouped and common factor name is given for twelve factors as detailed below: (i) Performance of the Project Manger (Factor 1) (ii) Cost Management Practices (Factor 2) (iii) Time Management Practices (Factor 3) (iv) Strength of Company s Management (Factor 4) (v) Adoption of Tools and Techniques (Factor 5) (vi) Identification of problems (Factor 6) (vii) Better alternative activities (Factor 7) (viii) Better alternative materials (Factor 8) (ix) Cost overrun with respect to Time and Quality (Factor 9) (x) Team involvement in project (Factor 10) (xi) Claims and Disputes (Factor 11) (xii) Causes of failure (Factor 12)

18 Table 5.4 Rotated component matrix Satisfaction level with all other collection of data v10 General support for the success of the project v74 Financial Budget Provision for various costs have been provided v9 Respondent s performance and involvement in the project v88 Feeling about work and the project team v73 Understanding the decisions that are responsible for v61 Involvement of Builders/contractors in the project v83 Preparation of cost plan against priced BOQs v8 Application of knowledge and skills in the project v72 Component

19 Table 5.4 (Continued) Job action plan is prepared for the post study after completion of the project v70 Chief management support in all the activities v84 Comment on the preparation of Bill of Quantities(BOQ) v7 Understanding causes of Success of the Project v59 Proper preparation of all architecture drawings v6 Involvement of site Engineers in the project v82 Supply of men,materials,machine in time v21 Interest taken by all the participants for the successful completion of project v33 Component

20 Table 5.4 (Continued) Preparations made to face all types of financial risk v14 Teams-stakeholders, project members, for the successful completion of the project v12 Communication made with the methodology of electronic media v41 Improvements that can be done in any future projects v89 Leadership in resolving differences/conflicts among participants v47 Data collection on cost-return on investment after the project is completed v69 Proper money flow from management v31 Maintenance of records for all types of communications v40 Component

21 Table 5.4 (Continued) Component Management support for the success of the project v Maintenance of records of price escalation v Value Engineering studies made in your projects for the cost cut v Information on cash flow, procurement accounts v Ineffective work breakdown skills v Poor process or methodology v Poor Communication skill v Cost over run due to delay in payment v Increase in the Direct and Indirect costs v Failure due to poor creativity and visioning skills v General fraudulent practices that made cost overruns v

22 Table 5.4 (Continued) Component Cost over run to improve in drawings, rectify-cation of defective works v Design changes during the project execution v Cost over run due to sudden extra materials,labour v Control of Direct and Indirect Costs in the project v Cost over run due to Government policies v Satisfaction with Time schedule v Time Management through PERT/CPM v Crashing of activi-ties by time reducing method v Facilities to analyse the project performance v Deliverable-oriented WBS v Adhere to the time-schedule v

23 Table 5.4 (Continued) Schedule-oriented work Break down structures v15 Cash Flow according to the budget and cost schedule v20 Organization's goals,mission,vision,values to formulate the project v1 Feeling about organization s selection of proper stakeholders v2 Satisfaction about the financial background v5 Level of suggestions at Initial Stage- Partnering members v3 Satisfaction with the functional requirement v4 Facilities in improving activities and better alternatives efficiently meet the project objectives v49 Component

24 Table 5.4 (Continued) Component Satisfactory level of external Communication v Relationships with clients, consultants and the contractor by project leader v Resource-Break down v Involvement of the Labourers,Contractors and manufacturers v New tooling is provided to eliminate the expensive labour v new techniques developed for potential cost advantage v Suggestions given by the suppliers, contractors and site engineers v Final Account assessment of cost overrun v Wastages on labour,material procurement to usage v

25 Table 5.4 (Continued) Component Satisfaction with the final decision and cost v Frequent Design changes in working drawings v Involvement of the architects in the project v Leadership in identifying the strategic activities v Leadership in translating the documents v Leadership in delegating the work v Leadership in identifying the technical and work force requirement v Leadership in motivating and developing the team spirit v Use of costly tools and equipments v Use of alternate materials v Use of better alternatives v

26 Table 5.4 (Continued) Component Project performance on time, quality and cost v Feeling about the quality of work v Employee morale and turn-over v Parties encouraged for open airing v Commitment and win-win attitude of the project managers and team members v Decisions taken up by various partners of the project v Claims from the contractors v Improper use of resources v Understanding causes of failure of the project v Extraction Method : Principal Component Analysis. Rotation Method : Varimax with Kaiser Normalization a Rotation converged in 20 iterations. 133

27 SUMMARY OF FACTOR ANALYSIS The summary of the results of the factor analysis is shown in Table 5.5. Factor loading value represents the weightage. The percentage of variance and cumulative variance are tabulated. The total variance explained is %. Table 5.5 Factor analysis summary Item No. Description of the items Performance of the project manager (Factor 1) 10 Satisfaction level with all other collection of data 74 General support for the success of the project 9 Financial Budget Provision for various costs 88 Respondent s performance and involvement in the project 73 Feeling about the work and the project team 61 Understanding the decisions that are responsible for cost overrun 83 Involvement of Builders/ Contractors 8 Preparation of cost plan against priced BOQs 72 Application of knowledge and skills in the project 70 Job action plan is prepared for the post study after completion of the project 84 Chief Management support in all activities Factor loading Percentage of Variance explained Cumulative percentage of variance explained (From Rotation sums of Squared Loadings)

28 135 Table 5.5 Factor analysis summary Item No. Description of the items Factor loading 7 Comment on the preparation of Bill of Quantities(BOQ) Understanding the causes of Success Proper preparation of the Project of all.514 architecture drawing s 82 Involvement of site engineers Supply of men, materials, machine in time Interest taken by all the participants for the successful.479 completion of project 14 Preparations made to face all types of financial risk Teams-stakeholders, project members, for the successful.470 completion of the project 41 Communication made with the methodology of electronic.469 media 89 Improvements that can be done in future projects Leadership in resolving differences/conflicts among.451 participants 69 Data collection on cost-return on investment after the project.440 is completed 31 Proper money flow from management Records are maintained for all the above communications Project success and its percentage Maintenance of records of price escation Value Engineering studies made in the projects for the.381 cost cut 36 Information on cash flow, procurement accounts.355 Percentage of Variance explained Cumulative percentage of variance explained

29 136 Table 5.5 Factor analysis summary Item No. Description of the items Factor loading Cost Management practices (Factor 2) 66 Ineffective work breakdown and cost management skills Poor process or methodology Poor Communication skill Cost over run due to delay in payment Increase in the Direct and Indirect costs Failure due to poor creativity and visioning skills General fraudulent practices that made cost overruns Cost over run to improve in drawings, rectification of.599 defective works 76 Design being and design changes during the project.547 execution 53 Cost over run due to sudden extra materials, labour Control of Direct and Indirect Costs in the project Cost over run due to Government policies.451 Time Management practices (Factor 3) 13 Satisfied with Time schedule Control-Time Management through PERT/CPM Crashing of activities by time reducing method Facilities to analyse the project performance Deliverable-oriented WBS Adhere the time-schedule.562 Percentage of Variance explained Cumulative percentage of variance explained

30 137 Table 5.5 Factor analysis summary Item No. Description of the items Factor loading 15 Schedule-oriented work Break down structures Cash Flow according to the budget and cost schedule.334 Strength of company s management (Factor 4) 1 Organization's goals, mission,vision,values to.769 formulate the project 2 Feeling about organization s selection of proper.758 stakeholders 5 Satisfaction about the financial background Level of suggestions at Initial Stage-Partnering members Satisfaction with the functional requirement.546 Adoption of Tools and Techniques(Factor 5) 49 Facilities in improving activities Satisfactory level of external Communication Relationships with clients, consultants and the contractor.523 by project leader 17 Resource-Break down Involvement of the Labourers,Contractors and.384 manufacturers Identification of problem(factor 6) 29 New tooling is provided to eliminate the expensive labour New techniques are developed for potential cost advantage.579 Percentage of Variance explained Cumulative percentage of variance explained

31 138 Table 5.5 Factor analysis summary Item No. Description of the items Factor loading 30 Suggestions given by the suppliers, contractors and site.500 engineers 80 Account assessment of cost overrun Controls-Wastages on labour,material procurement to.431 usage 18 Satisfied with the final decision and cost Frequent Design changes working Rank the role of the architects in the project.362 Better alternate activities(factor 7) 43 Leadership in identifying the strategic activities Leadership is translating the documents Leadership in delegating the work Leadership in identifying the technical and work force.478 requirement 46 Leadership in motivating and developing the team spirit.424 Better alternate materials(factor 8) 79 Use of costly tooling and equipment Use of alternate materials Better alternatives.464 Cost over run with respect to Time and Quality (Factor 9) 32 Project performance on time, Quality and Cost Feeling about the quality work.572 Percentage of Variance explained Cumulative percentage of variance explained

32 139 Table 5.5 Factor analysis summary Item No. Description of the items Team involvement in project (Factor 10) 63 Employee morale and turnover 35 Parties encouraged for open airing 25 Commitment and win-win attitude of the project managers and team members 34 Decisions taken up by various Factor loading Percentage of Variance explained Cumulative percentage of variance explained partners of the project Claims and Disputes (Factor 11) 77 Claims from the contractors Causes of failure (Factor 12) 62 Improper use of resources Other causes of Failure of the project The twelve underlying factors identified from factor analysis are explained in the subsequent paragraphs. Performance of the Project Manager (Factor 1) This factor consists of twenty-nine items as in table 5.5 that focus primarily on the Project manager involvement and performance. Following were the factors depending on the Project Manager involvement the cost plan preparation, data collection, financial budget, preparation for financial risk, resource break down structures, scheduling resource supply and scheduling, work quality, execution of work, decision taking, periodical reports, records maintenance, effective communication, leadership quality, project success, responsibility, application of knowledge, team work, management support etc.

33 140 Those items coming under this Factor 1 are changed, improved, or affected due to the project manager skills and application. Cost management in construction is achieved only when the top Management and Project Management involvement and commitment increase. Factor 1 explains the commitment of Project Manager in construction activities. Since all the 29 factors related to the performance of Project Manger, Factor 1 is named as performance of the Project Manager. The cost involved in construction projects is high. So the management of cost needs attention and thereby cost overrun or costless in construction can be prevented, since cost is the prime resource in the project. Cost Management practices (Factor 2) This factor has twelve items as in table 5.5 concerning the present management practices at site. This represents the tracking, and monitoring skills of management, communication skills practiced, creativity and visioning skills. This factor also represents the fraudulent practices followed at site, changes happened in site during construction. In addition, methodology adopted, changes in drawings, the management practices should need attention so that Cost Management can be achieved which leads to the Project success and savings in cost that are also represented. Time Management practices (Factor 3) This factor consists of eight items as in table 5.5 and it concentrates on time Management practiced in construction projects. The work should be adhered to schedule. If work is delayed, this enhances increase in estimated cost of project. The Project Management tools were used in some companies,

34 141 which enhance time management and by adopting such management tools, we can monitor the project so that the delay in the project can be prevented. The CPM/PERT adoption is focused in the factor. The management approvals, duration recruitments, procurements are explained in this factor. Crashing of activities is represented by this factor. Control over time management, facilities available to analyse time schedule, project management tools implementation practiced in site etc. are represented by this factor. Strength of company s management (Factor 4) This factor consists of five items, as in table 5.5 which represent the company background with proper stakeholders, financial status, goals, missions, owners experience level on construction projects, functional requirements and good partnering. Adoption of Tools and Techniques (Factor 5) This factor comprises five items as in table 5.5 related to tools and techniques adoption in construction projects. The new techniques practiced in project to control men, materials, machines without any wastages, better alternatives, external and internal communication, better relationship with the contractors, consultants and clients and making involvement of these people. Identification of problems (Factor 6) This factor has eight items as in table 5.5 the problems encountered during construction projects should be identified so as to eliminate expensive labour, expensive tools, identifying frequent design changes, proper decisions

35 142 taken, the decisions given by the contractors and Project managers, proper role of architects etc. Better alternate activities (Factor 7) This factor consists of 5 items as in Table 5.5 that examines the activities in construction such as to identify the strategic activities, to identify the problems in technical work, delegation of work, requirement of work force to motivate the team spirit. Better alternate materials (Factor 8) This factor has three items as in table 5.5, which examines the alternative materials available in that area, how alternative tools are used according to the new materials and other better alternatives like materials management etc. Cost overrun with respect to Time and Quality (Factor 9) This factor consists of two items as in Table 5.5. The cost overrun with respect to time and quality was examined in this factor. Team involvement in project (Factor 10) This factor has four items as in Table 5.5, the parties involvement in the team with morale and turn over, win-win attitude, decisions taken by various partners for the successful control of the cost. Claims and Disputes (Factor 11) This factor comprises one item as in Table 5.5 to examine the claims and disputes that arise and encouragement given for open airing in the projects.

36 143 Causes of failure (Factor 12) This factor has two items as in Table 5.5 which examines the proper use of resources and controlling the project from failure. 5.3 MULTIPLE REGRESSION MODEL WITH UNDERLYING FACTORS A regression model is a mathematical model that relates a number of independent variables to a dependent variable. Hence, this technique is chosen as the principal tool in this study to identify the important predictors of cost management in construction projects. Multiple regression was performed to explore the relative significance of the items, extracted from factor analysis. The flow of analysis procedures is shown in Figure 5.2. Figure 5.2 Flow of Analysis procedures The regression analysis attempts to discern the relationship between a dependent variable and one or more independent variables. That relationship will not be a functional relationship. However, it can be a cause-and-effect relationship.

37 144 A stepwise multiple regression was conducted between the five dependent variables and underlying twelve factors as independent variables using the SPSS REGRESSION program. The five dependent variables selected from the initial 89 questionnaire items are (i) Action plan for cost management (Item No. 11) (ii) Cost overrun due to poor management practices (Item No. 52) (iii) Feeling on Poorly Managed Project (Item No. 60) (iv) Tracking, Monitoring and Managing skills (Item No. 67) (v) Project Management Tools and Techniques implemented (Item No. 71) The underlying twelve independent variables are the performance of the project manager (Factor 1), cost management practices (Factor 2), time management practices (Factor 3), strength of company s management (Factor 4), adoption of tools and techniques (Factor 5), identification of problems (Factor 6), better alternative activities (Factor 7), better alternate materials (Factor 8), cost overrun with respect to time and quality (Factor 9), team involvement in the project (Factor 10), claims and disputes (Factor 11) and causes of failures (Factor 12) Multiple Regression with Action Plan for Cost Management as Dependent Variable Six significant factors were identified and among them time management practices (Factor 3] contributed considerably to the prediction of Action Plan for cost management.

38 145 Table 5.6. The other factors in the order of criticality can be seen from Table 5.7 shows the model summary of the analysis made. Table 5.6 Significant factors identified with action plan for cost management as dependent variable Variables Model Entered 1 Time Management Practices 2 Cost overrun w r to Time and Quality 3 Performance of the Pjt Manager 4 Team involvement in the project 5 Adoption of tools and techniques 6 Cost management practices Variables Removed Method Stepwise (Criteria: Probability-of-Fto-enter <=.050, Probability-of-F-toremove >=.100). Stepwise (Criteria: Probability-of-Fto-enter <=.050, Probability-of-F-toremove >=.100). Stepwise (Criteria: Probability-of-Fto-enter <=.050, Probability-of-F-toremove >=.100). Stepwise (Criteria: Probability-of-Fto-enter <=.050, Probability-of-F-toremove >=.100). Stepwise (Criteria: Probability-of-Fto-enter <=.050, Probability-of-F-toremove >=.100). Stepwise (Criteria: Probability-of-Fto-enter <=.050, Probability-of-F-toremove >=.100). a Dependent Variable: Action plan for Cost Management v11 (Six significant factors identified with Action Plan for Cost Management as dependent variable).

39 146 Table 5.7 Model Summary (Dependent variables : Action Plan for Cost Management) Model R R Square Adjusted R Std. Error of Square the Estimate 1.371(a) (b) (c) (d) (e) (f) Size of samples adopted = 150 Dependent Variable : Action plan for Cost Management a Predictors: (Constant), Time Management Practices b Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality c Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Project Manager d Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Project Manager, Team involvement in the project e Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Project Manager, Team involvement in the project, Adoption of tools and techniques f Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Project Manager, Team involvement in the project, Adoption of tools and techniques, Cost management practices

40 147 Table 5.8 shows the ANOVA for the regression analysis. The significance value is lesser than 0.05 and so it can be concluded that the regression line is a good fit. Table 5.8 ANOVA TEST FOR REGRESSION ANALYSIS (Dependent Variable : Action Plan for Cost Management) Model Sum of Mean df Squares Square F Sig. 1 Regression (a) Residual Total Regression (b) Residual Total Regression (c) Residual Total Regression (d) Residual Total Regression (e) Residual Total Regression (f) Residual Total a b c d e f Predictors: (Constant), Time Management Practices Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Pjt Manager Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Pjt Manager, Team involvement in the project Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Pjt Manager, Team involvement in the project, Adoption of tools and techniques Predictors: (Constant), Time Management Practices, Cost overrun with reference to Time and Quality, Performance of the Pjt Manager, Team

41 148 g involvement in the project, Adoption of tools and techniques, Cost management practices Dependent Variable: Action plan for Cost Management v11 Standardized coefficients values are shown in Table 5.9, from which value critical factors and factors priority can be inferred. The most important factor contributing to action plan for cost management was found to be time management and it is the first significant factor. The project success depends on the support from all levels of management. Management must think of the implementation of such project management tools, which have many advantages for time management and monitoring tracking purposes. The software application for planning is still insufficient in many companies. The awareness of software application and implementation of such tools in construction companies is important. Table 5.9 Coefficients (Dependent variables : Action plan for cost management) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta Constant Time Management Practices 2 Cost overrun w r to Time and Quality 3 Performance of the Project Manager 4 Team involvement in the project 5 Adoption of tools and techniques 6 Cost management practices a Dependent Variable: Action plan for Cost Management v11

42 149 Table 5.10 shows the excluded items in the six significant factors from the analysis and implies that they have no significant effect with respect to the dependent variable selected. Table 5.10 Excluded Variables (Dependent variable : Action plan for Cost Management) Model Beta In t Sig. Partial Correlation Collinearity Statistics 1 Performance of the Pjt Manager.222(a) Cost management practices.161(a) Strength of Company's Mgt.093(a) Adoption of tools and techniques.177(a) Identification of problems.017(a) Better alternative activities.132(a) Better alternate materials.013(a) Cost overrun w r to Time and Quality.303(a) Team involvement in the project.186(a) Claims and disputes -.046(a) Causes of failure -.074(a) Performance of the Pjt Manager Cost management practices Strength of Company's Mgt Adoption of tools and techniques Identification of problems Better alternative activities Better alternate materials.222(b) (b) (b) (b) (b) (b) (b)

43 150 Table 5.10 (Continued) Model Beta In t Sig. Partial Correlation Collinearity Statistics Team involvement in the project.186(b) Claims and disputes -.046(b) Causes of failure -.074(b) Cost management practices.161(c) Strength of Company's Mgt.093(c) Adoption of tools and techniques.177(c) Identification of problems.017(c) Better alternative activities.132(c) Better alternate materials.013(c) Team involvement in the project.186(c) Claims and disputes -.046(c) Causes of failure -.074(c) Cost management practices.161(d) Strength of Company's Mgt.093(d) Adoption of tools and techniques.177(d) Identification of problems.017(d) Better alternative activities.132(d) Better alternate materials.013(d) Claims and disputes -.046(d) Causes of failure -.074(d)

44 151 Table 5.10 (Continued) Model Beta In t Sig. 5 Cost management practices Strength of Company's Mgt Identification of problems Better alternative activities Better alternate materials Partial Correlation Collinearity Statistics.161(e) (e) (e) (e) (e) Claims and disputes -.046(e) Causes of failure -.074(e) Strength of Company's Mgt Identification of problems Better alternative activities Better alternate materials.093(f) (f) (f) (f) Claims and disputes -.046(f) Causes of failure -.074(f) a b c d e f g Predictors in the Model: (Constant), Time Management Practices Predictors in the Model: (Constant), Time Management Practices, Cost overrun with respect to Time and Quality Predictors in the Model: (Constant), Time Management Practices, Cost overrun with respect to Time and Quality, Performance of the Pit Manager Predictors in the Model: (Constant), Time Management Practices, Cost overrun w r to Time and Quality, Performance of the Pjt Manager, Team involvement in the project Predictors in the Model: (Constant), Time Management Practices, Cost overrun w r to Time and Quality, Performance of the Pjt Manager, Team involvement in the project, Adoption of tools and techniques Predictors in the Model: (Constant), Time Management Practices, Cost overrun w r to Time and Quality, Performance of the Pit Manager, Team involvement in the project, Adoption of tools and techniques, Cost management practices Dependent Variable: Action plan for Cost Management v11