ESTIMATION OF COST AND TIME OVERRUN USING

NAVFAC P-405

PROBLEM STATEMENT:
The problem statement of the research is to address the major issues of delays and cost overruns
in construction projects. The aim is to calculate cost and time overruns using NAVFAC P-405
for selected activities in building construction projects. By considering singular activities, the
research intends to manage and mitigate delays and overruns at the activity level.

INTRODUCTION:
The introduction of the research paper titled "Estimation of Cost and Time Overrun Using
NAVFAC P-405" provides an overview of the problem statement and the objectives of the
study. The construction industry faces significant challenges related to delays and cost
overruns, which necessitate investigation and planning at the early stages of a project. The
paper introduces NAVFAC P-405, the US Naval handbook for planning and estimation, which
is used to calculate delays and overruns in construction projects.
The objectives of the study are outlined, which include calculating cost and time overruns using
NAVFAC P-405 for selected activities, comparing these values with site estimates, suggesting
techniques to reduce overruns, and implementing remedial measures on-site. The problem
statement emphasizes the need to address delays and cost overruns in construction by
considering singular activities and managing them at the activity level.
The methodology section briefly describes the data collection process from the construction
site for five activities: block work, column, slab, plastering, and flooring. The durations and
estimates are calculated using NAVFAC P-405 guidelines, which take into account factors such
as crew size, delay factor, and availability factor.
Overall, the introduction sets the stage for the research by highlighting the significance of
addressing delays and cost overruns in construction projects and introducing the NAVFAC P-
405 handbook as a tool for estimation and planning.
LITERATURE REVIEW:
The literature review on cost and time overruns in construction projects provides valuable insights into
various research studies conducted in this field. Here is a summary of the key findings from the
reviewed

Literature:
1. Ali et al. (2012) conducted a comprehensive study on activity�oriented and non-
activity-oriented time waste generation in construction. They concluded that the
implementation of lean techniques has been effective in reducing wastages and time
waste in construction processes. The study also discussed delay analysis and suggested
ways to reduce delays and improve processes.
2. Ali et al. (2017) proposed a detailed study on activity-oriented time wastes. They used
inductive reasoning and a realistic approach to quantify direct time waste (DTW) at the
single activity level, based on the unit of money. This approach provides a more
accurate estimation of time waste in construction projects.
3. Ali et al. (2018) introduced the US Navy handbook for planning and estimation,
NAVFAC P-405. This handbook provides guidelines for estimating construction work
elements, material quantities, equipment, and manpower requirements. It also includes
tables for estimating labour hours for each function in a construction project. The study
concluded that NAVFAC P-405 is suitable for duration fixation in construction
operations.
4. Bhargava et al. (2010) emphasized the need to consider cost and time overruns
simultaneously in construction projects. They developed a model using a three-stage
least-square approach to account for both factors. The study identified several factors
that affect cost and project time overrun.

Overall, the literature review highlights the importance of implementing lean techniques,
quantifying time waste at the activity level, using standardized guidelines like NAVFAC P-405,
and considering cost and time overruns together in construction projects. These findings
provide a foundation for further research and suggest techniques to reduce delays and improve
project management in the construction industry.
METHODOLOGY:
The methodology used in the research involves collecting data from the construction site for
five activities: block work, column, slab, plastering, and flooring. The durations and estimates
are calculated using the NAVFAC P-405 guidelines, which include factors such as delay factor,
availability factor, crew size, man-hours unit, man-day estimate, and man-day equivalent. The
collected data is compared with the values obtained from the site estimate to analyse and
quantify the time and cost overruns.

Factors Affecting the Activity:

The factors that affect the activity and contribute to time and cost overruns include:
1. Shortage of materials on-site
2. Shortage of skilled labour
3. Frequent equipment failure or breakdown
4. Weather conditions
5. Site conditions
6. Inefficient planning and scheduling
7. Inadequate project management
8. Lack of coordination among stakeholders
These factors can lead to delays and disruptions in the construction process, resulting in time
and cost overruns. Identifying and addressing these factors is crucial for reducing overruns and
improving project efficiency.
Calculation the activity duration:
The activity duration is calculated using the following steps:
1. Collect Data: Gather all the necessary information related to the activity, including the
quantity of materials required, labour hours per unit, crew size, and any other relevant
factors.
2. Determine Unit Size: Consult labour estimating tables or industry standards to
determine the unit size for the specific activity. This could be based on the size of the
work element or the quantity of materials.
3. Calculate Man-Day Estimate: Use the formula x Delay Factor to calculate the Man-Day
Estimate. The quantity is obtained from the material take-off (MTO), and the Man-
Hours per Unit is obtained from labour estimating tables. The Delay Factor is obtained
from a production efficiency chart.
4. Determine Man-Day Equivalent: Calculate the Man-Day Equivalent (ME) by dividing
the Man-Day Estimate by the crew size.
5. Calculate Duration: Use the formula Duration = Man-Day Equivalent / (Crew Size x
Availability Factor) to calculate the activity duration. The Availability Factor (AF) takes
into account factors such as breaks, holidays, and non-working days.
By following these steps and considering the specific factors and parameters for each activity,
the duration of the activity can be estimated.
BASE DURATION:
To calculate the base duration for an activity, you can follow these steps:
1. Identify the Activity: Determine the specific activity for which you want to calculate
the base duration. This could be any task or work element within the construction
project.
2. Define the Scope: Clearly define the scope of the activity, including the specific
deliverables or outcomes that need to be achieved.
3. Breakdown the Activity: Break down the activity into smaller sub�activities or tasks,
if necessary. This will help in estimating the duration more accurately.
4. Estimate Task Durations: Estimate the duration for each sub-activity or task within the
activity. This estimation can be based on historical data, expert judgment, or industry
standards. Consider factors such as the complexity of the task, the resources required,
and any dependencies or constraints.
5. Consider Dependencies: Identify any dependencies or relationships between tasks.
Determine if there are any tasks that need to be completed sequentially or if certain
tasks can be performed concurrently.
6. Account for Contingencies: Include a contingency or buffer time in the duration
estimation to account for unforeseen delays or disruptions that may occur during the
execution of the activity.
7. Summarize Task Durations: Summarize the estimated durations of all the sub-activities
or tasks to calculate the base duration for the overall activity.
It's important to note that the accuracy of the base duration estimation depends on the
availability and reliability of data, the experience and expertise of the estimator, and the
complexity of the activity. Regular monitoring and updating of the duration throughout the
project can help in managing and adjusting the schedule as needed.
DATA AND VARIABLES USED:
The data and variables used in this study include:
1. Construction Work Elements: The study considers various construction work elements
such as block work, column, slab, plastering, and flooring.
2. Material Quantities: The estimation of construction work elements involves
determining the quantities of materials required for each activity.
3. Equipment and Manpower Requirement: The study takes into account the equipment
and manpower needed for each construction activity.
4. Quantified Time (QT): The study calculates time overruns in the selected activities
based on a standard duration known as Quantified Time (QT). The durations are
calculated using the United States Naval code NAVFAC P-405, which provides
guidelines for estimating construction durations.
5. Cost Overrun: The study also considers cost overruns in the selected activities,
comparing the values obtained from NAVFAC P-405 with the values from the site
estimate.
6. Delays: Delays in construction projects are identified and analysed to understand the
factors contributing to cost and time overruns.
7. Remedial Measures: The study suggests techniques and measures to reduce time and
cost overruns based on the analysis of delays and their causes.
Overall, the study utilizes data related to construction activities, material quantities, equipment,
manpower, durations, cost overruns, and delays to analyse and address the issues of cost and
time overruns in construction projects.
IMPLICATIONS:
The literature review on cost and time overruns in construction projects has several
implications for the industry. Here are some key implications based on the findings:
Implementation of Lean Techniques: The study highlights the effectiveness of implementing
lean techniques in reducing wastages and time waste in construction processes. This implies
that construction companies should consider adopting lean principles and practices to improve
efficiency and minimize delays.
Accurate Quantification of Time Waste: The study emphasizes the importance of accurately
quantifying time waste at the activity level. By using a realistic approach and considering the
unit of money, construction projects can have a more precise estimation of time waste. This
implies that project managers should focus on accurately measuring and monitoring time waste
to identify areas for improvement.
Utilization of Standardized Guidelines: The introduction of NAVFAC P-405 as a planning and
estimation handbook provides a standardized approach for estimating construction work
elements, material quantities, and manpower requirements. This implies that construction
companies can benefit from using such guidelines to ensure consistency and accuracy in their
estimations and planning processes.
Simultaneous Consideration of Cost and Time Overruns: The study highlights the need to
consider cost and time overruns simultaneously in construction projects. By using a three-stage
least-square approach or similar models, project managers can identify the factors that affect
both cost and project time overrun. This implies that project management strategies should
focus on addressing both cost and time overruns to ensure successful project outcomes.
Overall, the implications of the literature review suggest that construction companies should
focus on implementing lean techniques, accurately quantifying time waste, utilizing
standardized guidelines, and considering cost and time overruns together. By doing so, they
can improve project efficiency, reduce delays, and enhance overall project management in the
construction industry.
CONCLUSION:
In conclusion, the literature review provides valuable insights into the topic of cost and time
overruns in construction projects. The research papers reviewed highlight the importance of
implementing lean techniques, quantifying time waste, and considering cost and time overruns
simultaneously. The introduction of the US Navy handbook for planning and estimation
(NAVFAC P-405) is also discussed, which provides guidelines for estimating construction
work elements and material quantities.
The research methodology involves data collection from construction sites and the use of
NAVFAC P-405 guidelines to calculate cost and time overruns for selected activities. Factors
affecting the activities, such as shortage of materials, skilled labour, and equipment failures,
are identified as contributors to delays and overruns.
The research emphasizes the need for proper planning, efficient resource management, and the
utilization of technology to mitigate delays and improve project efficiency. The implementation
of remedial measures based on the findings and recommendations can help in reducing delays
and overruns.
Overall, the literature review provides a comprehensive understanding of the research
conducted in this field and highlights the significance of addressing cost and time overruns in
construction projects.