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Analysis of Various Major Contributing Factors of Cost Overrun in Construction Projects

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  • Smiritee Srivastava

    (ME Construction Management, Dr. D.Y. Patil Institute of Technology, Pimpri, Pune, Maharashtra, India)

  • Smiritee Srivastava

    (ME Construction Management, Dr. D.Y. Patil Institute of Technology, Pimpri, Pune, Maharashtra, India)

Abstract

Cost is among the major considerations throughout the project management and can be viewed as amongst the most vital parameters of a project and the main thrust of project success. Cost overrun is a very important and it’s almost associated with nearly all projects in the construction industry. India is confronting basic project management related issues among which cost overrun is very noticeable. There are a several factors that are responsible for cost overruns. This paper distinguishes the significant cost overrun in the development division of country, which can serve as the future work in adapting to these overruns. This study is conducted to investigate the cost overwhelms in construction projects and to identify the causes of cost overwhelms. In total 60 factors were short-listed to be part of the survey questionnaire and the survey was conducted with delegates from nearby general contracting firms. An extra finding is that medium measured development firms encounter a more prominent rate of cost overruns owing to expect greater risk for the purpose of business development. Real suggestions include: balancing out cost of materials, expanding supply of materials and apparatus, more included cost estimation forms, careful venture arranging, close recognition and documentation of cost variation trends in the sector and the nation, selection of alternative procurement methodologies, for example, design build contracts, and best value procurement.

Suggested Citation

  • Smiritee Srivastava & Smiritee Srivastava, 2020. "Analysis of Various Major Contributing Factors of Cost Overrun in Construction Projects," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(9), pages 28-33, September.
    • Handle: RePEc:bjc:journl:v:7:y:2020:i:9:p:28-33
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    References listed on IDEAS

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    1. Swee Lean Chan & Moonseo Park, 2005. "Project cost estimation using principal component regression," Construction Management and Economics, Taylor & Francis Journals, vol. 23(3), pages 295-304.
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