Mohammed Tayyab
Lords Institute of Engineering and Technology, Osmania University, Hyderabad, 500007, India
Mohammed Furkhan
Lords Institute of Engineering and Technology, Osmania University, Hyderabad, 500007, India
Mohammed Rizwan
Lords Institute of Engineering and Technology, Osmania University, Hyderabad, 500007, India
M. Jameel
Department of Civil Engineering, King Khalid University, 62529, Kingdom of Saudi Arabia
Aaron Chadee
Department of Civil and Environmental Engineering, University of the West Indies, BB11000, Trinidad and Tobago
Cost overrun is common problem in construction projects worldwide. Most Indian construction projects, particularly those involving high-rise buildings, have had severe cost overruns. For managers, architects, engineers, and contractors, completing building projects within the specified cost budget has become the most important and hard assignment. Since it is common for high-rise building projects to go over budget, the aim of this study is to find out the causes of cost overruns and provide effective measures. The study found 70 cost overrun factors based on a comprehensive literature review and expert opinions. A Google form questionnaire was distributed to 150 construction professionals across India. After following up, 101 of the 150 responses were received. A five-point Likert scale was used and the acquired data was analyzed and ranked using the Relative Importance Index (RII) technique. According to the findings of RII, the top ten critical factors influencing cost overruns were frequent change orders during construction by the owner, delay in construction, escalation of material prices, market inflation or deflation, rework, frequent changes in design, inaccurate evaluation of the project timeline, unforeseen ground condition, inaccurate quantity take-off, and delay in progressive payment by the owner. Spearman’s rank correlation test revealed that there is a very significant relationship between the rankings of factors provided by the owner, the consultant, and the contractor. In addition, a factor analysis tool in the SPSS software was also used to categorize the seventy factors into sixteen core components. The top ten critical factors were presented to subject matter experts, and their suggestions were being compiled. These results are expected to help construction professionals minimize cost overruns, improve cost control measures, and initiate future research.
[1] Towey, D., 2013. Cost management of construction projects. Wiley-Blackwell: Hoboken.
[2] Chadee, A.A., Chadee, X.T., Ray, I., et al., 2021. When parallel schools of thought fail to converge: The case of cost overruns in project management. Buildings. 11(8), 321.
[3] Doloi, H., 2013. Cost overruns and failure in project management: Understanding the roles of key stakeholders in construction projects. Journal of Construction Engineering and Management. 139(3), 267-279.
[4] Mahmood, H., 2020. Construction cost overruns in Afghanistan: A review of significant factors [PhD thesis]. Istanbul: Bogazici University.
[5] Chadee, A.A., Martin, H.H., Mwasha, A., et al., 2022. Rationalizing critical cost overrun factors on public sector housing programmes. Emerging Science Journal. 6(3), 647-666.
[6] Ali, A.S., Kamaruzzaman, S.N., 2010. Cost performance for building construction projects in Klang Valley. Journal of Building performance. 1(1).
[7] Infra Projects Cost Escalated by Rs 1.23 Lakh Crore in 11th Plan [Internet] [cited 2022 Feb 24]. Available from: https://economictimes.indiatimes.com/news/economy/finance/infraprojects-cost-escalated-by-rs-1-23-lakh-crorein-11th-plan/articleshow/18868951.cms
[8] International Building Code (IBC) (2000) [Internet] [cited 2022 Feb 25]. Available from: https://ia800303.us.archive.org/29/items/gov.law.icc.ibc.2000/icc.ibc.2000.pdf
[9] Share of High-rise Launches at All-time High of 52% in 2019: Report [Internet]. Available from: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/share-of-highrise-launches-at-all-time-high-of-52-in-2019-report/articleshow/73371629.cms?from=mdr
[10] Construction Industry of India [Internet] [cited 2022 Feb 25]. Available from: https://en.wikipedia.org/wiki/Construction_industry_of_India
[11] Moon, H., Williams, T.P., Lee, H.S., et al., 2020. Predicting project cost overrun levels in bidding stage using ensemble learning. Journal of Asian Architecture and Building Engineering. 19(6), 586-599.
[12] Khodeir, L.M., El Ghandour, A., 2019. Examining the role of value management in controlling cost overrun [application on residential construction projects in Egypt]. Ain Shams Engineering Journal. 10(3), 471-479.
[13] Flyvbjerg, B., Ansar, A., Budzier, A., et al., 2018. Five things you should know about cost overrun. Transportation Research Part A: Policy and Practice. 118, 174-190.
[14] Bucciol, A., Chillemi, O., Palazzi, G., 2013. Cost overrun and auction format in small size public works. European Journal of Political Economy. 30, 35-42.
[15] Ammar, T., Abdel-Monem, M., El-Dash, K., 2022. Risk factors causing cost overruns in road networks. Ain Shams Engineering Journal. 13(5), 101720.
[16] Shehu, Z., Endut, I.R., Akintoye, A., et al., 2014. Cost overrun in the Malaysian construction industry projects: A deeper insight. International journal of Project Management. 32(8), 1471-1480.
[17] Enshassi, A., Mohamed, S., Abushaban, S., 2009. Factors affecting the performance of construction projects in the Gaza strip. Journal of Civil engineering and Management. 15(3), 269-280.
[18] Kamaruddeen, A.M., Sung, C.F., Wahi, W., 2020. A study on factors causing cost overrun of construction projects in Sarawak, Malaysia. Civil Engineering and Architecture. 8(3), 191-199.
[19] Kavuma, A., Ock, J., Jang, H., 2019. Factors influencing time and cost overruns on freeform construction projects. KSCE Journal of Civil Engineering. 23, 1442-1450.
[20] Oladapo, A.A., 2007. A quantitative assessment of the cost and time impact of variation orders on construction projects. Journal of Engineering, Design and Technology. 5(1), 35-48.
[21] Chan, C.T., 2012. The principal factors affecting construction project overhead expenses: An exploratory factor analysis approach. Construction Management and Economics. 30(10), 903-914.
[22] Goh, K.C., Yap, A.B.K., Seow, T.W., et al., 2015. Strategies in dealing with cost overrun issues: Perspective of construction stakeholders. InCIEC 2014: Proceedings of the International Civil and Infrastructure Engineering Conference 2014. Springer: Singapore. pp. 189-198.
[23] Iyer, K.C., Jha, K.N., 2005. Factors affecting cost performance: Evidence from Indian construction projects. International Journal of Project Management. 23(4), 283-295.
[24] Le-Hoai, L., Lee, Y.D., Lee, J.Y., 2008. Delay and cost overruns in Vietnam large construction projects: A comparison with other selected countries. KSCE Journal of Civil Engineering. 12, 367-377.
[25] Musarat, M.A., Alaloul, W.S., Liew, M.S., 2021. Impact of inflation rate on construction projects budget: A review. Ain Shams Engineering Journal. 12(1), 407-414.
[26] Mansfield, N.R., Ugwu, O.O., Doran, T., 1994. Causes of delay and cost overruns in Nigerian construction projects. International Journal of Project Management. 12(4), 254-260.
[27] Aziz, R.F., 2013. Factors causing cost variation for constructing wastewater projects in Egypt. Alexandria Engineering Journal. 52(1), 51-66.
[28] Asiedu, R.O., Adaku, E., 2020. Cost overruns of public sector construction projects: A developing country perspective. International Journal of Managing Projects in Business. 13(1), 66-84.
[29] Asiedu, R.O., Frempong, N.K., Alfen, H.W., 2017. Predicting likelihood of cost overrun in educational projects. Engineering, Construction and Architectural Management. 24(1), 21-39.
[30] Famiyeh, S., Amoatey, C.T., Adaku, E., et al., 2017. Major causes of construction time and cost overruns: A case of selected educational sector projects in Ghana. Journal of Engineering, Design and Technology. 15(2), 181-198.
[31] Sharma, S., Goyal, P.K., 2019. Fuzzy assessment of the risk factors causing cost overrun in construction industry. Evolutionary Intelligence. 15, 2269-2281.
[32] Durdyev, S., 2021. Review of construction journals on causes of project cost overruns. Engineering, Construction and Architectural Management. 28(4), 1241-1260.
[33] Durdyev, S., Omarov, M., Ismail, S., et al., 2017. Significant contributors to cost overruns in construction projects of Cambodia. Cogent Engineering. 4(1), 1383638.
[34] Narayanan, S., Kure, A.M., Palaniappan, S., 2019. Study on time and cost overruns in mega infrastructure projects in India. Journal of The Institution of Engineers (India): Series A. 100, 139-145.
[35] Kim, S.Y., Tuan, K.N., Lee, J.D., et al., 2018. Cost overrun factor analysis for hospital projects in Vietnam. KSCE Journal of Civil Engineering. 22, 1-11.
[36] Wanjari, S.P., Dobariya, G., 2016. Identifying factors causing cost overrun of the construction projects in India. Sādhanā. 41, 679-693.
[37] Frimpong, Y., Oluwoye, J., Crawford, L., 2003. Causes of delay and cost overruns in construction of groundwater projects in a developing countries; Ghana as a case study. International Journal of Project Management. 21(5), 321-326.
[38] Polit, D.F., Hungler, B.P., 1985. Essentials of nursing research: Methods and applications. Lippincott Williams & Wilkins: Philadelphia.
Copyright © 2023 Mohammed Tayyab,Mohammed Furkhan,Mohammed Rizwan,M. Jameel,Aaron Chadee
This is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.
