Study on the Factors Affecting Construction Project Cost Overrun

Qian Wu; Ali Khatibi; Jacquline Tham

doi:10.62051/ijgem.v6n1.07

Authors

Qian Wu
Ali Khatibi
Jacquline Tham

DOI:

https://doi.org/10.62051/ijgem.v6n1.07

Keywords:

Construction engineering, Cost overrun, Design change, Resource constraints, Contractor experience

Abstract

As a pillar industry that promotes economic development, the construction industry is currently experiencing rapid development and has received strong support from the country and the government. The construction industry faces the challenge of cost overruns, which is a worldwide phenomenon. Cost overruns are a very common phenomenon that is related to almost all projects in the construction industry. Cost overruns refer to the difference between the final actual cost at the completion of a construction project and the contract amount agreed upon by the owner and the contractor when the contract is signed. Cost overruns are considered to be a clear sign of project failure. In construction projects, it is a common phenomenon that the budget exceeds the estimated cost and the settlement exceeds the budget. This paper focuses on the main factors that affect the cost overrun of construction projects to provide a reference for the actual situation.

Downloads

Download data is not yet available.

References

[1] Abeyasinghe, M. C. L., Greenwood, D. J., & Johansen, D. E. (2001). An efficient method for scheduling construction projects with resource constraints. International journal of project Management, 19(1), 29-45.

[2] Afzal, F., Yunfei, S., Nazir, M., & Bhatti, S. M. (2021). A review of artificial intelligence based risk assessment methods for capturing complexity-risk interdependencies: Cost overrun in construction projects. International Journal of Managing Projects in Business, 14(2), 300-328.

[3] Aje, O., Odusami, K., & Ogunsemi, D. (2009). The impact of contractors' management capability on cost and time performance of construction projects in Nigeria. Journal of financial management of property and construction, 14(2), 171-187.

[4] Alshihri, S., Al-Gahtani, K., & Almohsen, A. (2022). Risk factors that lead to time and cost overruns of building projects in Saudi Arabia. Buildings, 12(7), 902.

[5] Amini, S., Rezvani, A., Tabassi, M., & Malek Sadati, S. S. (2023). Causes of cost overruns in building construction projects in Asian countries; Iran as a case study. Engineering, construction and architectural management, 30(7), 2739-2766.

[6] Aslam, M., Baffoe-Twum, E. E., & Saleem, F. (2019). Design changes in construction projects causes and impact on the cost. Civil Engineering Journal, 5(7), 1647-1655.

[7] Herrera, R. F., Sánchez, O., Castañeda, K., & Porras, H. (2020). Cost overrun causative factors in road infrastructure projects: A frequency and importance analysis. Applied Sciences, 10(16), 5506.

[8] Johnson, R. M., & Babu, R. I. I. (2020). Time and cost overruns in the UAE construction industry: a critical analysis. International Journal of Construction Management, 20(5), 402-411.

[9] Just, M. R., & Murphy, J. P. (1994). The effect of resource constraints on project schedules. AACE International Transactions, 1994, DCL2. 1.

[10] Lee, D., Lee, S. H., Masoud, N., Krishnan, M., & Li, V. C. (2021). Integrated digital twin and blockchain framework to support accountable information sharing in construction projects. Automation in construction, 127, 103688.

[11] Lotfi, R., Yadegari, Z., Hosseini, S., Khameneh, A., Tirkolaee, E., & Weber, G. (2022). A robust time-cost-quality-energy-environment trade-off with resource-constrained in project management: A case study for a bridge construction project. Journal of Industrial and Management Optimization, 18(1).

[12] Memon, A. H., Rahman, I. A., Abdullah, M. R., & Azis, A. A. A. (2010). Factors affecting construction cost in Mara large construction project: perspective of project management consultant. International Journal of Sustainable Construction Engineering and Technology, 1(2), 41-54.

[13] Mumela, M. E., Christine, N., Limited, R., & Box, P. (2015). Effect of Contractor Knowledge and Experience on Cost Estimation in Plant Infrastructure Projects in Kenya. International Journal of Science and Research (IJSR).

[14] Siraj, N. B., & Fayek, A. R. (2019). Risk identification and common risks in construction: Literature review and content analysis. Journal of construction engineering and management, 145(9), 03119004.

[15] Toklu, Y. C. (2002). Application of genetic algorithms to construction scheduling with or without resource constraints. Canadian Journal of Civil Engineering, 29(3), 421-429.

[16] Williams, T., Eden, C., Ackermann, F., & Tait, A. (1995). The effects of design changes and delays on project costs. Journal of the Operational Research Society, 46(7), 809-818.