Factors Affecting Cost Overrun in Construction Projects

Abstract

Cost overrun is observed as one of the common and basic problem which took place in different construction projects and affects its progress. Construction cost can be considered as the key factor to tell whether a project is successful or not. The cost of any project may be within, under or overrun. Among these cost overrun affects the project progress directly. Since it affects profit of the contractor, financial problems, delay in completion time, compromise on the material quality. Cost overrun can push the particular company to bankruptcy. Therefore various factors influencing the cost overrun must be thoroughly analyzed in order to reduce the cost overrun in such projects without compromising the quality of the project. The need of this research is to recognize the critical elements that lead to cost overrun in such projects.