Study of Factors Affecting in Construction Costs

Abstract

The Construction industry in India has gone through very dramatic fluctuations, since the late 20s due to the near completion of huge infrastructure projects and also due to requirement of development of India in Different manner with a great speed construction. The demand for more construction of all types, coupled with a tight monetary supply, provide the construction industry with a bigger challenge to cut costs. This research discusses the main factors that affect the construction cost in India. A survey in North India sides was conducted which included 15 contractors, 10 consultants, and 5 owners. This survey resulted in finding out 38 major factors which affect the construction cost in India. The Severity of those factors measured by the level of importance and ranked according to the severity index of the contractors, consultants and owners indicated that material cost, incorrect planning, previous experience of the contract, contract management and poor financial control on site are the most severe factors.