Cost Overruns and Failure inConstruction Projects

Abstract

Construction projects are facing a greater number of uncertainties and more severe risks, which could cause much bigger losses than in the past, therefore, undertake of identification the factors that influence the cost overruns are indispensable. Resources of construction projects including the man, money, methods, machines, materials, and the market, all of these resources need to be arranged so that the project resources can be used effectively and efficiently or optimally. The purpose of this study was to identify the factors that cause the cost overruns in construction projects. Based on the results of the identification of the factors that cause the cost overrun on the implementation of construction project obtained several factors: estimated costs (X1), implementation and working relationships (X2), and the project documents (X3).