Factors Causing Time and Cost Overruns of Construction Projects in Malaysia

Abstract

Cost overrun is a problem that the construction industry faces in many countries, including Malaysia. It is a significant problem in Malaysia because most Malaysian construction projects have seen cost overruns of between 5 and 10% of the overall contract sum. This study aims to look at the factors that could lead to time and cost overruns in Malaysian construction projects. This study's objective was accomplished by using a quantitative approach to gather data which involved the use of questionnaire surveys. The study employed a stratified random selection method for the collection of information from the contractors working in the Ipoh region who have a current registration with the Pusat Khidmat Kontraktor (PKK) and the Construction Industry Development Board (CIDB) and are mainly based in the city of Ipoh. The results showed that “lack of experiences of project type”, “delays in issuing information to the contractor during projects”, “improvements to standard drawings during construction”, “omissions and errors in the bills of quantities”, and “inaccurate quantity take-off” are the top 5 factors causing time and cost overrun in the city of Ipoh, Malaysia.