A Statistical Approach on Optimizing the Effects of Cost overrun in Construction Project

Abstract

Generally acknowledged when the building project is finished within budget, it is the one determined to judge its success. Due to various economic conditions, this is frequently more difficult in developing nations, where financial challenges are just one reason for poor project execution. This Research examined the factors that affect the profit and lead to cost overruns on construction projects. To get a better knowledge of the problem and the numerous methods that were taken to analyze it, an in-depth examination of regional and worldwide publications was carried out. Data was collected from Tamil Nadu, India's delta district, to illustrate cost-overrun factors. A Chi-Square analysis model and Multinominal logistic regression were used for data analysis to evaluate the relationships of project estimating contract prices cost overruns and developing prediction models for estimating cost overrun that leads to a better economy. The most important finding proved that every model construct significantly increases the probability of budget overruns. This suggests that the model could generalize the factors contributing to budget overruns when constructing projects. Identifying these elements would make improving project cost performance easier for the construction industry.