Impact of Cost Overrun Factors in Constructing Apartments in Tamil Nadu

Abstract

Construction industry is more planned and resource driven industry in the world. As this industry is vast, it offers more commercial facilities projects, residential projects, and industrial projects. In addition to the infrastructure sector, there are also other areas which require growth as well. According to Working Group of Planning Commission 2012, the present housing scarcity is anticipated as 18.58 million houses. Usually, construction industries visages cost overrun when implemented and this issue generate immediate impact on country’s economy and construction stakeholders. Hence this study aims to examine the most significant factors that affect cost overrun in constructing apartments in Tamil Nadu. The study found that from the perspective of civil workers, inadequate number of equipment’s, contractors faces financial complexities and cash flow at site factor, labour absenteeism, alteration in material specification, lack of dexterity between parties, and retardation in decision making are the most significant factors that influences cost overrun in construction projects.