Analysis of the dominant factors causing cost overrun in building construction projects

Abstract

In building construction projects there are 3 factors that are used to measure project performance, one of which is cost. Efforts that can be made to minimize the cost overrun are knowing the causative factors and knowing how to mitigate them. The purpose of this study is to identify the causative factors, determine the dominant factors causing cost overrun, and efforts to mitigate them. The methodology in this research is desk research or research that uses relevant secondary data analysis, such as previous research with similar problems. The results of this study were 65 causative factors divided into 10 groups. The dominant factor causing cost overruns includes material, implementation and employment relationships, project documents, and project finance groups, one of them is fluctuations in material prices. Mitigation efforts have been obtained for the dominant factor, namely quality control in the field must be good, selection of professional workforce, and building good relations between parties.

Cost Overrun Gap Analysis in Construction Projects: State -of-the-Art

“…The cost overrun causes previously identified in Table 1 have been analyzed to rank the top five cost overrun causes based on the number of studies that cited these factors as the critical factors that lead to cost overrun. [40], [15], [41], [42], [43], [44], [45], [46], [47], [48], [49], [50], [51], [52], [53], [20], [54], [14], [55], [56], , [57], [58], [59], [60], [59], [61], [25] [62], [10], [63], [64], [65], [65], [66], [67], [11], [12], [68], [69], [70], [71], [72] [41], [15], [78], [79], [80], [81], [44], [47], [48],…”

“…[20], [55], [58], [104], [105], [106], [88], [99], [66], [107] , [12], [68], [100], [91], [70], [108] [79], [42], [81], [109], [110], [47], [45], [49], [95], [111], [54], [112], [59], [25], [87], [105], [106], [10], [65], [113], [12], [89], [100], [69], [90], [108], [75], [76]…”

“…Poor planning and scheduling [16], [114],[26], [31], [115], [13], [116], [40], [102], [79], [80], [81], [110], [44], [47], [117], [51], [52], [20], [56], [112], [59], [86], [25], [99], [65], [100], [91], [72] [115], [116], [80], [118], [103], [109], [117], [50], [52], [14], [58], [87], [104], [61], [97], [59], [63], [65], [66], [107], [11], [69], [91], [93] [40], [43], [7...…”

“…[23], [121], [35], [122], [39], [40], [102], [79], [81], [46], [44], [47], [82], [49], [50], [51], [54], [55], [83], [84], [58], [60], [87], [123], [97], [25], [10], [63], [65], [66], [120], [70], [92], [76] 35 Change scope of work either by variation orders or additional works…”

“…There are twenty-two critical cited causes of cost overrun in construction projects that are out of the control of project stakeholders. [41], [42], [43], [44], [45], [46], [47], [48], [49], [50], [51], [52], [53], [20], [54], [14], [55], [56], , [57], [58], [59], [60], [59], [61], [25] [62], [10], [63], [64], [65], [65], [66], [67], [11], [12], [68], [69], [70], [71], [72] [27], [9], [31], [121], [34], [94], [40], [79], [110], [44], [118], [103], [117], [50],…”