Construction Cost-Influencing Factors: Insights from a Survey of Engineers in Saudi Arabia

Abstract

Cost overruns represent a continuous challenge within the construction industry, frequently affecting the success of projects. This study explores the factors influencing cost during the construction phase in Saudi Arabia, utilizing data from a survey of 1076 engineers working in the Saudi construction industry. The results identify a number of cost-related factors, including inadequate project management, poor cost estimation, and design errors. Interestingly, some factors, such as currency exchange rate fluctuations and social and cultural influences, were found to have a limited impact on construction costs. Furthermore, the study highlights the role of experience and education level in shaping engineers’ perceptions of these cost factors. The study employs statistical analysis, including Pearson’s chi-squared test, to demonstrate associations between demographics, project characteristics, and cost-influencing factors. The findings suggest the need for refined project management practices, enhanced technical training, and the implementation of digital technologies such as Construction 4.0 to mitigate cost-related risks. This research provides significant insights for construction professionals and policymakers seeking to enhance cost management within the Saudi construction sector, thereby contributing to the ongoing development initiatives aligned with Saudi Arabia’s Vision 2030.