Critical Cost Overrun Factors and its Controlling Measures in Construction Sector of Pakistan

Abstract

Construction projects facing cost overrun is a common problem in developing countries, including Pakistan. This research paper identifies the major cost overrun factors faced by construction projects in Pakistan and also provides recommendations to reduce the cost overrun. To main objectives of this research is to identify the critical cost overrun factors and its controlling measures. To attain objectives, the first in-depth literature review was conducted, which helped to identify 33 common cost overrun factors. Secondly, a structured questionnaire was established among stakeholders of the construction sector to share feedback about the critical cost overrun factors. Results showed that stakeholders of construction projects (consultant, contractor, and client) have a different perception of cost overrun. After identification of major cost overrun factors, interviews were carried among mostly experienced stakeholders for mitigation and control measures. This research delivers a better understanding of major cost overrun factors. Also, it provides recommendations to stakeholders of construction projects as well as other professionals of Pakistan to control cost overrun.

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],…”

“…Poor cost control during construction [94], [80], [78], [46], [47], [48], [82], [95], [55], [83], [57], [96], [60], [20], [57], [86], [97], [98], [99], [65], [11], [89], [100], [90], [72], [93], [74], [76] 37 4 Poor owners' financial status which leads to delay due payments [41], [102], [80], [42], [46], [47], [45], [103], [82], [50], [52],…”

“…[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…”