Analysis of Various Major Contributing Factors of Cost Overrun in Construction Projects
- September 24, 2020
- Posted by: RSIS Team
- Categories: Civil Engineering, IJRSI
International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue IX, September 2020 | ISSN 2321–2705
Analysis of Various Major Contributing Factors of Cost Overrun in Construction Projects
Smiritee Srivastava1, Dr. Satish B. Allampallewar2
1ME Construction Management, Dr. D.Y. Patil Institute of Technology, Pimpri, Pune, Maharashtra, India
2Professor, Dr. D.Y. Patil Institute of Technology, Pimpri, Pune, Maharashtra, India
Abstract: Cost is among the major considerations throughout the project management and can be viewed as amongst the most vital parameters of a project and the main thrust of project success. Cost overrun is a very important and it’s almost associated with nearly all projects in the construction industry. India is confronting basic project management related issues among which cost overrun is very noticeable. There are a several factors that are responsible for cost overruns. This paper distinguishes the significant cost overrun in the development division of country, which can serve as the future work in adapting to these overruns. This study is conducted to investigate the cost overwhelms in construction projects and to identify the causes of cost overwhelms. In total 60 factors were short-listed to be part of the survey questionnaire and the survey was conducted with delegates from nearby general contracting firms. An extra finding is that medium measured development firms encounter a more prominent rate of cost overruns owing to expect greater risk for the purpose of business development. Real suggestions include: balancing out cost of materials, expanding supply of materials and apparatus, more included cost estimation forms, careful venture arranging, close recognition and documentation of cost variation trends in the sector and the nation, selection of alternative procurement methodologies, for example, design build contracts, and best value procurement.
Keywords: Cost Overrun, Infrastructure projects, Relative Importance Index, Questionnaire survey, India.
I. INTRODUCTION
Cost has its proven significance as it’s the prime element for project success. Most of the significant factors affecting project costs are qualitative such as client priority on construction time; contractor’s planning capability, procurement methods and market conditions including the level of construction activity. [6] A project generally finished may not be viewed as an effective attempt until and unless it fulfills the cost confinements connected to it. Despite its demonstrated significance it is normal to see a construction project failing to achieve its objective inside the predefined cost. Cost overrun is an important factor and is nearly connected with all the project of construction industry
