Application of Management Techniques in Controlling Cost Overruns in Residential Construction Projects

Abstract

Construction projects in developing countries are frequently plagued by cost overruns. These overruns, which refer to the additional costs incurred beyond the initially estimated budget, are a common occurrence in the construction industry. The extent of these cost overruns varies significantly from one project to another, thereby necessitating a comprehensive investigation into the factors contributing to such discrepancies. The cost of construction plays a pivotal role in determining the success of a project throughout its lifespan. Thus, it becomes imperative to scrutinize the disparity between the actual cost of building projects and the initially projected cost, which typically ranges between 20% and 50%. Given the prominence and impact of cost overruns in residential buildings, it is crucial to address this issue promptly and effectively. Consequently, the primary objective of the present research is to thoroughly examine the role of Management techniques in mitigating cost overruns and identify the most efficient technique that can be employed in controlling such overruns, with a specific focus on Residential Projects in India. Through this investigation, valuable insights can be gained, which can contribute to the development of strategies and approaches that effectively manage cost overruns in the residential construction sector. The current study delves into the exploration of the application of various Management techniques in effectively controlling cost overruns specifically in the realm of residential construction projects.