Chapter 29 - Assessment of factors affecting time and cost overruns in construction projects

Abstract

Timely completion of a project within a defined budget is an important aspect in any construction project. The purpose of this study is to investigate the time and cost performance in construction projects in India in order to identify the causes of time and cost overrun. This empirical research uses a structured questionnaire after identifying factors of time and cost overrun through various past studies. The information is collected from a cross-section of all construction stakeholders such as owners, consultants, and contractors including project managers. The primary data obtained thus is analyzed using Relative Importance Index method. This study finds that contractor-related factors such as financial difficulties by contractors, ineffective planning, and scheduling, poor site management by contractors, client-related factors such as delay in progress payment by clients, frequent change orders during construction, material and machinery-related factor such as poor procurement planning and the external factors such as lengthy dispute settlement, permits from related authorities, market inflation, mistakes, and discrepancies in contract documents are the most severe factors affecting time and cost overrun. Relative Importance Index for delay in progress payments by client (0.812-Rank 1) and lengthy dispute settlement (0.796-Rank 2) is higher. Hence, it is an important factor in both time and cost saving. This study will help to reduce time and cost overruns in construction projects after the factors causing it are identified. The results of this study will show the foremost factors causing time delay and cost overruns in construction projects from perspective of importance and how these problems can be significantly minimized.