Abstract
Cost overrun is known as when the final cost of any project surpasses the sectioned cost of the project at the floating of tender. Cost overrun or cost variation overrun is the main problem in the construction of highway projects in Sindh Province of Pakistan. To attain the main objective of the research a literature review was conducted and 64 general factors of cost overrun were found in construction industry. A questionnaire was developed and distributed among 28 well experienced experts having maximum experience in construction of building projects. Gathered data was analyzed by method of average index. Results shows that main and causative factors of cost variation were financial and cash issues faced by owner, slow information between parties, change in price of material, delay of design, poor site management, payment and financial issues problem faced by the contractor and delay in decision making. This research can help petitioners of highway projects to overcome these main and causative factors of cost.
Highlights
The construction industry is known as main industry among all industries which plays an important and vital role in growing the economy of the country
[3] Chen et al (2016), investigated cost overrun in 418 design and build projects, the results showed that more than 50% of the projects had cost overrun
Poor site management Payment problem faced by the contractor
Summary
The construction industry is known as main industry among all industries which plays an important and vital role in growing the economy of the country. Cost overrun is found as a major issue because it affects the economy of any country [1, 2]. According to [3] Chen et al (2016), investigated cost overrun in 418 design and build projects, the results showed that more than 50% of the projects had cost overrun. According to [5] that most projects are affected by the cost overrun and out of 10 projects, 9 projects have faced cost overrun. This cost overrun issue is found as dominant in construction in all developing countries where this cost overrun almost exceed more than 100% of the estimated [6]. Many research has been conducted out to find out cost variation factors in construction projects but not a single study has been carried out to identify main factors of cost variation in highway
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