Cost and Time Over Run in Construction Projects

Abstract

Abstract: Construction industry is one of the biggest and fast-growing industry in India which is providing employment to millions of people and also contributing for economic development of nation. But the major and common problem faced by this industry is cost overrun and time overrun. Therefore, there is need to study this topic. This research paper will help to understand cost and time overrun in construction project. Hence the main aim of these paper is to identify the factors affecting cost overrun and time overrun in construction project and provide suitable strategies to avoid it. Method used in this research is both quantitative and qualitative method. Interviews were taken from some of the experienced professionals in this industry and questionnaire survey is conducted to collect data from the respondent from contractor, consultant, clients and students. Total 81 respondent participated in the survey. From the result it is seen that for estimating cost, 73% respondent and for estimating time, 89% respondent use combination of calculation and experience. From the study it is also understood that the problem of cost and time control is not only about the techniques being used it is also about the poor management of techniques and poor supervision. Cost overrun refers to when project goes beyond the estimated cost and factors affecting cost overrun is Poor Estimate, Design changes, Scope creep, Delays, Inflation, Poor project management, Unforeseen site conditions, Material and labour cost fluctuations and Contractual disputes. Time overrun is when project get delayed beyond estimated schedule and factors affecting time overrun is Project Planning, Design Changes, Weather Conditions, Workforce Productivity, Unforeseen Conditions, Regulatory and Permitting Issues, Coordination and Communication. Based on this recommendation were given with some strategies to avoid cost and time overrun in construction projects they are Accurate cost estimation, Risk assessment, Effective project management, change management and Communication. Further research is required in project control providing a checklist for the same, so that major points can be taken care of