Cost overrun and time delay of construction project in Indonesia

Abstract

The success factors of project was completing the project without time delay and cost overrun. Time delay and cost overrun were arised due to uncertainty activity during the life cycle project. This may lead the problems to the project. The research aim was analysing cost overrun and time delay in construction project. Data were collected using questionnaire to 36 respondent. 15 factors have been identified in this research i.e land acquisition delay, location of site, support or protest from the local for the project, changes in design specifications, rework, subcontractors and vendors performance, delay in works approval, inaccurate budgeting and resource planning, price escalation of materials, rules and regulations of the government, owners additional required, inflation, payment delay, weak cash flow and bad weather. The result findings, owners and contractors have differences and similarty perception. In cost overrun factors, owner agreed the topmost factor causing was owner additional required while according to the contractors was rework. In delay factors, owner agreed the topmost factor causing delay was inaccurate budgeting and resource planning while according to the contractors was land acquisition delay. Nevertheless, both parties agreed the inflation has a least influent to construction project delay.