Critical Cost Overrun Factors and its Controlling Measures in Construction Sector of Pakistan

Samiullah Sohu,Qadir B Jamali,Ashfaque A Jhatial,Abdul H Buller,Imtiaz A Bhatti

doi:10.52584/qrj.1901.10

Abstract

Construction projects facing cost overrun is a common problem in developing countries, including Pakistan. This research paper identifies the major cost overrun factors faced by construction projects in Pakistan and also provides recommendations to reduce the cost overrun. To main objectives of this research is to identify the critical cost overrun factors and its controlling measures. To attain objectives, the first in-depth literature review was conducted, which helped to identify 33 common cost overrun factors. Secondly, a structured questionnaire was established among stakeholders of the construction sector to share feedback about the critical cost overrun factors. Results showed that stakeholders of construction projects (consultant, contractor, and client) have a different perception of cost overrun. After identification of major cost overrun factors, interviews were carried among mostly experienced stakeholders for mitigation and control measures. This research delivers a better understanding of major cost overrun factors. Also, it provides recommendations to stakeholders of construction projects as well as other professionals of Pakistan to control cost overrun.

Highlights

The construction industry is known as a very famous industry among all industries, which contributes about 9% of GDP (Gross Domestic Product) and 6% of the employment in Pakistan [1]
Pakistan is known as a developing country due to the complex nature of construction industry
A study carried by Narayanan et al [7] states that on average the mega construction projects in India cost more than 35% higher than the total cost of the project which was set initially

Summary

Introduction

The construction industry is known as a very famous industry among all industries, which contributes about 9% of GDP (Gross Domestic Product) and 6% of the employment in Pakistan [1]. Pakistan is known as a developing country due to the complex nature of construction industry. Pakistan is facing many challenges of time overrun, cost overrun, quality standards and poor management in the construction sector [2]. Due to advanced technologies in this sector, cost overrun is a severe and critical issue throughout the world [3]. 90% of the projects of Uganda had faced the issue of cost overrun [4].

Objectives

Methods

Findings

Conclusion