Factors influencing construction time and cost overruns on high-rise projects in Indonesia

Abstract

Many variables have an impact upon construction time and cost overruns in Indonesia. A questionnaire survey was undertaken of project managers working on high-rise construction projects in two Indonesian cities: Jakarta and Yogyakarta. The variables identified were ranked according to their perceived importance and frequencies of occurrence. Inflationary increases in material cost, inaccurate material estimating and project complexity are the main causes of cost overruns. The predominant causes of delay are design changes, poor labour productivity and inadequate planning. Using factor analysis techniques, delay and cost overrun variables were grouped into factors, and their relationships analysed. Although Indonesia specific, the results reflect construction management problems common to developing countries.