Significant factors affecting the Vietnam Roads Infrastructure Construction Cost Overrun - A Review

Abstract

Cost overrun represents a significant challenge faced in construction projects, particularly in the realm of transportation infrastructure. The investigation into the causes of cost overruns in such projects has garnered substantial attention from both academics and the general public. Various studies conducted globally have identified diverse factors contributing to cost overruns. This article undertakes a critical review of the literature on cost overruns in construction projects, encompassing cases from different countries with a specific focus on Vietnam. The aim is to identify and comprehend the primary potential causes of cost overruns in construction projects across various geographical contexts, providing insights into both commonalities and distinctions within the identified factors. According to the findings of this study, the ten identified factors encompassing Delay in site clearance certificates, Change Management, Delay in Payment, Extension of the project implementation schedule, Construction Material Price Fluctuation, Effects of inflation and price slippage, Poor construction site management, Poor project management capacity of the investor, Poor financial capacity of the investor, Geological complexity are deemed highly influential and warrant close scrutiny during the implementation of projects in Vietnam. The insights gained from this study will serve as invaluable recommendations for active entities within the construction industry to adopt a more holistic approach to project management, cost control, and cost overrun management. By addressing quantitatively these factors in the forthcoming research, organizations in construction industries in Vietnam can effectively minimize project costs overrun in the future.