Analysis of Factors Causing Cost Overruns in Residential Building Construction Projects

Abstract

One of India 's key industrial industries are the construction industry and the largest driving force in India's national economy. Efficient project management of the construction is based on three main factors, namely time, cost and quality. Cost is a key factor in the project management life cycle and can be viewed as one of the project's most important factors and the driving force behind the project's performance. Cost overruns are common in construction and infrastructure projects. Most projects are subject to cost overruns, and thus exceed the contract's original value. In India, residential building projects are growing in size. However, completion of the projects at the allotted cost is challenging. This paper mainly focuses on residential construction projects. Data obtained from the questionnaire survey is used to identify the main causes of Cost Overruns. The data analysis is performed using the relative importance index (RII) method, and the ranking method identifies the factors that cause significant cost overruns in residential building projects.