Cost Overrun in Construction Projects

1.     The study clearly shows that cost overrun is not caused by a single issue, but by a combination of financial, managerial, and technical factors working together throughout the project lifecycle. 2.     Among all the factors, inflation and price escalation stand out as the most influential, indicating how strongly external economic conditions can impact construction project costs. 3.     It is also evident that project management practices play a crucial role, as issues like weak monitoring and slow decision-making directly lead to inefficiencies and increased costs. 4.     Technical shortcomings, especially poor site investigation and improper material planning, further add to the problem by causing rework, delays, and wastage of resources. 5.     The impact of cost overrun goes beyond just budget increase; it affects project timelines, reduces construction quality, and weakens client trust and satisfaction. 6.     The findings suggest that better planning at the initial stage, along with realistic cost estimation, can significantly reduce the chances of cost overrun. 7.     Continuous monitoring, proper coordination among stakeholders, and timely decisions during execution are equally important to keep the project on track. 8.     Controlling cost overrun requires a balanced approach that combines strong financial control with effective project management and practical site-level planning.

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