Categories and Factors of Cost Overrun in Construction Projects: A Systematic Review
Received: 15 September 2024 | Revised: 9 October 2024 | Accepted: 16 October 2024 | Online: 25 October 2024
Corresponding author: Omar Afana
Abstract
Cost overruns represent a significant challenge in construction project management and often compromise project success. This study addresses gaps in previous research, particularly the lack of a unified classification of cost overrun factors. The aim is to provide a comprehensive, unbiased, and structured synthesis of existing research on the factors contributing to cost overruns in construction projects. It involves identifying, evaluating, and categorizing studies to answer predefined research questions related to cost overruns across various geographical contexts, project types, stakeholder perspectives, and project lifecycle phases. Through a Systematic Literature Review (SLR), the current study identifies and categorizes 99 factors into 10 distinct categories: 1) Execution, Resource, and Project Management Factors, 2) Design Factors, 3) Contractor Factors, 4) Consultant Factors, 5) Client Factors, 6) Financial Management Factors, 7) Bidding and Cost Estimation Factors 8) Contracts, Legal, and Regulatory Factors, 9) External Risks, Technology, and Sustainability Factors, and 10) Defects Liability Period (DLP) Operations and Maintenance Factors. Additionally, the present research examines both advanced and traditional methodologies for mitigating these overruns, emphasizing accurate cost estimation, risk management, and the use of advanced technologies, like Building Information Modeling (BIM), alongside strong financial and contract management. This paper synthesizes results from different global contexts to establish a solid foundation for future academic research and industry practices aimed at alleviating cost overruns in construction projects. It also promotes the development of customized frameworks that are specific to a country, a lifecycle phase, or a combination of conditions.
Keywords:
cost overruns, construction management, stakeholder collaboration, project lifecycle, systematic literature reviewDownloads
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