An exploration of cost overrun in building construction projects

• Main Authors: Tan, Chin Keng, Mansor, Norizzati, Yeoh, Kah Ching
• Format: Article
• Language: English
• Published: Universal Publishers - Boca Raton, Florida, USA 2018
• Subjects: HD28 Management. Industrial Management
• Online Access: http://irep.iium.edu.my/68421/1/68421_An%20Exploration%20of%20Cost%20Overrun.pdf; http://irep.iium.edu.my/68421/; http://www.gbmr.ioksp.com/vol10no3.htm

Purpose: Within the context of promoting financial stability of Islamic countries, this study is focusing on the issue of cost overrun in building construction projects in Malaysia, the objectives of this study are to determine causes of cost overrun in building construction projects and to identify the strategies to overcome cost overrun problem in building construction projects. Design/methodology/approach: The data obtained from the questionnaires survey were analyzed by using Statistical Package for Social Science (SPSS) version 20. Findings: The study concludes that design changes and project delays are the major causes of cost overrun in building construction projects. The suggested strategies to reduce these problems are to ensure the project designs are detail, to ensure the design changes are with authorization of relevant project party, to get in-depth information on the complicated parts of a project, and to prepare a detailed material schedule planning in accordance with the scope of works to prevent premature material delivery to site. Research limitations/implications: The findings of the study are based on responses from thirty-two (32) respondents. Practical implications: The study has proposed several strategies to overcome cost overrun problem in building construction projects. Originality/value: The findings of this study has practical value towards the development of the construction industry.