A Study on Factors Affecting Cost Overrun and Delay in Construction Project

Delays, cost overruns and quality levels of construction projects have long been common issues in the field of construction projects. Factors that may cause delay and cost overrun to construction project are contractor, client, external, project management and contract administration, design and documentation, labour, material and equipment. The objectives of this research are to identify the problem affecting cost overruns and delays in construction project and to suggest the recommendation to solve these issues. Literature review and questionnaire survey had been selected as research methodology in this research. A total of fifty- one factors and eight groups of factors that cause cost overrun and delay in construction project, the overall ranking result of each group by relative importance index (RII), top ten factors that causing cost overrun and delay and the overall result of factors group were identified in this research. Besides that, the overall ranking of suggestions from respondents was also identified and stated clearly by importance index (RII) and the mean, mode, median, standard deviation and skewness of each factors group was identified. The cost overrun and delay in construction project can be reduced when the project has proper planning, good project management & scheduling and good communication & cooperation with all stakeholders. The construction industry plays an importance role in the country economy. Therefore, to prevent any loss due to cost overrun and delay in construction project, the project stakeholders have to make a stringent consideration on the importance of management aspects, the importance of planning aspects, the importance of communication & cooperation with parties involved, the knowledge and information between the organization levels and the importance of top management contribute.