Amini, S; Rezvani, A; Tabassi, M and Malek Sadati, S S (2023) Causes of cost overruns in building construction projects in Asian countries; Iran as a case study. Engineering, Construction and Architectural Management, 30(7), pp. 2739-2766. ISSN 0969-9988
Abstract
Purpose: Cost overruns have been identified as the most significant challenge for construction sector stakeholders. Like many developing countries, the Iranian construction industry suffers from poor cost performance. So, the current research aims to investigate the causes of cost overrun in Iranian construction projects. This paper also reviews the findings of similar studies conducted in several Asian countries. Design/methodology/approach: This paper includes a literature review and a quantitative method with a questionnaire survey. The review is limited to the studies investigating the causes of cost overrun in an Asian country in the last decade. Moreover, the current research was conducted through a questionnaire prepared based on 43 common factors identified through the literature review. The required data were gathered from the representatives involved in handling construction activities in Iran. The collected data were analyzed based on relative importance index (RII), using the SPSS software package. Findings: The results showed that poor site management, improper planning, fluctuation of prices of materials, lack of experience, and poor economic condition are the critical reasons for cost overrun in Iranian construction projects. The findings also indicated that among the studies conducted in Asian countries, the first three factors have the highest frequency. Originality/value: This paper highlighted most studies concerning the cost overrun factors in construction projects in different Asian countries in recent years. Up-to-date knowledge helps to understand the complexity of this field in various periods and therefore minimizes the risk of cost overrun. This research can also be used as a benchmark for further studies to clarify similar issues in other developing countries.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | building construction project; causative factors; cost overrun; Iran; rii |
| Index terms: | questionnaire, quantitative method, methodology, construction project, cost performance, complexity, construction sector, developing country, survey, software package, relative importance index, building construction, literature review, site management, construction industry, economic condition, case study, construction activity, cost overrun |
| Subjects: | production management, development economics, economics, software systems, research methods, industry analysis, systems engineering, building construction, risk assessment, data collection methods, construction operations, data analysis and analytics, economic analysis, financial and cost management |
| Topics: | International Construction, Site Management, Cost Management, Business Strategy, Project Management, Research Practice, Engineering Principles, Risk Management, Construction Technology |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here