Cost Overrun and Solution in the Construction Industry

Tan, Xuan Jie (2020) Cost Overrun and Solution in the Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Cost overrun is a common problem occurring globally in the construction industry especially happen in developing countries. The specific aim of this study will comprehend and analyse the occurrence of cost overrun that always happen in construction industries. It reviews various research studies carried out main objectives included identify the factors of cost overrun in Malaysia construction industry, to study the impacts of cost overrun in construction projects and determine the possible solution to overcome the cost overrun in construction projects. Cost overrun is one of the major problems in construction industry and it had observed the issue that almost happen in every construction project. The cost overrun in construction projects occur due to various reason and many researchers have carried out various study to identify the cause factors regarding to this issue. The concept of cost overrun in construction projects had attracted much attention in recent year and many researches are trying to identify and analyse the factor that cause cost overrun, the impacts to construction industry and identify the most significant solution to overcome cost overrun in construction industry. The descriptive analysis will use to further analyse the data which collected from the respondents by using SPSS software. The result of this survey reviews the main factors that cause cost overrun in construction industry was poor financial management while the most significant solution to overcome cost overrun will be the effective site management and supervision. The contractor loss of profit will be effectively caused by cost overrun in construction industry.