Cost Overrun as Critical Issue in Malaysian Construction Industry

Cho, Jia Fei (2023) Cost Overrun as Critical Issue in Malaysian Construction Industry. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Cost overruns are a widespread concern in the construction sector around the world, especially in developing countries. The specific of this study is to investigate the factors and effects of cost overrun to present the solution to avoid cost overrun in construction industry. It reviews few research studies to carry out main objectives which included identify factors that results in cost overrun in construction industry, identify effects of cost overrun in construction industry and the methods to avoid cost overrun in construction industry. Other than that, cost overruns in construction projects occur for a variety of reasons, and many researchers have conducted studies to determine the factors that contribute to this issue. The concept of cost overrun in construction projects had already gotten a lot of attention in recent years, and many study results are trying to figure out what causes cost overrun, what the consequences are for the construction industry, and what are the best method to avoid cost overrun in the construction industry. By using SPSS software, the qualitative statistics will be used to further analyse the data collected from the respondents. The main reason of cost overrun in the construction sector is poor financial management, and the most important remedy to avoid cost overrun is competent site management and supervision, according to the findings of this survey. This will lead the contractor loss of profit due to cost overrun in construction industry.