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The aim of the dissertation is to identify and explore the various causes of cost overrun associated with construction projects.


* Identifying the main causes of the cost overrun in the construction projects through literature review.

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* To identify the various measures of cost overrun in construction projects.

* To examine the affects of the cost overrun by analysing the case of a construction industry.

* Analysing the information from the literature review and case studies to provide further recommendation and suggestions to overcome the cost overrun effect.

Research Methodology

To achieve the above aims discussed above it is very important to do extensive research by studying books, journals, articles on internet. Qualitative method is the research method that will be the main research method used incorporating



Case studies

Present dissertation the author has used two main research methods questionnaire survey, case studies. The author has prepared questionnaire with 18 questions and forwarded to 10 companies. The questionnaire survey provided valuable data that can analyse, useful for outcome of the research. The author has studied different case studies from India to identify various causes for failure of the project. Analysis on the case studies gives the idea of various measures to overcome cost overrun.


Constructions are full of risks and include those that may relate to cost overrun, external commercial factors, design, construction and operation. In any construction projects the three primary factors that is time, cost and quality will be likely to subject to risk and uncertainty. This cost overrun can be minimised by the realistic estimation which can be anticipated from the experience and foresight. Managing project costs accurately and responsively is a challenging task for the design team, construction manager, builders and consultant. Effective cost management is dependent on following a consistent methodology, utilizing appropriate standards, concentrating efforts for maximum effectiveness and utilizing all the tools available. The major problem that arises in construction projects is that projects often overrun their cost estimate. This risk of the overrun of cost estimate occurs even with the projects where carefully constructed bottom up cost estimates completed to a very detailed level. In every construction projects the main problem where cost of the entire project is not getting most likely, is because of the usual way of constructing a project estimate at completion is that adding the estimates for all work breakdown structure components (WBS). By conducting a cost risk analysis provides a more accurate and realistic estimates of project costs.


2. Literature Review


The process of project of an infrastructure project when planned is the sponsoring department prepares estimates of time and costs or funds needed to complete the project.

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