Causes of Cost Overrun in Construction Projects in Balochistan

Abstract

Cost overrun in construction projects is a common phenomenon which may result due to various factors
including management issues, site and terrain problems, and unavailability of basic construction requirements. Cost overrun is common in developing countries; however, it occurs more in hard areas such as Balochistan province of Pakistan. This study is carried out to examine the effect of causes of cost overrun in construction projects in Balochistan. Owing to the geographical importance of this province and potential increase in infrastructure in upcoming years, a study was aimed to identify the causes and evaluate their overall impact on cost overrun of projects in Balochistan province. Study based on a questionnaire was carried out and analysis done on SPSS. Results were evaluated and relationships of factors causing cost overrun were analyzed in detail. This study can help the government and private sector to consider these factors beforehand in the planning phase, so as to avoid or minimize cost overrun in construction projects. This study covers cost management & risk management related to construction projects.