Analysis of cost overrun factors in construction projects and development of mitigation strategies: A case study of residential buildings in urban areas

Project Abstract

Cost overrun is a prevalent issue in the construction industry, leading to adverse impacts on project delivery, stakeholders, and overall project success. This research focuses on the analysis of cost overrun factors in construction projects and the development of mitigation strategies, with a specific case study of residential buildings in urban areas. The study aims to identify the key factors contributing to cost overruns in residential construction projects and propose effective strategies to mitigate these challenges. The research methodology involves a comprehensive literature review to establish a theoretical framework for understanding cost overrun factors in construction projects. This review encompasses studies on cost estimation, project management practices, risk assessment, and mitigation strategies in the construction industry. Additionally, a case study approach will be employed to analyze specific cost overrun factors in residential building projects within urban areas. Chapter One provides an introduction to the research topic, background information on cost overrun issues in construction projects, the problem statement highlighting the significance of addressing cost overruns, research objectives, limitations, scope, significance, structure, and definitions of terms. Chapter Two presents a detailed literature review on cost overrun factors in construction projects, project management practices, risk assessment methodologies, and mitigation strategies. This chapter aims to establish a theoretical foundation for understanding the complexities of cost overruns in construction projects. Chapter Three outlines the research methodology, including the research design, data collection methods, sampling techniques, data analysis procedures, and ethical considerations. The chapter also discusses the selection criteria for the case study and the rationale behind choosing residential buildings in urban areas as the primary focus. Chapter Four presents the findings of the research, including the identification of key cost overrun factors in residential construction projects, analysis of data collected from the case study, and the development of effective mitigation strategies to address these challenges. This chapter provides a detailed discussion of the findings and their implications for project management practices in the construction industry. Chapter Five concludes the research by summarizing the key findings, discussing the implications for practice and future research directions, and providing recommendations for stakeholders involved in residential construction projects. The chapter also highlights the significance of implementing effective mitigation strategies to address cost overrun factors and improve project outcomes. In conclusion, this research contributes to the existing body of knowledge on cost overrun factors in construction projects by providing insights into the specific challenges faced in residential building projects within urban areas. The proposed mitigation strategies aim to enhance project performance, reduce financial risks, and improve the overall success of construction projects.

Project Overview

The research project titled "Analysis of cost overrun factors in construction projects and development of mitigation strategies: A case study of residential buildings in urban areas" aims to investigate and analyze the various factors that contribute to cost overruns in construction projects, specifically focusing on residential buildings in urban areas. Cost overruns are a significant challenge faced by construction projects globally, leading to financial losses, delays, and disputes among project stakeholders. By conducting a detailed examination of these factors and developing effective mitigation strategies, this study seeks to provide valuable insights that can help project managers, contractors, and other industry stakeholders in improving cost estimation accuracy and overall project management practices. The research will begin with a comprehensive introduction that sets the context for the study, highlighting the importance of addressing cost overruns in construction projects and the specific focus on residential buildings in urban areas. The background of the study will provide a detailed overview of the construction industry, emphasizing the prevalence and impact of cost overruns on project outcomes. The problem statement will clearly define the research problem, outlining the gaps in existing literature and the need for a deeper understanding of cost overrun factors in construction projects. The objectives of the study will outline the specific goals and aims of the research, including identifying key cost overrun factors, analyzing their impact on project outcomes, and developing effective mitigation strategies. The limitations of the study will acknowledge any constraints or challenges that may impact the research process and findings. The scope of the study will define the boundaries and focus of the research, specifying the types of residential buildings and urban areas that will be included in the case study. The significance of the study will highlight the potential contributions and implications of the research findings for the construction industry, project management practices, and future research in the field. The structure of the research will provide an overview of the organization of the study, outlining the chapters, sections, and key components of the research framework. Finally, the definition of terms will clarify any technical or specialized terminology used in the study, ensuring a clear understanding of key concepts and variables. Overall, this research project aims to advance knowledge in the field of construction management by investigating cost overrun factors in residential building projects in urban areas and developing practical strategies to mitigate these challenges. Through a detailed analysis of these factors and the development of effective mitigation strategies, this study seeks to provide valuable insights that can inform decision-making processes and enhance project outcomes in the construction industry.