Paper Key : IRJ************876
Author: Rohit S. Mali, P. B. Kolekar
Date Published: 05 Apr 2025
Abstract
Cost overrun is a prevalent challenge in the construction industry, with a significant number of projects exceeding their initial budget estimates. This paper explores the causes, classification, and impact of cost overrun in construction projects. Factors such as ineffective project management, poor planning, inaccurate cost estimation, labor shortages, material price fluctuations, and external factors like unpredictable weather and government policies contribute to these overruns. Despite advancements in project management tools, cost overruns continue to plague the industry due to mismanagement, inefficiencies, and unforeseen circumstances. Various evaluation methods, including Earned Value Analysis (EVA), are highlighted to assess project performance, identify cost variances, and implement proactive measures to minimize overruns. This study emphasizes the need for better planning, efficient cost control mechanisms, and stakeholder collaboration to mitigate the risk of cost overruns and improve project outcomes.