Risks Leading to Cost Overrun in Construction Projects: A Systematic Literature Review

Document Type : Original Article

Authors

1 Civil Engineering Department, Faculty of Engineering, Mercubuana University, Jakarta, Indonesia

2 Industrial Engineering Department, Mercu Buana University, Jakarta, Indonesia

3 Civil Engineering Department, Faculty of Engineering, Lampung University, Lampung, Indonesia

Abstract

In construction projects in the world, there is generally a final cost overrun on the completion of construction projects. The cost overruns occur when the project has to face various risks due to the lack of anticipated preparation to minimize the risks that cause delays in the implementation of the sequence of work sequences. This is certainly a big problem in preparing construction project budgets and critical challenge for both owners and contractors, so it should be managed to decrease or avoid bad things. The purpose of this literature review is to present risks that cause cost overrun for the past ten years. Factors cause cost overrun; Cost Estimate, Construction Items, Project Participants, Environment, and Finance. This research used a systematic literature review. Based on 50 journals review about risks leading to cost overrun, the most factor causes cost overrun is Project Participants (25, 60%) with case Poor Planning, 2nd rank is Construction Items (22.67%) with case Frequent Changes in Design, 3rd Rank is Cost Estimates (22,00%) with case Inaccurate Cost Estimation, 4th rank is Finance (16,93%) with case Inflationary Pressure and last risk factor is Environment (12,80%) with case Weather Condition.

Keywords

References

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Advance Researches in Civil Engineering
Volume 3, Issue 1
March 2021
Pages 43-60

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