Study of Factors Influencing Cost Overruns: An Overview

Cost overruns have become issues of serious concern in construction industry. These overruns have detrimental effect on the national economy. Cost overruns have many reasons/factors which are not taken into consideration at the time of planning resulting into delays and cost increases. In the present study, we have studied literature and identified those factors influencing cost overruns. The primary findings emanating from the study revealed that empirical studies have identified a number of important factors which cause projects cost overruns. These factors have been categorized in different groups depending on their orientations. It is found that, understanding fundamentals of such factors is important role of construction manager for avoiding or minimizing cost overruns and better cost performances.