Beruflich Dokumente
Kultur Dokumente
ISSN No:-2456-2165
Abstract:- The cost of construction projects right The common definition of cost overrun given in most
from the inception to completion stage is becoming a of the studies is a change in cost relative to the final
matter of great concern, recently, especially among estimate when project was approved. As said by T.
clients and beneficiaries, because of the rising Subramanian et. al,2012, Cost overrun can occur at
interest rates, scope change, among other factors different stages of construction and it is important to
responsible for cost overruns. Hence the need to understand the causes behind cost overrun and through
understand the complexities of cost overrun in the which end they occur like owners side, contractors side,
construction sector has become more important. This consultants side etc. Each construction project has its own
study therefore aims to identify the major complexities where different management and solutions are
complexity attributes of cost overruns in needed to manage them. There could be various reasons
construction projects to suggest practical solutions in behind cost overrun and complexities of project which can
addressing them. Literature study along with semi- be linked together like inexperienced contractors, dynamics
structured interview is used to identify the of market, scope change, fiscal planning, legal issues etc,
complexities of cost overrun and on the basis of the which are indicators of project complexity leading to cost
self-assessment tool maturity level of the complexity overrun.
attributes, the major attributes behind cost overrun
are identified based on the results of the analysis and B. Need of the Study
further suggestive measures are given. The dimensions of complexities of cost overrun are
not usually studied, so it is very important to identify the
Keywords:- Complexity, Cost Overrun, Self-Assessment dimensions of complexities of cost overrun in construction
Tool. projects in order to prevent the problems created by the
same and thus minimise the effect of the same. The
I. INTRODUCTION assessment of construction projects requires in depth
understanding of its complexity on project progress and
A. Construction Industry in India corresponding cash-flow. The need is to identify the level
The construction industry plays a vital role in of importance given to different complexity dimensions in
economic growth of a country, it is an important indicator cost overruns and to recognise best practices to improve
of development as it creates investment opportunities budgetary control of projects.
across various sectors. As per the second advance estimates
for the year 2017-18, the GVA added by construction C. Aim
sector stood at USD 140 billion. According to MoSPI, To identify the complexities of cost overrun in
(Ministry of statistics and programme implementation) as construction projects and suggest mitigation measures.
on October,2018 infrastructure projects in central
Government sector costing INR 150 crore and above, are D. Research Objectives
currently experiencing cumulative cost overruns of 8.41 To develop an understanding of project complexity.
percent of their planned cost. To identify the dimensions of complexities of cost
overrun in construction projects.
Project complexity is a term which lacks a proper To suggest mitigation measures that could be taken
definition to be understood very well in the construction against the complexities of cost overrun.
industry. It is a very critical factor that presents additional
challenges to achieving project objectives (Bac Dao,2016). E. Scope of Work
Terry Williams (2002) suggested that impacts of project The scope of the study is to identify the various
complexity can be negative if it is not assessed and attributes of complexities behind cost overruns in
managed appropriately. Project-based industries face major construction projects at various stages of construction. An
challenges in controlling project cost and completing within investigation is performed on the data collected through the
the budget. So, there is a need to identify the complexities literature study and discussion with industry experts.
of cost overrun. Further mitigation measures are suggested based on case
study.
V. DATA ANALYSIS The final outcomes of the case study analysis are
shown in the spider-web diagram, fig2 below. The potential
The following dataset was collected from the complexity attributes identified are the stakeholder
professionals involved in the project for each complexity management, management and fiscal planning attributes
and cost overrun indicator shown in the Table 2 – which are a major cause of concern for this case, this case
study involves a hospital project, so management is very
Axes/Datasets Dataset 1 Dataset 2 crucial in such projects.
Stakeholder 2 2.4
management