COST OVERRUN FACTORS AND PROJECT COST R
COST OVERRUN FACTORS AND PROJECT COST RISK ASSESSMENT IN CONSTRUCTION INDUSTRY - A STATE OF THE ART REVIEW
SAVITA SHARMA
1
& PRADEEP K. GOYAL
2
1
Senior Lecturer, Department of Civil Engineering, Govt. Polytechnic College, Ajmer, Rajasthan, India
2
Associate Professor, Department of Civil Engineering, Govt. Engineering College, Ajmer, Rajasthan, India
ABSTRACT
This paper presents a state of the art review of major and frequently occurred cost overrun factors and project cost risk assessment models in construction projects. Construction industries play an important role in economic growth and development of any country. Recently it has witnessed that a large number of construction projects are facing the problem of cost overrun due to some factors. These factors are associated with some form of risk and uncertainty of the project. Therefore, project cost risk assessment is an important step for making decision in construction projects. Findings from the review are presented in form of tables and charts that classify cost overrun factors, ranking of the cost overrun factors. Project Cost risk assessment models and applicability of the past studies in Indian construction industry are also discussed. Then, directions for further future research for India is introduced.
KEYWORDS:
Cost Overrun, Risk Assessment, Construction Industry, Modelling, Fuzzy Logic INTRODUCTION
The infrastructural development and socio-economic progress of a nation utterly depend upon the conceptual visualization of major projects. Construction industries play an important role in economic growth and development of any country especially for developing countries like, India. In recent development, witnessed globally, it is observed that the construction industry has become one of the largest industries and its contribution is more than 10% of global economy. On account of characteristics possessed by the construction industry it is very prone to risk and uncertainty. Such
SAVITA SHARMA
1
& PRADEEP K. GOYAL
2
1
Senior Lecturer, Department of Civil Engineering, Govt. Polytechnic College, Ajmer, Rajasthan, India
2
Associate Professor, Department of Civil Engineering, Govt. Engineering College, Ajmer, Rajasthan, India
ABSTRACT
This paper presents a state of the art review of major and frequently occurred cost overrun factors and project cost risk assessment models in construction projects. Construction industries play an important role in economic growth and development of any country. Recently it has witnessed that a large number of construction projects are facing the problem of cost overrun due to some factors. These factors are associated with some form of risk and uncertainty of the project. Therefore, project cost risk assessment is an important step for making decision in construction projects. Findings from the review are presented in form of tables and charts that classify cost overrun factors, ranking of the cost overrun factors. Project Cost risk assessment models and applicability of the past studies in Indian construction industry are also discussed. Then, directions for further future research for India is introduced.
KEYWORDS:
Cost Overrun, Risk Assessment, Construction Industry, Modelling, Fuzzy Logic INTRODUCTION
The infrastructural development and socio-economic progress of a nation utterly depend upon the conceptual visualization of major projects. Construction industries play an important role in economic growth and development of any country especially for developing countries like, India. In recent development, witnessed globally, it is observed that the construction industry has become one of the largest industries and its contribution is more than 10% of global economy. On account of characteristics possessed by the construction industry it is very prone to risk and uncertainty. Such