Analyzing the Importance of Cost Overrun Planning and Control for Construction Projects Success in the UAE Region
Loading...
Date
2023-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
The British University in Dubai (BUiD)
Abstract
Cost overruns are considered a major hindrance to project completion as they lead to a decline in the contractor's income, resulting in significant financial setbacks and endangering the entire project. The cost of construction stands as a critical element in determining the project's overall success. Throughout the entire lifespan of the construction industry, a prominent concern arises, namely, the pervasive impact of uncertainty and deadlines on all projects, regardless of their size or complexity. These elements continuously pose challenges and demand careful attention from stakeholders involved in construction endeavors. Cost overruns are a prevailing issue in construction projects within developing countries. Such overruns manifest across various construction undertakings, exhibiting different degrees of severity. Hence, it is imperative to recognize and address the critical concern of construction cost overruns. Several factors contribute to the occurrence of cost overruns in construction projects, with the most prominent ones being design and contract-related aspects, estimation uncertainties, planning and scheduling challenges, project management complexities, labor constraints, financial factors, material and machinery considerations, construction phase issues, communication hurdles, and external influences. The current study holds significant value as it consolidates the most frequent causes of construction cost overruns, enabling project participants to identify, tackle, and mitigate the adverse effects of these factors.