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Severity Analysis Of The Factors Influencing Cost Overrun In Road Projects

Volume 3 - Issue 7, July 2019 Edition
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Author(s)
Chandana Jayalath
Keywords
Cost overrun, Cost Monitoring, Road Construction
Abstract
Cost overrun appears to be a common occurrence especially in projects that involve high investments. This study investigated the cost performance in construction projects in Sri Lanka in order to identify the causes of cost overrun and their implications. A quantitative survey was performed for the targeted respondents namely employer, contractor and consultant involved in road projects in Sri Lanka. A total of 44 responses were collected from 50 sets of a questionnaire distributed. The respondents were asked to rate the listed causes on the basis of probability of occurrence and severity of the impact. The causes were ranked according to the degree of importance as responded by the target population. The findings of the study revealed that the majority of cost overrun factors with rating 6 out of 10 lie in medium severity impact zone. Results indicated that the major contributors to poor cost performance include external and material issues that have been elaborately discussed in this work. This research contributes towards best practice of cost monitoring.
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