Cost overruns as significant factors affecting the sustainable management of building projects in Iran (The Causes of Cost Overruns)

Document Type : Research Article

Authors

1 Shahed University

2 Civil Engineering Department, Engineering Faculty, Shahed University, Tehran, Iran

Abstract

The building industry is a large part of Iran's economy. A considerable amount of national resources, including energy and materials, are consumed in this sector. Therefore, the efficiency of this industry has an essential role in the sustainable development of the country. Cost overruns of construction projects or deviating from the budget is one of the most influential factors in reducing the efficiency of this industry and the occurrence of numerous problems in it. Therefore, identification of the causes of costs overruns is a significant factor in managing the cost of building projects. In this paper, a review of similar research was conducted and a long list of reasons for cost overruns was prepared. Then, the list was modified, completed and categorized based on the ecology of Iran's building industry. The list has been distributed as a questionnaire among 230 experts, and the severity and frequency of each factor were asked. Based on the obtained data, statistical analyzes such as ANOVA were performed. According to the results, inflation, project delay, bureaucracy, weak resource planning, and low efficiency and rework due to incorrect or non-integrated design in various fields are among the most critical factors causing cost overruns.

Keywords

Main Subjects

References

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Amirkabir Journal of Civil Engineering
Volume 54, Issue 2
May 2022
Pages 413-434

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