Dhanashree et al., International Journal of Advance Research in Computer Science and Management Studies
Volume 3, Issue 5, May 2015 pg. 349-355
© 2015, IJARCSMS All Rights Reserved ISSN: 2321-7782 (Online) 350 | P a g e
roads and bridges construction is prepared based on literature review. A number of studies have been carried out to determine
the causes of cost overruns in construction projects. Adnan Enshassi (2009) it was found that Construction projects located in
the Gaza Strip, Palestine suffer from many problems and complex issues such as unavailability of competent staff, late delivery
of materials and equipment, material shortage, waste rate of materials, escalation and fluctuation of material prices, quality of
equipment and raw material, delay in progress payment, cash flow of project, cost of variation order, differentiation of currency
prices, cost of rework, cost control system, poor site management, poor communication and coordination by owner and other
parties, conformance to specification, project complexity, absenteeism rate through project, planned time for construction, time
needed to rectify defects, inadequate planning and scheduling, mistake and discrepancies in design documents, late in reviewing
and approving design document by consultant and client. Abtab Hameed Memon (2010) founded factors of cost over are lack of
experience of contractor and subcontractor, Inaccurate time and cost estimate. A study on UK construction industry by Yakubu
Adisa Olawale (2010) founded cost overrun factor that are lack of software, Inaccurate time and cost estimate, cash flow of
project, equipment breakdown, material shortage. Similarly Ismail Abdul et al. (2013) found significant factor causing cost
overrun in construction project are shortage of labour low productivity level of labours, lack of experience of contractor and
subcontractor , equipment breakdown, financial difficulties by contractor, unclear and inadequate detail drawing, design change.
III. RESEARCH METHODOLOGY
The research methodology for present study has adopted questionnaire survey to identify significant factors influencing
cost overruns in construction projects. To identify cost overruns factors, literature reviews, discussion with experts were carried
out. From existing literature on the construction industry it was possible to identify certain major effects of cost overrun on
project delivery. A questionnaire was then drawn up. As the outcome of review 45 factors of cost overrun were identified.
These questionnaires were distributed to Owners and Contractors of construction Industry. The data from the questionnaire
was analyzed statistically. The perspective of owner and contractor has been analyzed to rank the causes of cost overruns based
on their Relative important index . Relative important index method was used for hierarchal assessment of factors and found out
the top most significant factors of cost overruns.
The questionnaire was designed so that it is easy to read and responses are easy to fill in. An ordinal scale of measurement
will be applied for data measurement in questionnaire survey. These sections were designed to obtain the responses on a ordinal
scale that indicates the relative importance of various cost overrun. Ordinal scale use in this study will be adopted from
(Enshassi et al. 2009) i.e Extremely Significant (E.S); Very Significant (V.S); Slightly Significant (S.S) and Not Significant
(N.S). However, abbreviation replace with numbers i.e 1 for not significant (0%); 2 for slightly significant (25%); 3 for
moderately significant; 4 for very significant (75%) and 5 for extremely significant (100). will be adopted to understand the
perception of personnel of the owner and contractors involved in handling construction projects. For reliability of data Authors
decided the minimum experience of respondents (owner and contractor) as 10 years. The questionnaire has been given
personally to the respondents and communicated to fill without hesitation or with no bias. Questionnaire has been also given to
the Class I Gazette Officers or reliable colleagues.
In the study Relative Important index (RII) have been employed and calculated for ranking of causes of cost overrun in the
construction project. The RII is used to rank the different causes. These rankings make it possible to cross-compare the relative
importance of the factors as perceived by the two groups of respondents (i.e. owner and contractors). Each individual cause’s
RII perceived by all respondents should be used to assess the general and overall rankings in order to give an overall picture of
the causes of construction cost overrun in construction industry.
All the numerical scores of each of the identified factors were transformed to relative importance indices to determine the
relative ranking of the factors. Higher the value of RII, more important is the cause of cost overrun.