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Avoiding Cost Overruns in Construction Projects in India
Abdussalam Shibani, Kumar Arumugam
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DOI:10.17265/2328-2185/2015.0708.003
Abdussalam Shibani, Ph.D., lecturer, civil engineering architecture and building, Coventry University, Coventry, United Kingdom.
Kumar Arumugam, M.Sc. student in construction, project, and cost management, Coventry University, Coventry, United Kingdom.
The main aim of this paper is to identify the major reasons for cost overruns in construction projects in India as well as the critical success factors that are helping to avoid the cost overruns. For this, the existing literature is reviewed and critical success factors are identified. Based on them, survey questions and interview questions are prepared. The findings supported the proposed hypothesis, i.e., lack of certain critical success factors leads to cost overruns in construction projects in India. They also confirmed the proposed proactive and reactive strategies of some researchers. The effective critical success factors include appropriate planning in the initial stages, skills of contractors and architects, good relationship and regular coordination among client and contractor, and early contribution of contractor with the project. The ideal methods that help to reduce cost overruns include efficient planning, proper management of site and supervision of the project, suitable planning and arrangement of project, proper methods for construction, regular meetings on development of the project, and hiring proficient subcontractors and suppliers.
India, construction, critical success factors, cost overrun
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