A Review of the Effects of Project Management Practices on Cost Overrun in Construction Projects

Abstract

Cost overrun has long been a significant concern in the construction sector, posing obstacles to project profitability and financial viability. It occurs when actual costs exceed the initial budget estimates, leading to financial hardship, delays, and stakeholder disagreements. This paper investigates the impact of project management techniques on construction project cost overruns. The study aims to identify various techniques used at different stages of construction projects and analyze their effects on cost performance. Additionally, it explores the reasons behind cost overruns and proposes solutions to prevent them in the future. This research highlights efficient methods with which to manage and prevent cost overruns, providing valuable insights for project managers to use when improving cost performance and enhancing project success. It contributes to the knowledge on project management in the construction sector and aids stakeholders in navigating cost overrun challenges. Future research should explore context-sensitive issues related to cost overruns and consider robust, adaptive, and agile cost management strategies based on project management skillsets.

Keywords

• cost overrun
• project management practices
• construction projects
• remedial measures