Analysis of Cost Overruns in Construction Projects: A Case Study of Residential Buildings

Thesis Abstract

Abstract
Cost overruns in construction projects have always been a major concern for the industry, leading to delays, disputes, and financial losses. This thesis presents an in-depth analysis of cost overruns in construction projects, focusing on residential buildings as a case study. The research investigates the factors contributing to cost overruns, their impact on project outcomes, and potential strategies for mitigation. The study begins with a comprehensive literature review to explore existing theories, models, and case studies related to cost overruns in construction projects. This review provides a theoretical framework for understanding the complexities and challenges associated with cost estimation and control in the construction industry. A mixed-method research approach is employed to collect and analyze data from a sample of residential building projects. The research methodology includes quantitative analysis of project cost data, qualitative interviews with industry professionals, and on-site observations to gain a holistic understanding of the factors influencing cost overruns. The findings of the study highlight several key factors contributing to cost overruns in residential building projects, including inaccurate cost estimation, scope changes, design errors, poor project management, and external factors such as market fluctuations and regulatory changes. These factors interact in complex ways, leading to cost overruns that can significantly impact project timelines, quality, and profitability. Based on the analysis of the findings, the thesis proposes a set of recommendations and strategies for mitigating cost overruns in construction projects. These include improved cost estimation techniques, effective project planning and management, stakeholder collaboration, risk assessment, and the use of technology and data analytics for real-time monitoring and control. The significance of this research lies in its practical implications for the construction industry, providing valuable insights and tools for project stakeholders to better anticipate, prevent, and manage cost overruns in residential building projects. By addressing the root causes of cost overruns and implementing proactive measures, construction professionals can improve project performance, enhance client satisfaction, and ensure the long-term sustainability of the industry. In conclusion, this thesis contributes to the body of knowledge on cost overruns in construction projects, offering a detailed analysis of the challenges and opportunities in the context of residential building projects. The research findings and recommendations presented in this study have the potential to inform industry practices, policies, and decision-making processes, ultimately leading to more successful and sustainable construction projects in the future.