Identification and Assessment of the Factors causing Cost Overrun in Housing Projects

Year : 2023 | Volume : 01 | Issue : 01 | Page : 17-34

    A. Madhumitha

  1. Priyadharshini . S

  2. Surya Raj Kumar

  1. Student, School of Building and Environment, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India
  2. Associate Professor,, Sathyabama Institute of Science and Technology,, Chennai, India
  3. Associate Professor, Sathyabama Institute of Science and Technology,, Chennai, India


Poor cost performance is a major problem in construction industry, especially in developing countries like India. Statistics reveal that majority of the projects faces the issue of cost overrun. The interrelationship between the causes of cost overrun and stakeholders has not been explored yet. The aim of the research is to minimize the effects of project cost overrun. The objective of the study is to categorize and rank the potential factors causing cost overrun. Further, it tries to provide suggestive
framework to mitigate cost overrun which affects the project performance. Based on the expert interview and literature study, a questionnaire survey was framed and the results from the survey were validated through case studies. Nine factors were identified as critical factors causing cost overrun. From the findings, suggestive frameworks were proposed to overcome the issue of construction delay, poor communication and price escalation.

Keywords: Cost overrun, stakeholder’s perspective, cost estimation, delay, price escalation, mitigation framework

[This article belongs to International Journal of Urban Design and Development(ijudd)]

How to cite this article: A. Madhumitha, Priyadharshini . S, Surya Raj Kumar Identification and Assessment of the Factors causing Cost Overrun in Housing Projects ijudd 2023; 01:17-34
How to cite this URL: A. Madhumitha, Priyadharshini . S, Surya Raj Kumar Identification and Assessment of the Factors causing Cost Overrun in Housing Projects ijudd 2023 {cited 2023 May 29};01:17-34. Available from:

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Regular Issue Subscription Original Research
Volume 01
Issue 01
Received April 15, 2023
Accepted May 15, 2023
Published May 29, 2023