An exploration into cost-influencing factors on construction projects

Construction cost overrun is a common problem in construction industries. The objective of this research is to extract the key cost-influencing factors with new concept and methods to help control the expenditure. Hence, this research adopts the Modified Delphi Method (MDM) with 2 groups and 2 rounds and Kawakita Jiro method (KJ) to consolidate the experts' opinions and identify and rank the key factors that affect project costs. Ninety cost-influencing factors are collected from literary review and interviews with experts with practical cost control experiences in the construction companies (Group 1). The KJ method is used to consolidate these factors into 4 categories and down to a total of 42 factors. 2 rounds of questionnaires are then conducted to filter the key factors. In order to verify views of those in the first group, Group 2 consists of experienced experts from the public sectors, consulting firms and construction companies as a comparison. Results of the analysis indicate that there are 16 key cost-influencing factors. Severity Index computation was then adopted to rank these key cost-influencing factors. The study renders that clearly defined scope of project in the contract and cost control are the major determinants for cost overrun. (C) 2013 Elsevier Ltd. APM and IPMA. All rights reserved.