Top 9 Reasons for Cost Overruns in Construction Projects (& How to Avoid Them)

Sreeja14 Sep, 2022Business

Cost overrun is the increased cost compared to the actual cost of construction as per the cost estimation in the initial project planning. It is also known as budget overrun or construction overrun. Various factors, including scope changes and a major design error, can result in cost overrun. Project cost overrun is one of the most prevalent problems in the construction industry today. It significantly impacts the project scope. Time delay is frequently associated with exceeding budget, often leaving the construction project in great trouble. Therefore, the cost is considered one of the main criteria for mapping the success of large projects.