Critical factor of cost overrun in Malaysian Construction

Abstract

Cost overruns remain a persistent challenge in the Malaysian construction project, threatening project viability and economic efficiency. This study investigates the critical factors contributing to cost overruns in construction projects and proposes effective mitigation strategies. The research employed a quantitative methodology, involving a questionnaire survey distributed to 317 respondents from Contractor G7 in Kuala Lumpur. Results show that project scope changes, delays, and insufficient planning are major contributors to overruns. Financial strain, quality compromises, and stakeholder disputes are among the key negative outcomes. This research concludes that effective cost management in construction projects requires a comprehensive understanding of the factors contributing to cost overruns. The determine solutions include implementing performance-based contracts, conducting regular supplier evaluations and ensuring early involvement of suppliers and subcontractors in the project planning process. These findings offer practical insights for project managers and policymakers to enhance cost control in the construction sector.