A framework for avoiding cost overruns in Malaysian construction projects

Construction industry contributes significantly in the growth of socioeconomic development of a country. Construction sector not only provides essential infrastructures but also provides a high number of employment opportunities. One of the major challenges facing our construction industry worldwide for many years is the cost overrun. Construction projects in both developed and developing countries are facing this problem. Cost overrun in construction projects can occur due to many factors. Thus, this research will be conducted to identify the critical factors causing cost overrun in Malaysian’s construction projects and to propose mitigation measures for causative factors. The review of the literature will be conducted to gather information on the current common factors causing cost overrun in construction projects in Malaysia. This research will adopt a mixed mode of quantitative and qualitative research design. A questionnaire survey will be conducted to identify severe factors causing cost overrun in construction projects in Malaysia. Furthermore, a qualitative study will be performed to identify the mitigation measures for each of the critical factors causing cost overrun. Then, a questionnaire survey will be conducted among construction experts in order to evaluate the most significant mitigation measures for cost overrun factors. It is hoped that the proposed mitigation measures can help construction practitioners particularly project managers to properly manage their construction projects so as to overcome unnecessary increase in project cost from its initial allocated budget.