Analysis of Construction Cost Overrun Causes - Contractor’s View

: Construction can be considered as a dynamic industry which is constantly facing uncertainties. Cost-overrun have become an integral part of construction projects worldwide. A construction project is usually considered successful if it is completed within its time, budget & quality targets. The high risk nature of construction projects has led to many cost overruns in history of construction. Therefore, experts should use a systematic approach to manage risks on a project. This paper identifies the root causes of construction cost overrun in Ichalkaranji city & analysis on the basis of discussion carried out with experts in locality. The expand-focus principles & techniques were applied for gathering the various causes from professional literature & also from local experts. The analysis helps to trace responsibility & improve the work process. With the categorized reasons, the contractors can have understanding of cost & schedule change so the change order can be issued & settled with fewer disputes. After analyzing causes of construction cost overrun it will be easy to manage the project effectively so as to minimize the possibilities of cost overrun. This study will provide a solution for management of construction project cost by minimizing the cost overrun possibilities.