Cost overrun in construction projects in Oman: Case study
Keywords:Cost overrun, Factors, Contractor
There are many challenges in construction industry sector, and one of the most important and critical is completion of the project within the original contract value. As the issue of cost overrun in construction projects is spread worldwide generally and commonly encountered in the Sultanate of Oman.The main objectives of this study are to identify and determine vital factors leading to cost overrun in Building Projects in Oman, evaluate the impact of cost overrun in building construction projects and develop the best protocol strategy for project management teams that can be adopted in order to control the cost overrun in future projects. These objectives have been obtained through several methods, questionnaire survey,interviews with experts in construction industry. Twenty nine major factors lead to cost overrun were identified through literature review and studied in Sultanate of Oman.The study concluded that there are three major impacts of cost overrun in construction projects and industry which are time of completion, delivery of poor quality projects and delay of payment approval. Additional to that, Hire good Supervision Team, a good Cost Controller, Project Manager, a good project design team, well planning for pre-contract stage and proper procurement strategy. Consider the Risk assessment and Risk Control are crucial to minimize the cost overrun in building construction project in Oman. The study have recommended procedure to cost control in future project such as the Employer should have a proper tender analysis of the Contractor’s bid, Detailed design should be finalized before award of work and others.
References or Bibliography
Abusafiya, H. and Suliman, S. (2017) "Causes And Effects Of Cost Overrun On Construction Project In Bahrain: Part I (Ranking Of Cost Overrun Factors And Risk Mapping)". Modern Applied Science 11 (7), 20
Aljohani, A. (2017) "Construction Projects Cost Overrun: What Does The Literature Tell Us?". International Journal Of Innovation, Management And Technology 137- 143
Allahaim, F. and Liu, L. (2015) "Causes Of Cost Overruns On Infrastructure Projects In Saudi Arabia". International Journal Of Collaborative Enterprise 5 (1/2), 32
Jangale, S., Jain, A., Pathan, A. and Kandekar, P. (2017) "Introduction To Cost Overrun In Residential Building: Its Causes And Solutions". International Journal Of Engineering Research & Technology 6 (3), 60-62
M. Fram, S. (2013) The Constant Comparative Analysis Method Outside Of Grounded Theory. Iowa USA
Moossen, H. (2019) "Construction Industry Contributes 9 Per Cent To Oman’S GDP". Oman Daily Observer.
Ramabhadran, M. (2018) "An Investigation Into Cost Overrun In Construction Projects In United Arab Emirates". International Journal Of Construction Engineering And Management 7 (1), 1-21
Raykar, P. and A.N., G. (2016) "Analyzing The Critical Factors Influencing The Time Overrun And Cost Overrun In Construction Project". International Journal Of Engineering Research 5 (1), 21-25
S. Mulla, S. and P. Waghmare, A. (2015) "A Study Of Factors Caused For Time & Cost Overruns In Construction Project & Their Remedial Measures". Int. Journal Of Engineering Research And Applications 5 (1), 48-53
Shah, R. (2016) "An Exploration Of Causes For Delay And Cost Overruns In Construction Projects: Case Study Of Australia, Malaysia & Ghana". Journal Of Advanced College Of Engineering And Management 2, 41
Subramani, T. (2014) "Causes Of Cost Overrun In Construction". IOSR Journal Of Engineering 4 (6), 01-07
Sweis, G. (2013) "Factors Affecting Time Overruns In Public Construction Projects: The Case Of Jordan". International Journal Of Business And Management 8 (23)
Ullah, K., Abdullah, A. and Nagapan, S. (2016) "A Framework For Avoiding Cost Overruns In Malaysian Construction Projects". International Journal Of Advanced And Applied Sciences 3 (3)
How to Cite
Copyright (c) 2021 Haitham Nasser Al Siyabi; Omar Khaleel
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright holder(s) granted JSR a perpetual, non-exclusive license to distriute & display this article.