Controlling Cost Overrun Factors in Construction Projects in Malaysia

Poor cost performance in construction project is a common problem worldwide resulting in significant amount of cost overrun. This led us to explore the major contributors of cost overrun and propose mitigation measures to control cost overrun factors. Since, there were very few studies on cost issues in construction projects in Malaysia, hence this study was carried out in Malaysia using qualitative research method using semi-structured interview with experienced personnel’s involved in handling construction projects. A total of 21 respondents from client, consultant and contractor organizations were interviewed and requested to evaluate the eight (8) categories of cost overrun factors determined from the author’s previous work. Out of the eight categories of cost overrun factors, the respondents had ranked “contractor's site management” as most severe contributor of cost overrun and followed by “information and communication” category while the least severe category is financial management. Besides that the respondents are also requested to propose and classify mitigation measures for cost control according to suitable implementation strategies. This resulted in 15 proposals on mitigation measures and these were classified in three implementation strategies. The results indicated that among these 15 mitigation measures, five measures are classified as pro-active strategy and four measures are classified as organizational strategy. While other six measures are classified as fluid measures which can be adopted in more than one strategy.