Risk Management Framework Of Cost Overruns in Building Construction of Pakistan

Abstract

Cost is, in fact, the most important parameter in the Construction Industry of developing countries such as Pakistan. The dilemma associated with such a statement is most of the construction projects in the country are affected by the stated proposition. This research attempts to identify such factors that lead towards cost overruns particularized to the building construction projects of Pakistan. The factors were ranked by their relative importance, through the responses obtained by distribution of questionnaires to several individuals involved in the local construction industry. The result mainly comprised the escalation of construction materials, improper control and estimating procedures, variations and change orders and other management and control issued as prescribed in the literature review. Conclusions and recommendations are made based on these findings so as to minimize to the extent as much as possible the occurrence and effect of the cost overruns in building construction projects of Pakistan.