Evaluation of cost and time overrun in government construction projects - a case study

The construction industry is regarded as one of the fast growing industry in India. In the modern years, due to substantial increase in the amount of construction companies and change in government administrations in Kerala state, the construction projects are exposed to cost and time overrun or sometimes both, and has an impact on progress of the works associated with the construction industry. This study attempts to determine the factors contributing to cost and time overrun on construction projects in Kerala. Questionnaire survey was conducted among owners, clients and contractors of the projects. Data was analyzed for various indices analysis and correlation analysis, and the major delay causing attributes in the construction projects were ranked. The results showed that “payment delay by the client” was the most critical factor that contributed towards the project delay followed by “clients’ financial availability to pass the running bill” and “delay in payment to the contractor”. These three major delay causing factors were supported by all three parties of construction. The study also recommended owners, contractor and clients to take responsibilities to avoid or reduce time and cost overrun of projects which can be achieved by good management of construction projects and also introducing new methods in storing materials from the initial phase of the project to avoid unnecessary delays in construction.