Causes Of Cost Overrun In Building Construction Projects

Mega Waty; Juliastuti Juliastuti

Authors

Mega Waty Universitas Tarumanagara https://orcid.org/0000-0002-2763-8499
Juliastuti Juliastuti Bina Nusantara University https://orcid.org/0000-0001-5994-1890

Keywords:

causes of cost overrun, building construction projects, RII, variables, indicators

Abstract

Cost Overrun is a persistent problem in both developed and developing countries, causing financial losses, difficulties, project delays, and possibly even project failure. The project cost overrun on 4 buildings is quite large and encourages the search for the cause of the project cost overrun, which not only includes 4 buildings but also other equivalent building projects. Through interviews and distribution of questionnaires that have previously been validated by several experts so that the questionnaire is valid. Distribution was carried out and received a return of 37 respondents. The result is that there are 20 valid indicators and the causes of cost overrun are obtained from RII calculations by placing the 8 largest ranks on 11 indicators, with the biggest causes of Cost Overrun being Lack of control and control of material quality, shortage of labor, weak logistics supervision resulting in loss of materials, inflation and escalation of material prices, high rental or purchase prices for equipment due to not conducting a survey first, Lack of construction materials, poor productivity and quality of human resources, additional work due to changes in design and drawings, work instructions that are not understood properly, by paying attention to the highest to lowest variables, the main one is material, the second highest is equipment, the third highest is labor, and the lowest rank is other variables

Author Biographies

Mega Waty, Universitas Tarumanagara

Faculty of Engineering,Departmen of Civil Engineering

Juliastuti Juliastuti, Bina Nusantara University

Faculty of Engineering, Departmen Civil Engineering

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