Analysis of Cost Overrun Factors and Mitigation Strategies in Residential Construction Projects Using RII Method
DOI:
https://doi.org/10.15662/IJEETR.2026.0802155Keywords:
Cost Overrun, Residential Construction, Project Management, Cost Control, , Relative Importance Index, Construction Planning.Abstract
Cost overrun is one of the most critical challenges faced by the construction industry, particularly in residential construction projects. It occurs when the actual project expenditure exceeds the originally estimated budget, leading to financial losses, project delays, and reduced stakeholder satisfaction.
The study helps project managers in improving cost control and reducing budget deviations in residential projects. This study aims to analyse the key causes of cost overruns in residential construction projects and propose effective mitigation strategies to improve cost management practices. Data were collected from construction professionals including engineers, contractors, architects, and quantity surveyors through structured questionnaires and interviews.
A total of 46 valid responses were obtained from professionals working in various construction sectors. Statistical techniques such as Percentage Analysis and Relative Importance Index (RII) were used to evaluate and rank the major factors contributing to cost overruns.
The results indicate that design changes during construction, inaccurate cost estimation, delays in material procurement, poor supervision, and price escalation of construction materials are the most significant factors influencing cost overruns in residential construction projects.
The study further suggests mitigation strategies such as improved estimation practices, effective project scheduling, adoption of digital technologies like Building Information Modeling (BIM), and better coordination among project stakeholders.
The findings of this research provide valuable insights for construction professionals and project managers in improving cost control and ensuring successful project delivery within the planned budget
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