Original Article
ISSN (Online): 2454-1907
International Journal of Engineering Technologies and Management Research
October 2022 9(10), 1–9
How to cite this article (APA): Rauzana, A. (2022). Factors Causing Cost Overruns in Construction Projects. International Journal of
Engineering Technologies and Management Research, 9(10), 1-9. doi: 10.29121/ijetmr.v9.i10.2022.1231
1
FACTORS CAUSING COST OVERRUNS IN CONSTRUCTION PROJECTS
Anita Rauzana
1
1
Department of Civil Engineering, Universitas Syiah Kuala, Aceh, Indonesia
ABSTRACT
The complexity of a project often causes differences in what has been planned and its
implementation in the field, resulting in delays and cost overruns. The successful
implementation of a construction project is the target and expectation of the project
owner and contractor, who has an effective time with a budget that is according to plan.
But, in project implementation, there are often problems with the emergence of cost
overruns that can cause losses. The purpose of this study was to analyze the dominant
factors causing cost overruns in irrigation projects in Aceh Besar District. This study uses
questionnaire data addressed to irrigation contractors, the total population obtained was
46 contractor companies, through the Slovin equation, the research sample obtained was
32 contractors. Data processing uses descriptive statistics. The results showed that the
dominant factor causing the cost overrun of irrigation projects was the increase in
material prices, with a mean value of 4,531.
Received 14 August 2022
Accepted 15 September 2022
Published 05 October 2022
Corresponding Author
Anita Rauzana,
anrauzana@unsyiah.ac.id
DOI
10.29121/ijetmr.v9.i10.2022.1231
Funding: This research received no
specific grant from any funding agency in
the public, commercial, or not-for-profit
sectors.
Copyright: © 2022 The Author(s).
This work is licensed under a Creative
Commons Attribution 4.0
International License.
With the license CC-BY, authors retain
the copyright, allowing anyone to
download, reuse, re-print, modify,
distribute, and/or copy their
contribution. The work must be
properly attributed to its author.
Keywords: Cost Overrun, Construction Project, Contractor Company, Project Cost
1. INTRODUCTION
Construction project development in Indonesia is growing with the increasing
need for infrastructure facilities and infrastructure, as well as other facilities to
support the activities of the population in Indonesia. The construction project is the
process of converting plans or designs and specifications of planners into physical
structures and facilities. Success in carrying out construction projects, namely
projects that have effective time, economical costs, and good quality are the goals
and expectations of project owners and contractors. In practice, many parties are
involved in construction projects, this can potentially cause problems in
implementing the project. The larger the size of a project, the more complex the
mechanism, which means more problems to deal with. If the project is not handled