Minimising Cost and Time Overruns in Construction Projects
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Supervisors: Prof. M. Ranasinghe Department: Civil Engineering Faculty: Engineering Cost and Time overruns are common occurrences in Construction Projects in Sri Lanka. These overruns dents profits and cause opportunity costs (financial, social, environmental etc.) to the stakeholders of projects. |
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Inadequacy of inputs was identified as a significant contributory factor for such overruns. When there was a gap between the actual input and the required input of activities output was erroneous and led to overruns in Cost and Time. Inevitably remedial measures on such errors would need additional Cost and Time. For example, following overruns in Cost and Time were found in a sample of projects constructed by CS2 companies: Cost overrun 62% (Rs. 500 million) and Time overrun 50% (24 months). i.e. total projects had incurred overruns of Rs. 1.26 billion (over planned Rs. 8.7 billion) in Cost and 29 months (over planned 84 months) in Time inducing irrecoverable damage for the owners, contractors, consultants, users, economy and also overuse of scares resources. In this backdrop, it was concluded that when actual inputs are meeting the required inputs, Cost and Time of construction projects would be minimised or eliminated. 
An Initiative by MoraMinds
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