Time and cost overrun of construction projects in Malaysia

Abstract

Time and cost overruns is one of most important problems at construction management field. Delays can be minimized only when their causes are recognized.Cost management is a main stem of construction management and the most important tool sought by contractors to maintain profit which is the main goal of every project. This research reviews all the factors that influence on cost and time overrun. Literatures of previous studies are classified into three main parts which are: (1) factors influencing time overruns of project; (2) factors influencing cost overrun that most of them are same in different countries and (3) analyze obstacles in implementing the Last Planner System as a solution for the end of project overruns. The aim of this research is to evaluate and analyze the factors contributing to time and cost overrun in Malaysian construction industry and also evaluation the obstacles of implementation of lean construction, the emergence of the lean construction concept is seen as a current approach that can be used to produce best practices because it was viewed as an effort to bring construction industry towards a more optimum productivity level with the efficient usage of resources as well as to produce the most value. The objectives of the study were achieved through a valid questionnaire survey and an interview that are obtained from some construction company in Malaysia that are directly involved in the construction industry. The study recommended owners, contractors, and consultants to hold their responsibilities to avoid any time and cost overrun which could be achieved by good management of the project and finding new methods such as using Lean Construction in construction.