20 Reasons Why Projects Experience Cost Overrun
Why do so many construction projects have cost overrun?
Have you ever wondered why so many construction projects experience cost overrun by as much as 10% to more than 100%? This post by John G. McConville list out the top 20 causes of the cost overruns in construction projects.
How can cost overrun be rectified?
This continuing cost overrun situations costs industry million dollars each year and wastes valuable engineering /construction labor resources.
Construction cost overruns are an everyday happening on mid-sized & large multi-million dollar EPC projects around the world. Studies on this subject would indicate that as many as 6 out of 10 major construction projects fail to meet their established cost & schedule goals!
Why do cost overruns occur?
In this blog post, I will endeavor to list out the causes & possible ways the cost overrun can be corrected. My focus on this article is on Industrial – Process CAPEX / EPC related projects valued up to one or more billion-dollar. However, it also is pertinent to Infrastructure type projects.