AN EMPIRICAL STUDY ON COST OVERRUN FACTORS IN CONSTRUCTION PROJECTS USING STATISTICAL INDEX METHOD

Cost overruns remain one of the most persistent problems in construction project management. Rapid urbanization and increasing infrastructure demand have intensified the complexity of project planning and execution, particularly in developing regions. This study investigates the major factors contributing to cost overruns in urban construction projects through a structured questionnaire survey conducted among construction professionals in Tamil Nadu, India. A total of forty valid responses were collected from contractors, consultants, engineers, and project managers. Ten significant cost overrun factors were identified through literature review and expert consultation. The collected data were analyzed using Frequency Index (FI), Severity Index (SI), and Importance Index (II) methods to rank the influence of each factor. The findings reveal that fluctuation in material prices, delay in approvals, design changes, and inaccurate cost estimation are the most critical causes of cost escalation in urban construction projects. The study highlights the importance of improved cost forecasting, risk management, and stakeholder coordination to mitigate cost overruns. The outcomes of this research provide practical insights for project managers, engineers, and policymakers aiming to enhance cost efficiency in construction projects.