An Analysis of Factors Contributing to Cost Overruns in the Global Construction Industry

Abstract

The construction industry builds infrastructure and strengthens the global economy, but it struggles with cost overruns. This systematic study used scientometrics and Social Network Analysis to examine the multifaceted factors causing construction project cost escalations. After reviewing 405 scholarly works, the research mapped and analyzed 66 interconnected cost overrun factors in 69 high-impact studies between 2000 and 2024. To uncover the patterns, the study used two main research methods. First, this study applied a scientometric analysis that reviewed trends and gaps from the previous studies. Second, this study used Social Network Analysis (SNA) to examine how different factors were connected and which factors had the strongest influence on cost overruns. The methodology comprised a systematic literature search, document selection, scientometric analysis, factor standardization, and an SNA application. Seven critical drivers with high network centrality were identified: planning and scheduling issues, project estimation inaccuracies, design inefficiencies, negative weather conditions, scope definition challenges, contractual ambiguities, and unforeseeable site conditions. By applying the SNA degree centrality (DC), the analysis quantified the significance of each factor within the network. With the use of this dual analysis, a novel mapping of the main causes of cost overruns was produced, leading to the discovery of seven core factors that significantly affected project outcomes, including planning and scheduling issues, project estimation problems, and design inefficiencies. The findings advance the knowledge of the dynamics of cost overruns and offer practical insights for enhancing cost management practices in the construction industry.