Cost Performance in Construction Industry of Pakistan

Tahir Nawaz, Nadeem A Shareef, Amjad Ali Ikram


Construction industry is notorious and infamous as far as cost base lines and project budgets are concerned. More than 90 percent of projects delay gets over budgeted or completely abandoned due to either paucity of funds or mismanagement at different levels. Despite a major contributor in the Gross Domestic Product of a country, its full potential has never been exploited. Perhaps this retrogressive atmosphere has been cultivated by callous, careless and unprofessional attitudes of all stakeholders of construction industry. The primary stakeholders which affect the projects positively or negatively in cost dimension are; the government, the contractors, the consultants and the clients or owners. The authors conducted interviews as well as surveys with construction professionals, contractors, architects, design engineers, suppliers and sub contractors in order identify the most occurring causes of cost overruns in construction projects. In addition to this contemporary literature was studied and reviewed with a purpose to assess the current and ongoing issues in the construction industry. A questionnaire was distributed among respondents on cost performance of various completed and under construction projects, with a view to highlight the concrete reasons which push the projects out of approved budgets. The major conclusions from this research paper which have been drawn are; corruption and bribery, political interests, poor site management, delay in site mobilization, rigid attitude by consultants, extra work without approvals, frequent changes during execution, gold platting, safety and health and limited access to job sites. In order to avoid, eliminate or mitigate effects of these causes viable recommendations have been recommended.

Keywords: Cost Performance, Construction Industry, Pakistan

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ISSN (Paper)2224-6096 ISSN (Online)2225-0581

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