2. TIME AND COST OVERRUN IN CONSTRUCTION PR
OJECT
DEFINITION
CAUSES
SOLUTION
3. A cost overrun, also known as a cost
increase or budget overrun, is an unex
pected cost incurred in excess of a bu
dgeted amount due to an under-estim
ation of the actual cost during budgeti
ng.
4. A time overrun, also known as a time
increase is an unexpected time incurre
d in excess of a estimated/ allocated ti
me.
6. Project constraints have been listed as “quali
ty," "time," and "cost“. These are also referred
to as the "Project Management Triangle,“
where each side represents a constraint. On
e side of the triangle cannot be changed with
out affecting the others.
7. I Preparation of Faulty Estimates:
- Inadequate site condition survey/data for finalizing
Scope of Work
- Improper Design & Drawings
- Unrealistic Time Period fixed for Completion
- User Consultation Process not done.
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8. Preparation of Faulty estimate
- Rates not based on actual market rates
- Narrow range of approved makes
- Non- consideration of rehabilitation of existing
structure/services at the time of planning
- Factors of insurgency / disturbed area
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9. II Delay in applying/issuing of NOC /
clearance from statutory authorities
III Delay in Environmental Clearance
IV Non-availability of complete land/site
free from encumbrances
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10. V Selection of consultant & contract agencies:
- Selection without assessing Technical & Financial
capability
- Lack of experience in similar nature of work
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11. VI Delay in issue of working design & drawings
VII Indicative of prior lack of coordination
VIII Frequent changes in scope of work, drawings &
specifications
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12. 1. Estimate should be based on actual site data /drawings
2. Scope of work should be well defined & finalized in
consultation with user Agencies
3. Presumptions should be minimized
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13. 4. Realistic time frame to be kept
5. Proper Market Survey for estimates
6. Proprietary / Imported items should be minimized.
7. Timely action for statutory clearances
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14. 8. Technical Sanctioning Authority to ensure
availability of land
9. Advance / timely actions for diversion of
services/obstructions relocation of structures etc.
10. Proper Selection of Consultant & Contract
agency
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15. The “GOAL” can be achieved if we
have “WILL, COMMITMENT,
DEDICATION AND PASSION” to feel
the need and purpose.
