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Identification of Factors Affecting Cost Overrun in the Construction of Industrial Buildings

Cost overrun in construction project is a common problem, especially material as one of the most in influencing component in project cost. This trend is more severe in industrial construction project where is located in areas with difficult accessibility. In order to minimize cost overrun, this paper aims to identify the factors that affect cost overrun in the construction of industrial buildings. Survey questionnaires were distributed to construction professionals, and data was analyzed through a statistical method. From the 74 factors which were identified, there were 9 factors which affected cost overrun in the construction of industrial buildings, such as material price fluctuations, material distribution costs to the site, material delay costs, specifications and material type change costs, shortage of materials, material damage, material lost, and excessive material quality. These factors will be analyzed in future research.