Evaluation of Cost Overrun in Construction Projects during COVID-19 Pandemic

Abstract

The construction industry underwent significant transformation due to the profound effects of COVID-19 pandemic. Its impacts included disrupting supply chains, leading to labor shortages, and introducing new safety protocols. These factors led to delays and cost overruns for many construction projects, with significant financial implications for organizations and stakeholders. While numerous studies have delved into these factors, further research might be beneficial to specifically analyze them in the context of the construction sector, the organizations involved, or the scale or type of projects. To fill the research gap, we undertook a four-step approach: beginning with a literature search to establish the existing knowledge base, progressing to data collection via online surveys, followed by data analysis, and culminating in drawing comprehensive conclusions based on our findings. The results showed that the pandemic’s impact on the construction industry was widespread, affecting a variety of sectors, organizations, and projects, but that the heavy construction sector and large-scale companies along with small- and medium-sized companies were disproportionately affected. This study provides insight into the enhanced risk of cost overruns during pandemics or similar types of events and highlights the need for increased emphasis on employing effective risk management strategies to ensure project success.