| The construction industry can be considered as one of the most important industries in China. Admittedly, most construction projects in China exposed cost overrun problems. This phenomenon may affect the progress of construction industry in China as well as many other countries in the world.;This research provides a detailed analytical framework of the cost overrun factors to overcome uncertainties and shortcomings of current practices. The primary objective of the thesis was to identify the factors that caused the construction cost overruns in China, and which factor(s) had the greatest impact.;In order to achieve the study objective, the researcher carried out a literature review on the subject of cost overruns, covering periodicals, reports, research studies and books. Through the previous studies in the literature, a total of 43 variables contributing to the construction cost overruns were identified. These 43 variables were classified into eleven predominate factors. Most related researches were revised, which included the study of these factors in different countries and in different time periods.;Through the lens of a detailed literature study, the researcher was able to build a survey questionnaire. The questionnaire, which was distributed in China, mainly consisted of three sections: (1) the general information about the project, (2) information about the respondent, (3) the 43 causes associated with cost overrun in construction projects.;The majority of respondents were people who work in China's construction industry. According to a specific analysis of data (using SPSS and EXCEL), the results of the study confirmed the prevalence of cost overruns in construction projects in China and indicated that cost overruns are due to eight predominant factors: External environment, Management and technology skills, Project change, Delays, Design, Financial constraints, Materials, and Cost escalation in China's construction projects. Furthermore, using the comparison of average severity indices presented that "Design", "project change" and "Management and technology skills" are ranking as the top three factors respectively, among these eight principle factors. The study also concluded, after comparing with the empirical results of the literature review, that the important factors affecting the cost overrun in China were similar to the ones affecting the worldwide industry.;Key words: cost overruns, construction industry, factor, China, cost, project, affect. |
