Factors influencing construction time and cost overruns on high-rise projects in Indonesia

TLDR

Construction time and cost overruns in Indonesia are influenced by many variables. The study surveyed high‑rise project managers in Jakarta and Yogyakarta, ranked perceived importance of variables, and used factor analysis to group and analyze delay and cost‑overrun factors. Cost overruns are mainly driven by inflationary material cost increases, inaccurate estimating, and project complexity, while delays stem from design changes, low labour productivity and poor planning, reflecting typical construction management issues in developing countries.

Abstract

Many variables have an impact upon construction time and cost overruns in Indonesia. A questionnaire survey was undertaken of project managers working on high-rise construction projects in two Indonesian cities: Jakarta and Yogyakarta. The variables identified were ranked according to their perceived importance and frequencies of occurrence. Inflationary increases in material cost, inaccurate material estimating and project complexity are the main causes of cost overruns. The predominant causes of delay are design changes, poor labour productivity and inadequate planning. Using factor analysis techniques, delay and cost overrun variables were grouped into factors, and their relationships analysed. Although Indonesia specific, the results reflect construction management problems common to developing countries.