Study on the Factors Affecting Construction Project Cost Overrun

As a pillar industry that promotes economic development, the construction industry is currently experiencing rapid development and has received strong support from the country and the government. The construction industry faces the challenge of cost overruns, which is a worldwide phenomenon. Cost overruns are a very common phenomenon that is related to almost all projects in the construction industry. Cost overruns refer to the difference between the final actual cost at the completion of a construction project and the contract amount agreed upon by the owner and the contractor when the contract is signed. Cost overruns are considered to be a clear sign of project failure. In construction projects, it is a common phenomenon that the budget exceeds the estimated cost and the settlement exceeds the budget. This paper focuses on the main factors that affect the cost overrun of construction projects to provide a reference for the actual situation.