Factors affecting cost performance: evidence from Indian construction projects

This paper presents the findings of a questionnaire survey conducted on the factors affecting cost performance of Indian construction projects. Factor analysis of the response on the 55 success and failure 'attributes' identified through literature review and personal interview extracted seven factors. Critical success factors obtained by the analyses are: project manager's competence; top management support; project manager's coordinating and leadership skill; monitoring and feedback by the participants; coordination among project participants; and owners competence and favourable climatic condition. However factors adversely affecting the cost performances of projects, are: conflict among project participants; ignorance and lack of knowledge; presence of poor project specific attributes and non existence of cooperation; hostile socio economic and climatic condition; reluctance in timely decision; aggressive competition at tender stage; and short bid preparation time. Further analysis indicates coordination among project participants as the most significant of all the factors having maximum positive influence on cost performance.