Identification and Analysis of Cost Overrun Factors in Construction Projects Using the MADM Approach

The purpose of this study is to identify and analyze cost overrun factors in construction projects using a Multi-Attribute Decision-Making (MADM) approach. This research is applied in nature. The statistical population consists of academic experts and managers from the Water and Wastewater Company of Kerman Province, with 10 individuals purposefully selected as the sample. Data collection was conducted using a researcher-designed pairwise comparison questionnaire. The data were analyzed using the Fuzzy Analytic Hierarchy Process (FAHP) technique. The results of the data analysis revealed that the factors contributing to cost overruns in construction projects include three main factors: design and tender documents, employer, and contractor, along with 10 sub-factors. Additionally, the study showed that to reduce costs, the employer, contractor, and design and tender document criteria should be prioritized as first, second, and third, respectively. Among the sub-criteria examined, prioritizing low bid prices in tenders, having skilled and technical personnel, and selecting contractors based on reputation and performance ranked second and third in priority, respectively. Moreover, changes in government policies, sanctions, economic developments, and increases in the prices of oil and other raw materials can also lead to cost overruns in construction projects. Imposing unnecessary project costs on the employer and ensuring timely implementation and operation by the employer are critical. Proper execution of these aspects can significantly reduce unnecessary budget expenses and prevent the wastage of financial resources.