Identifying Key Factors influencing cost variation of construction projects in Ho Chi Minh City

Luu Truong Van; Nguyen Hoai Nghia; Luu Tan Khuong

2 (1) 2012

Identifying Key Factors influencing cost variation of construction projects in Ho Chi Minh City

Author - Affiliation:

Luu Truong Van - HCMC Open University , Vietnam

Nguyen Hoai Nghia - HCMC Open University , Vietnam

Luu Tan Khuong - Site manager, Bitexcoland Company , Vietnam

Corresponding author: Luu Tan Khuong - kim.npt@ou.edu.vn

Abstract

Cost variation is one of the most concerns of the stakeholders in the construction projects, because it always presents in every construction projects, especially in Vietnam. However, the factors that make the project cost variation are not easy to identify. This study aimed to identify the key factors that influence to the project cost variation. A survey questionnaire was used to collect data from construction practitioners. The analysis results show that there are five groups of factors that influence to project cost variation: Government policies, nature, resources, fraud and theft, and ability of stakeholders. Recommendations are also mentioned to deal with the project cost variation.

Keywords

Construction projects; cost variation; factor analysis; influence; regression analysis

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