1651860 - Modeling the Factors Contributing to Construction Cost Overruns during COVID-19

The COVID-19 pandemic led to widespread mental stress and economic difficulties despite financial support from governments and underscored the interconnectedness of global sectors by illustrating how a disruption in one sector can significantly impact others. The pandemic severely affected the construction industry as it grappled with issues such as health and safety, project delays, cancellations, and cost overruns. While there are numerous studies on the impact of COVID-19 on the construction industry, few focus on its influence on cost overruns. This study addresses this gap by investigating the factors contributing to cost overruns during the COVID-19 pandemic. To achieve this goal, a survey was developed and distributed online to construction engineers and managers across the United States, and the 124 completed responses were utilized to create a model. The findings of the study revealed that higher labor costs, inflation and a surge in material prices, heightened demand from suppliers and manufacturers, the costs related to COVID-19 testing and having a health care professional on-site, additional PPE and unclear guidelines for assessing whether COVID-19 was an excusable or non-excusable contract delay significantly influenced construction cost overruns during the pandemic. This research provides invaluable insights for policymakers and project managers in the construction sector, helping them understand and equipping them to manage pandemic-induced challenges effectively.