A System Thinking Approach on How to Reduce Cost Overrun in the Construction of Industrial Buildings

It is obvious that the performance of construction competitiveness hinges on project delivery cost. Many approaches have been used to reduce the effect of the potential factors of cost overrun on project delivery cost. In this study, the system approach has been employed and validated. An inferential statistical analysis was conducted to analyze seventy-four factors during the primary study. Then they were classified into thirteen risk events and sixty-one risk sources. Utilizing the Delphi method, thirteen risk events became ten risk events and thirty-six risk sources. Furthermore, with the factor analysis method, thirteen risk events became nine risk events, and twenty-five risksources. The holistic role of professionals in the construction of industrial buildings was illustrated with the aid of a causal loop analysis, showing a cause and effect relationship. Therefore, based on the findings, twenty-five risk sources and nine risk events could reduce cost overrun in the construction of industrial buildings. The intervention category, which has the most influence on the reduction of cost overrun, occurs during the planning stage to take into account material contingency