Managing Major Cost-Overrun Risks in Construction Projects in China

The aim of this paper is to identify the major cost-overrun risks in construction projects in China and to develop strategies to manage them. The cost-overrun risks were first sough from available literature within and outside China. Survey questionnaires were then developed to seek professionals' perspectives regarding the likelihood of occurrence and impact of each risk. Strategies to manage the identified major risks were then developed based on discussions with professionals and the authors' knowledge in the field. It is found that the major cost-overrun risks were mainly related to "human side" and related to all project participants. The information presented in this paper should be appealing to all parties considering seizing the construction business opportunities in China as the data were obtained in first hand from the Chinese construction industry. Furthermore, the major cost-overrun risks factors identified in the paper would be useful to practitioners in China and those in other countries to better manage these risks.