Identifying the Factor of Cost Overrun Affected BY Inflation in Construction Project: A Review

International Journal of Civil Engineering

© 2025 by SSRG - IJCE Journal

Volume 12 Issue 4

Year of Publication : 2025

Authors : B. Anupriya, Senthilkumar Srinivasan

10.14445/23488352/IJCE-V12I4P115

How to Cite?

B. Anupriya, Senthilkumar Srinivasan, "Identifying the Factor of Cost Overrun Affected BY Inflation in Construction Project: A Review," SSRG International Journal of Civil Engineering, vol. 12,  no. 4, pp. 148-157, 2025. Crossref, https://doi.org/10.14445/23488352/IJCE-V12I4P115

Abstract:

The rise of inflation affects the Gross Domestic Product (GDP), which indicates unstable economic growth. Inflation is becoming a major obstacle, which has a negative impact on the construction industry. The inflation rate has spiked in recent years due to market influence and industry demand. This review explores the role and limitations of inflation in the construction industry. In addition, it elaborates on the impact of inflation and how to optimize material cost, resources, and cost overruns affected by inflation, which have been discussed in detail. The conclusion indicates that cost overrun can be tackled using multi-objective scheduling, an optimization model, and some inventory methods. Automation in the construction industry cuts the time-cost overruns and increases the project's profit.

Keywords:

Inflation, Material cost, Construction budget, Cost overruns, Labor wages.

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