E3S Web Conf.
Volume 331, 2021International Conference on Disaster Mitigation and Management (ICDMM 2021)
|Number of page(s)||5|
|Published online||13 December 2021|
COVID-19 pandemic impact: an identification of the cause of cost overrun in construction project
Department of Civil Engineering, Faculty of Engineering, Andalas University, Indonesia
* Corresponding author: email@example.com
The paper provides a thorough examination of the impact of COVID-19 on increasing the cost of the construction project. The pandemic of COVID-19 had disrupted the financial and operational of the construction industry. Many projects have been closed and suspended, and this situation has caused great uncertainty in the construction industry. Even though the Instruction of the Minister of Public Work No. 2/2020 issued March 27, 2020, stated that construction activities in Indonesia could continue work. However, it still believes COVID-19 can lead to poor project cost performance. The study used a literature review to explore the factors contributing to the increase in project cost. A case study in the hotel construction project is used to test the factors. The research found six factors have a frequency of occurrence for each cause of cost overrun, namely labor, material, implementation time, project financial aspects, estimated cost, and occupational health and safety. The case study’s two factors are not the cause of the cost overrun based on the interviewee’s answer: heavy equipment and overhead. This paper also explains the mechanism to address cost overrun continue in construction work.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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