Strategic Approaches in Minimizing Cost Overruns in Private Small-Scale Construction Projects: Basis for a Proposed Action Plan in Preventing Cost Overrun
Abstract
Cost overruns remain a persistent challenge in private small-scale construction projects, adversely affecting project cost performance, resource utilization, and overall project success. This study examined the strategic approaches used to minimize cost overruns and developed a Cost Overrun Action Plan to support effective cost management in private small-scale construction projects. A quantitative descriptive-comparative research design was employed involving 30 construction professionals, including architects, engineers, contractors, project managers, and other practitioners in Quezon City, Philippines. Data were collected through a structured survey questionnaire and analyzed using frequency counts, percentages, weighted means, and the Kruskal-Wallis H Test. The findings revealed that respondents positively assessed cost control, risk management, financial operations, application of current technology, and lean construction and value engineering as effective approaches to minimizing cost overruns. Cost control received the strongest assessment, particularly regular budget monitoring and control measures (M = 4.46), while all other strategic dimensions were likewise rated favorably. Statistical analysis showed no significant differences in respondents’ assessments when grouped according to profession, years of professional experience, and number of projects completed, indicating a shared perception regarding the effectiveness of these approaches. The study concludes that an integrated approach combining cost control, risk management, financial operations, technology utilization, and lean construction and value engineering can strengthen project planning, resource optimization, financial control, and decision-making. Based on these findings, a Cost Overrun Action Plan was developed to provide construction professionals with a practical framework for preventing cost overruns and improving project performance.