The changes, good and bad, in the domestic and global economies have far reaching ripple effects throughout the construction industry. Drastically, one of the most concerning impacts is the risk of Cost escalation. Cost Escalation is a major provision in the cost estimation process which yields values for increases in the cost of equipment, material, labour, etc. due to continuing price changes over the time. These unanticipated changes in cost can occur at any point, preconstruction, course of construction and post construction. This study throws light on the factors affecting Cost escalation. And it also sorts out the top five factors among them.
Cost escalation, RII method, construction industry, cost over run
