Construction Cost overrun happens due to many parameters like scope creep, raw material price escalations, duration of construction, design, contractors claims / hidden high margins, idling of machineries / construction equipments. Only targeting design optimisation is not the solution for cost reduction. In fact it contributes only some %. In such case involving stakeholders is very important. Duration plays vital role. Hence construction schedule needs to squeeze. Incentives to be offer to contractors, this may motivate contractor for early completion. Probability of purchasing raw material in bulk and cost negotiations on the order needs to try. Value engineering is one of the good option to assess the customer requirements in crisp.

Handling design modifications effectively in response to unexpected cost overruns in construction requires a strategic and structured approach. Here’s how you can manage it: 1️⃣ Assess the Root Cause 2️⃣ Prioritize Critical Design Elements 3️⃣ Engage Key Stakeholders Early 4️⃣ Optimize Materials & Methods 5️⃣ Leverage Value Engineering 6️⃣ Revise Project Timeline & Budget 7️⃣ Document Changes & Communicate Clearly

It is a matter of fact that the wrong design always leads to cost overruns, interferes with the quality of structure we construct and ultimately reduces its carrying capacity. However, I have mixed feeling that only design is responsible for cost overruns because its like a ripple effect. It is deem necessary that the design should suit the ground condition and vice versa. Example: If we are building foundation of structure it is always not the design problem but also the based on the geotechnical report or any unforeseen changes on the geotechnical condition. Whereas, if we merely look after the improper design, to handle it multiple checks can be done before finalizing and factor of safety, experience of designer also comes into play.

Cost overruns will always be present in a project. This could be due to many unforeseen circumstances. Forging forward and not harping on the cost overruns would be good. Approach the problem systematically: 1. Engage subject experts to discuss and see ways to effectively alter current design. 2. Calculate affected duration and check if labor costs outweigh design change 3. Check feasibility of site for execution 4. Disseminate to stakeholders/colleagues if feasible 5. Track schedule of amended works 6. Study on a microlevel other jobs that are high cost incurring for change 7. Management level to reflect on lapses that cost overrun and educate project team Cost overruns are good lessons to educate and instill change to young engineers.

1. Evaluate the Impact Assess how the design changes affect the project’s timeline, cost, and scope. Identify critical areas where modifications overlap with essential construction phases. Consult the project team to understand the practical implications of the changes. 2. Engage Stakeholders Early Involve the client, designers, and contractors in a transparent discussion about the design changes. Clarify the reasons for the modifications and provide cost breakdowns Collaborate on prioritizing changes—focus on the ones essential to safety, compliance, or functionality. 3. Review Value Engineering Options Explore alternative materials or design solutions to offset additional costs without compromising quality or safety.