Project management Failure and Impact on the Investor’s Budget in Sri Lankan Construction Industry

Abstract

The construction sector in Sri Lanka has been a crucial driver of economic expansion and growth. This industry is not immune to challenges, with project management failures which are becoming increasingly common. This paper aims to investigate the fundamental factors contributing to project management failures in the Sri Lankan construction industry and their significant impact on investors’ budgets. It sheds light on the consequences of these errors, offering insights into the economic, immediate, and social penalties that construction companies face. Identifying these issues enables stakeholders to develop solutions to reduce project management failures and safeguard investor budgets, ultimately contributing to the long-term success of construction companies. The Standard condition of contracts is frequently used in Sri Lankan building sector to create precise requirements for buildings. The study is anticipated that these approaches will vary significantly among different construction companies involved by using the random stratified sampling for selected 50 construction companies while issuing the questionnaires. However, only 30 construction companies completed the questionnaire. The data collection is outlining the basic results of this research and what they mean for the Sri Lankan construction industry. It stresses the severe effect of project management failures on investor finances and stresses the importance of resolving these challenges. The research revealed the results of avoiding project management failures as strong planning for projects, personal growth, compliance with laws and regulations, and good risk management. Finally, the conclusion provides suggestions for future study as well as practical methods that may be used to improve the success of projects and safeguard investor budgets in the Sri Lankan construction industry.