Abstract:
Cost overruns are commonly encountered in construction projects worldwide, and they are especially recognized in
Sri Lankan high-rise building projects. The study focuses on effectively allocating contingencies amidst the uncertainties
encountered in these efforts. Contingency allocation in Sri Lanka appears to be theoretically well-founded but is limited in
practical implementation. This research aims to address this issue by accurately allocating contingencies in these projects,
taking into account the uncertainties they face. Although contingency allocation has a solid theoretical foundation, its
practical application seems to be limited, particularly in Sri Lanka. A mixed-method research approach was adopted. The
results of the study highlight the primary reasons for cost overruns in high-rise building projects, including fluctuations
in material costs, poor project management and planning, and construction delays. The previous study also reveals that
despite the availability of other methods, percentage allocation remains the most commonly used technique for determining
contingency in the industry .The study identified a lack of understanding and regulatory support for modern contingency
methods, recommending accurate cost estimation and effective measures to control cost overruns in high-rise construction
projects. Addressing these challenges suggests seminars, workshops, and industry-specific modules at universities in Sri
Lanka.
