Governing Risk for Project Performance: A Mechanism Based Systematic Review of Cost Overruns and Schedule Delays in Construction
DOI:
https://doi.org/10.38035/dijefa.v7i1.6273Keywords:
Project Risk, Cost Overrun, Schedule Delay, Risk Management, Project GovernanceAbstract
Cost overruns and schedule delays continue to challenge construction projects worldwide, yet existing research has predominantly focused on identifying risk factors rather than explaining how those risks translate into performance outcomes. This study adopts a mechanism-oriented perspective to examine the managerial and governance systems that mediate the relationship between project risk exposure and cost and schedule performance. A Systematic Literature Review (SLR) was conducted and integrated with bibliometric keyword co-occurrence analysis using VOSviewer to synthesize and map the intellectual structure of the field. Fourteen studies meeting mechanism-based inclusion criteria were analyzed. The results indicate that project performance deterioration is not a direct consequence of risk occurrence alone, but is shaped by interacting governance mechanisms. Risk management emerges as the central coordinating system, financial governance functions as a stabilizing buffer that supports operational continuity, and project control systems serve as the execution-level interface translating governance strategies into performance monitoring and corrective action. Bibliometric mapping further reveals a shift in the literature from problem-oriented discussions of cost overruns toward governance-based performance regulation. These findings support a mechanism-based understanding of construction project performance, where cost and schedule outcomes are governance-dependent rather than purely risk-driven. Methodologically, the study demonstrates the value of combining systematic review rigor with bibliometric mapping to uncover structural knowledge patterns. Practically, the results highlight the importance of strengthening integrated governance systems—not only improving risk identification—to enhance construction project performance.
References
Abdelalim, A. M., Salem, Maram, Salem, Mohammed, Al-Adwani, M., & Tantawy, M. (2024). An Analysis of Factors Contributing to Cost Overruns in the Global Construction Industry. https://doi.org/10.20944/preprints202412.0362.v1
Afana, O., Al Zubaidi, R., Abu Dabous, S., & Ibrahim, F. (2024). Categories and Factors of Cost Overrun in Construction Projects: A Systematic Review. Engineering, Technology & Applied Science Research, 14(6), 18330–18347. https://doi.org/10.48084/etasr.9006
Agnese, P., & Capuano, P. (2021). The culture of risk governance in financial institutions. Journal of Risk Management in Financial Institutions, 14(3), 301. https://doi.org/10.69554/VMGP3063
Al Jarrah, M., Jarah, B., & Altarawneh, I. (2022). Toward successful project implementation: Integration between project management processes and project risk management. Problems and Perspectives in Management, 20(3), 258–273. https://doi.org/10.21511/ppm.20(3).2022.21
Ali Alshehhi, H. S. M., Sidik, R., & Rozali, E. A. (2025). Evaluating Risk Management Concepts and Their Applications in the Context of Construction Projects. International Journal of Environmental Sciences, 996–1005. https://doi.org/10.64252/jy1xsd52
Alshamayleh, H. Z., Abu Raje, H. M. T. A., Amlus, M. H. Bin, & Bataineh, M. J. (2024). Towards Efficient Construction Projects: Addressing Team Coordination and Risk Management in Jordan: Higher Model Imperial Study. Journal of Ecohumanism, 3(8). https://doi.org/10.62754/joe.v3i8.5421
Anačkov, D. (2024). Efficiency of internal controls in financial managament: A review from the audit perspective. Ekonomija: Teorija i Praksa, 17(3), 109–127. https://doi.org/10.5937/etp2403109A
Andreea, P. I. (2024). Types of risks within projects.Management & Marketing, 22(1), 61–67. https://doi.org/10.52846/MNMK.22.1.05
Asmi, A., Rahmadi, M. G., & Djamaris, A. (2025). Risk Analysis of Construction Delays in High-Rise Projects. International Journal of Multidisciplinary Research and Analysis , 08(08). https://doi.org/10.47191/ijmra/v8-i08-28
Assaad, R., El-Adaway, I. H., & Abotaleb, I. S. (2020). Predicting Project Performance in the Construction Industry. Journal of Construction Engineering and Management, 146(5). https://doi.org/10.1061/(ASCE)CO.1943-7862.0001797
Ayoade, O. (2025). Integrating risk management with financial analysis: A Project Manager’s approach. International Journal of Science and Research Archive, 14(1), 072–082. https://doi.org/10.30574/ijsra.2025.14.1.2657
Cao, L. (2024). Review Objectives, Questions and Methods. In Data analytics (pp. 13–24). https://doi.org/10.1007/978-981-99-9915-6_2
Chen, Y., Kho, M., & Mohamed, O. (2024). Developing a Conceptual Model for Promoting Risk Management for Public–Private Partnerships Projects. Sustainability, 16(18), 8221. https://doi.org/10.3390/su16188221
Chevalier-Karfis, A. (2024). Understanding the Impact of Project Risk Management on Project Performance: A Technical and Empirical Perspective. Business & IT, XIV(2), 33–40. https://doi.org/10.14311/bit.2024.02.04
De Marco, A., Rafele, C., & Thaheem, M. J. (2016). Dynamic Management of Risk Contingency in Complex Design-Build Projects. Journal of Construction Engineering and Management, 142(2). https://doi.org/10.1061/(ASCE)CO.1943-7862.0001052
Didar, E., Bazargan, A., & Bagherpour, M. (2025). Cash flow risk management across multiple construction projects using value at risk. Engineering, Construction and Architectural Management. https://doi.org/10.1108/ECAM-07-2024-0975
Dikmen Toker, İ., & Birgönül, M. T. (2011). Tracing Risk Paths in International Construction Projects: A Case Study. https://open.metu.edu.tr/handle/11511/82283
Du, Q., Zhao, R., Wan, Q., Li, S., Li, H., Wang, D., Ho, C. W., Dai, Z., Chen, Y., & Shan, D. (2024). Protocol for conducting bibliometric analysis in biomedicine and related research using CiteSpace and VOSviewer software. STAR Protocols, 5(3), 103269. https://doi.org/10.1016/j.xpro.2024.103269
Fischer, C., & Weißmüller, K. S. (2026). Navigating Uncertainty: Risk Governance in Complex Organizations. In International Encyclopedia of Business Management (pp. 493–498). Elsevier. https://doi.org/10.1016/B978-0-443-13701-3.00318-2
Gamlath, G. R. M., Nanthagopan, Y., Williams, N. L., & Kengatharan, L. (2024). Optimizing organisational value: crafting a constructively aligned thematic framework for project governance enhancement. Sri Lanka Journal of Social Sciences, 46(02), 145–158. https://doi.org/10.4038/sljss.v46i02.8771
George, C. (2020). The Essence of Risk Identification in Project Risk Management: An Overview. International Journal of Science and Research (IJSR), 9(2), 973–978. https://doi.org/10.21275/SR20215023033
Guyolla, Y. H. (2023). Effective Risk Management as a Mediator to Enhance the Success of Construction Projects (pp. 168–191). https://doi.org/10.1007/978-3-031-25274-7_15
Hadad, Y., & Keren, B. (2025). Risk–Response Budgeting: A Financial Optimization Approach to Project Risk Management. Journal of Risk and Financial Management, 18(3), 160. https://doi.org/10.3390/jrfm18030160
Hall, S., & Leeder, E. (2024). Narrative reanalysis: A methodological framework for a new brand of reviews. Research Synthesis Methods, 15(6), 1017–1030. https://doi.org/10.1002/jrsm.1751
Hamad, S. M. (2023). Cause of delay and cost overrun in infrastructure projects. Journal of Global Economics and Business, 4(15), 11–24. https://doi.org/10.58934/jgeb.v4i15.201
Hazır, Ö., & Ulusoy, G. (2020). A classification and review of approaches and methods for modeling uncertainty in projects. International Journal of Production Economics, 223, 107522. https://doi.org/10.1016/j.ijpe.2019.107522
Hossen, F. A. (2013). Cost Risk Appraisal: An Application of Project Risk Management Process in Libyan Construction Projects. Journal of Civil Engineering and Architecture, 7(5). https://doi.org/10.17265/1934-7359/2013.05.009
Hu, N. (2025). Cost Control and Risk Management of Civil Engineering Construction Projects. Applied and Computational Engineering, 172(1), 217–222. https://doi.org/10.54254/2755-2721/2025.GL24902
Hussein, A. R., & Moradinia, S. F. (2023). Mitigating Time and Cost Overruns in Construction Projects: A Questionnaire Study on Integrating Earned Value Management and Risk Management. Journal of Studies in Science and Engineering, 3(2), 37–51. https://doi.org/10.53898/josse2023323
Hussien, A. (2025). Explore the reasons for the time and costoverruns in the projects under construction. https://doi.org/10.21203/rs.3.rs-7133432/v1
Ierardi, E., Eilbeck, J. C., van Wijck, F., Ali, M., & Coupar, F. (2023). Data mining versus manual screening to select papers for inclusion in systematic reviews: a novel method to increase efficiency. International Journal of Rehabilitation Research, 46(3), 284–292. https://doi.org/10.1097/MRR.0000000000000595
Informed, I. N. (2022). Evidence from the Literature to Answer Specific Research Questions.
Jane, I. M. (2025). Building success: A systematic review of the importance of project management in construction. International Journal of Science and Research Archive, 15(2), 1315–1319. https://doi.org/10.30574/ijsra.2025.15.2.1415
Lande, S. U., & Chandekar, P. (2025). Cross-National Analysis of Construction Project Cost Overruns: Risk Factors, Contractual Governance, and Mitigation Strategies. Journal of Progress in Civil Engineering, 7(5), 9–14. https://doi.org/10.53469/jpce.2025.07(05).02
Mofleh Alshehhi, H. S. (2024). The impact of risk management on the performance of construction projects. 2024: Proceedings of Social Science and Humanities Research Association (SSHRA), 114–115. https://doi.org/10.20319/icssh.2024.114115
Muñoz, I. J., Moreno, D., & Suárez, F. A. (2025). Financial Risks in Building Planning: A Literature Review. Ingeniería y Competitividad, 27(2). https://doi.org/10.25100/iyc.v27i2.14476
Musawir, A. U. (2023). Governance of projects and project governance: enabling strategy implementation through projects. In Research Handbook on the Governance of Projects (pp. 91–102). Edward Elgar Publishing. https://doi.org/10.4337/9781802208078.00015
Ottaviani, F. M., De Marco, A., Rafele, C., & Castelblanco, G. (2024). Risk Perception-Based Project Contingency Management Framework. Systems, 12(3), 93. https://doi.org/10.3390/systems12030093
Park, K., Lee, H. W., Choi, K., & Lee, S.-H. (2019). Project Risk Factors Facing Construction Management Firms. International Journal of Civil Engineering, 17(3), 305–321. https://doi.org/10.1007/s40999-017-0262-z
Peggy, T. R., Suryani, F., & Dinariana, D. (2025). Risk Management on Schedule Performance in the Construction of Baros–Petir Provincial Road, Banten Province, Indonesia. Journal of Architecture and Civil Engineering, 10(8), 116–119. https://doi.org/10.35629/8193-1008116119
Pegulescu, I. A. (2023). The influence of risk management on project performance. Management & Marketing, 21(2), 259–265. https://doi.org/10.52846/MNMK.21.2.05
Pheng, L. S. (2018). Project Risk Management (pp. 159–176). https://doi.org/10.1007/978-981-10-6992-5_11
Prikhodko, A. A., & Stroganova, M. V. (2024). Project risk management: risks identification, analysis, control and minimization. Scientific Journal of the Academy, 15(2), 19–23. https://doi.org/10.36683/nz50.19-23
Putranto, A., Jayady, A., & Nurjaman, H. N. (2025). Why Contracts Fail: Financial Risk Factors in Urban Pedestrian Bridge Construction in Indonesia. Engineering and Technology Journal, 10(08). https://doi.org/10.47191/etj/v10i08.06
Ramasamy, A. (2022). PRISMA 2020: Key Changes and Implementation Aspects. Journal of Oral and Maxillofacial Surgery, 80(5), 795–797. https://doi.org/10.1016/j.joms.2021.12.018
Senghani, H. D., Bhavsar, A. N., Pitroda, J. R., & Patel, Ar. D. H. (2023). Project’s Success Factor in the Building Construction: A State of Art Review. INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT, 07(03). https://doi.org/10.55041/IJSREM18138
Shamshiri, A., Ryu, K. R., Park, J. Y., & Choi, K. (2023). Project Phase–Based Contingency Adjustment Framework for Infrastructure Renewal Projects. Journal of Construction Engineering and Management, 149(2). https://doi.org/10.1061/JCEMD4.COENG-12311
Soemanto, H., Salim, M. N., Permana, D., & Johanes Lo, S. (2025). The Effect of Risk Management, Schedule Performance, and Cost Efficiency on the Feasibility of Infrastructure Project Investment. Eduvest - Journal of Universal Studies, 5(9), 11457–11470. https://doi.org/10.59188/eduvest.v5i9.52148
Su, G., & Khallaf, R. (2022). Research on the Influence of Risk on Construction Project Performance: A Systematic Review. Sustainability, 14(11), 6412. https://doi.org/10.3390/su14116412
Suciu, C., Tulpan, M., Cucăilă, M., Offenberg, A., & Sărăcuț, M. (2022). Methodological tools for project risk management. MATEC Web of Conferences, 373, 00082. https://doi.org/10.1051/matecconf/202237300082
Syakhertra, E., Sudarsa, M. D. F., & Saputra, P. D. (2025). Identifikasi Faktor Penyebab Keterlambatan Proyek Konstruksi: Studi Literatur. Menara Ilmu, 19(2), 502–524. https://doi.org/10.31869/mi.v19i2.6632
Thaheem, M. J., Marco, A. De, & Narbaev, T. (2013). Risk-Adjusted Contingency Management in Construction Projects (pp. 191–195).
Tripathi, A. (2025). Strategic Approaches of Project Managers to Enhance Cost Efficiency and Timeliness in Construction Projects. International Journal for Research in Applied Science and Engineering Technology, 13(9), 88–97. https://doi.org/10.22214/ijraset.2025.73987
Vacanas, Y., & Danezis, C. (2021). Determination of Effective Delay-Avoidance Practices in Construction Projects. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 13(1). https://doi.org/10.1061/(ASCE)LA.1943-4170.0000438
Welde, M., & Engebø, A. (2024). Cost and schedule performance in large government projects. IOP Conference Series: Earth and Environmental Science, 1389(1), 012027. https://doi.org/10.1088/1755-1315/1389/1/012027
Wilson, C. R., Tran, D., & Molenaar, K. R. (2015). Program Risk Management Approach to Reducing Cost Uncertainty in Highway Projects. Transportation Research Board 94th Annual Meeting.
Worldailmi, E., Wulandari, S., & Prawibowo, S. T. (2024). A literature review: Identification of risk factors in construction projects. 070018. https://doi.org/10.1063/5.0200991
You, T., Yoon, J., Kwon, O.-H., & Jung, W.-S. (2021). Tracing the evolution of physics with a keyword co-occurrence network. Journal of the Korean Physical Society, 78(3), 236–243. https://doi.org/10.1007/s40042-020-00051-5
Zarghami, S. A. (2024). Resilience to disruptions: a missing piece of contingency planning in projects. International Journal of Production Research, 62(17), 6029–6045. https://doi.org/10.1080/00207543.2024.2306474
Zhang, Liting, Zhang, Lingyun, & Ning, Y. (2023). A Resilience Approach to Project Cost Contingency Estimation. Proceedings of the 11th IPMA Research Conference “Research Resonating with Project Practices,” 293–301. https://doi.org/10.56889/eeqw5020
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Jatiaryo Sidiq Ramadhan, Agustinus Purna Irawan, Muhammad Idrus Taba
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).
