Role of Early Risk Identification in Reducing Project Delays and Cost Overruns
Keywords:
Risk Identification, Cost Overrun, Predictive Analytics, PMBOK, Project Risk Management, AI in Project Management, Early Warning SystemsAbstract
Project delays and cost overruns continue to affect construction, infrastructure, transportation, and information technology projects across the world. Studies conducted over the past two decades indicate that a large percentage of projects exceed planned cost and schedule targets due to inadequate planning, weak governance, and ineffective risk management practices. This paper presents a systematic review of the role of Early Risk Identification (ERI) in reducing project delays and cost overruns using published industry reports, project management studies, and global datasets from 2005–2025. The review examines the causes of project overruns, traditional and modern risk identification techniques, sector-specific evidence, and the growing role of technologies such as Artificial Intelligence (AI), Building Information Modelling (BIM), and digital twins in project risk management. The study also discusses behavioural and organizational barriers including optimism bias, weak stakeholder coordination, and delayed decision-making. The findings suggest that proactive risk identification significantly improves project performance by reducing schedule delays, improving cost control, and strengthening project governance. The paper concludes with practical recommendations for implementing structured ERI frameworks in modern project environments.
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Copyright (c) 2026 Kartavya Patil, Nishant Patil (Author)
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