Project successes are usually measured on the basis of time, quality and works done within budget, hence the need to overcome cost and schedule overruns on construction projects. Cost and schedule overruns on construction projects can lead to disputes among construction parties, escalations of original contract price and contract terminations if not well managed. Therefore, the purpose of this study is to determine the factors causing project schedule and cost overruns, in Pune Province of India by comparing the planned and achieved schedule of the project and by comparing the actual and planned cost of the project The results of the study revealed the main factors and reasons causing schedule and cost overruns in construction of residential projects included: Delays in decision making; Poorly performed time estimation of the project tasks and activities; Unforeseen circumstances and factors hampered the progress; Internal conflicts within the project team; Poor work organization and planning and No advanced action taken by any of the parties involved. Hence, effective project planning, controlling and monitoring should be established to enhance project performance in order to minimise or avoid time and cost problems in residential construction projects.