Factors Affecting Cost and Time Overruns on Road Construction Projects under Addis Ababa City Administration

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2017-06-02

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Abstract

The objectives of this research was to identify the most common and frequent factors of cost and time overrun in road construction projects of Addis Ababa city administration. In order to achieve this objective, the researcher implemented literature review research methodology and questionnaire survey. Employing these methods, the significance of factors contributing to delay and cost overruns within the projects of interest were identified and evaluated. The participants were selected from clients, contractors and consultants. A total of 94 questionnaires from client, consultants and contractors were collected and a desk study of 10 completed road construction projects in Addis Ababa were investigated. The agreement among the sets of rankings for delay and cost overruns were tested using statistical methods. From the results it was found that 100% of the road construction projects suffered both time and cost overrun. The rate of time overrun ranges from a minimum of 25% to the maximum of 264.38% of the contract amount and cost overrun ranges from a minimum of 4.11% to the maximum of 135.06% of the contract amount. Respondents identified 45 causes of time and cost overrun for Addis Ababa case. The most important causes of time overrun were delay to furnish and deliver the site (Right of way problem), financial problems and poor planning. Whereas the most important causes of cost overrun were found to be delay in construction, inadequate supply of raw materials and equipment by contractors, design changes, Incomplete design at the time of tender. The most common effects of cost overrun identified by this research are delay, supplementary agreement, adversarial relations among stakeholders, and budget shortfall of project owners. It is hoped that these findings will guide efforts to improve the performance of the construction industry in the future.

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Keywords

cost overrun, cause, effect

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