Causes Of Project Delay And Cost Overrun In Enyi Construction

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Addis Ababa University


Cost and time overruns are typical problems in many construction projects and there is no exception to ENYI Construction. This project work seeks to identify the major factors causing project delay and cost overrun in construction projects. A questionnaire and interview survey along with desk study was used to carry out the study. A valid questionnaire for the survey was developed based on factors for time overruns and factors for cost overruns identified from literature review. The survey included 39 delay factors/causes which were grouped into 8 major groups. The same survey also included 27 cost overrun factors grouped in to seven groups. Fifty nine (59) responses were received from employers, consultants, and project managers, field and office engineers from ENYI Construction. The collected data in this research were analyzed using: Relative importance index and descriptive statistics according to the collective group perspective. The results from the surveys and desk study showed that the most three factors causing project delays in construction projects from the collective group perspective of importance were: (1) ―Right of Way problems‖, (2) ―poor design‖, and (3) ―Delay of material delivery‖. The result also indicates that the most three factors causing cost overrun were: (1) ―Right of Way problems‖, (2) ―Design changes‖, and (3) ―poor inadequate project preparation, planning and implementation‖. Based on these result, there is no single point of accountability by one party instead all the three parties are equally liable for time and cost overruns in construction projects. Furthermore, the local administrators are advised to initiate a viable (Working) legislation to overcome the Right of way problems in immediate possible time.



Project Management, Time Overruns, Cost Overruns, Project Delay