Factors Influencing Cost Overrun: The Case Of Water And Sanitation Construction Project In Addis Ababa In Partial Fulfillment Of The Requirements For The Award Of Master Of Arts Degree In Project Management
No Thumbnail Available
Date
2017-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Among the many problems in construction projects, cost overrun is one of the prominent problem which has been broadly published in different literatures related to construction. In order to solve the problem one should identify the factors of cost overrun. Thus, this survey study was conducted aiming to sort out and rank the factors of cost overrun on water and sanitation construction projects in Addis Ababa Water and Sanitation Agency. This study was done using purposive sampling technique and 60 practitioners were selected. Based on a comprehensive literature review, 54 factors linked to project cost overrun in AAWSA projects were sorted out. Using these factors questionnaires were designed and distributed to 60 practitioners to evaluate the significant factors that affect project cost overrun. As a result 10 top rated factors were identified and ranked based on severity, frequency and important index. These are underestimating time requirements, Poor project control (cost, schedule and quality), Contractual claim (extension of time), Delay in construction, Inadequate supply of raw materials and equipment by contractors, Delays between design and procurement phases, Lowest bidding procurement procedures, inflation, Design error and omissions and Inadequate preconstruction study. The ten top factors were the highest impacts on the performance of project cost overrun from the client’s, consultants’ and contractors’ perspective. In conclusion poor project and poor resource management were the significant factors for cost overrun in AAWSA projects.
Description
Keywords
Cost, Overrun, Construction