Delay and cost overruns in Vietnam large construction projects: A comparison with other selected countries

In-planned duration and cost at project closing are the two of criteria of successful project and successful project management. In Vietnam, regularly, construction projects have met delays and cost overruns. This research has employed a questionnaire survey to elicit the causes of this situation by interviewing 87 Vietnamese construction experts. Twenty one causes of delay and cost overruns appropriate with building and industrial construction project were inferred and ranked with respect to frequency, severity and importance indices. Spearman’s rank correlation tests showed that there are no differences in the viewpoints between three principal parties in the project. A comparison of causes of time and cost overruns was done with various selected construction industries in Asia and Africa. Factor analysis technique was applied to categorize the causes, which yielded 7 factors: Slowness and Lack of constraint; Incompetence; Design; Market and Estimate; Financial capability; Government; and Worker. These findings might encourage practitioners to focus on delay and cost overruns problem that might have existed in their present or future projects.

[1]  N. Mansfield,et al.  Causes of delay and cost overruns in Nigerian construction projects , 1994 .

[2]  Andrew S. Chang Reasons for cost and schedule increase for engineering design projects , 2002 .

[3]  Tommy Y. Lo,et al.  Construction Delays in Hong Kong Civil Engineering Projects , 2006 .

[4]  Mohan M. Kumaraswamy,et al.  Contributors to construction delays , 1998 .

[5]  S. Ogunlana,et al.  Construction delays in a fast-growing economy: Comparing Thailand with other economies , 1996 .

[6]  Lynn Crawford,et al.  Causes of delay and cost overruns in construction of groundwater projects in a developing countries; Ghana as a case study , 2003 .

[7]  Stephen O. Ogunlana,et al.  Large construction projects in developing countries: a case study from Vietnam , 2004 .

[8]  Gary David Holt,et al.  Factors influencing construction time and cost overruns on high-rise projects in Indonesia , 1997 .

[9]  Sameh M. El-Sayegh,et al.  Significant factors causing delay in the UAE construction industry , 2006 .

[10]  N. Kartam,et al.  Delays and cost increases in the construction of private residential projects in Kuwait , 2005 .

[11]  Sadi Assaf,et al.  Causes of delay in large construction projects , 2006 .

[12]  Stephen O. Ogunlana,et al.  A study on project success factors in large construction projects in Vietnam , 2004 .

[13]  U. Sekaran,et al.  Research Methods for Business : A Skill Building Approach (5th Edition) , 1992 .

[14]  A. M. Odeh,et al.  Causes of construction delay: traditional contracts , 2002 .

[15]  Mohan M. Kumaraswamy,et al.  An evaluation of construction time performance in the building industry , 1996 .

[16]  Ayman Abu Hammad,et al.  Delays in construction projects: The case of Jordan , 2008 .

[17]  U. Sekaran Research Methods for Business , 1999 .

[18]  Mohan M. Kumaraswamy,et al.  Comparing contributors to time and cost performance in building projects , 1998 .

[19]  Young-Dai Lee,et al.  Investigating delay factors in construction industry: A Korean perspective , 2006 .

[20]  Ajibade A. Aibinu,et al.  Construction delays and their causative factors in Nigeria , 2006 .

[21]  Elmer B. Mode,et al.  Elements of Statistics , 1942, Agronomy Journal.

[22]  Murali Sambasivan,et al.  Causes and effects of delays in Malaysian construction industry , 2007 .