Major causes of construction time and cost overruns

In Ghana, the duration of construction projects from inception to completion is becoming a great concern, recently, especially among clients and beneficiaries, because of the rising interest rates, inflation, development plan targets, among other factors. Hence the need to understand the causes of delays and cost overrun in the construction sector has become more important than ever. This study therefore aims to identify the major factors underlying time and cost overruns in projects related to the education sector in Ghana to proffer practical solutions in addressing them.,The study conducted a survey among clients’ consultants and representatives of the contractors working on about 60 government school projects. A relative importance index was used to determine the relative effects of the factors causing construction time and cost overruns.,The key factors causing construction time overrun were: financial problems, unrealistic contract durations imposed by clients, poorly defined project scope, client-initiated variations, under-estimation of project cost by consultants, poor inspection/supervision of projects by consultants. Other factors were underestimation of project complexity by contractors, poor site management, inappropriate construction methods used by contractors and delays in the issuance of permits by government agencies. Factors affecting cost overruns were financial difficulty by client, delays in payments of completed works, variations in designs, lack of communications plans, poor feasibility and project analysis, poor financial management on site and material price fluctuations.,The research was limited to only the educational sector projects.,Practically, this study highlights for the construction sector the critical factors causing project time and cost overruns in Ghana. Identification of these factors provides the basis for pragmatic solutions to enhance the chances of project success.,The identification and solutions to project time and cost overruns, especially for educational sector projects, contribute toward making public goods more affordable and accessible to most citizens, particularly in developing countries.,This study contributes to the debate on factors causing project time and cost overruns in the construction sector especially from a developing country’s perspective.

[1]  Sadi Assaf,et al.  Causes of Delay in Large Building Construction Projects , 1995 .

[2]  Mohan Raj Manavazhi,et al.  Material and equipment procurement delays in highway projects in Nepal , 2002 .

[3]  G. Otim,et al.  An Assessment of the Factors Causing Delays on Building Construction Projects in Uganda , 2014 .

[4]  Mohan M. Kumaraswamy,et al.  Delays and cost overruns in the construction projects in the Gaza Strip , 2009 .

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

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

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

[8]  Mohammed Al-Khalil,et al.  Important causes of delay in public utility projects in Saudi Arabia , 1999 .

[9]  Long Le-Hoai,et al.  Delay and cost overruns in Vietnam large construction projects: A comparison with other selected countries , 2008 .

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

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

[12]  Daniel C. Okpala,et al.  Causes of High Costs of Construction in Nigeria , 1988 .

[13]  Henry Mwanaki Alinaitwe Improvement of Labour Performance and Productivity in Uganda´s Building Industry , 2008 .

[14]  A. Uchechukwu Elinwa,et al.  Construction Cost Factors in Nigeria , 1993 .

[15]  Paul. Olomolaiye,et al.  Attributes of UK construction clients influencing project consultants' performance , 1994 .

[16]  Ernawati,et al.  The significant factors causing delay of building construction projects in Malaysia , 2007 .

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

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

[19]  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 .

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

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

[22]  Chabota Kaliba,et al.  Cost escalation and schedule delays in road construction projects in Zambia , 2009 .

[23]  Ayman H. Al-Momani,et al.  Construction delay: a quantitative analysis , 2000 .

[24]  Sherif Ali Mohtady Mohamed,et al.  Risk management in building projects in Palestine: contractors’ perspective , 2008 .

[25]  Søren L. Buhl,et al.  How common and how large are cost overruns in transport infrastructure projects? , 2003 .

[26]  Samuel Labi,et al.  An Analysis of Cost Overruns and Time Delays of INDOT Projects , 2004 .

[27]  Frank Fugar,et al.  Delays in Building Construction Projects in Ghana , 2010 .

[28]  Vasja Vehovar,et al.  Design of Web Survey Questionnaires: Three Basic Experiments , 2006, J. Comput. Mediat. Commun..

[29]  Nashwan Dawood,et al.  Comparative study of delay factors in Libyan and the UK construction industry , 2012 .

[30]  Ismail Abdul Rahman,et al.  Modeling Causes of Cost Overrun in Large Construction Projects with Partial Least Square-SEM Approach: Contractor's Perspective , 2013 .

[31]  G. O. Jagboro,et al.  The effects of construction delays on project delivery in Nigerian construction industry , 2002 .

[32]  Samuel Famiyeh,et al.  Analysing delay causes and effects in Ghanaian state housing construction projects , 2015 .

[33]  Nabil I. El-Sawalhi,et al.  Contributors to construction delays in Palestine , 2003 .

[34]  Ronald McCaffer,et al.  FACTORS OF NON-EXCUSABLE DELAYS THAT INFLUENCE CONTRACTORS' PERFORMANCE , 1998 .

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

[36]  Abdulaziz M. Jarkas,et al.  Major construction risk factors considered by general contractors in Qatar , 2015 .

[37]  sang-woo Jo,et al.  A Study on , 2016 .

[38]  M. M. Dlakwa,et al.  Reasons for overrun in public sector construction projects in Nigeria , 1990 .

[39]  Wail Menesi Construction Delay Analysis under Multiple Baseline Updates , 2007 .

[40]  Hesham A. Bassioni,et al.  Causes of Delay in Building Construction Projects in Egypt , 2008 .

[41]  Sabah Alkass,et al.  Construction contractor's claims analysis: An integrated system approach , 1991 .

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