Completion of a construction project with budget is frequently seen as a major criterion of project success by clients, contractors, consultants and related stakeholders. It is here that project management becomes essential tool for the delivery of effective projects than the traditional functional management. However, the construction industry is faced with challenges to meet budget. This study is conducted to identify the top five cost over-run factors and survey is conducted on 140 respondents. The samples were drawn using convenient sampling approach. Primary data is collected using the self-administered questionnaires. While secondary data is collected through reviewing of related materials and the analysis is conducted using SPSS version 20. As per the contractor’ response, the top five factors that causes cost overrun of construction projects were from medium to high. On the other hand, the top five factors as per the response of consultants and clients ranged between high to very high. The contractors outlined the top five factors that causes cost overrun in construction projects are poor planning, fluctuation of price of materials, poor productivity, inflationary pressure and project financing in descending order.
| Published in | International Journal of Business and Economics Research (Volume 4, Issue 4) |
| DOI | 10.11648/j.ijber.20150404.11 |
| Page(s) | 180-191 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Cost Overrun, Project Management, Project Control and Project Success
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APA Style
Zinabu Tebeje Zewdu, Getachew Teka Aregaw. (2015). Causes of Contractor Cost Overrun in Construction Projects: The Case of Ethiopian Construction Sector. International Journal of Business and Economics Research, 4(4), 180-191. https://doi.org/10.11648/j.ijber.20150404.11
ACS Style
Zinabu Tebeje Zewdu; Getachew Teka Aregaw. Causes of Contractor Cost Overrun in Construction Projects: The Case of Ethiopian Construction Sector. Int. J. Bus. Econ. Res. 2015, 4(4), 180-191. doi: 10.11648/j.ijber.20150404.11
AMA Style
Zinabu Tebeje Zewdu, Getachew Teka Aregaw. Causes of Contractor Cost Overrun in Construction Projects: The Case of Ethiopian Construction Sector. Int J Bus Econ Res. 2015;4(4):180-191. doi: 10.11648/j.ijber.20150404.11
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Download@article{10.11648/j.ijber.20150404.11,
author = {Zinabu Tebeje Zewdu and Getachew Teka Aregaw},
title = {Causes of Contractor Cost Overrun in Construction Projects: The Case of Ethiopian Construction Sector},
journal = {International Journal of Business and Economics Research},
volume = {4},
number = {4},
pages = {180-191},
doi = {10.11648/j.ijber.20150404.11},
url = {https://doi.org/10.11648/j.ijber.20150404.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150404.11},
abstract = {Completion of a construction project with budget is frequently seen as a major criterion of project success by clients, contractors, consultants and related stakeholders. It is here that project management becomes essential tool for the delivery of effective projects than the traditional functional management. However, the construction industry is faced with challenges to meet budget. This study is conducted to identify the top five cost over-run factors and survey is conducted on 140 respondents. The samples were drawn using convenient sampling approach. Primary data is collected using the self-administered questionnaires. While secondary data is collected through reviewing of related materials and the analysis is conducted using SPSS version 20. As per the contractor’ response, the top five factors that causes cost overrun of construction projects were from medium to high. On the other hand, the top five factors as per the response of consultants and clients ranged between high to very high. The contractors outlined the top five factors that causes cost overrun in construction projects are poor planning, fluctuation of price of materials, poor productivity, inflationary pressure and project financing in descending order.},
year = {2015}
}
TY - JOUR T1 - Causes of Contractor Cost Overrun in Construction Projects: The Case of Ethiopian Construction Sector AU - Zinabu Tebeje Zewdu AU - Getachew Teka Aregaw Y1 - 2015/07/14 PY - 2015 N1 - https://doi.org/10.11648/j.ijber.20150404.11 DO - 10.11648/j.ijber.20150404.11 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 180 EP - 191 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20150404.11 AB - Completion of a construction project with budget is frequently seen as a major criterion of project success by clients, contractors, consultants and related stakeholders. It is here that project management becomes essential tool for the delivery of effective projects than the traditional functional management. However, the construction industry is faced with challenges to meet budget. This study is conducted to identify the top five cost over-run factors and survey is conducted on 140 respondents. The samples were drawn using convenient sampling approach. Primary data is collected using the self-administered questionnaires. While secondary data is collected through reviewing of related materials and the analysis is conducted using SPSS version 20. As per the contractor’ response, the top five factors that causes cost overrun of construction projects were from medium to high. On the other hand, the top five factors as per the response of consultants and clients ranged between high to very high. The contractors outlined the top five factors that causes cost overrun in construction projects are poor planning, fluctuation of price of materials, poor productivity, inflationary pressure and project financing in descending order. VL - 4 IS - 4 ER -
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