Project risk factors leading to construction cost overruns

Abstract

Most of the construction projects fail to be completed within cost and time. This study aimed to assess the project risk factors that lead to construction cost overruns. The study employed a quantitative research approach. A purposive sampling technique was used to source data from a sample size of 50 respondents. A survey questionnaire was used to collect data from professionals involved in designing and executing construction projects, based in Gauteng province in South Africa. The respondents include Architects, Engineers, Construction Project Managers and Quantity Surveyors. Data were analysed using the relative importance index. The top ten major causes of cost overruns were identified. Results revealed that incompetent contractors, lack of project risk governance, poor project controls, inadequate communication, inadequate planning, payment delays by project owners, inadequate knowledge about the project and its complexity, naccurate estimates, ineffective decision-making process, and poor contract management are risk factors for cost overruns. Project management companies could use this study's results to improve project control effectiveness