Title: Factors that influence cost overruns in South African public sector mega-projects

Authors: Molusiwa Stephan Ramabodu; Jacobus J.P. Verster

Addresses: Department of Quantity Surveying and Construction Management, University of the Free State, P.O. Box 339, Bloemfontein, South Africa ' Department of Quantity Surveying and Construction Management, University of the Free State, P.O. Box 339, Bloemfontein, South Africa

Abstract: The purpose of the study was to identify and analyse the main factors that influence the project cost and schedule overrun within the construction industry. A survey was conducted using questionnaires and personal interviews with selected professionals in the construction industry. The empirical analysis found the change in scope of work on site, incomplete design at the time of tender, contractual claims (extension of time with cost), lack of cost planning and monitoring of funds, and delays in costing variations and additional works as important. It is necessary to identify factors that may influence construction cost and schedule overruns at the start of the project in order to ensure a decrease in cost overruns and to improve the cost performance on megaprojects.

Keywords: contractual claims; cost overruns; design stages; megaprojects; South Africa; public sector; schedule overruns; construction industry; work scope; site works; incomplete designs; tenders; contractual claims; time extensions; cost planning; fund monitoring; costings; cost variations; additional works; construction costs; cost performance; project organisation; project management; project costs; cost management; contract management; contracts.

DOI: 10.1504/IJPOM.2013.053153

International Journal of Project Organisation and Management, 2013 Vol.5 No.1/2, pp.48 - 56

Published online: 31 Jan 2014 *

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