Title: Significant contributors to construction cost overruns: findings of Kuwait

Authors: Abdulaziz M. Jarkas; Sasa Marenjak

Addresses: Projects Development Department, Al Mazaya Holding Co., KSCP (Holding), P.O. Box 3546, Safat 13036, Kuwait ' Faculty of Civil Engineering, University of Osijek and Zagreb, P.O. Box 716, HR-3000, Osijek, Croatia

Abstract: Notwithstanding the improvements of project management accomplished over the years, cost overrun continues to be among the critical problems within the construction industry, and the State of Kuwait is no exception. The main objective of this investigation, therefore, is to identify, explore, and rank the relative importance of the contributors to construction cost overruns in the state. To achieve this objective, a structured questionnaire survey comprising 45 factors was distributed to a statistically representative sample of contractors. Using the relative importance index technique, the significant contributors related to the client, consultant, contractor, and external groups are identified. The results can be used by academics, industry practitioners, clients, and policy makers, to develop a wider and deeper perspective of the prominent causes established, which may lead to the development of reasonable control measures thereto, not only during the construction stages, but also along the evolution of the design phases of projects, thus assist in achieving an acceptable level of competitiveness and cost effective operation.

Keywords: construction costs; construction cost overruns; construction industry; building industry; construction projects; building contractors; Kuwait; project management; RII; relative importance index; clients; consultants; contractors; external groups; control measures; practitioners; policy makers; construction stage; design stage; competitiveness; cost effectiveness; risk management.

DOI: 10.1504/IJBEAM.2014.066147

International Journal of the Built Environment and Asset Management, 2014 Vol.1 No.3, pp.193 - 220

Received: 19 May 2014
Accepted: 28 May 2014
Published online: 20 Dec 2014 *

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