IJIMT 2017 Vol.8(2): 137-143 ISSN: 2010-0248
doi: 10.18178/ijimt.2017.8.2.717

Construction Projects Cost Overrun: What Does the Literature Tell Us?

Abdulelah Aljohani, Dominic Ahiaga-Dagbui, and David Moore
Abstract— Construction industries have a poor reputation in terms of finishing projects on budget. Nine out of ten projects normally experience cost overrun. Different causes for cost overrun have been identified. This paper critically reviews the literature concerning cost overrun in construction projects in different countries to identify the main potential causes. 173 causes of cost overrun have been found in seventeen contexts with the main potential causes being: frequent design change, contractors’ financing, payment delay for completed work, lack of contractor experience, poor cost estimation, poor tendering documentation, and poor material management.

Index Terms— Construction projects, cost overrun, literature review.

The authors are with the Scott Sutherland School of Architecture and Built Environment, Robert Gordon University, Garthdee Road, Aberdeen, AB10 7QB, Scotland, UK (e-mail: a.s.a.aljohani@rgu.ac.uk, d.m.moore@rgu.ac.uk, d.d.ahiaga-dagbui@rgu.ac.uk).

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Cite: Abdulelah Aljohani, Dominic Ahiaga-Dagbui, and David Moore, " Construction Projects Cost Overrun: What Does the Literature Tell Us?," International Journal of Innovation, Management and Technology vol. 8, no. 2, pp. 137-143, 2017.

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