The frequency and significance of the primary cause of cost overruns in infrastructure projects

Abstract

Many road construction projects often go over budget. Take longer than expected. This research focuses on pinpointing the reasons, for delays and cost increases in road construction ventures in Libya. A survey was conducted with owners, consultants and contractors involved in road projects in Libya resulting in 163 completed questionnaires being analyzed. The study examined 55 factors identified through literature review. Improper planning emerged as the factor leading to project delays and cost overruns in road projects. Respondents ranked factors based on their impact with the top five issues being lack of experience with contracts, political instability, unrealistic contract durations and insufficient details and specifications. The insights gained from this study can aid all parties involved in construction projects to better handle delays and cost overruns. Researchers focusing on delay causes and cost escalations, in developing countries within the realm of road construction can also benefit from these findings.

Keywords

• construction delay
• cost overrun
• road construction project
• risk management

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