Identifying Factors Leading to Cost Overrun in Construction Projects in Jordan

Abstract

The problem of cost overrun in construction industry is common worldwide and the construction industry in Jordan is no exception. The main objective of the study reported in this paper was to identify the causes of cost overrun in construction projects in Jordan. A comprehensive literature review from various sources was made to carry out the study. A questionnaire survey was conducted to find the causes of cost overrun related to clients, consultant, contractor, financial management, resources and external factors. More than 100 respondents participated in the survey. The survey identified 15 most important causes of cost overrun from a list of 49 different causes. The most important causes were: Schedule delay (time overrun), frequent design changes, changes and additional works at owner request, mistakes and errors in design, inadequate planning and scheduling, inflation/ prices fluctuation, change in the scope of work (by owner), incomplete drawings/ detailed design at the time of tender, shortage of skilled site workers, construction mistakes and defective works. In general the study revealed that all parties share responsibility for the cost overrun in the construction projects in Jordan.
Keywords: Cost overrun, construction projects, importance index, causes of cost overrun, management