Implications of cost overruns and time delays on major public construction projects
Paper in proceedings, 2014

For decades, the construction industry has been characterized by costs exceeding budgetary limits and completion times reaching further than what was set out ini-tially. This has been particularly noticeable for large public construction projects where cost overruns and time delays have long been regarded a common occur-rence. Due to the magnitude and frequency of these overruns, they have come to pose a significant financial risk to both clients and contractors, in addition to the impact exerted on the sustainability of the project. In dealing with this, researchers, auditors and practitioners have suggested a broad range of solutions, ranging from technical and economical to psychological and political approaches. In doing so, the contractor’s role has been emphasized whereas the role of the client organization has often been overlooked. This paper which is based on a literature review investigates the occurrence of and the expla-nations for cost overruns and time delays in major construction projects from the public client’s perspective. It also explores the implications of cost overruns and time delays; the purpose of which is to offer an extended understanding of the re-lationship between the client’s actions and effects on cost, time and sustainability parameters.

sustainability

infrastructure

time delays

cost overruns

Author

Abderisak Adam

Chalmers, Civil and Environmental Engineering, Construction Management

Per-Erik Josephson

Chalmers, Civil and Environmental Engineering, Construction Management

Göran Lindahl

Chalmers, Civil and Environmental Engineering, Construction Management

Proceedings of the 19th International Symposium on the Advancement of Construction Management and Real Estate, 7-9 Nov 2014, Chongqing

Areas of Advance

Building Futures (2010-2018)

Production

Subject Categories

Construction Management

Economics and Business

Other Civil Engineering

More information

Created

10/8/2017