CAUSES OF TIME AND COST OVERRUN IN CONSTRUCTION PROJECTS. THE CASE OF BUILDING CONSTRUCTIONS IN ADDIS ABABA, ETHIOPIA.

Abstract

In Ethiopia, particularly in Addis Ababa, the number of construction projects are increasing from time to time. However, it becomes challenging to complete projects in the allocated initial budget and time. This research carried out assessment on the causes of time and cost overrun of construction projects. It’s explanatory research design by using primary and secondary data sources. Desk study of 4 completed construction projects were investigated and the result shows that all projects suffered from time and cost overruns. The rate of time overrun ranges from 54% to 192%. The cost exceeds from 13% to 120 % from contract time and cost.384 questionnaires were distributed for professionals that work in different stakeholders, which are contractor, consultant & client. Based on the analysis of the questionnaires all respondents (100%) agreed on the existence of time and cost overruns in the construction projects. The major causes for the time and cost overruns are shortage of material on the project site, budgeting & finance, late decision making, setting unrealistic schedule and unrealistic contract period. The respondent’s major recommendations to avoid time and cost overruns in the construction projects are proper project planning & scheduling, use up-to-date technology & construction method, improve productivity by properly utilizing resources and continuous project evaluation & control the progress versus the initial time and cost plan