Implications of Cost Overruns and Time Delays on Major Public Construction Projects

Abderisak Adam (), Per-Erik Josephson and Göran Lindahl
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Abderisak Adam: Chalmers University of Technology
Per-Erik Josephson: Chalmers University of Technology
Göran Lindahl: Chalmers University of Technology

Chapter Chapter 61 in Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate, 2015, pp 747-758 from Springer

Abstract: Abstract For decades, the construction industry has been characterized by costs exceeding budgetary limits and completion times reaching further than what was set out initially. This has been particularly noticeable for large public construction projects where cost overruns and time delays have long been regarded a common occurrence. 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 explanations 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 relationship between the client’s actions and effects on cost, time and sustainability parameters.

Keywords: Cost overruns; Time delays; Infrastructure; Sustainability (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-662-46994-1_61

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DOI: 10.1007/978-3-662-46994-1_61

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