Causes of Cost Overrun in Federal Road Projects of Ethiopia in Case of Southern District
American Journal of Civil Engineering
Volume 5, Issue 1, January 2017, Pages: 27-40
Received: Oct. 11, 2016; Accepted: Oct. 22, 2016; Published: Jan. 5, 2017
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Authors
Ashebir Shiferaw Belachew, School of Civil and Environmental Engineering, Jimma University Institute of Technology, Jimma, Ethiopia
Wubishet Jekale Mengesha, School of Civil and Environmental Engineering, Addis Ababa University Institute of Technology, Addis Ababa, Ethiopia
Murad Mohammed, School of Civil and Environmental Engineering, Jimma University Institute of Technology, Jimma, Ethiopia
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Abstract
One of the problems has been broadly published in different literature related to construction project management is project cost overrun. To fill this gap, the study on causes of cost overrun was conducted. It was conducted on 18 road construction projects with eight case studies which is found under the southern district of Ethiopian Road Authority. Based on a comprehensive literature review and archives, 40 factors linked to project cost performance were acknowledged for analysis. Based on the percentage of maximum score rank of 40 identified factors, six top rated factors were identified. These are material price fluctuation, cost underestimation, delay in supply of raw materials, inadequate review of contract documents, lack of coordination at the design phase and lack of cost planning during pre- and post- contract stage have the highest impacts on the performance of project costs from the client’s, consultants’ and contractors’ perspective. This study has been done through survey and case study to generate raw data. The questionnaires were distributed to 54 practitioners to evaluate the significance of the factors that causes the project cost overrun. In addition, case studies were used to find the magnitude of cost overrun on selected projects by an in-depth analysis of an archive of each project. The magnitude of cost overrun among selected project extended from 4.16% to 83.2%. While the average magnitude of cost overrun was nearly 21.52%, this is a significant amount when it compared with the number of projects.
Keywords
Construction Phase, Project cost Estimation, Project Cost Extent, Project Cost Management, Project Cost Overrun, Project Scope
To cite this article
Ashebir Shiferaw Belachew, Wubishet Jekale Mengesha, Murad Mohammed, Causes of Cost Overrun in Federal Road Projects of Ethiopia in Case of Southern District, American Journal of Civil Engineering. Vol. 5, No. 1, 2017, pp. 27-40. doi: 10.11648/j.ajce.20170501.15
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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