Analysis of Cost Overrun and Schedule Delays of Infrastructure Projects in Low Income Economies: Case Studies in Ethiopia

Table 1

Risk factors leading to cost overrun.

Category	Risks leading to cost overrun	Ref.
Client/owner	Type of client (public/private)	[3, 20, 21]
	Client’s experience level	[8, 22]
	Client’s initial brief (clear scope definition)	[20, 22]
	Effective communication between client and design team	[8, 23, 24]
	Client attitude towards changes (variations)	[25]
	Client’s budget/cash-flow constraints	[7, 21, 25]
Consultant	Clear and detailed drawings and specification	[7, 22, 26]
	Competency and experience of the consulting firm	[20, 25]
	Availability of database for historical cost data	[21]
	Accuracy and reliability of cost related information	[22, 23]
	Project’s team experience on project type	[9, 21]
	Completeness of cost information/estimation	[5, 14, 22]
	The estimating method used	[3]
	Level of involvement of the project manager	[9, 20]
	Quality of information and requirements between experts	[7, 22, 26]
	Time allowed for preparing cost estimates	[8]
	Risk sharing between the parties	[9, 20, 27]
Contractor	Clarity of project information before execution	[10, 28]
	Complexity of design and construction	[29]
	Clarity and quality of drawings before tendering	[3, 22, 30]
	Quality of information flow during execution	[9, 26, 31]]
	Availability of resources (labor, material, and equipment)	[32]
	Accuracy of bill of quantities	[8, 31]
	Method of construction and construction technique	[5, 7, 20]
	Type of project (residential, commercial)	[28, 33]
	Type of project structure (concrete, steel, masonry)	[26, 32]
	Project size and complexity	[33]
	Site conditions (topography, hot area, etc.)	[23]
	Site constrains (access, storage, electricity, etc.)	[21, 22, 30]
	Changes in project schedule, phasing requirements	[22, 31]
Contract administration	Financial status of the owner	[5, 32]
	Type of currency	[7, 9, 10]
	Method of payments and its approval period	[33]
	Delivery method and contractual arrangement	[14, 33]
	Advanced payment arrangement	[8, 34]
	Method of solving disputes	[9, 28, 29]
	Liquidated damage amount	[23]
	Amount and percentage of retention	[33, 34]
	Type and value of insurance	[3]
Project risks	Social aspects of the project (hot spots, near settlements)	[21, 29, 32]
	Segmentation (limitation of movement between areas)	[20, 33]
	Political situation of the country	[7]
	Expected natural forces (floods, storms)	[33, 35]
Market conditions (external factors)	Level of workmanship (productivity, performance)	[30, 35, 36]
	Market conditions/economic climate	[7, 14]
	Level of competition (number of competitors)	[33]
	Inflation (increase in unit cost of construction materials)	[20, 23, 26]
	Material availability (including raw materials)	[9, 22, 33]
	Labor availability and cost	[7, 23]
	Currency exchange fluctuation	[20]
	Impact of government regulations requirement	[14]
	Unforeseeable fluctuation in labor, materials prices	[10, 26, 27]
	Machinery (cost/availability/performance)	[21, 28]