|
Nos | Factor description |
Causes of cost overrun | Causes of time overrun |
|
I | Owner/consultant related |
1 | Late hand over of construction sites | Late hand over of construction sites |
2 | Late approval of design documents | Delay in progress payments |
3 | Change order | Delay in approval of shop drawings and samples |
4 | Faulty design documentation | Slow decision-making |
5 | Additional agreement | Change order |
6 | Client’s shortage of finance or delayed payments to contractors | Incomplete estimation of the project |
7 | Executive bureaucracy in the client’s organization | Additional agreement |
8 | Inadequate design supervision | Failure to choose appropriate contractor |
9 | Cost underestimation | The weakness of the consultant in terms of planning and supervising |
10 | Lack of sufficient experience of consultants | Lack of the consultant’s knowledge about the location of the project |
11 | Acceleration required by owner | Poor contract management of the owner/consultant |
12 | Need to update the design solutions as a result of technological progress | |
13 | Mistakes and discrepancies in contract documents | |
|
II | Contractor related |
14 | Inexperienced contractor | Offering low price in tender |
15 | Failure to identify timely design and programming changes | Contractor’s financial difficulties |
16 | Contractor’s bankruptcy | Mistakes during construction and rework |
17 | Cost underestimation | Poor communication b/n contractor and other parties |
18 | Difficulties in finding construction materials in the local market | Ineffective planning and scheduling of projects by contractor |
19 | Poor communication b/n contractor and other parties | Improper construction methods |
20 | Mistakes during construction and rework | Delays in subcontractor’s work |
| | Insufficient delegation of power to the site management team |
|
III | Project related |
21 | Complexity of construction projects | Complexity of construction projects |
22 | Size of project | Size of project |
23 | Location of project | Location of project |
|
IV | Design related |
24 | Design errors and changes | Lack of consistency between bill of quantities and drawings |
25 | Lack of consistency between bill of quantities and drawings | Design errors and changes |
| | Poor specifications of materials |
|
V | Material related |
26 | Shortage of materials and electromechanical equipment in local market | Shortage of construction materials and electromechanical equipment in market |
27 | Delay in material delivery | Delays in material import (pipes, fittings, etc.) |
28 | Inconstancy of the price of materials | Noncompliance of imported materials with the contract specifications |
29 | Inappropriate/misuse of material | Changes in material types and specifications during construction |
30 | Poor procurement programming of materials | Restrictions on issuing permits to transport material |
|
VI | Equipment and labor related |
31 | Equipment availability and failure | Shortage of equipment and frequent breakdown |
32 | Low productivity and efficiency of equipment | Low productivity and efficiency of equipment |
33 | Fluctuation in the cost of labor | Lack of qualified production labors |
34 | Lack of qualified production labor | |
35 | Weak motivation | |
|
VII | External factors |
36 | Inflation | Inflation |
37 | Severe weather conditions | Severe weather conditions |
38 | Unexpected ground conditions | Delay in obtaining permits and services from local authorities and other organizations such as electricity board |
39 | Changes in foreign exchange rate (for imported materials) | Changes in government laws and regulations |
40 | Effect of social and cultural factors | Force majeure (such as war, hostilities, riot, strike, political and economic instability, explosive materials, contamination, and earthquake) |
41 | Corruption | |
42 | Fossils or discovery of things of geological or archaeological interest | |
43 | Changes in government laws and regulations | |
44 | Force majeure (such as war, terrorism, riot, strike, explosive materials, radiation, and earthquake) | |
|