Research Article

Causes, Effects, and Mitigation Measures of Time and Cost Overruns in Water Supply Projects: Case of Tigrai Region, Northern Ethiopia

Table 1

List of time and cost overrun factors [1, 6, 11, 17, 18, 20, 21, 2325].

NosFactor description
Causes of cost overrunCauses of time overrun

IOwner/consultant related
1Late hand over of construction sitesLate hand over of construction sites
2Late approval of design documentsDelay in progress payments
3Change orderDelay in approval of shop drawings and samples
4Faulty design documentationSlow decision-making
5Additional agreementChange order
6Client’s shortage of finance or delayed payments to contractorsIncomplete estimation of the project
7Executive bureaucracy in the client’s organizationAdditional agreement
8Inadequate design supervisionFailure to choose appropriate contractor
9Cost underestimationThe weakness of the consultant in terms of planning and supervising
10Lack of sufficient experience of consultantsLack of the consultant’s knowledge about the location of the project
11Acceleration required by ownerPoor contract management of the owner/consultant
12Need to update the design solutions as a result of technological progress
13Mistakes and discrepancies in contract documents

IIContractor related
14Inexperienced contractorOffering low price in tender
15Failure to identify timely design and programming changesContractor’s financial difficulties
16Contractor’s bankruptcyMistakes during construction and rework
17Cost underestimationPoor communication b/n contractor and other parties
18Difficulties in finding construction materials in the local marketIneffective planning and scheduling of projects by contractor
19Poor communication b/n contractor and other partiesImproper construction methods
20Mistakes during construction and reworkDelays in subcontractor’s work
Insufficient delegation of power to the site management team

IIIProject related
21Complexity of construction projectsComplexity of construction projects
22Size of projectSize of project
23Location of projectLocation of project

IVDesign related
24Design errors and changesLack of consistency between bill of quantities and drawings
25Lack of consistency between bill of quantities and drawingsDesign errors and changes
Poor specifications of materials

VMaterial related
26Shortage of materials and electromechanical equipment in local marketShortage of construction materials and electromechanical equipment in market
27Delay in material deliveryDelays in material import (pipes, fittings, etc.)
28Inconstancy of the price of materialsNoncompliance of imported materials with the contract specifications
29Inappropriate/misuse of materialChanges in material types and specifications during construction
30Poor procurement programming of materialsRestrictions on issuing permits to transport material

VIEquipment and labor related
31Equipment availability and failureShortage of equipment and frequent breakdown
32Low productivity and efficiency of equipmentLow productivity and efficiency of equipment
33Fluctuation in the cost of laborLack of qualified production labors
34Lack of qualified production labor
35Weak motivation

VIIExternal factors
36InflationInflation
37Severe weather conditionsSevere weather conditions
38Unexpected ground conditionsDelay in obtaining permits and services from local authorities and other organizations such as electricity board
39Changes in foreign exchange rate (for imported materials)Changes in government laws and regulations
40Effect of social and cultural factorsForce majeure (such as war, hostilities, riot, strike, political and economic instability, explosive materials, contamination, and earthquake)
41Corruption
42Fossils or discovery of things of geological or archaeological interest
43Changes in government laws and regulations
44Force majeure (such as war, terrorism, riot, strike, explosive materials, radiation, and earthquake)