3rd South American International Conference on Industrial Engineering and Operations Management

Cost Overrun Factors During the Lifecycle Phases of Buildings Construction Projects in the United Arab Emirates

OMAR AFANA, Rahdi AlZubaidi & Doraid Dalalah
Publisher: IEOM Society International
0 Paper Citations
Track: Construction Management

Cost overruns are quite common in the construction industry. The phrase refers to extra project costs relative to what was initially estimated. Examples of causal factors that can lead to cost overrun include mistakes in design, inaccurate estimations, engineering variations, and reworks. Due to the unique nature of construction projects that is characterized by different time-phased stages and quality, cost overrun factors will have varied impacts during different phases of the project lifecycle. Although significant research has been done on the topic of cost overruns, the presence of this issue requires more investigation into the root causes in order to develop workable tools and mitigation measures. It is argued here that cost overruns can be more noticeable in countries with rapid growth, such as the United Arab Emirates (UAE). The main goal of this research is to identify the major factors causing cost overruns in UAE construction sector projects with the focus on four project lifecycle phases, namely, the design, bidding, construction and Defect Liability Period (DLP). The number of factors that could lead to cost overruns during different phases have been identified in the literature review. A survey was carried out on UAE-based projects with consideration for numerous stakeholders, including clients, contractors, and consultants. The study identifies a number of significant factors shaping cost overruns based on a practical evaluation of projects. This research will support future steps towards developing extensive tools to monitor and mitigate cost overruns in construction projects during different phases.

Published in: 3rd South American International Conference on Industrial Engineering and Operations Management

Publisher: IEOM Society International
Date of Conference: May 10-12, 2022

ISBN: 978-1-7923-9159-0
ISSN/E-ISSN: 2169-8767