Track: Project Management

Abstract

The cost overrun on projects brings about poor speculation comes back from the utilization of the undertaking, delay in the usage of the general population offices and expanded burden for people in general. Putting resources into foundation is a prime method to help financial development, enhance the social prosperity of populations, and advance territorial incorporation. In any case, unnecessary cost overruns result in expanded subsidizing needs and go about as an imperative to advancement. The objective of this study is to identify Building Contractors, Consultants and Clients perception on cost overrun in South Africa construction sector, examine factors that cause, or influence cost overrun in South Africa construction sector and identify the challenges in the construction sector regarding cost overrun. This study employs mixed methods that is an application of both quantitative and qualitative approaches to triangulate data. Based on the contractor’s, consultants, and building clients response on identification and ranking of the determinants that causes cost escalation in projects from most pressing cause to least causes, the study revealed factors as listed in order of most pressing factor as; Poor planning, Fluctuation of prices of project materials, High interest rates by bankers, Inflationary pressure, Cost of labor, Poor coordination between agents of construction, On site poor financial management, Inadequate local production of raw materials.

Keywords

Project, Cost Overrun, Construction sector, South Africa.