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    Causes of cost overrun in construction projects in developing countries: Gas-oil construction industry of Iran, a case study

    TitleCauses of cost overrun in construction projects in developing countries: Gas-oil construction industry of Iran, a case study
    Publication TypePapers in International Journals
    Year of Publication2014
    AuthorsDerakhsan R., and Teixeira J. M. C.
    Abstract

    Cost overrun in construction projects is a common issue affecting project performance, and Gas-Oil construction projects in Iran are no exception. This paper presents the results of a questionnaire conducted to identify and evaluate the relative importance of the significant factors contributing to the Gas-Oil construction industry of Iran as a case study for developing countries. The survey respondents included project owners, contractors and consultants involved in Iranian Gas-Oil construction projects. The results of the survey revealed that the main causes of cost overrun in this industry include inaccurate cost estimations, improper planning, frequent design changes, inadequate labour/skill availability, inflation of costs of machinery, labour, raw material and transportation prices.  The first three factors are the project consultants' responsibilityand the appointment of qualified consultants and personnel training are strongly recommended to alleviate cost overrun. The paper also reviews and compares findings of a set of similar researches in a number of developing countries.

     

    JournalJournal of Civil Engineering and Management
    Date Published2014-11-21
    PublisherVILNIUS GEDIMINAS TECH UNIV
    ISSN1392-3730
    KeywordsCost issues, developing countries, Gas-Oil, Iran
    RightsopenAccess
    Peer reviewedno
    Statuspublished
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    About CTAC

    The Centre for Territory, Environment and Construction (CTAC) is a research unit of the School of Engineering of University of Minho (UMinho), recognised by the “FCT – Fundação para a Ciência e Tecnologia” (Foundation for Science and Technology), associated to the Department of Civil Engineering (DEC), with whom it shares resources and namely human resources.

    Currently CTAC aggregates 24 researchers holding a PhD of which 20 are faculty professors of the Civil Engineering Department. Read more


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