Cost and time overruns in commercial construction projects : an Australian study

Cost and schedule are two of most important performance indicators of construction projects. Cost escalation and time overruns are typically associated with poor management practices. Cost overruns and delays have huge impacts on construction projects in relation to the costs of a project, the reputation of the parties involved, and the satisfaction of the final product. Therefore, it is imperative to understand the causes of cost and time overruns so that mitigation measures can be set in place. A group of industry professionals in South Australia were surveyed on their perceptions of the factors contributing towards the cost and time overruns in commercial construction projects. The results showed that timeliness of decision making is ranked as the top factor contributing towards delays whereas problems with design is perceived as most influential to the cost overruns. In addition, the questionnaire survey found that different parties, i.e. clients, contractors and consultants have different perceptions on the impacts of these factors. Similarly, the structural frame stage was considered the most critical stage for controlling the time and cost performance during the construction process. Implications are discussed.<br />