IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/96788.html
   My bibliography  Save this paper

Cost overrun factors in construction industry: a case of Zimbabwe

Author

Listed:
  • Nyoni, Thabani

Abstract

Cost overruns (the amount of money by which actual costs exceed the initially approved costs) continue to characterize a plethora of construction projects, especially large projects. This is the reason why the hot debate in the construction industry on how to minimize cost overruns has been on for some time, especially among construction economists and engineers and yet the inability to complete construction projects within the budget remains a chronic problem worldwide. In Zimbabwe, it is now almost obvious that once a construction project has commenced; it will not be completed within the initial project budget. This study seeks to empirically determine cost overrun factors in the construction industry in Zimbabwe. From the analysis of the questionnaire, cost overrun factors were ranked using the Relative Importance Index (RII) technique. The overall results analysis indicate that poor estimation of original cost, lack of timeous reports during construction stage, corruption, construction productivity and contractual claims are amongst the top ten most important factors causing construction cost escalation. The study managed to come up with recommendations which are 7 – fold and are envisaged to help construction economists, managers and policy makers in initiating positive changes in the construction industry in Zimbabwe.

Suggested Citation

  • Nyoni, Thabani, 2019. "Cost overrun factors in construction industry: a case of Zimbabwe," MPRA Paper 96788, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:96788
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/96788/1/MPRA_paper_96788.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hong Xiao & David Proverbs, 2002. "The performance of contractors in Japan, the UK and the USA: a comparative evaluation of construction cost," Construction Management and Economics, Taylor & Francis Journals, vol. 20(5), pages 425-435.
    2. Yakubu Adisa Olawale & Ming Sun, 2010. "Cost and time control of construction projects: inhibiting factors and mitigating measures in practice," Construction Management and Economics, Taylor & Francis Journals, vol. 28(5), pages 509-526.
    3. Swee Lean Chan & Moonseo Park, 2005. "Project cost estimation using principal component regression," Construction Management and Economics, Taylor & Francis Journals, vol. 23(3), pages 295-304.
    4. Akintola Akintoye, 2000. "Analysis of factors influencing project cost estimating practice," Construction Management and Economics, Taylor & Francis Journals, vol. 18(1), pages 77-89.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Construction cost; Construction industry; Relative Importance Index (RII); Zimbabwe;

    JEL classification:

    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:96788. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.