Thesis Open Access

COST OVERRUN IN ADDIS ABABA SAVING HOUSE CONSTRUCTION PROJECTS

GIRUM MOGES T/HAIMANOT; Dr. Teklu Kasu


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    <subfield code="a">Cost overrun is considered as one of the most significant problems that weigh down projects progress and leaving the project in great troubles. Mostly in developing countries like Ethiopia construction projects are characterized by overruns in cost. In Ethiopia Cost overruns occur in every construction projects but the magnitude varies significantly from project to project. This leads to severe need of addressing the acute issue of construction cost overrun. Therefore, the main objective of this research was to dig out the main causes and effects of cost overrun in 40/60 saving house construction projects. To accomplish the objective of the research, questionnaire survey and desk study was conducted. A total of 52 questionnaires were collected from client, contractor and consultants. Budget scarcity by client, poor procurement and delay supply of raw materials, Financial difficulties by contractor, Delay in construction, Poor financial planning and management, Delay in decision making, Market inflation, failure of specific coordinating, Poor material and Equipment handling on site and Infrastructure problems are found to be main causes from 47 supposed factors and desk study. The magnitude of cost overrun was 30-51%, and all stakeholders, construction industries, the government and highly the end users have been affected by this cost</subfield>
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