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Implications of Cost Overruns and Time Delays on Major Public Construction Projects

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Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate

Abstract

For decades, the construction industry has been characterized by costs exceeding budgetary limits and completion times reaching further than what was set out initially. This has been particularly noticeable for large public construction projects where cost overruns and time delays have long been regarded a common occurrence. Due to the magnitude and frequency of these overruns, they have come to pose a significant financial risk to both clients and contractors, in addition to the impact exerted on the sustainability of the project. In dealing with this, researchers, auditors and practitioners have suggested a broad range of solutions, ranging from technical and economical to psychological and political approaches. In doing so, the contractor’s role has been emphasized whereas the role of the client organization has often been overlooked. This paper which is based on a literature review investigates the occurrence of and the explanations for cost overruns and time delays in major construction projects from the public client’s perspective. It also explores the implications of cost overruns and time delays; the purpose of which is to offer an extended understanding of the relationship between the client’s actions and effects on cost, time and sustainability parameters.

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Authors and Affiliations

  1. Chalmers University of Technology, Gothenburg, Sweden

    Abderisak Adam, Per-Erik Josephson & Göran Lindahl

Authors
  1. Abderisak Adam
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  2. Per-Erik Josephson
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  3. Göran Lindahl
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Corresponding author

Correspondence to Abderisak Adam .

Editor information

Editors and Affiliations

  1. Chongqing University, Chongqing, China

    Liyin Shen

  2. Chongqing University, Chongqing, China

    Kunhui Ye

  3. Chongqing University, Chongqing, China

    Chao Mao

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Adam, A., Josephson, PE., Lindahl, G. (2015). Implications of Cost Overruns and Time Delays on Major Public Construction Projects. In: Shen, L., Ye, K., Mao, C. (eds) Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-46994-1_61

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