| Abstract: | In Ethiopia, particularly in Addis Ababa, the number of construction projects are
increasing from time to time. However, it becomes challenging to complete projects in the
allocated initial budget and time. This research carried out assessment on the causes of
time and cost overrun of construction projects. It’s explanatory research design by using
primary and secondary data sources. Desk study of 4 completed construction projects
were investigated and the result shows that all projects suffered from time and cost
overruns. The rate of time overrun ranges from 54% to 192%. The cost exceeds from 13%
to 120 % from contract time and cost.384 questionnaires were distributed for
professionals that work in different stakeholders, which are contractor, consultant &
client. Based on the analysis of the questionnaires all respondents (100%) agreed on the
existence of time and cost overruns in the construction projects. The major causes for the
time and cost overruns are shortage of material on the project site, budgeting & finance,
late decision making, setting unrealistic schedule and unrealistic contract period. The
respondent’s major recommendations to avoid time and cost overruns in the construction
projects are proper project planning & scheduling, use up-to-date technology &
construction method, improve productivity by properly utilizing resources and continuous
project evaluation & control the progress versus the initial time and cost plan |
