An Investigation on the Causes and Effects of Cost Overrun on Civil Works Projects in Mombasa County.
Nyabwari, Elijah Nyamoki
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Many projects experience cost overrun and thereby exceed initial contract amount. In Kenya, the number of public building construction projects is increasing from time to time. However, it becomes difficult to complete projects in the allocated cost budget. Taking into account the scarce financial resources of the country, cost overrun is one of the major problems in Kenya. The aim of this study was to investigate the causes of construction project cost overruns in Kenya's public sector and the study of the public sector in the Mombasa County. Specifically, the study was intended to identify the causes and effects, and then rank them according to their frequency, severity and importance. Questionnaire survey was used to collect data on cost overrun. Questionnaires from clients, consultants and contractors were collected and a , . desk study of 30 completed civil works projects in Mombasa was also investigated. From the results the researcher was in a position to assess the projects that suffered cost overrun. The respondents identified the causes of cost overrun for Mombasa and therefore the researcher was able to rank them accordirigly'frojn the most critical to the less considerable factor. The study illustrated that Materials cost increase, tendering man oeuvres by contractors, ignoring items with abnormal rates during tender evaluation; especially items with provisional quantities are among the major causes of cost overrun. The study recommended owners, contractors, and consultants to hold their responsibilities to avoid any delay or cost overrun which could be achieved by good management of the project and finding new methods for storing the needed materials from the beginning of the project. The findings were investigated and analyzed using descriptive statistics. The results of this research should help construction practitioners, investors, policy makers and researchers in the field of construction management in managing overruns.
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