Causes of Construction Projects Cost Overrun in Brazil

Keywords: Construction projects, Cost overrun causes, Brazilian construction

Abstract

This paper presents a survey on construction projects cost performance in Brazil with an analysis of cost overrun causes of the works based on the contractors’ point of view. After a literature review and field research, several causes were identified and evaluated by frequency, severity, and importance through a questionnaire. The field survey conducted included 11 directors, 17 project managers and 19 area managers of different construction companies. Eighty-five causes of cost overrun were identified and classified in 11 departments with internal and external influences. The research shows that 71% of the 238 contracts of the study have their costs exceeded, being 82% in amounts up to 25% of the initial agreement and 18% above 25%. The most striking causes identified by the three parties were the change of scope, lack of design detail during budgeting, and high indirect cost in a period of low productivity.

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Author Biography

Assed Naked Haddad, Universidade Federal do Rio de Janeiro
Professor of Civil and Environmental Engineering, Ph.D.
Published
19-06-2018
How to Cite
França, A., & Haddad, A. N. (2018). Causes of Construction Projects Cost Overrun in Brazil. International Journal of Sustainable Construction Engineering and Technology, 9(1), 69-83. Retrieved from https://publisher.uthm.edu.my/ojs/index.php/IJSCET/article/view/1876
Section
Articles