Abstract
Implementation of construction works within the stipulated budget is vital for
both the
investor and the contractor. Yet construction projects, even those perfectly planned and organised,
run
the risk of cost overruns. Despite many tools supporting construction management, cost overruns
keep occurring in construction projects. The present paper presents the findings of a survey aimed
at identifying the most important causes and effects of cost overruns on construction projects in
Gauteng - South Mrican construction industry. The data used in this paper were derived from both
primary and secondary sources. The secondary data was collected via a detailed review of related
literature. The primary data was collected through a well-structured questionnaire which was
distributed to construction professionals, who include: Architects, quantity surveyors, civil
engineers, construction mangers and project managers. Out of the 200 questionnaires sent out, 146
were received back representing a 73% response rate. Data received from the questionnaires was
analysed using descriptive statistics procedures. Findings from the study revealed that inadequate
planning, change in project design, poor project management, inadequate financial provision and
inaccurate estimates were the major causes of cost overruns. Furthermore, the effects of cost
overruns were identified to be construction project delays, increase in project cost due to
extension on time, liability of companies to bad debt, project abandonment and company insolvency
among others. The study contributes to the body of knowledge on the subject of the causes of
construction project schedule overruns in Gauteng, South Africa.