Abstract
M.Ing. (Engineering Management)
This paper presents factors contributing significantly to deviations from the initial estimated
budgets of construction projects, specifically focusing on the coal-fired power station projects
in South Africa. The research design chosen for this study is descriptive in nature, and the
study was analysed through quantitative and qualitative data analysis methods. The study
began by identifying factors negatively affecting projects cost (causing cost overruns) in
large construction projects globally, through literature reviews. The study then investigated
the significance and/or applicability of the factors identified from other projects, on the
construction of coal-fired power station projects in South Africa. The study is aimed at
highlighting the significant factors for the purpose of assisting the organisations planning to
undertake similar projects in future. Questionnaires were used as data collection method. A
descriptive statistic method was used to analyse the significant factors identified. The
contributing factors identified range from the start of the project to the finalisation phase. The
study identified and ranked according to the relative importance, the following factors as
having the most significant influence to cost overrun in coal-fired power station projects:
overall systems designs and design interfacingintegration management, proper project
planning with attainable dates, contractual claims as a result of the extension of time with
cost claims and labour unrests, amongst others. The study also identified the following
factors for minimising project cost overruns: Developing complete and integrated
engineering designs from the start of the project, Developing a proper project plan, Effective
project progress monitoring and controls, Proper Integration and Interface management. On
the side of the organisation leading the project (client), a proper planning from the feasibility
stage, throughout the project life and post the project life is recommended.