Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part I (Ranking of Cost Overrun Factors and Risk Mapping)

Abstract

Cost performance is one of the basic criteria for measuring construction project success. Despite its proven importance it is not uncommon to see a construction project failing to achieve its objectives within the specified cost. The paper attempts to identify the major causes of cost overrun in Bahrain construction sector, and to assess the effect of these causes on cost overrun.  A list of these causes was collected through an extensive literature review, historical construction projects records and expert opinions. In total 45 factors were short-listed to be made part of questionnaire used in a survey conducted with representatives from local contracting, consulting, and client firms. Findings are presented in form of tables that classify cost overrun factors, and their ranking. The overall results showed that frequent design changes, mistakes during construction, and schedule delay were considered as the most important factors of cost overrun causes in Bahrain construction industry.