The cause of cost overrun on construction project; The case of International Rescue Committee, Ethiopia Country Program .

Abstract

The study aims to identify the cause of cost overrun on donor funded construction project: A case study in International Rescue Committee. To achieve the “general and specific objectives” the study was look the cause of cost overrun in the concept of contractor related cause, Contract management process cause, client related cause, external related cause and level of compotator are the major cause for the occurrences of cost overrun. This study also used to explanatory/ descriptive research design and quantitative research approach were used and the primary sources of data were collected from 149 respondent who involved on construction project in International Rescue Committee . The sampling techniques used in this study were purposive sampling methods. However, the sample was selected from employees of the organization that has direct or indirect involvement on construction project at different field office. The regression analysis result showed that the five major cause of cost overrun namely, the cause of cost overrun in the concept of contractor related cause, Contract management process cause, client related cause, external related cause and level of compotator , explained 50.8%of the variance in the cause of cost overrun. This indicates that these five major cause areas are vital for project managers to focus on if they want to reduce the cost overrun. Finally, this study recommended that in donor funded construction project the concerned body shall be provide a good planning and scheduling are continuing process during construction and match with the resources and time to develop the work to avoid cost overrun. All the stakeholders shall revise the bid document such as technical specification during bill of quantities development and the design of the project in a good way.