Studying Causes of Cost Overrun in Road Projects in Yemen

Abstract

Cost overruns represent one of the most significant problems facing infrastructure projects, particularly the road projects. The aim of this study is to identify and rank the factors causing cost overrun in Yemen road construction projects. The study used descriptive and analysis methodology, and also used both qualitative and quantitative approaches to enhance the study findings. Based on literature review, conducting several interviews with experts, 30 factors Causing Cost Overrun were identified, and then conducting questionnaire surveys to determine the factors of probable cost overruns and their effects, and their importance index has been determined by merge frequency index and severity index. It was clear from the research that most road projects in Yemen suffer from cost overruns, and the results of this study defined the significant factors causing cost overrun of road construction projects in Yemen as: Increased material's prices, foreign currency fluctuation ,political and security instability, design changes and additional works, increased equipment operating costs, ineffective planning and scheduling ,design errors and quantities estimation omissions, lack of contractor's experience in the road projects, poor in equipment’s efficiency and inadequate modern equipment, and poor cash flow management for project. The findings demonstrate that factors related to “economic, financial, and political” constitute the primary causes of cost overrun in road construction projects in Yemen. The study findings are helpful project parties identify the factors that may cause cost overrun of future road projects and provide recommendations to reduce cost overrun in order to aim for more economically efficient road projects in Yemen.