Journal of Construction in Developing Countries, 25(1), 129–146, 2020
© Penerbit Universiti Sains Malaysia, 2020. This work is licensed under the terms of the Creative Commons
Attribution (CC BY) (http://creativecommons.org/licenses/by/4.0/).
Time and Cost Overruns on Large Projects:
Understanding the Root Cause
*
Sitwala Simushi
1
and Jan Wium
2
Published online: 15 July 2020
To cite this article: Sitwala Simushi and Jan Wium (2020). Time and cost overruns on large projects: Understanding the root
cause. Journal of Construction in Developing Countries, 25(1): 129–146. https://doi.org/10.21315/jcdc2020.25.1.7.
To link to this article: https://doi.org/10.21315/jcdc2020.25.1.7
Abstract: Time and cost overruns are a persistent problem on large projects despite apparent
progress of the project management profession. This article reports on fndings from research
carried out on large projects in South Africa to fnd the root cause of this phenomenon. The
article begins by investigating the existing theories on the causes of time and cost overruns
followed by empirical investigation using case studies. The results showed that time and cost
overruns on large projects originated from the external environment which in turn affected
the organisation and the project environments. The root cause was found to be a lack of
project-specifc experience by the project team, external and organisational decisions in the
past, community resistance and pressure on the project team and scope change drive from
stakeholders. From the results, it is proposed that an effective strategy to reduce time and cost
overruns should involve not only the management of the project environment but also the
organisation and external environments. The article adds knowledge to the overrun causation
theory and management of large projects.
Keywords: Overruns, Root cause, Large projects, South Africa, Overrun causation theory
INTRODUCTION
The recurrent problem of time and cost overruns on large projects has been noted
by many scholars over the years (Dahl et al., 2017; Merrow, 2011; Morris and Hough,
1987; Mukuka, Aigbavboa and Thwala, 2015; Senouci, Ismail and Eldin, 2016). Most
scholars have attempted to understand this phenomenon by investigating singular,
independent causes or most signifcant factors that lead to time and cost overruns.
Few have attempted to understand in-depth, how time and cost overruns develop
in large projects (Love et al., 2014), or the interaction of the various variables leading
to time and cost overruns as noted by Ahiaga-Dagbui et al. (2015).
There is, therefore, an incomplete theory and understanding of the
phenomenon of time and cost overruns (Love, Ahiaga-Dagbui and Irani, 2016) as
conventional research has tended to use research methods which are ill-suited
for an in-depth understanding of the actuality of managing projects (AlSehaimi,
Koskela and Tzortzopoulos, 2013). The methods are dependent on the general
opinions of the practitioners, unlike project-specifc and contextual reality of
projects, thus making them superfcial, simplistic and mostly replicative as noted
by Ahiaga-Dagbui et al. (2015). This has, in turn, affected the approach to project
management strategies and solutions proposed.
1
School of Built Environment, Copperbelt University, ZAMBIA
2
Faculty of Engineering, Stellenbosch University, SOUTH AFRICA
*Corresponding author: simushis@yahoo.com