Analyzing The Causes of Project Failure and Cost Overruns in Building Construction Industry by Using a Mixed-Methods Approach

Abstract

This study investigated the reasons for project failures and cost overruns in building construction. The building construction industry is well known for chronic issues such as fragmentation, cost overruns, poor working conditions, and insufficient quality, all of which result in project failure. Project failure and cost are the two most essential indicators of success in a construction project because they have an equal impact on all project participants, both favorably and negatively. These problems have been evident for many years across the global construction industry, requiring the identification of the primary causes to address these challenges. The use of both quantitative and qualitative approaches was important, as it made it easier to accomplish the overall goal of solving the problem because quantitative data were collected via surveys and qualitative data were collected through interviews. Data was gathered from 104 team members in Pakistan's building construction industry. The top five reasons for project failure were poor project management, poor design, frequent design changes, design errors, bureaucracy, corruption, poor quality, and poor site management. The top five reasons for cost overruns were poor start-up planning, poor project cost estimation, poor weather conditions, political situations, and the economic instability of the country. Minimizing these factors can contribute to a greater probability of project success and overall improvement in the construction industry.