Significant Factors Causing Cost Overruns in the Construction Industry in Afghanistan

Abstract

It is generally acknowledged that one criterion for judging the success of a construction project is whether it is completed within budget. Due to various factors, this is often more of a challenge in developing countries where budget problems are just one factor in often poor project performance. In Afghanistan, construction cost overruns are the most substantial problem (facing all parties to a project; suppliers, subcontractors, main contractors and clients). This research aims to identify the significant factors that lead to construction cost overruns in Afghanistan. The finding of the research is that the key critical causes that potentially result in construction cost overruns in Afghanistan are: corruption, delay in progress payment by owner, difficulties in financing project by contractors, security, change the order by the owner during construction and market inflation.