Understanding the underlying reasons behind time overruns of government building projects in Ghana

Abstract

Time overruns are common occurrences in the Ghanaian Construction Industry (GCI), inevitably resulting in budget overruns and eventual project abandonment. This paper presents the findings of a survey which aimed at exploring the severity, frequency and significant Critical Failure Factors (CFF) engendering time overruns in public building projects in Ghana. Thirty CFF were identified based on a two-tier strategy - extensive review of extant literature and exploratory interviews. A total of 240 structured questionnaires were administered to the three key stakeholders within the GCI - clients, consultants and contractors. Based on a response rate of 55%, the five most important factors that engender time overruns have been identified - recurrent default of interim payment by government, government’s refusal to pay local for interest on delayed payments, lengthy payment processes resulting in delays, difficulty in arranging for extra funds when projects exceed their initial budget and interference, bribery and conflict of interest in the selection of contractors. The results of a Spearman’s rank correlation test showed no difference in the viewpoints of the key respondents. The results of this paper have highlighted the widely held belief that most government contracts are poorly planned in the mist of government’s fiscal constraints. It is expected that the findings will provide deeper insight into the underlying factors influencing time overruns and provide pointers towards averting project delays.