Abstract:
The study aims to identify causes of cost overrun on public construction project; in Wolaita Sodo
Town. The study used descriptive research design was used and the primary sources of data
were collected from 22 construction project in Wolaita Sodo Town. The sampling techniques
used in this study were purposive sampling method. However, the sample was selected from
public construction project. For data analysis, multiple regression and descriptive statistics
including mean and statistical relatively important index (RII) were used. The results of this
study conclude that socio political, economic, and managerial, timeliness of payment and
financial factor and construction techniques and design changes were identified as factors
affecting cost overrun in public construction project. Finally this study recommended that in
public construction project the stakeholders and government body should provide a good
planning and scheduling during construction and match with the resources and time to develop
the work to avoid cost overrun. The stakeholders and government body should revise the bid
document such as technical specification during bill of quantities and the design of the project in
a good way. However, the stakeholders and government body should facilitate payment to
contractors in order to overcome delay in progress payment and avoid the occurrences of cost
overrun
