Causes of Cost Overrun on Public Building Construction Projects: Case Study in Wolaita Sodo Town, Southern Region, Ethiopia.

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