ANALYSIS OF CAUSES OF COST OVERRUN IN COMMERCIAL PROJECTS IN EGYPT

Construction sector is developing every year due to use of new technologies and need of skilled labours to perform required designs. Hence, it is becoming more critical to ensure proper management of construction works to complete the project according to assigned objectives and specifications. The success of any construction work relies mainly on cost, time, and quality of work. Hence, proper management was done in order to ensure completion of projects according to expected and assigned budget. Nevertheless, projects in developing countries are yet suffering from potential overrun of cost due to multiple factors. There are multiple authors in literature that indicated the main problems faced by projects that prevents them from completing the project according to expected budget (Apolot et al, 2012), and (Memon et al, 2012). Hence, it became quite urgent to investigate reasons that lead to overrun of cost in construction works. Therefore, the major goal of this study is to investigate sources of cost overrun in construction projects in Egypt. The study will concentrate mainly on commercial projects due to the fact that most of these projects are extremely expensive and would require proper management to prevent any increase in its cost. The method of data collection is a questionnaire survey that included risk factors collected from previous literature. The expected outcome will be in the form of estimating reasons that lead to cost overrun, and impact of cost increase on performance of construction projects.