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Procedia Engineering 182 (2017) 18 – 24

7th International Conference on Engineering, Project, and Production Management

Delay and Cost Overrun in Infrastructure Projects in Jordan

Nabil Al-Hazim, Zaydoun Abu Salem, Hesham Ahmad*
Department of Civil and Infrastructure Engineering, Al-Zaytoonah University of Jordan, Amman, Jordan, P.O. Box: 130 Amman 11733 Jordan

Abstract

The aim of this study is to investigate the factors that may cause overrun of the planned cost, allocated resources and scheduled
time of infrastructure engineering projects in Jordan. To achieve the goal of this study, final reports of a sample of 40 public
infrastructure projects implemented during the period from 2000 to 2008 were collected and analysed. The final reports were
collected from the Ministry of Public Works and Housing (MPWH) of Jordan, which administers the public infrastructure projects
in the capital Amman.
The analysis showed that delay and cost overrun of infrastructure projects were caused by 20 factors according to the records in
the collected final reports of projects. The results showed that Terrain and Weather conditions are the top factors causing completion
delay and cost overrun in infrastructure projects in Jordan.
© 2016
© 2016The TheAuthors.
Authors. Published
Published by Elsevier
by Elsevier Ltd.is an open access article under the CC BY-NC-ND license
Ltd. This
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility ofthe organizing committee of EPPM2016.
Peer-review under responsibility of the organizing committee of EPPM2016
Keywords: project management; infrastructure projects; delay and cost overrun; planning and scheduling

1. Introduction

A cost overrun is known as budget overrun or cost increase. It involves unexpected excess cost occurred due to
underestimation of the expected budget of the infrastructure projects. Thus, it is important to study these cost overruns
factors and to avoid them for maximum benefits and returns from infrastructure construction project.
Most infrastructure projects in Jordan are characterized by overrun in cost and time. Problem of cost overrun is
critical and needs to be studied and alleviated. In the future recommendations should be developed to overcome these
critical factors for future infrastructure projects.

* Corresponding author. Tel.: +9-626-429-1511; fax: +9-626-429-1432.

E-mail address: h.ahmad@zuj.edu.jo

1877-7058 © 2016 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the organizing committee of EPPM2016
doi:10.1016/j.proeng.2017.03.105
 Nabil Al-Hazim et al. / Procedia Engineering 182 (2017) 18 – 24 19

For this reason, final repots collected from the Ministry of Public Works and Housing (MPWH) in Jordan were
analyzed and examined for several infrastructure projects in Jordan over the years 2000-2008. The actual causes for
cost and time overrun recorded in the final reports of these projects were identified. Data were ranked based on their
significance and the critical factors influencing cost and time overrun were identified.

2. Literature Review

Some researchers have studied the reasons of and the factors affecting cost overrun and time delay in construction
projects. However, there is a lack of studies concerned with the cost overrun and time delay in the implementation of
infrastructure projects in Jordan. This study aims at investigating the most important factors that can be the reasons
behind cost overrun and time delay of infrastructure projects in Jordan by analyzing the final reports of these projects.
Mahamid [1] studied the factors affecting the schedule and budget of the construction projects. He conducted
a field survey including 40 consultants in Palestine. The top affecting factors in the consultants’ opinions are materials
price instability, size of contract and incomplete drawings. The researcher stated that about all the projects suffering
from cost diverge. Also it was found from the study that about 76% of projects have cost over estimation while 24%
have cost underestimation. The difference between actual cost and estimated cost of construction projects has an
average of about 15%. However, in another study by Mahamid [2] the top factors affecting time overrun in
infrastructure projects in Palestine were studied. The study showed that major factors delaying the studied projects
include: financial problems of the contractor, delay of payments from the owners. Also, the study referred to the special
political situation in the area of study and its significant influence on projects. Other important factors that may delay
completion of projects such as poor communication among parties, lack of efficient machineries and tools and high
competition among bidders, showed significant effect on projects’ schedules.
In a study by Alhomidan [3], a survey of contractors’ viewpoint was conducted to investigate the top causes of cost
overrun at the infrastructure projects in Saudi Arabia. A list of 41 factors of cost overrun causes was considered.
Among these factors, it was concluded that according to opinions of the responding contractors the top causes of cost
overrun in infrastructure projects in Saudi Arabia are internal administrative problems, delay of payments, poor
communication between construction parties and delays in decision-making.
In other studies conducted in several countries, various results were obtained. For example, in Hong Kong Chan et
al. [4] studied the causes of delays in construction projects. It was indicated that five causes are the main causes for
projects delay. These include: poor supervision and management of construction sites, unpredictable ground conditions
of the project sites, slow processes by decision-makers of the projects, and variation orders especially those presented
by clients.
Another study example in India by Singh [5] concluded that the main causes responsible for delays of construction
projects in India include: the lack of efficient project plans, contracts and implementation processes and procedures.
An investigation of 31 variables by Alghbari et al. [6] was conducted on construction projects in Malaysia. The
study showed that the most important causes of delay for the projects in Malaysia are related to financial aspects. The
second and third most common factors causing delay of projects connected with coordination and materials problems,
respectively. However, another study in Malaysia by Sambasivan and Soon [7] found that the most important causes
of delay in construction industry are related to contractors and resources. Lack of proper contractor’s project planning
and site management, lack of adequate experience, improper coordination with subcontractors and other parties and
making mistakes in implementation of the construction stages are major factors that affect the projects’ completion
duration. Other factors related to the construction resources include the insufficient financial resources from the client
and shortage of materials, labors and equipment.
Rathi et al. [8] studied different literatures related to cost overruns and its causes found that inaccurate estimates
and design changes at the time of construction are the most important factor directly affects the cost. The study also
found it is necessary that the project management team have a good forecasting technique to know the future business
environment. This will help the owner or agency to take decision regarding procurement of materials.
Vidalis and Najafi [9] found that the factors causing cost and time overrun in Florida Department of Transportation
highway projects are plans modifications, changed conditions and lack of project coordination. Amandin et al. [10] in
their study on Construction Projects concluded that when project costs are efficiently monitored while the other
conditions kept constant, as construction project periods increase, a proportionate increase in their costs or value is
20 Nabil Al-Hazim et al. / Procedia Engineering 182 (2017) 18 – 24

recorded. In addition, when construction projects’ expected or planned cost is increased, a simultaneous increase in
their relative real cost must take place. However, though monitoring can efficiently reduce the project’s cost overruns,
the longer construction projects delay become the higher cost overruns.
A study by Al-Momani [11] investigated factors causing delay of public building construction projects in Jordan.
The study investigated 130 projects constructed during the period from year 1990 to year 1997. The results showed
that critical factors that may cause delay of building projects include: design and implementation changes, weather
and site conditions and financial conditions.
It can be seen from the review of the previous literature that different results were concluded in the different
countries. Also variable such as the source of data, the number of studied projects, the execution time period of
projects, type and size of projects may significantly affect the results. In this study, the results depend on the records
of final reports of 40 public infrastructure projects. Future studies may use different sources that can be compared to
the results of this study for more evaluation and validation.

3. Research Methodology

About 20 major causes were identified as causes of cost and time overrun through review of related literature,
discussion with practitioners and study of final reports of projects in the infrastructure sector. Final reports of40
infrastructure public projects in Jordan in the period of 2000-2008 were collected. The causes of projects’ delay were
the actual causes which are documented through paper work and correspondences between the clients and the
contractors.

4. Results and Discussion

Table 1 shows the ranking for each factor arranged according to their importance while Fig. 1 shows the graphical
representation.

Table 1. Factors ranking arranged according to their importance.

Ranked Factors Importance
1. Terrain conditions 22.20%
2. Weather conditions 15.30%
3. Variation orders 10.20%
4. Availability of labor 7.70%
5. Mistakes in design 6.10%
6. Planned cost for project construction 5.90%
7. Market conditions (availability of resources) 5.90%
8. Material price fluctuations 4.60%
9. Planned time for project construction 4.30%
10. Emergency works 3.20%
11. quality of equipment and raw materials 2.80%
12. Payment delay 2.20%
13. Cost of variation orders 9%
14. Government requirements 1.40%
15. Rework from poor materials quality 1.30%
16. Delay in decision 1.00%
17. Management – labor relationship 1.10%
18. Sequencing of work according to schedule 0.50%
19. Poor project management 0.80%
20. Delay in decision making 1.10%
 Nabil Al-Hazim et al. / Procedia Engineering 182 (2017) 18 – 24 21

Fig. 1. Factors ranking arranged according to their importance.

Table 2 shows the planned – actual time and cost for 14 sample projects. The average percentage overrun time is
226 and the average percentage overrun cost is 214.

Table 2. Planned and actual time and cost for 14 sample projects.
Time planned Time (actual) Time overrun Cost planned Cost actual Cost overrun
Project
(day) (day) % (JD) (JD) %
1 730 914 125 5069475 7687652 152
2 120 255 213 1998090 2018071 101
3 75 193 257 189010 199101 105
4 300 735 245 44990 284537 632
5 150 683 455 483226 1070629 222
6 365 789 216 2340525 8316524 355
7 900 1729 192 4937286 14561283 295
8 1000 1879 188 12124023 14829575 122
9 800 1470 184 6391068 7950420 124
10 720 880 122 6433491 11826868 184
11 700 1607 230 5980445 9572979 160
12 150 178 119 80900 181784 225
13 730 791 108 6907780 10418626 151
14 90 189 210 986557 1967515 199

Fig. 2 shows the planned and actual duration for 14 sample projects.
22 Nabil Al-Hazim et al. / Procedia Engineering 182 (2017) 18 – 24

Fig. 2. Planned and actual time for 14 sample projects.

Fig. 3 shows the planned and actual cost for 14 sample projects.

Fig. 3. Planned and actual cost for 14 sample projects.

Fig. 4 shows the cost overrun for 14 sample projects.

Fig. 4. Cost overrun for 14 sample projects.

 Nabil Al-Hazim et al. / Procedia Engineering 182 (2017) 18 – 24 23

Fig. 5 shows the time overrun for 14 sample projects.

Fig. 5. Time overrun for 14 sample projects.

The most important reason that leads to cost and time overrun was terrain conditions that are occurred in 22.20%
of the studied projects. These conditions include difficulties in reaching the work site, difficulties of the work type,
land acquisition issues, delay in relocating utilities, and the lack of civil services near the work site which were not
included in the work plan and cost studies. The second main reason in cost and time overrun was weather conditions
that occurred in 15.3% of the projects of the study sample. Those two reasons were the main reasons that led to cost
and time overrun.
Other factors that caused cost and time overrun are: new variation orders (10.2% of the sample), cost of variation
orders (1.9%), mistakes in design (6.1%), emergency working (3.2%), poor scheduling of time (5.9%), and poor
planning of cost (4.3%) for the infrastructure projects.

5. Conclusion

Most infrastructure projects in Jordan are characterized by delay and overrun in cost. Many documents and final
reports for several projects were analyzed. The results show that the most critical factors are: Terrain conditions,
weather conditions, variation orders, and unavailability of labors.
A very big discrepancy between estimated and final cost ranging from 101% to 600% with an average of 214%.
On the other hand, the delay of time ranges from 125% to 455% with an average of 226%.
In order to validate these findings, further research is recommended with projects from different geographical
locations and owners. Moreover, it is recommended that other factors should to be identified that contribute to the cost
and schedule overruns in public construction projects.
Finally, the authors recommend that in the planning stage of any construction project, larger efforts should be
exerted on the planning preparation, scheduling and cost evaluation to reduce the risk of delay and cost overrun of the
project implementation. Similarly, during the construction stage of projects careful organization and management
processes should be applied to fulfill the requirements of the projects’ plans. Successful management of construction
projects may need to adopt procedures to avoid problems and to adopt contingency plans to reduce the effects of
problems when they occurred.
24 Nabil Al-Hazim et al. / Procedia Engineering 182 (2017) 18 – 24

Acknowledgements

7th International Conference on Engineering, Project, and Production Management (EPPM2016) was financed
in the framework of the contract no. 712/P-DUN/2016 by the Ministry of Science and Higher Education from
the funds earmarked for the public understanding of science initiatives.
7th International Conference on Engineering, Project, and Production Management (EPPM2016) finansowana
w ramach umowy 712/P-DUN/2016 ze środków Ministra Nauki i Szkolnictwa Wyższego przeznaczonych
na działalność upowszechniającą naukę.

7th International Conference on Engineering, Project, and Production Management (EPPM2016)

was co-organised by the Agency for Restructuring and Modernisation of Agriculture (Poland).

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