Mitigation of Delays and Cost Overruns on Private Sector Projects in South Africa

PURPOSE This study aims to examine methods to mitigate delays and cost overruns that can be effectively implemented in private sector construction projects. DESIGN / METHODOLOGY / APPROACH An empirical study was undertaken using a questionnaire survey among randomly selected respondents in construction in the Gauteng province, south Africa. FINDINGS The key findings indicate that the main causes of cost overruns were poor estimation and project delays caused mainly by poor planning. Two methods ranked first as cost overrun mitigation methods include familiarising oneself with site conditions and the appointment of an experienced project manager to manage costs. Two methods ranked first as delay mitigation methods were timely approval of site records and payment of suppliers or contractors on time. RESEARCH LIMITATIONS / IMPLICATIONS The study focused on one province; it could extend to other regions, with a bigger sample to better generalise the results. PRACTICAL IMPLICATIONS To effectively implement methods to mitigate project delays and cost overruns, it is important that both the client and the project team ensure that they play their respective roles effectively. When planning for a project, it is important to focus on how to implement the methods and involve the whole construction team. ORIGINAL / VALUE OF PAPER This paper contributes to the literature on the implementation methods to mitigate the persistent delays and cost overruns within the construction industry in South Africa.This study is important as it provides a basis for effective and efficient project delivery by improving the implementation of project management methods and techniques regarding delays and cost overruns.