A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates

Al Hosani, Ihsan Issa Ahmad and Dweiri, Fikri T. and Ojiako, Udechukwu (2020) A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates. International Journal of System Assurance Engineering and Management, 11 (6). pp. 1250-1259. ISSN 0976-4348 (https://doi.org/10.1007/s13198-020-00979-8)

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Abstract

Cost performance is a concern particularly for Complex multi-stakeholder projects in the form of critical infrastructure. Evidence suggests that critical infrastructure projects in the United Arab Emirates (‘UAE’) experience substantial cost overruns. Cost overruns and its consequences in terms of project failure can lead to substantial negative and unintended consequences on infrastructure project systems, especially noting that it is sector characterized by substantial interrelatedness and interdependence between different projects. For these reasons, understanding the causes and possible solutions to cost overruns as a form of project failure is of paramount importance. To undertake such a study, data were collected through structured questionnaire survey (focused on 44 common factors), of various project stakeholders with analysis focusing on frequency, severity and importance indices. Findings suggest five major reasons leading to cost overruns in UAE infrastructure projects as ‘Delays in decisions making by approval authorities’, ‘Changes in client requirements’, ‘Construction cost underestimation’, ‘Poor site management’ and ‘Frequency of variation orders and additional works’.

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