CONSTRUCTION BUSINESS & PROJECT MANAGEMENT CONFERENCE 2022 · Vol. 2022, Issue 1

Cost overrun factors leading to construction claims in a multi-contractor set-up

Makgopa F Tshehla

Keywords: Construction claims, contracts management, cost overrun factors, multi-contractor construction

Abstract

Mega construction projects have various scopes executed by more than one contractor. Poor coordination of the scheduling and execution of the contractors can lead to exorbitant claims. The purpose of this study was to determine cost overrun factors that could lead to construction claims in a multi-contractor set-up for a mega project. The study employed a quantitative research approach. The study adopted a purposive sampling technique with a sample size of 50 respondents. Data was collected with a survey questionnaire from professionals involved in the design and execution of projects within the construction industry, based in Gauteng province in South Africa. The respondents include Construction Project Managers and Quantity Surveyors. Results of the survey were analysed using the relative importance index statistical method, which resulted in the identification of the cost overruns factors that could lead to construction claims for a multi-contractor construction project. The findings of the study reveal that cost overrun factors responsible for construction claims include design changes, construction complexity, contracts management, access to site, and coordination of the work of the contractors, incompetence of the contractor and poor planning. Construction management companies should work together with the employer to develop practices to manage construction activities in order to avoid construction claims.