Reasons for possible delays & cost overruns on projects
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Reasons for possible delays & cost overruns on projects
12 February 2010 11:23
Hi,
I am preparing a report and compiling all possible (real life) reasons which has delayed the projects and/or lead to cost overruns. I can name a few (mentioned below) but can you add to this list ?
Weather
Poor Labor Productivity
Labor Unions - Strikes, slowdown etc
Force Majure
Delivery of key equipment
Poor/Re- Engineering
Thanks,
Last Edit: 14 years, 4 months ago by . Reason: (NULL)
Here is a quick list:
1. Poor Estimates
2. Scope Creep
3. Not reading between the lines
4. Poor Project Management
5. Changes in management
6. Inefficient uses of material
7. Increased prices
8. Unforeseen Events
Last Edit: 14 years, 4 months ago by . Reason: (NULL)
Re: Reasons for possible delays & cost overruns on projects
22 April 2010 10:27
Scope creep shall not be a contributing factor for any cost over runs, if contract is administered professionally. The contract conditions should be checked initially to see whether it clearly stipulates the way forward for claiming any additional works beyond the main contract scope.
Diligent contract administration including timely notifications to the client for any Instructions and later claiming additional cost will prevent any cost overrun.
Hence in line with the above situation, I strongly believe lack of vigilant and apt contract administration can be a cause of cost over run.