1. Cost Overrun in Construction Projects Supervisor : Eng.Reema Nassar

2. Prepared by:- Salah Shadid Yahia Abdelghafour Mohammad Abu Shanab Momen Mansour

3. Introduction  cost management represent an important issue to achieve the project objectives,  Cost can be described as one of the most important issues of a project success. it allow to predict the most important factors that may affect to project failure & predict direct and indirect cost.  This study identifies and examine the factors that affect of cost overrun in the construction project.

4. Methodology Flow Chart Conclusion and Recommendation case study Analysis and Results Questionnaire Factors and causes Literature reviews Objectives Introduction

5. Questionnaire

6. Questionnaire : Questionnaire Design:  A questionnaire was developed to assess the perceptions of consultants, and contractors due to the importance index of causes and effects of cost overrun in West Bank construction industry

7. Questionnaire : Questionnaire Content:  The first group contained general information about the contracting and consulting companies.  The second part contained information about the main causes For cost overrun and there importance.

8. Pilot Study:  The piloting process conducted by interviewing three experts and considering there opinions to make a suitable questionnaire which achieve the goals of the study Questionnaire :

9. Limitation  The research survey was limited to Jinen,Nablus and Tullkarm contracting companies and consulting office that classified as a first degrees. Questionnaire :

10. Analysis and Results

11. Sample Size:  The sample size of this research was selected to cover the contractors and consulting companies which works in construction industry (mainly building)  The size of the sample required was determined on the basis of statistical principles.

12. Characteristics of the Study Population Sample Size: The sample size of the contractor population is : SS. contractors = 12 We fill out questionnaires through 12 contractors companies classified as a first class in Jenin and Nablus (9 in Nablus and 3 in Jenin).

13. Characteristics of the Study Population Sample Size: The sample size of the consultant population is : SS. consultant =40 We fill out questionnaires through 40 consulting office in Jenin,Nablus and Tulkarem (32in Nablus and Tulkarem and 8 in Jenin).

14. Part one of Questionnaire General Data: This part include  a general information about the company  types of projects that the company worked in  the job of who fill up the questionnaire,  Work experience for the companies  size of the projects undertaken by the company  the Number of employees in the company.

15. Part one of Questionnaire Respondents' Posts : For contractors companies

16. Part one of Questionnaire Respondents' Posts : For consulting office

17. Part one of Questionnaire Size of the projects undertaken by the company every year: For contractors companies

18. Part one of Questionnaire Size of the projects undertaken by the company every year: For consulting office

19. Part one of Questionnaire Work experience for the companies:

20. Part one of Questionnaire Work experience for the consulting office :

21. Part one of Questionnaire  Number of regular staff in the contractor company :

22. Part one of Questionnaire  Number of regular staff in the consulting office:

23. Part Two of Questionnaire the relative importance index formula was used to compute and ranging the major important influence factor that affect to cost overrun. RII = ( Σ W/N)*100% Where: RII: the relative important index W: weight of important of factor ranges between 0% - 100% N: sample size

24. Part Two of Questioner Objective The objective of the study is to find out the most five important factor that affect on cost overrun in construction project, and taking in consider the contractors companies and consulting office opinions by filling the questioner.

25. Part Two of Questioner  The top factors that affect on cost overrun from contractors point of view:

26. Part Two of Questionnaire  The top factors that affect on cost overrun from consultant point of view :

27. case study

28. case study description

29. Case Study Analysis  The construction contract of the project was in term of unit price However in this case study the main causes of cost overrun was the Variation Order,  the contractor said that the variation order issued by the owner, and there is some activities caused an evident variation order as shown in the next table :

30. Case Study Analysis

32.  The total value of V.O is 38021 $, this V.O created as a result of changing in some items such as I.replacing the single windows with large glass walls II.and change the designed hidden beams to Drop beams.

33. Conclusion and Recommendation

34. Conclusion 1) The answers of contractors and consultant was completely opposite. 2) One of the most important factor that affect cost overrun is the delay of supervision in answering contractor questions, and the consultant is the reason. 3) But In the other hand, consultant see that the factor number one that affect cost overrun is the increasing of project duration due to contractor delay. 4) The Change in local currency price forming a real problem to the contractors so it considered an important factor in contractors opinion.

35. Conclusion 5) Consultant is the main cause of audit inaccurate drawings and contract documents,that leading to cost overrun. 6) From contractor point of view it’s concluded that the contractors loaded 50% of the factors to the consultant as the main causes of this factors, 40% was loaded to the contractors, and 10% was loaded to the environment.

36. Conclusion 7) From consultant point of view it’s concluded that the consultant loaded 60% of the factors to the contractors as the main causes of this factors, 30% was loaded to the owner, and 10% was loaded to the consultant. 8)Minimum influence factors was loaded to the owner and environment by the consultant and contractors, such as : Change the prices of local currencies, additional work at the request of the owner, design change, Etc……

37. Recommendations

40. Thank you