IMPACTS OF COST OVERRUN ON MEGA CONSTRUCTION PROJECTS: THE CASE OF SUGAR DEVELOPMENT PROJECTS IN ETHIOPIA

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Author/s

TEMESGEN GENIE CHEKOL, DENAMO ADDISSIE NURAMO

Abstract

Completing construction projects on time, within budget, scope and specified standard successfully is a major problem in most construction projects in developing countries. Among these, time and cost overrun happen on frequent basis, especially when the project is a megaproject. This problem heavily affects various stakeholders directly involved in the projects as well as the construction industry in general and the national economy at large. Thus, the general objective of this study is to identify the impacts of time and cost overrun on megaprojects by taking sugar factory development projects in Ethiopia as a case. The research employed a questionnaire survey, interview and desk study for data collection. The study identified less return on investment for the client, high price of sugar for end-users, abandonment and termination of projects as the main impacts of time and cost overrun.