ABSTRACT

The construction industry has been used universally to boost the economy and help economies recover from recession. While in developed countries the construction industry is not considered to be capital intensive, the perception of construction may be as a highly capital-intensive industry compared to other sectors of the economy in an African context. Multiple factors are known to influence the cost performance of construction projects. A mixed methods research approach was used to collect data. Initially, a survey was undertaken to determine the extent to which construction activities impacted cost overruns in South Africa. The research examined the activities that cause cost overrun on construction projects and whether there are significant differences in the activities causing cost overruns based on the contextual factors of client, project and procurement type. There is very limited research about actual activities that cause cost overruns on projects in the South African context.