Causes of Construction Projects Cost Overrun in Brazil
This paper presents a survey on construction projects cost performance in Brazil with an analysis of cost overrun causes of the works based on the contractors' point of view. After a literature review and field research, several causes were identified and evaluated by frequency, severity, and importance through a questionnaire. The field survey conducted included 11 directors, 17 project managers and 19 area managers of different construction companies. Eighty five causes of cost overrun were identified and classified in 11 departments with internal and external influences. The research shows that 71% of the 238 contracts of the study have their costs exceeded, being 82% in amounts up to 25% of the initial agreement and 18% above 25% The most striking causes identified by the three parties were the change of scope, lack of design detail during budgeting, and high indirect cost in a period of low productivity.