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article · Alexandria Engineering Journal

Investigation of critical factors affecting cost overruns and delays in Egyptian mega construction projects

202344 citationsOpen accessBritish University in Egypt

In plain language

Mega construction projects frequently face delays and budget overruns that undermine their quality and profitability. An analysis of large-scale construction in Egypt highlights six principal drivers of these setbacks: inadequate initial planning, poor communication and coordination, scope changes, a shortage of skilled labour, insufficient budget allocation, and delayed payments. Addressing these root causes requires targeted operational interventions across project life cycles. Recommended measures include engaging all project stakeholders during planning, establishing realistic timelines, and deploying project management tools. In addition, setting up structured change management systems, regular meetings, clear reporting lines, precise cost estimates, and dedicated contingency funds can minimise financial and scheduling disruptions. Implementing these operational strategies provides construction practitioners and policymakers with actionable insights to deliver large infrastructure developments more predictably and economically.

Key takeaways

  • Six critical drivers of delays and cost overruns in Egyptian mega projects are inadequate planning, poor coordination, scope changes, skilled labour shortages, insufficient budgets, and payment delays.
  • Early stakeholder involvement, realistic timelines, and the deployment of project management tools improve scheduling and planning outcomes.
  • Effective coordination across project teams requires regular meetings alongside structured, clear communication channels.
  • Financial and operational stability requires formal change management processes, precise cost estimation, and dedicated contingency funding.

Why it matters

Large infrastructure and building projects represent massive capital investments that frequently exceed initial budgets and deadlines. Pinpointing the exact managerial and financial bottlenecks that cause these failures allows public bodies and commercial developers to protect financial investments, complete critical public works on schedule, and raise operational standards across the wider construction sector.

Commercialisation angle

Construction practitioners, contractors, and public policymakers can directly apply these recommended planning frameworks, budgeting practices, and change management procedures to current and future mega projects. The findings represent applied management guidance ready for immediate adoption in live project planning, scheduling, and procurement workflows, without the need for additional product development.

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Abstract

Construction projects are prone to cost overruns and delays that can significantly impact their profitability and quality. Identifying the root causes of these issues is critical to finding practical solutions. This study focuses on the Egyptian construction sector and identifies the top six factors that lead to cost overruns and delays in mega construction projects. These factors are inadequate project planning, poor communication and coordination, changes in project scope, lack of skilled labour, insufficient budget allocation, and payment delays. The study recommends strategies to mitigate these factors, such as involving all stakeholders in the planning process, using project management tools, and setting realistic timelines to improve project planning and scheduling. Regular meetings and clear communication channels can achieve effective communication and coordination. The study also suggests managing changes in project scope through effective change management processes and ensuring sufficient budget allocation by conducting accurate cost estimates and setting aside contingency funds. These recommendations can provide practical insights for practitioners and policymakers in the construction industry to mitigate the impact of cost overruns and delays. Overall, the study emphasises the importance of identifying and addressing the key factors contributing to cost overruns and delays in mega construction projects.

Research topics

  • Construction Project Management and Performance
  • BIM and Construction Integration
  • Facilities and Workplace Management

Read the original research

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DOI: 10.1016/j.aej.2023.10.052

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