Factors affecting time and cost overrun in road construction projects in Albania

Abstract

The construction industry, in Albania, is one of the main sectors that contributes in the economic and social development of the country. Recently it has become more and more difficult to complete the projects within the estimated time and budget, affecting in this way the economy of the country. As a result, time and cost overrun are considered as major problems in road construction sector in Albania. The scope of this study is to define factors affecting time and cost overrun in road projects. The objectives of the thesis are carried out by using qualitative and quantitative research, as well as calculating risk of two case studies using Monte Carlo simulation method. As a result it was found that the main factor causing time overrun from contractor's perspective is unforeseen ground conditions. The same result is from consultant's perspective. On the other hand, based on results obtained, the main factor causing cost overrun from contractor's perspective is design and documentation issues. The main factor causing cost overrun from consultant's perspective is said to be high inflation of prices.