Researcher Fida Hamdan Ahmad, a student in the Master’s Program in Construction Management, has defended her thesis titled “Studying Construction Resource Factors Affecting Cost Overruns in Construction Projects in Palestine”.
This thesis aims to study the resource-related factors that contribute to cost overruns in the Palestinian building and construction sector. The primary objectives of this research include studying the extent of cost overruns in construction projects in Palestine, assessing the importance of resource-related factors that contribute to these overruns, measuring the importance of each factor as perceived by stakeholders (contractors, consultants, and owners), as well as determining the effects resulting from cost overruns in the Palestinian building and construction sector.
The researcher collected primary data by designing a structured questionnaire to assess the importance of resource-related factors that contribute to these high prices and their effects. The number of participants in the questionnaire was 154 participants, including contractors, consultants, and owners, being the primary stakeholders in building and construction projects.
The research results highlight the dominant presence of small and medium enterprises in the Palestinian construction industry, and the prevalence of cost overruns in construction projects, with 46.8% of companies suffering from over-pricing in the range of 21-40%, in addition to 30.5% of companies facing cost overruns at a rate over 40%. According to the study, the factors related to resources that lead to cost overruns in Palestinian construction projects are as follows: availability of skilled labor, availability of equipment, worker productivity in addition to the financial difficulties faced by the contractor and cash flow as well as the inaccurate cost estimation. The results revealed that the most important effects resulting from cost overruns are respectively: losses in profits for contractors and owners, delays in construction projects and loss of the contractor’s reputation.
The present study presented practical implications and basic recommendations that included contractors, consultants, and owners, which are related to the results of the study and the reasons that lead to cost overruns, aiming to prevent and reduce cost overruns in construction projects in Palestine.
The thesis was supervised by Dr. Ibrahim Mahamid. The committee of examiners included Dr. Omar Abd Al Rahman and Dr. Yahya Salahat.