The impact of cost overruns and delays in the construction business

The construction industry is negatively affected by cost and time overruns which further negatively impacts the contractual stakeholders. Construction delays and cost overruns are a global phenomenon since one of the major problems in the construction industry involves unexpected incurred costs and late delivery of projects. The success and failure of any project depends upon many factors and the Project Manager is considered to be the key contributor to the success of any project, as well as to guide the team members to achieve the client satisfaction. In addition, the roles, responsibilities, duties, and competencies of Project Managers have a direct impact on successfully completing construction projects on time and within budgeted cost. The study aimed to find the key competency skills that the Project Manager must possess to mitigate time and cost overruns. A quantitative research approach was adopted to determine the key competency skills of a Project Manager with respect to cost and time delays. A web-based questionnaire was published in the Eastern Cape Masters Builders Association (MBA) bulletin aimed at contractors registered with the association. The results revealed that the key competencies required to mitigate for cost overruns are comparable to those required to mitigate against time overruns. The study investigated the need for project managers to better equip themselves with key competency skills to perfom optimally to reduce the occurrence of cost and time delays on construction projects. The aim of this research was to assist Construction Managers to choose the right candidate as a Project Manager. It would also assist inspiring Project Managers to acquire the key competency skills. The paper responds to the conference theme given that the reduction of cost and time overruns promotes the sustainability of the Built Environment.