Cost and time overruns in highway construction

Cost and time overruns have been common problems in every construction project. Numerous factors such as utility and weather damage delays can cause the costs of construction to exceed the budget and extend project schedule. Understanding the specific causes of cost and time overruns due to design or changed conditions can help control cost and time extension on projects. They may be related to external or internal factors that may cause the construction of a project to delay. The main objective of this paper is to present the current status on the causes of overruns in Florida Department of Transportation highway projects. Literature review and personal contact have been focused on completed projects from the department to determine the types of delays that have caused cost and time overruns. Results from various Florida Department of Transportation highway projects over the past two fiscal years indicated that cost and time overruns, expressed as a percentage of the original contract amount are mostly caused by designs and changed conditions. The results of this study will provide the parties involved in highway construction projects with a checklist that can assist highway officials in their design, overall planning, scheduling, and project implementation prior to project start up.