Cost Overruns and Delay in Municipal Construction Projects in Developing Countries

Cost overruns and delay are common issues in the construction industry of developing and developed countries. In this article, compared with construction projects in other developing countries, the common causes of the cost overruns and delay in delivering municipal construction projects are discussed. This case study considers municipal construction projects in the city of Karaj, as one of the fastest developing cities in Iran. To meet the objectives of this research, 72 different types of urban roads and building projects are considered. This study shows that small-budget and short-term municipal projects, generally, experience higher cost and time performance. This paper contributes to the construction project management body of knowledge by a comprehensive analysis of cost overruns and delays in delivering municipal construction projects in developing countries. The findings of this study may be used by municipalities, for the realistic strategic planning of their construction projects, especially in developing countries.