Nuako, F; Ghansah, F A and Adusei, T (2026) Critical success factors for cost overrun minimization in public construction projects in developing countries: The case of Ghana. Construction Innovation, 26(1), pp. 44-62. ISSN 1471-4175
Abstract
Purpose – It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been advancements in the management of building projects throughout time but cost overruns remain a key concern in the construction sector internationally, particularly in emerging economies such as Ghana. This study aims to answer the question, "What are the critical success factors (CSFs) that can assist reduce cost overruns in public sector infrastructure projects in the Ghanaian construction industry?" Design/methodology/approach – This study used a quantitative survey method. The questionnaire was pre-tested by interviewing 15 contractors to ascertain the validity of the content. Factor analysis and multiple regression were adopted to analyze the data. Findings – This study discovered that the critical factors that can reduce cost overruns in construction projects in Ghana are directly linked to five themes: early contractor involvement in the project planning stage, adequate funding, good project team relations, competent managers/supervisors and project participant incentives/bonuses. This study identifies indestructible, empirically measurable important success criteria for reducing cost overruns in public building projects in Ghana. Practical implications – When well thought through from the project initiation stage to completion, these critical successes can also be used to deal with damaging economic effects such as allocative inefficiency of scarce resources, further delays, contractual disputes, claims and litigation, project failure and total abandonment. Originality/value – The uniqueness of this research resides in the fact that it is, to the best of the authors' knowledge, a first-of-its-kind investigation of the CSFs for reducing cost overruns in public building projects in developing countries.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction project; cost minimization; cost overrun; factor analysis; Ghana; public sector |
| Index terms: | emerging economy, manager, construction sector, project planning, validity, project team, public sector, Ghana, questionnaire, cost overrun, construction project, critical success factor, investigation, supervisor, early contractor involvement, litigation, abandonment, public building, funding, survey, construction industry, success criteria, methodology, critical factor, project failure, infrastructure project, developing country, multiple-regression, factor analysis, public construction, dispute, minimization |
| Subjects: | infrastructure and transport systems, construction type, completion, risk assessment, Geography, economic development, data collection methods, control systems, contractual arrangements, economic analysis, industry analysis, financial and cost management, project delivery, project completion, practitioner, statistical analysis, administrative law, assessment methods, building construction, research methods, production management, evaluation and assessment methods, development economics, dispute resolution, algorithms |
| Topics: | Research Practice, Geographical Context, Legal Issues, Cost Management, International Construction, Project Management, Roles and Professions, Risk Management, Digital Applications, Engineering Principles, Procurement, Business Strategy, Construction Technology |
| Descriptive scope: | 5 PCTEA |
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