Delays and cost overruns in civil construction

evidence and analysis of the brazilian sector

Abstract

Construction is one of the most important sectors in the global economy and a key indicator of prosperity. However, the sector's productivity in Brazil has not kept pace with its growth, reflected in delays and extra costs on construction sites. This study seeks to measure the performance of Brazilian construction sites in relation to time and cost criteria. The research, of a quantitative nature, was conducted by means of a survey comprising 55 questions, covering characteristics of the companies, the construction sites, the respondents, the decisions and tools used in the work processes and the respondents' perception of the causes of delays and extra costs. More than 15,000 questionnaires were sent via e-mail and 100 valid responses were obtained from construction companies that had completed work in the last five years. Descriptive, correspondence and factor analyses revealed an average of 6.52% budget overrun and 21.26% schedule overrun. The main variables associated with these deviations include the budgeting and planning methodologies, as well as the size of the works and the planned schedules. The exploratory factor analysis identified latent variables such as problems in pre-contracting, contracting suppliers, supply management, planning and construction management, highlighting critical areas that directly impact the sector's performance.