Purpose
The purpose of this paper is to explore the impact that cost overruns and time delays exert on large public construction projects to clarify how past and current research regard factors causing cost overruns and time delays in large public construction projects.
Design/methodology/approach
This paper, which is based on an analysis of a literature selection consisting of 40 journal articles, investigates and ranks the occurrence of and the explanations for cost overruns and time delays in large public construction projects. The study makes use of a kiviat diagram/radar chart in order to visualize multivariate data.
Findings
Aggregated rankings of important causes of cost overruns and time delays are reported. These show a strong emphasis on the management aspect as a primary cause of cost overruns and delays. Additionally, there seems to be a trend toward deemphasizing the role of financial considerations in explaining cost overruns and delays. It is argued that there needs to be a more rigorous assessment of the impact that each factor has on cost increases and delays based on factual observed data as opposed to retrospective accounts from questionnaire respondents.
Research limitations/implications
Only public construction projects have been considered. The results will not be directly applicable to privately funded construction projects and/or projects of a smaller size.
Originality/value
The use of trend data, as illustrated in a kiviat diagram, showing how different ranking factors causing cost overruns and time delays has changed in importance over time.
Purpose
Previous research within the dynamic capabilities literature has primarily targeted the strategic innovation of technology firms and significantly less interest has been given to project-based organizations that operate in the construction sector. A recent study by Davies and Brady (2016) places the dynamic capabilities concept in a project-based context, drawing upon research on dynamic capabilities and organizational ambidexterity. The purpose of this paper is to apply the aforementioned framework in a case involving public construction clients with the aim of examining their approaches for maintaining or developing project capabilities depending on the volatility of the environment.
Design/methodology/approach
The study is based on a case study of a decentralized association of 16 healthcare client organizations in Swedish counties, which was compared to a centralized unit for healthcare planning and construction in Norway. In total, 19 interviews were conducted, alongside two workshops and a feedback questionnaire.
Findings
The interviewees emphasized the lack of adequate support to handle the increasingly more complex projects. Results indicate the need for a more segmented approach for understanding how dynamic capabilities are managed in client organizations based not merely on the level of stability in the environment, but also taking into account the resources that are utilized. It is further argued that there is a need for a more granular research approach to studying the development of capabilities in a case-based setting, an approach that more specifically links the development of dynamic capabilities with their relevant antecedent activities.
Originality/value
The study sheds light on how the various approaches for maintaining/developing project capabilities available to the public sector construction client depend on the volatility of the environment and the resources they require.
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