Evaluation of Factors Leading to Time Delays and Cost Overruns in Marine Construction Projects

Marine construction projects are among the most complex endeavors undertaken, as they are subject to numerous variables and constraints that make them more vulnerable to cost overruns and time delays than other project types. This study investigates the potential factors that influence time delays and cost overruns in marine construction projects. For this purpose, 43 factors that affect marine construction projects in terms of cost overrun and time delay were identified and categorized into nine main groups through a detailed literature review process, as well as interviews with experts from the marine construction industry. The relative importance of these factors and groups was quantified using the Relative Importance Index (RII) method. The ranking of factors and groups was determined according to their level of effect on time delay and cost overrun. Interestingly, the top five factors for both time delay and cost overrun, although ordered differently, were the same: inflation (e.g., material, equipment, and labor prices), fluctuation in cost (e.g., money exchange rate, taxes and burdens, and interest rates charged by bankers on loans), incompetence or inexperience of contractors (lack of experience and/or managerial skills), poor planning and management of contractor's schedule, and difficulties in project financing by the contractor. Contractor-related factors had the highest RII for time delays, followed by external-related factors with a tiny difference. However, for cost overruns, the ranking of these two groups is reversed. The findings of this study could help organizations that plan to carry out successful and sustainable marine construction projects, ultimately contributing to the development of critical maritime infrastructure.