Materials price change effect on cost of construction projects in Egypt

Abstract

Factors that causes cost overrun in building construction projects in Egypt has been endemic and became a thing of consideration in Egypt construction industry. The results obtained from the ranking analysis in the tables which concluded in tables in chapter 4 shows that the followings: Market condition; Schedule deviation; Procurement; Materials shipping cost variance and political situation as the major five significant factors that causes cost overruns in building construction projects in Egypt. The use of transaction cost theory as a tool for exploring different organization structures in the construction sector from an efficiency perspective makes it easier to predict how major actors in the building projects respond to economic and business challenges that is vital for their survival. It may explain why certain organization structure has dominated at some point in time and point out forces (competitive pressure, higher level of required competence, greater flexibility etc.) that make it necessary to bring another form of organization.