Understanding construction project failure in southern Africa

A failed construction project is loosely defined as a contract that was terminated or cancelled by either of the two parties to the contract. Given the unique nature of each construction project, its multitude of physical, geographical and commercial variables and the host of interested parties involved (each with different intentions and expectations) it is remarkable that so few projects fail. Some projects, however, do fail, and this research paper seeks to identify the reasons. This study researched approximately 13 000 projects in southern Africa executed during the period 2004 to 2009. Failures were documented and categorised after analysing every default recorded within the company’s internal bonding database since 2004. Owing to the limited number of failures and the seemingly infinite combination of variables that contributed towards project failure, obtaining reliable default probability data was a challenge. Statistically reliable conclusions could not be formulated; however, this research highlighted a number of significant facts which either confirm or question historical assumptions. These findings will complement sound and experienced judgment by all decision-makers, which remains the primary driver to the successful completion of construction projects.