Project cost performance factors in the war-affected and conflict-sensitive Afghan construction industry

Purpose: The Afghan construction industry faces resource shortages and heavily relies on foreign aid to fund public projects on the path to recovery and reconstruction. While the resource constraints demand cost-efficient delivery of construction projects, many Afghan public projects experience delays and cost overruns. This study aims to evaluate various attributes and factors influencing cost performance in public construction projects in Afghanistan. Design/methodology/approach: The literature review and Delphi method identified 30 cost performance attributes relevant to the context of Afghanistan. Next, a questionnaire survey was conducted with construction management professionals working in the public sector in the Afghan construction industry to evaluate these attributes. Findings: This study found that the lack of resources, poor project management skills and corruption in procurement are the leading causes behind cost overruns in Afghan public projects. This study also identified five latent factors influencing cost performance in public projects in Afghanistan: competency of the project team, socioeconomic and political support, governance and public procurement, planning and risk management and project characteristics. Research limitations/implications: The exploratory factor analysis did not reveal the relative significance of different cost performance success factors. Moreover, the ranking of cost performance attributes is based on the responses from the public sector construction professionals only. Practical implications: The construction industry in Afghanistan significantly contributes to the country’s social and economic growth and employment. This study’s findings will help researchers, project sponsors, government departments and industry practitioners interested in improving the cost performance in Afghan public projects. Originality/value: Given the scarcity of research in war-affected and conflict-sensitive regions, this study fills a research gap on project cost performance by providing insights into the cost performance success factors in public projects in Afghanistan.