Cost overrun factor analysis for hospital projects in Vietnam

Abstract

Many governments in the world are now under heavy pressure for improving services of health care whilst always attempt to use their scarce resources efficiently. Hospital buildings are basically one of the important elements of health care systems. This paper aims to determine factors causing cost overrun in Vietnamese hospital projects. Survey questionnaire and Exploratory Factor Analysis (EFA) are two main methods. The finding indicates that main groups causing cost overrun in hospital projects are: additional work, material cost, and delays. Based on groups of cost overrun, twenty factors were also discovered as well as ranked. In addition, solutions were suggested to solve the cost overrun issue, and then comparisons with previous studies were presented. Results of the study could be applied to monitor policies for the management of hospital projects, and support practitioners in attaining the success of hospital projects.

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