Failure of Construction Projects: Exploring the Impacts on the Society

All projects, regardless of complexity, are usually bounded by a predefined start and end date within which project objectives must be met. On the other hand, some projects may end up being abandoned if the predetermined construction performance parameters cannot be met within the specified timeframe. These project failures can impact both the animate and inanimate elements environments. It is therefore pertinent to explore the societal impacts of construction project failures. Hence, this study examines the effects of project failure on the internal and external project environment. In conducting this research, a systematic literature review was conducted. In addition, primary data was collected through a questionnaire survey of the construction professionals within South Africa. Collected data were analysed by ranking the examined factors using their mean item scores. Findings from the study revealed three classes of impacts: impacts on the client, impact on the Project Team Members, and impact on the economy. Results revealed that client’s reputation, economic value of the area and team members’ psychosocial attitude towards the project were most affected by project failures. Ultimately, when a project fails, all stakeholders must be effectively involved in the closure process to ensure an absence of or reduced animosity towards the project. Additionally, properly closing failed projects with all stakeholders’ involvement guarantees that the project at its current state is put to the best possible use, partially meeting some objectives and will not be a total loss to society’s economy.