Strategies for Reducing Project Cost Overruns in the Oil and Gas Construction Industry

Leaders of oil and gas organizations experience financial losses when construction project costs exceed their original estimates. Completing projects without cost overruns is essential to oil and gas business owners for long-term profitability. Grounded in chaos theory, the purpose of this qualitative multiple case study was to explore strategies project managers in oil and gas construction used to deliver projects without cost overruns. The participants comprised four project managers in oil and gas construction companies in Nigeria with successful experience delivering projects without cost overruns. Data were collected from semistructured interviews and organizational documents, such as company publications and policies. Thematic analysis was used to analyze the data with four themes emerging: selecting competent contractors, building a realistic initial cost estimate, applying project management principles, and using strategic leadership. A key recommendation is that project managers develop a reliable process for managing and setting limits for relevant changes during project execution to prevent cost overruns during construction. The implications for positive social change include the potential of financially successful oil and gas organizations to create positive social outcomes by providing energy to power public infrastructure in host communities and employment opportunities to the local community