TIME AND BUDGET OVERRUNS ON CZECH INTERNATIONAL DEVELOPMENT PROJECTS

Projects are common means of implementing development co-operation. However, their success rate is a topic of numerous discussions as they are often delayed or delivered with increased costs. There are several reasons for this phenomenon, such as procurement issues, management issues, inadequate project design, and country specific causes e.g., inflation, corruption, natural environment etc. This study tries to establish what factors influence these overruns on projects funded by the Czech Republic and with the use of Pearson’s and Fisher’s tests suggests that financial results are affected by the type of implementing agency, developing country, type of financing, project size and project sector, while the schedule is influenced only by the project sector and size. Based on these results, a new risk factor matrix is introduced to determine how project management tools should be required on particular projects in order to increase their success rate.