Cost escalation is one of serious difficulties that
facing the construction industry. The construction sector
suffers from ever-increasing cost of raw materials,
construction inputs and inflation in domestic and
international markets. The aim of this paper is to identify
factors affecting the cost escalation in construction projects in
the Gaza Strip. This will help the contractors to create
awareness so that timely remedial measures can be taken to
mitigate the resulting problems. A total of 36 cost escalation
factors related to project, supervisor, activity, owner, labour
and equipment and materials were identified through
extensive literature review which were supported by panel of
experts and pilot study. A structured questionnaire was used
to collect primary data. A total of 120 questionnaires were
distributed randomly to owners, consultants and contractors
working in the construction sector in the Gaza Strip to collect
their views about the factors affecting cost escalation. The
questionnaire was divided into two parts. The first part is
general information and the second is factors affecting cost
escalation. The results revealed that the cost of building
materials, permits and approvals, the availability of an
effective supervisory system, the improper cost estimate, the
changes in project, the quality of work, the machinery and
equipment required to carry out the tasks and activities
required for the project completion are the most common
factors leading to the cost escalation of construction projects
in the Gaza Strip.