In this thesis a new empirically driven taxonomy on project failures as well as their respective causal factors is presented. This is achieved by analyzing an agile web development project within a conventional software development organization using the Constructivist Grounded Theory Methodology. The goal is to create a theory that is “grounded in data”, hence represents the data well. Quantitative project data as well as qualitative data from surveys and interviews is collected and analyzed using the Constant Comparative Method. The emerging eight causal factors directly influencing project failures which lead to the constraints of time, money and requirements not being met as well as their respective relations are displayed in a taxonomy.

Key Words: Constructivist Grounded Theory, Taxonomy, Project Failures, Causal Factors