Public Management and Policy

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Browsing Public Management and Policy by Subject "Actual completion date and cost"

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    Determinants of Infrastructure Project Delays and Cost Escalations: The Cases of Road and Railway Construction Projects in Ethiopia
    (Addis Ababa University, 2018-06) Yenealem, Fentahun; Filmon, Hadaro (PhD)
    Construction of road and rail projects to enhance social and economic activities of the country. The number of road and rail construction projects in the country increasing time to time. These construction projects achieve or failure of objectives measured by whether successfully completed on time and cost or not. However, most of federal road and rail construction projects in the country exposed to time and cost overruns. It becomes difficult to complete projects on schedule and allocated budget. To fill the gap, the study on causes of time and cost overrun was conducted. Questionnaire surveys together with project completion report were used. A total of 73 questionnaires from owner, consultants and contractors were collected and secondary data of 30 (25 roads and 5 rails) construction projects completed since 2014 in federal road and rail agencies were investigated. From the analysis it was found that 88% of road and 100% rail construction projects suffered time performance, and 80% of road and 100% of rail projects also cost overruns. The key time and cost overrun determinants ranked by respondents conducted through questionnaire and interview managers and engineers who have experience of delay construction projects from clients, contractors and consultants in purposive sampling method. From these identified and ranked 38 determinants five top extension of time and 4 escalation of cost are selected for discussion. Factors which affected time performance were: incomplete study prior to project approval, poor project management and coordination, right of way issues, inaccurate forecasting of schedule, overconfidence and interest of project stakeholders. Whereas the extremely significant factors affecting cost performance were; inflation of material cost, scope change with change order, incomplete study project approval, poor bill of quantity and design, and poor project performance monitoring. Cost and time overruns of Federal road and rail projects have affected key stakeholders in particularly and on the economy of the country generally. Time and cost overrun added in estimated time and cost over and above initial agreed upon on set, this damages client and contractor reputation, loss of profit and investment opportunities, inability to deliver value of money and inefficient use of time, disposing business activities and create burden for taxpayers. This paper finally came up with solutions towards reducing the impact of delays and cost overruns on federal road and rail projects in Ethiopia.