Assessment on Prolongation Cost Estimation Practice for Road Construction Projects in Ethiopia

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Addis Ababa University


Road construction projects in Ethiopia are used to encounter considerable time and cost overruns when compared with their planned values. And, one of the main factors for cost overrun is found to be prolongation cost. Besides, in handling the prolongation cost claim, it can remain unsettled due to the calculation and presentation of damages, even after entitlement to recover additional compensation. Having this, the research assess the problems in relation to justifying time delay, data recording and documentations, suitability of conditions of contract and methods of estimation in prolongation cost claim administration. So that; it identifies and understand gaps (problems and challenges) in estimating prolongation cost in road construction projects. To address the problems, a questionnaire was designed and distributed to contractors, consultants and employers participating in road construction sector. To supplement the questionnaire, a desk study was conducted on prolongation cost claim documents. Consequently; analysis of data are processed using simple statistical approach, examining, tabulating and categorizing based on the chosen measurement scale. And, Likert’s scale was used to gauge the potential factors, together with, Kendall coefficient of concordance (W) to test correlation among the parties. As a result, the findings show that; incomplete recording and documentation, unclear estimation methods and contractual provision are the main problems in justifying time delay and estimation of prolongation cost compensation. The practice of data collection and documentation becomes a problem due to lack of competent and experienced professionals and lack of awareness. Estimation technique currently used is found out to be actual cost records. Where, there is lack of documents to estimate head office overhead, the Direct Method is found to be suitable with %age mark up for HOOH set in the contract for current road construction projects situation in Ethiopia. PPA condition of contract needs improvement to handle prolongation cost estimation and claim, while FIDIC condition of contract is known to be good to administer prolongation cost issues. So that the research implies the administration practice in prolongation cost claim needs a look in relation to data collection and documentation, local conditions of contract and adopt suitable estimation formula that harmonize the current situation. Key Words: Prolongation cost, Acceleration, Inefficiency and Conditions of Contract



Prolongation cost, Acceleration, Inefficiency and Conditions of Contract