Analysis of Cost Overrun and Schedule Delays of Infrastructure Projects in Low Income Economies: Case Studies in Ethiopia

Solomon Melaku Belay,Helder Sousa,Endalew Temesgen Workneh,Mitiku Yehualaw,Seifu Tilahun,Jose Matos,Heap-Yih (John) Chong

doi:10.1155/2021/4991204

Solomon Melaku Belay, Helder Sousa + Show 5 more

Open Access

https://doi.org/10.1155/2021/4991204

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Abstract

Today, several developing countries struggle to improve the cost and time performances of major infrastructure works due to various reasons. Cost overrun and delay are one of the major challenges being faced by the construction and infrastructure sector. Hence, the aim of this study is to explore the extent of cost overrun and schedule delays in building and road infrastructure projects across the Ethiopian construction industry. Primary data were collected through a structured questionnaire survey to evaluate the potential risks leading to those challenges. Various data analysis tools were employed, to investigate the critical causes of cost overrun and delays in infrastructure projects. The findings reveal that the minimum cost overrun for building construction projects is found to be 2%, whereas the maximum and average cost overruns are 248% and 35%, respectively. For road infrastructure projects, the minimum, maximum, and average cost overruns are found to be 1%, 61%, and 18%, respectively. Similarly, the minimum, maximum, and average delays recorded in building construction projects are 9%, 802%, and 143%, respectively, whereas, in road infrastructure projects, the minimum delay is found to be 3%, the maximum delay is 312%, and an average schedule delay of 110% is recorded. In addition, the top risk factors leading to cost overrun in infrastructure projects are inflation, inaccurate cost estimates, and variations, whereas the major risks causing schedule delays are variations, economic conditions, and escalation of material prices. Further, practical implications and key recommendations were provided to curb cost overrun and delay in infrastructure projects.

Highlights

Today, several developing countries struggle to improve the cost and time performances of major infrastructure works due to various reasons
Introduction e infrastructure and construction sector in the SubSaharan Africa region faces several problems and challenges ranging from quality work to severe budget constraints [1, 2]. ese challenges could lead to several instances and disputes among parties across the project life cycle [3]
Prior studies highlighted the negative impacts of cost overrun and schedule delays in numerous developing countries, such as Tanzania [5], Pakistan [6], South Africa [7], Iran [8], and Malaysia and Ghana [9]. ese studies explored the negative impacts of cost overrun and schedule delays on various stakeholders involving in construction projects including owners, contractors, and the practitioners’ in general

Summary

Introduction

Several developing countries struggle to improve the cost and time performances of major infrastructure works due to various reasons. The aim of this study is to explore the extent of cost overrun and schedule delays in building and road infrastructure projects across the Ethiopian construction industry. One of the most common challenges the construction industry is confronting cost overrun and schedule delays in various infrastructure projects These problems are often regarded as a very common phenomenon in the majority of projects across developing countries [4]. The specific objectives of this study are threefold: (1) examine the extent of cost overrun and schedule delays in infrastructure projects; (2) investigate the risk factors leading to both challenges; and (3) provide comprehensive critical recommended actions and practical implications to curb the problems imposed by potential cost overrun and schedule delays in construction projects. The specific objectives of this study are threefold: (1) examine the extent of cost overrun and schedule delays in infrastructure projects; (2) investigate the risk factors leading to both challenges; and (3) provide comprehensive critical recommended actions and practical implications to curb the problems imposed by potential cost overrun and schedule delays in construction projects. e findings of this paper provide a vital science-based data to various stakeholders practicing in the Ethiopian construction sector and developing countries in general

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