Factors Affecting Contract Compliance and Execution of Public Works in the Executing Unit: Special Project Huallaga Central and Bajo Mayo in Peru, 2022

Abstract

Cost overruns, delays, and poor quality are frequent in public investment projects under the contract modality, executed by the Executing Unit: Special Project Huallaga Central and Bajo Mayo (PEHCBM). The purpose of this research is to identify the factors that affect the fulfillment of contracts for the execution of public works in the PEHCBM. This research includes the determination of the most influential factors using the relative importance index (RII), as well as surveys administered to a sample of 25 experts. A total of 91 articles from 48 academic journals were selected. With the application of the RII, 21 factors were determined, distributed among the dimensions of cost, time, and quality, and validated by the experts with a Spearman’s coefficient of value 0.521. In the case study, seven relevant factors were determined in PEHCBM execution contracts, identifying overtime between 4.7% and 524.2%, as well as a cost increase between 8.8% and 52.2%. Similarly, adverse situations detected by the Comptroller’s Office were determined, with an accumulated economic damage of about PEN 19 million, determining the high influence of the cost, time, and quality dimensions on them. In conclusion, this study shows the high overtime and the deficient quality of the works carried out by the contracting modality, which generated economic damage to the State.