Identifying the Factors Affecting the Cost Management of Road Construction Projects in Tanzania: Review Paper

Abstract

Among the key factors to take into consideration before the execution of any project is time, cost and quality. Most projects meet Quality and sometimes time but cost management is a real question in the implementation of many construction projects in the world. Poor management of the cost causes the delay of many road construction projects in the world too. In this paper literature review has been conducted to identify different factors that contribute to cost management both positive and negative ones. Different factors were identified that contributed to poor management of cost in highway construction projects such as force majeure factors like weather conditions, political matters and other factors like change in design, change of scope, conflict among the stakeholders, poor leadership, incompetence of project manager and subcontractors, in Tanzania from the literature perspective the challenge of cost overrun is very critical as insisted by different authors in their researches. Most of the projects deviate from their planned budget by even more than 50%. Apart from all causes of cost overrun, delay in these projects is the critical problem which causes the cost increase, the problem of delay is critical in both developing and developed countries, hence mitigating the factors discussed in this paper will minimize the problem of delays and cost overrun too although further research is required in this area to come up with proper mitigation measures to minimize the problem of cost overrun in road construction projects in Tanzania.