Systemic Issues Influencing Technical Certainty in Social Housing Programmes in a Small Island Developing State

Aaron Chadee,Xsitaaz Chadee,Indrajit Ray

doi:10.3390/buildings11020065

Abstract

Underestimating costs in major public sector social infrastructure development projects is a highly contested and problematic issue. Several gaps exist in the identification of root causes of cost overruns. Behavioural science academics advocate political and psychological explanations as root causes for cost overruns against technical factors, such as errors and omissions by engineers, practitioners and scientists. Most studies in this field primarily concentrate on developed countries. Although some studies have been undertaken in developing countries, very little attention is given to the Small Island Developing States (SIDS). This paper presents a case study of public sector social housing construction programmes in a Caribbean SIDS to further understand the root causes of cost overruns. Primary and secondary data spanning across two different political cycles were collected to test the concepts of whether political influences or technical influences are the true root causes of cost overruns. It was found that political explanations based on the psycho-strategic concept are the leading sources of cost risks on the final estimated contract price. This study strengthens the argument and discusses how strategic decisions emanating from the political directorate outweigh and influence informed technical decisions formulated during the planning stages.

Highlights

An issue that is central to project management (PM) is the problem of cost overruns in social infrastructure development projects
Several studies in a wide range of fields, such as road, bridges, dams, and other infrastructure developments, have provided substantial data on these large-scale projects’ failures over the last five decades in developed countries [1,2,3]. Notwithstanding this interest internationally, there is limited literature on any substantive studies on cost overruns undertaken in Small Island Developing States (SIDS)
Cost overruns on social infrastructure projects often exceed hundreds of millions of dollars and can be substantial enough to impact the economy of SIDS

Summary

Introduction

An issue that is central to project management (PM) is the problem of cost overruns in social infrastructure development projects. Several studies in a wide range of fields, such as road, bridges, dams, and other infrastructure developments, have provided substantial data on these large-scale projects’ failures over the last five decades in developed countries [1,2,3] Notwithstanding this interest internationally, there is limited literature on any substantive studies on cost overruns undertaken in Small Island Developing States (SIDS). Decision-makers in developed nations, where accountability and governance practices in public spending are more robust than developing nations and by extension SIDS, are unable to curb the pervasive nature of cost creep In this respect, Trinidad and Tobago, a Caribbean SIDS and an emerging economy, provides a unique case as a bridge between developed and developing nations

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Conclusion