Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

Herrera, Rodrigo; Sánchez, Omar; Castañeda, Karen; Porras, Hernan

doi:10.3390/app10165506

Cited by 63 publications

(38 citation statements)

References 80 publications

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“…He found that publicly funded highway projects are significantly affected by the political uncertainty and its influence on ongoing key projects. Furthermore, Herrera et al (2020), revealed that the political situation in most countries, particularly, developing countries due to government changes can create favourable environment for cost overrun occurrence and eventually compromise the successful project development. As emphasised by some of the interviewees:…”

Section: 22mentioning

confidence: 99%

Key driving factors of cost overrun in highway infrastructure projects in Nigeria: a context-based perspective

Mahmud

Ogunlana

Hong

2021

JEDT

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Purpose Extensive research towards identifying the attributable cost overrun factors globally has been conducted predominantly from a survey-oriented perspective, which disregard the contextual basis on which these triggers manifest. This study aims to explore the driving factors of cost overrun in highway projects, specific to the Nigerian context. Design/methodology/approach The research used a context-based approach to seek project stakeholders’ perspectives on the key drivers of cost overrun in highway projects in Nigerian. Semi-structured interviews were conducted with client, contractor and consultant organisations involved in the provision of highway infrastructure projects in Nigeria. The collected data was analysed using a developed coding framework grounded on a case study approach, principles of inductive thematic analysis and saliency analysis to identify the key drivers. Findings Findings from the analysis identified triggers from macroeconomic, societal, leadership and project management perspectives with synergistic relationships with each other based on prevalence and significance. Among the key triggers is a delay in work progress, political instability, adverse weather, social issues, delay in progress payment to contractors and modification of project scope. In conclusion, the triggers of cost overrun in highway projects are contextually driven by the complex nature of the project management, societal, macroeconomic and leadership triggers specific to the Nigerian context. Research limitations/implications The research was limited to only highway infrastructure projects in Nigeria. Furthermore, the findings are based on a small sample size, and thus, caution must be taken before applying the outcome of this study in a generalised way to other contexts. Practical implications Practically, the stakeholders i.e. client, contractors and consultants should acknowledge the contextual circumstances in which each of the triggers takes place, which will aid in developing pragmatic measures and make the right decisions towards addressing these triggers during any highway construction project in Nigeria and enhance the chances of project success. Originality/value The context-based approach applied in this study is expected to provide a new insight in understanding the triggers of cost overruns, especially in highway projects in Nigeria and indeed other developing countries with similar governance characteristics

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Section: 22mentioning

confidence: 99%

Key driving factors of cost overrun in highway infrastructure projects in Nigeria: a context-based perspective

Mahmud

Ogunlana

Hong

2021

JEDT

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“…This study uses two types of approaches in the process of statistical analysis for data collection and processing. The two approaches taken are a kind of quantitative approach and a qualitative approach [19][20][21]. For the two types of approaches used, there are some differences in the methods and techniques used, such as objectives, concepts, research approaches, data collection methods, data analysis, and sampling [21][22].…”

Section: Methodsmentioning

confidence: 99%

Critical Risk Factor Affecting Cost Overrun in Highway Project of West Sumatera

Kurniawan

Mairizal

Masril

et al. 2022

IOP Conf. Ser.: Earth Environ. Sci.

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One part of the form of public capital that is collected into investments made by the government is infrastructure. Several types of infrastructure are roads, bridges, irrigation, and others to support economic activities. It can be seen that there is still a slowdown in the implementation of infrastructure development in Indonesia, which is marked by the lack of quality and quantity of infrastructure. Infrastructure work is part of the responsibilities of the construction industry players, which are very dynamic with various threats to be faced. In practice, every construction project contains risks, unless the owner can transfer it to another party. This study aims to identify critical risks that occur in infrastructure development projects, especially roads in West Sumatra which have an impact on cost overruns in their implementation. This research uses literature study, data collection, and questionnaires which are analyzed using quantitative statistical analysis. The findings in this study are the cost overrun factors that occur in the implementation of road projects in West Sumatra which consist of 12 (twelve) critical risk factors. The highest of the twelve delay factors is the lack of experience of contractors who cannot manage a project properly.

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“…As a result, shortage of material, lack of plant and spare parts of equipment, acceleration required by clients, change of work scope or changes in material specification by clients, mistakes during construction, fluctuation in prices of raw materials, shortage of workforce, lack of skilled labour, poor project management, poor cost control and awarding of a contract to the lowest bidders were reported as the critical factors. In addition, Herrera et al (2020) identified failures in design, price variation of materials, inadequate project planning, project scope changes and design changes as contributing factors.…”

Section: Cost Factorsmentioning

confidence: 99%

A DOSE to compare the level of performance between construction projects

Alemu

Thakur

2022

Organization, Technology and Management in Construction: An International Journal

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The aim of this paper was to compare the level of performance (success) of construction projects between selected countries based on the concept of iron triangle. Following this, the major construction delays, cost overruns and quality factors were identified through an in-depth review of previous research works conducted in Denmark, Nigeria and Gaza Strip. The aggregate impacts of these factors were computed and compared between these countries. The results show that in the case of Denmark, the aggregate impact of the factors responsible for delay, cost overrun and poor quality was found in the impact interval between [0.60–0.80], but in the case of Gaza Strip and Nigeria, the aggregate impacts were found in the impact interval between [0.80–1.0]. This shows that construction projects in Denmark are found to be performed better relative to Nigeria and Gaza Strip.

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Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

Cited by 63 publications

References 80 publications

Key driving factors of cost overrun in highway infrastructure projects in Nigeria: a context-based perspective

Key driving factors of cost overrun in highway infrastructure projects in Nigeria: a context-based perspective

Critical Risk Factor Affecting Cost Overrun in Highway Project of West Sumatera

A DOSE to compare the level of performance between construction projects

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