Project Delays on Cost Overrun Risks: A Study of Gasabo District Construction Projects Kigali, Rwanda
DOI:
https://doi.org/10.18034/abcjar.v5i1.55Keywords:
Time, Cost, Overrun, Mitigation, Project, Kigali, RwandaAbstract
The purpose of this study was to examine the major causes of project delays and costs/risks that arise from project delays when implementing public construction projects in Gasabo district, Kigali City. The objectives were; to assess the relationship between project expected time and real time, determine project expected cost and real cost, to calculate both project delay and cost overruns and finally to identify the relationship between public construction project delay and their respective cost overruns. The study adopted a descriptive survey research design. Data were collected using open-ended questionnaire. Research samples were randomly selected from a total of 42 public construction project managers, consultants/ implementers for projects that had been ongoing for the period 2009 until 2012. A sample of 38 respondents was taken to assure a 95% significant result. To examine the nature of project delays and cost overruns, project delays and cost overruns were calculated, compared and regressed. The study revealed that 65.7% of public construction projects which were implemented between 2009-2012 were delayed, whereas only 5.2% of these projects faced cost overruns. From the results, the study recommends the use efficient mitigation techniques for planning efficiency rather formalities.
Downloads
References
Abbas, M.I. (2006). Causes and Effects of Delays in Aceh Construction Industry.Masters’thesis.Universiti Teknology.
Abd. Majid, M.Z., & McCaffer, R. (1998). Factors of Non-excusable Delays that Influence Contractors’ performance, Journal of Management in Engineering, ASCE, 42-49. DOI: https://doi.org/10.1061/(ASCE)0742-597X(1998)14:3(42)
Adanza, E. G. (1995).Research methods: Principles and Application. REX Book Store Inc, Manila Philippines.
Agaba, E. (2009, February 16). Poor Planning Delaying Government Project (Business News Pullout).The New Vision, 24, 6.
Ahmed. S., Azher, S., Castillo, M., & Kappagantula, P. (2002). Construction delays in Florida; an empirical study, Florida.
Alan Hirsch and Tim Catchim (2012). The permanent revolution: Apostolic Imagination and Practice for the 31st Century church. Published by Jessey-Bass, San Francisco, www.jessybass.com
Alinaitwe, H. M. (2008). Improvement of labor performance and productivity in Uganda’s building Industry, Ph.D. Thesis. Lund University, Sweden.
Al-Khalil & Al- Ghastly, M.A. (1999).Important causes of delay in public utility projects in Saudi Arabia. International Journal of Project Management, 17 (2), 647-655. DOI: https://doi.org/10.1080/014461999371259
Al-Momani, A. H. (2000). Construction Delay: A quantitative analysis. International Journal of Project Management, 17, 51-59. DOI: https://doi.org/10.1016/S0263-7863(98)00060-X
Ashley & Jaselskis (1987), Determinants of construction project success, Project Management Journal, Vol .18, (2), pp.69 – 79
Azhar, N., & and Farouqi, R. U. (2008, August). Cost Overrun Factors in the Construction Industry of Pakistan. In the 1st International Conference on Construction in Developing Countries, Advancing & Integrating Construction Education, Research, and Practice, Karachi, Pakistan.
Baker, B.N., D.C. Murphy and D. Fisher (1988). Factors affecting project success. International Project Management Handbook ed. D.I. Cleland and W.R. King 2nd edition 902 -919, New York
Bruzelius, Bent, F. and Werner R. (1998). Big Decisions, Big Risks: Improving Accountability in Mega Projects, International Review of Administrative Sciences, 64(3), pp. 423-440.
Bubshait, A.A. & Al-Juwait, Y.A. (2002). Factors Contributing to Construction Costs in Saudi Arabia.Cost Engineering, 44(5), 30.
Cooke, B., & Williams, P. (2004). Construction planning programming and control. Blackwell Publishing, Oxford, 5-90.
Dlakwa, M.M., & Culpin, M. F. (1990).Reason for overrun in public sector construction projects in Nigeria. International Journal of Project Management, 8(4), 237-241. DOI: https://doi.org/10.1016/0263-7863(90)90032-7
El-Razek, M.A., Bassoioni, H.A, & Mobarak, A.M. (2008).Causes of Delay in Building Construction Projects in Egypt, Journal of Construction Engineering and Management, 134(11), 831. DOI: https://doi.org/10.1061/(ASCE)0733-9364(2008)134:11(831)
Flyvbjerg, B., Holm , M.K.S. & Buhl, S.L. (2002). Cost underestimation in public works projects: Error or Lie? Journal of the American Planning Association, 68 (3), 279 – 295. DOI: https://doi.org/10.1080/01944360208976273
Flyvbjerg, B., Holm, M.K.S. & Buhl, S.L. (2003). How common and how large are cost overruns in Transport infrastructure projects. Transport Reviews, 23, 71-88. DOI: https://doi.org/10.1080/01441640309904
Flyvbjerg, B., Holm, M.K.S. & Buhl, S.L (2004). What Causes Cost Overrun in Transport Infrastructure Projects. Transport Reviews, 24 (1), 3-18. DOI: https://doi.org/10.1080/0144164032000080494a
Frimpong, Y., Oluwoye, J., & Crawford, L. (2003). Causes of Delays and Cost Overruns in the Construction of Groundwater Projects in Developing Countries: Ghana as a Case Study. International Journal of Project Management, 21, 321-326. DOI: https://doi.org/10.1016/S0263-7863(02)00055-8
Hendrickson, C. and Au,T. ( 2003). Project Management for Construction: Fundamental Concepts for Owners, Engineers, Architects, and Builders (Prentice-Hall International Series in Civil Engineering and Engineering Mechanics
Hillson, D. (2004). Effective opportunity Management for Projects. Marcel Dekkel Inc, New-york.
Hirsch, A., & Catchim, T. (2012). The permanent revolution: Apostolic Imagination and Practice for the 31st century church. Published by Jessey-Bass, San Francisco.
Kain, J. F. (1990). Deception in Dallas: Strategic misrepresentation in rail transit promotion and evaluation, Journal of the American Planning Association, 56(2), 184–196. DOI: https://doi.org/10.1080/01944369008975758
Kaliba, C, Muya, M & Mumba, K. (2009). Cost Escalation and Schedule Delay in Road Construction Projects in Zambia, International Journal of Project Management, 27(5), 522-531.
Kaliba, C., Muya, M.,& Mumba, K. (2009). Cost escalation and schedule delays in road construction projects in Zambia, International Journal of Project Management, 27, 522-531. DOI: https://doi.org/10.1016/j.ijproman.2008.07.003
Kaming, P.F., Olomolaiye, P.O., Holt, G.D., & Harris, F.C. (1997).Factors influencing construction time and cost overruns on high-rise projects in Indonesia. Construction Management and Economics, 15, 83-94. DOI: https://doi.org/10.1080/014461997373132
KPMG (2005), Global Construction Survey 2005: Risk Taker, Profit Maker?
Kothari, C.R. (2004). Research Methodology: Methods and Techniques, Second Edition. New Age International LTD, Dharmesh printers, Delhi, India.
Kousliki, P. A., &Kartan , N. (2004). The Impact of construction materials on project time and cost in Kuwait.Journal of Construction and Architectural Management, 11(2), 126-132. DOI: https://doi.org/10.1108/09699980410527867
Kumaraswamy, M., & Chan D., (1998). Contributors to construction delays, Journal of Construction Management and Economics, 16(1), 17-29. DOI: https://doi.org/10.1080/014461998372556
Le - Hoai, L., Lee, Y.D., & Jun, Y. L. (2008). Delay and Cost Overruns in Vietnam Large Construction Projects: A Comparison with Other Selected Countries. KSCE Journal of Civil Engineering, 367-377. DOI: https://doi.org/10.1007/s12205-008-0367-7
Leishman, D.M. (1991) Protecting engineer against construction delay claims: NDC. Journal of Management in Engineering 7 3 DOI: https://doi.org/10.1061/(ASCE)9742-597X(1991)7:3(314)
Mansfield, N.R., Ugwu, O.O., & Doran T. (1994).Causes of delay and cost overrun in Nigeria construction projects. International Journal of Project Management, 12(4), 254-260. DOI: https://doi.org/10.1016/0263-7863(94)90050-7
Merewitz, L. (1973). Cost overruns in public works: Benefit-cost and policy analysis. Chicago: Aldine.
Ogunlana, S.O., Promkuntong, K., & Vithool, J. (1996). Construction delays in a fast growing Economy: Comparing Thailand with other economies. International Journal Project Management, 14(1), 37-45. DOI: https://doi.org/10.1016/0263-7863(95)00052-6
Okpala, D.C., & Aniekwu, A.N. (1988). Cause of High Cost of Construction in Nigeria. Journal of Construction Engineering and Management, ASCE, 114(2), 223-234. DOI: https://doi.org/10.1061/(ASCE)0733-9364(1988)114:2(233)
Rukirande, B. (2012). The government of Rwanda 2012/2013 budget. Retrieved from http://www.minecofine.gov.rw .
Sambasivan, M. & Soon, Y.W. (2007). Causes and Effects of Delays in Malaysian Construction Industry, International Journal of Project management, 25(5), 517-526. DOI: https://doi.org/10.1016/j.ijproman.2006.11.007
Singh, R. (2009). Delays and Cost Overruns in Infrastructure Projects: An Inquiry into Extents, Causes and Remedies.Centre for Development Economics, Department of Economics, Delhi School of Economics.
Skamris, M. K., & Flyvbjerg, B. (1997), “Inaccuracy of traffic forecasts and cost estimates on large transport projects”, Transport Policy, 4(3), 141–146. DOI: https://doi.org/10.1016/S0967-070X(97)00007-3
Sohail, M., & Baldwin, A. (2004). Performance indicators for micro-projects in developing countries. Construction Management and Economics, 22 (1), 11-23. DOI: https://doi.org/10.1080/0144619042000186022
Yakubu, O., & Sun, M. (2009) Cost and time control of construction projects: a survey of contractors and consultants in the UK. Construction Information Quarterly, 11(2), 53–9.
--0--