Abstract:
Timely completion within allocated cost reflects good project management. Construction Industry of Pakistan with a contribution of 2.405 per cent to GDP, suffers due to lack of investment in infrastructure sector including roads, rail and poor management of projects experiencing delays and cost overruns. Highways are a vital trade route in Pakistan’s transport sector as it carries 80 per cent of the country's commercial traffic, clearly indicating that it constitutes major component of construction industry. The objective of this study is to investigate key factors causing cost and time overruns in highway projects of Pakistan. Identified factors of cost and time overruns in highway projects of Pakistan through detailed literature review and interviews were investigated through questionnaire survey of 25 contractors, 21 consultants and 10 clients. A total of 28 cost overrun and 30 delay factors were ranked using Relative Importance Index (RII). Analysis of the results show that scope changes / additional work, inappropriate government policies and priorities, improper planning, price escalations on major construction materials and land acquisition and resettlement were major factors responsible for cost overruns. Delay in progress payments to contractors, conditions under force majeure, financial difficulties faced by clients and land acquisition and resettlement were established as most important causes for delays. The study shows considerable agreement among contractors, consultants and clients regarding ranking of factors using Rank Agreement Factor. All the factors identified in this study need to be carefully managed so as to avoid risks that are attributable to them, which calls for improved risk and project management practices by clients, contractors and consultants. The study will assist professionals in taking proactive measures for reducing cost overruns and delays in road construction projects.
