Time and cost overruns in the implementation of infrastructure projects are endless, as appears in all the implementing agencies of the government. According to the recent report of the state auditor, projects were not completed within the specific contract time, while the socioeconomic planning body reported cost overruns on several big-ticket projects. This study proposes a frame of factors influencing overruns and mitigation actions as a contribution to the risk analysis of the implementation of projects as well as the project management initiative in monitoring and control of projects. By analyzing the datasets from Metro Manila, this study identified the most prevalent influencing factor of cost and time overruns faced in the implementation of infrastructure projects and developed measures to mitigate overruns. A total of 196 professionals responded to a questionnaire, and 12 participants were involved in unstructured interviews, which supported the data and results. To interpret and validate the data gathered, a relative importance index and a one-way analysis of variance test were used. The study revealed that the influencing factors leading to time overruns are inaccurate budgeting, location of site, suspension of work, land acquisition, and variation order, while for the cost overrun factors, inaccurate budgeting, variation order, inadequate project planning, market conditions, and inadequate site investigations prevail. A relationship between the perceptions of the 3 groups, namely the contractor, consultant, and implementing agency, with regards to the cost overrun factors was significant. However, with regards to the time overrun factors, they are not significant.
References:
1. Albatal, A. (2013). Effect of inadequate site investigation on the cost and time of a construction project. Taylor & Francis. https://doi.org/10.1201/b16058-49
2. Al-Hazim, N., Salem, Z. A., & Ahmad, H. (2017). Delay and cost overrun in infrastructure projects in Jordan. Procedia Engineering, 182, 324–331. https://doi.org/10.1016/j.proeng.2017.03.105
3. Aljohani, A., Ahiaga-Dagbui, D., & Moore, D. (2017). Construction projects cost over-run: What does the literature tell us? International Journal of Innovation, Management and Technology, 8(2), 71–77. https://doi.org/10.18178/ijimt.2017.8.2.71
4. Arain, F. M., Assaf, S. A., & Pheng, L. S. (2000). Causes of discrepancies between design and construction. Architectural Science Review, 47(3), 237–249. https://doi.org/10.1080/00038628.2000.9697530
5. Aslan Noor. (2021). Corruption in the acquisition of land for the benefit of infrastructure development in Indonesia. International Journal of Cyber Criminology, 15(2). DOI: 10.5281/zenodo.4766545
6. Azis, A., Memon, A., Rahman, I., & Karim, A. (2013). Controlling cost overrun factors in construction projects in Malaysia. Research Journal of Applied Science, Engineering and Technology, 5(22), 4706–4714. http://dx.doi.org/10.19026/rjaset.5.4706
7. Bascon, R., Gangcuangco, R., & Carreon, A. (2023). Investigation on the factors influencing time and cost overrun in vertical construction in Pampanga. ResearchGate. https://doi.org/1704711
8. Cabahug, R., Arquita, M., De La Torre, S. M., Valledor, M., & Olivares, S. (2018). Factors influencing the delay of road construction projects in Northern Mindanao, Philippines. Mindanao Journal of Science and Technology. https://mjst.ustp.edu.ph/index.php/mjst/article/view/15
9. Famadico, J., & Baccay, A. (2019). Comparative study on change orders in building projects. In Global Civil Engineering Conference 2017: Malaysia (Vol. 9, Lecture Notes on Civil Engineering). https://www.researchgate.net/publication/320707875_Comparative_Study_on_Change_Orders_in_Building_Projects
10. Gomez, A. (2022). A review of the knowledge base for the communication skills of educational administrators. International Journal of Multidisciplinary: Applied Business and Education Research, 3(5), 748–757. Global Academics Interdisciplinary Research and Development.
11. Hanif, H., Khurshid, M. B., Lindhard, S. M., & Aslam, Z. (2016). Impact of variation orders on time and cost in mega hydropower projects of Pakistan. Journal of Civil Engineering and Construction, 21(2), 3–12. https://doi.org/10.21315/jcdc2016.21.2.3
12. Hanna, A., Camlic, R., Peterson, P., & Lee, M. (2004). Cumulative effect of project changes for electrical and mechanical construction. Journal of Construction Engineering and Management, 130(6), 873–880.
13. Muhammad Ali Musarat, Wesam & Salah Alaloul, M.S. Liew. (2021). Impact of inflation rate on construction projects budget: A review. Ain Shams Engineering Journal, 12(1). https://doi.org/10.1016/j.asej.2020.04.009
14. Quiniquini, A. R. (2017). An assessment of the approved variation orders in DPWH-implemented projects. De La Salle University Animo Repository. https://animorepository.dlsu.edu.ph/etd_masteral/5738
15. Rocha, P., Ferreira, N., Pimenta, F., & Pereira, P. (2023). Impacts of prefabrication in the building construction industry. Encyclopedia, 3, 100003. https://doi.org/10.3390/encyclopedia3010003
16. Schuldt, S., Nicholson, M., Adams II, Y., & Delorit, J. (2021). Weather-related construction delays in a changing climate: A systematic state of the art review. Sustainability, 13(5). https://doi.org/10.3390/su13052861
17. Seidu, R., Allen, M., Ruoyu, J., Chen, Y., Young, B., & Ebohon, O. (2022). Construction infrastructure project cost overrun and cost control/management techniques. ResearchGate. https://www.researchgate.net/publication/364185195
18. Susanti, R. (2020). Cost overrun and time delay of construction projects in Indonesia. Journal of Physics: Conference Series, 1444, 012050. https://doi.org/10.1088/1742-6596/1444/1/012050
19. Taber, K. S. (2017). The use of the Cronbach alpha when developing and reporting research instruments in science education. Research in Science Education, 47(6), 1349–1367. https://doi.org/10.1007/s11165-016-9602-2
20. Vaardini, U., Karthiyayini, S., & Ezhilmathi, P. (2016). Study on cost overrun in construction projects – A review. ResearchGate. https://www.researchgate.net/publication/303459769
21. Westerveld, E. (2003). The project excellence model: Linking success criteria and critical success factors. International Journal of Project Management, 21(6), 417–424. https://doi.org/10.1016/S0263-7863(02)00139-0