Home⇛International Journal of Multidisciplinary: Applied Business and Education Research⇛vol. 5 no. 12 (2024)

Cost and Time Overrun of Public Infrastructure Project in The Philippines: Inhibiting Factors and Mitigating Measure

Jim Davis J. Layno | Jerome Jordan F. Famadico

Discipline: social sciences (non-specific)

 

Abstract:

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.



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