IDEAS home Printed from https://ideas.repec.org/a/eee/epplan/v105y2024ics0149718924000387.html
   My bibliography  Save this article

Examining the causes and effects of time overruns in construction projects promoted by rural municipalities in Nepal

Author

Listed:
  • Koirala, Madhav Prasad
  • Shahi, Roshan Samrat

Abstract

Time overruns are the most common issue in construction projects, which have a significant negative impact on the project and the parties involved. This also applies to National Competitive Bidding (NCB) construction projects in municipalities, jeopardizing project timelines, costs, and quality standards. Poor performance by professionals in rural municipalities has resulted in inadequate infrastructure development in these areas. The goal of this study is to understand the causes and effects of time overruns by employing an exploratory and descriptive research methodology. The data from clients, consultants, and contractors consistently highlights key factors contributing to project delays, including adverse weather conditions, limited involvement from contractor head offices, insufficient consultant experience, inadequate site management, and delays in site mobilization. These delays incur substantial costs related to materials, land acquisition, labor, and market risks. The results included that 52.17% the projects experienced time overruns ranging from 24.4% to 514.71%. Furthermore, 21.73% of projects experienced cost overruns, with the highest at 19.92%. These findings provide critical insights for improving project management and addressing construction time overruns. It recommends conducting national-scale analyses to gain a comprehensive understanding of construction delays and to implement effective mitigation strategies.

Suggested Citation

  • Koirala, Madhav Prasad & Shahi, Roshan Samrat, 2024. "Examining the causes and effects of time overruns in construction projects promoted by rural municipalities in Nepal," Evaluation and Program Planning, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:epplan:v:105:y:2024:i:c:s0149718924000387
    DOI: 10.1016/j.evalprogplan.2024.102436
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0149718924000387
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.evalprogplan.2024.102436?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Edyta Plebankiewicz, 2018. "Model of Predicting Cost Overrun in Construction Projects," Sustainability, MDPI, vol. 10(12), pages 1-14, November.
    2. Aftab Memon & Ismail Rahman & Muhammad Akram & Nornashima Ali, 2014. "Significant Factors Causing Time Overrun in Construction Projects of Peninsular Malaysia," Modern Applied Science, Canadian Center of Science and Education, vol. 8(4), pages 1-16, August.
    3. Ramy Khalef & Gasser G. Ali & Islam H. El-adaway & Ghada M. Gad, 2022. "Managing construction projects impacted by the COVID-19 pandemic: a contractual perspective," Construction Management and Economics, Taylor & Francis Journals, vol. 40(4), pages 313-330, April.
    4. Odeck, James, 2004. "Cost overruns in road construction--what are their sizes and determinants?," Transport Policy, Elsevier, vol. 11(1), pages 43-53, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edyta Plebankiewicz & Damian Wieczorek, 2020. "Prediction of Cost Overrun Risk in Construction Projects," Sustainability, MDPI, vol. 12(22), pages 1-15, November.
    2. Chantal C. Cantarelli & Bert van Wee & Eric J. E. Molin & Bent Flyvbjerg, 2013. "Different Cost Performance: Different Determinants? The Case of Cost Overruns in Dutch Transportation Infrastructure Projects," Papers 1307.2179, arXiv.org, revised Jan 2015.
    3. Cantarelli, C.C. & Flyvbjerg, B. & Buhl, S.L., 2012. "Geographical variation in project cost performance: the Netherlands versus worldwide," Journal of Transport Geography, Elsevier, vol. 24(C), pages 324-331.
    4. Herve Kabanda & Alex Romard & Fuze Yurtsever & Anjali Wadhera & Joshua Andrews & Craig Merrett, 2021. "Construction Time Estimation Function for Canadian Utility Scale Power Plants," Energies, MDPI, vol. 14(17), pages 1-16, August.
    5. Holz-Rau, Christian & Scheiner, Joachim, 2011. "Safety and travel time in cost-benefit analysis: A sensitivity analysis for North Rhine-Westphalia," Transport Policy, Elsevier, vol. 18(2), pages 336-346, March.
    6. Love, Peter E.D. & Ika, Lavagnon A. & Ahiaga-Dagbui, Dominic D., 2019. "On de-bunking ‘fake news’ in a post truth era: Why does the Planning Fallacy explanation for cost overruns fall short?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 397-408.
    7. Hugo Priemus & Bert van Wee (ed.), 2013. "International Handbook on Mega-Projects," Books, Edward Elgar Publishing, number 14791.
    8. Dahl, Roy Endré & Lorentzen, Sindre & Oglend, Atle & Osmundsen, Petter, 2017. "Pro-cyclical petroleum investments and cost overruns in Norway," Energy Policy, Elsevier, vol. 100(C), pages 68-78.
    9. Adriana Gómez-Cabrera & Amalia Sanz-Benlloch & Laura Montalban-Domingo & Jose Luis Ponz-Tienda & Eugenio Pellicer, 2020. "Identification of Factors Affecting the Performance of Rural Road Projects in Colombia," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    10. Minhyuk Jung & Shira You & Seokho Chi & Ilhan Yu & Bon-Gang Hwang, 2018. "The Relationship between Unbilled Accounts Receivable and Financial Performance of Construction Contractors," Sustainability, MDPI, vol. 10(8), pages 1-14, July.
    11. Chantal C. Cantarelli & Bent Flyvbjerg, 2013. "Mega-projects’ cost performance and lock-in: problems and solutions," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 15, pages 333-355, Edward Elgar Publishing.
    12. Petr Halámek & Radka Matuszková & Michal Radimský, 2021. "Modernisation of Regional Roads Evaluated Using Ex-Post CBA," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    13. Cantarelli, C.C. & Molin, E.J.E. & van Wee, B. & Flyvbjerg, B., 2012. "Characteristics of cost overruns for Dutch transport infrastructure projects and the importance of the decision to build and project phases," Transport Policy, Elsevier, vol. 22(C), pages 49-56.
    14. Verweij, Stefan & van Meerkerk, Ingmar & Korthagen, Iris A., 2015. "Reasons for contract changes in implementing Dutch transportation infrastructure projects: An empirical exploration," Transport Policy, Elsevier, vol. 37(C), pages 195-202.
    15. Love, Peter E.D. & Zhou, Jingyang & Edwards, David J. & Irani, Zahir & Sing, Chun-Pong, 2017. "Off the rails: The cost performance of infrastructure rail projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 99(C), pages 14-29.
    16. Chong, Uven & Hopkins, Omar, 2016. "An international experience on the evolution of road costs during the project life cycle," Transport Policy, Elsevier, vol. 48(C), pages 60-66.
    17. Wasiu Olayinka FAWOLE & Burhan ÖZKAN, 2017. "Identifying the Drivers of Food Security Based on Perception among Households in South Western Nigeria," European Journal of Interdisciplinary Studies Articles, Revistia Research and Publishing, vol. 3, ejis_v3_i.
    18. Petter Osmundsen & Kristin Helen Roll, 2016. "Rig Rates and Drilling Speed: Reinforcing Effects," CESifo Working Paper Series 5895, CESifo.
    19. Abeysekara, Baudhi & Perera, Piyaruwan & Chhipi Shrestha, Gyan Kumar & Gunaruwan, Lalithasiri & Kumarage, Amal & Sadiq, Rehan & Hewage, Kasun, 2021. "Improving the capital deployment efficiency: An infrastructure investment planning process in transportation project," Research in Transportation Economics, Elsevier, vol. 88(C).
    20. Fengchang Jiang & John Awaitey & Haiyan Xie, 2022. "Analysis of Construction Cost and Investment Planning Using Time Series Data," Sustainability, MDPI, vol. 14(3), pages 1-16, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:epplan:v:105:y:2024:i:c:s0149718924000387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/evalprogplan .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.