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Analyzing Cost and Schedule Growths of Road Construction Projects, Considering Project Characteristics

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  • Kang-Wook Lee

    (Post-Construction Evaluation and Management Center, Department of Construction Policy Research, Korea Institute of Civil Engineering and Building Technology, Goyang-si 10223, Korea)

  • Kyong-Hoon Kim

    (Post-Construction Evaluation and Management Center, Department of Construction Policy Research, Korea Institute of Civil Engineering and Building Technology, Goyang-si 10223, Korea)

Abstract

The development of road infrastructure is closely related to national competitiveness and presents significant socioeconomic impacts. However, road construction involves a large budget and is vulnerable to political, economic, social, and project-specific risks, which often result in cost overruns and schedule delays. Assessing the gap between the final performance and the planned performance, and providing feedback to similar projects in the future is essential for successful project planning and management. The aim of this study is to empirically analyze the cost and schedule growth of road construction projects, considering project characteristics. Using the national-level project performance data, the primary goal is to answer, “Do project characteristics influence the road project performance? If so, how different is the performance because of the project characteristics?” To this end, this study analyzes the cost and schedule growth of 423 road construction projects, considering five project characteristics: facility type, construction type, bid type, contract type, and project size. Non-parametric tests (the Mann–Whitney U test and the Kruskal–Wallis test) are used to analyze the differences between sample groups. The results demonstrate (1) better management of the performance of the highway when compared to the national and provincial roads; (2) higher schedule growth of the expansion and renovation than that of the new construction; (3) lower cost growth of the design-build method (turnkey and alternative) than the design-bid-build methods (qualification examination and lowest price); and (4) relatively larger cost and schedule growth for projects over $50 million than those of smaller projects. These results present empirical references from the Korean construction industry that can help construction-related entities (clients, design consultants, and contractors) to estimate and manage the cost and schedule buffers of future projects by considering different project characteristics. Discussions and suggestions connected with the findings are also provided. Future research will continue to shed light on the critical factors affecting the cost and schedule growth.

Suggested Citation

  • Kang-Wook Lee & Kyong-Hoon Kim, 2021. "Analyzing Cost and Schedule Growths of Road Construction Projects, Considering Project Characteristics," Sustainability, MDPI, vol. 13(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13694-:d:700282
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    References listed on IDEAS

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    3. Li, Hongbo & Liu, Yali & Peng, Kaili, 2018. "Characterizing the relationship between road infrastructure and local economy using structural equation modeling," Transport Policy, Elsevier, vol. 61(C), pages 17-25.
    4. Peter Roebeling & Miguel Saraiva & Anna Palla & Ilaria Gnecco & Carla Teotónio & Teresa Fidelis & Filomena Martins & Henrique Alves & João Rocha, 2017. "Assessing the socio-economic impacts of green/blue space, urban residential and road infrastructure projects in the Confluence (Lyon): a hedonic pricing simulation approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(3), pages 482-499, March.
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    2. Rubén Dario Acosta-Velásquez & Jeffrey León-Pulido & Alexander García-Pérez & William Stive Fajardo-Moreno & Leonardo Espinosa-Leal, 2022. "Contemporary Management Practice Applying the Dynamic Absorptive Capacity Measurement Model (PM 4 AC) for Improved Business Sustainability," Sustainability, MDPI, vol. 14(17), pages 1-12, September.

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