Drivers of cost overruns on drainage construction of Nabulagala channel in Lubaga Division

Abstract

Construction projects form part of infrastructure projects, implemented with the primary objective of delivering value to society, and this has existed for ages. In the recent past, the construction sector has become leading globally, with cost overruns being one of the significant considerations throughout the lifecycle of a project. This study focused on the Ugandan construction sector and identified the top six factors that lead to cost overruns in drainage construction projects. These factors are inadequate project planning, poor communication and coordination, changes in project scope, lack of skilled labor, insufficient budget allocation, and payment delays. Cost management was identified as a continuous process throughout the project's lifespan and involves stages such as estimating, allocating, and controlling project costs to make future estimates and avoid budget overruns. The study further underscores the inseparable nature of construction and financial management, highlighting the different skills applicable to control these costs, such as resource planning, estimation, budgeting, and control. The cost overrun and schedule delay in infrastructure projects were observed to have a damaging economic effect ranging from further project delays, contractual disputes, and allocative inefficiency of scarce resources, claims, and litigation to project failure and total abandonment.