Examining the project cost overruns in local government; A case of Moroto District Local Government

Abstract

This study examined the project cost overruns in local government a case of Moroto district local government with a focus on finding out the causes, effects and mitigation measures of project cost overruns. An evaluative, cross sectional research design using a quantitative approach in a non-contrived setting was used. Purposive sampling was used to select a sample of 65 respondents and the same sample formed the target population (including chief accounting officers and sub county chiefs, departmental and sector heads, district/municipal executive and contract committee members and local contractors within Moroto district local government). Data was collected by questionnaire survey and documentary review. The data was summarized and analysed using SPSS to come up with descriptive statistics (frequency distributions). The study findings revealed that there are causes, effects and mitigation measures of project cost overruns in Moroto district local government. The study findings made it clear that unless the causes of project cost overruns in MDLG were addressed, many challenges lied ahead of the district in terms of social, political and economic aspects. On the basis of these findings, it was concluded that the research was able to answer all the research questions with evidence from the field and met the objectives set out. The study recommended the following measures to be undertaken; realistic terms of reference and contract documents be in place, controlled political interference in project planning and management, employment of contractors with adequate skills and experience, avoidance of „ghost‟ companies, timely procurement and implementation of projects, adequate data on project(s) to be implemented and employment of supervision staff with high moral integrity.