Analysis of Cost and Time Overruns during Construction of Public Health Facilities in Uganda: Case Study of World Bank Funded Projects

Abstract

The problem of cost and time overruns in the construction industry is a global phenomenon and the health sector in Uganda is no exception. The main objective of this study was to investigate the causes of construction project cost and time overruns in Uganda's public sector. Specifically, this study was conducted to identify the causes of cost and time overruns and to rank them according to their frequency, severity and importance. The study also further sought to determine the impact of time overruns on the final cost of the project and determine the degree of significance of time overruns on the final cost of the project. Ministry of health World Bank funded project was selected as a case study as a means of validating the results of the survey. The causes of cost and time overruns were identified from literature review and were categorized such client related, consultant related, contractor related and external factors. These were subsequently ranked using mean. The main client related cause of time and cost overrun is late payment of works already executed. The main consultant related cause of time and cost overrun is delays in approving design and variation, inadequate details in drawings, design errors and omissions. The main contractor related cause of time and cost overrun is strikes by project employees and late procurement of materials. The study found out that time overruns had minimal impact on the final cost of the project