An evaluation of time and cost overruns during the design and build of the Masindi (Kisanja) and the Tangi junction – Paara – Buliisa Road

Abstract

This report provides an assessment of the Masindi (Kisanja) – Park Junction and Tangi Junction – Paraa – Buliisa road project in Uganda, which was a design and build contract undertaken to expedite the delivery of critical oil infrastructure, yet it encountered significant time and cost management challenges. This study evaluates the extent of time and cost overruns during the project’s implementation and identifies their underlying causes. A case study approach was employed, analysing project records, contract documents, and progress reports to compare planned timelines and budgets against actual outcomes. The findings reveal that the project experienced substantial schedule slippage. The initial completion target of April 2021 had to be extended multiple times, with final completion not achieved until September 2024 – about three and a half years beyond schedule and the completion report submitted to UNRA on the 30th December 2024, thus more than doubling the planned duration. Several factors contributed to these delays, including exceptional rainfall events, the incorporation of additional works (such as Uganda Wildlife Authority and other access roads added mid-project), operational constraints from working within Murchison Falls National Park, and disruptions caused by the COVID-19 pandemic. On the cost front, the base contract price was largely maintained through allocated contingencies and formal variation orders for the extra scope, keeping the final contract sum close to the original value. However, significant inflationary pressures during the extended project period led to cost escalations that exceeded the contract’s price adjustment provisions, indicating an implicit cost overrun beyond the initial budget. Furthermore, the prolonged project timeline necessitated an extension of the design and supervision services beyond their initially contracted period. Overall, the evaluation highlights that even with a Design and Build procurement strategy intended to mitigate delays, unforeseen environmental, scope, and external factors can bring about major schedule extensions and associated cost implications in large-scale road projects.