MAKERERE UNIVERSITY

COLLEGE OF ENGINEERING, DESIGN, ART AND TECHNOLOGY

SCHOOL OF ENGINEERING DEPARTMENT OF CIVIL AND ENVIRONMENTAL ENGINEERING

FINAL YEAR PROJECT PROPOSAL

An Analysis of Cost Escalation in Road Construction

Projects in Uganda

Muzinya Edgar

05/U/5426/PSA

Supervisor Co-Supervisor

Mr. Mwesige Godfrey Ms. Namutebi May

December 2011

Table of Contents

1.0 Introduction.................................................................................................... 1

Background ......................................................................................................................................... 1

Statement of the Problem ..................................................................................................................... 2

Main Objective .................................................................................................................................... 2

Specific Objectives .............................................................................................................................. 2

Scope .................................................................................................................................................. 2

Justification ......................................................................................................................................... 2

2.0 Literature Review .......................................................................................... 3

Cost ..................................................................................................................................................... 3

Cost Escalation .................................................................................................................................... 3

Definitions........................................................................................................................................... 3

Causes of Cost Escalation .................................................................................................................... 5

Effects of Cost Escalation .................................................................................................................... 7

Cost Control ........................................................................................................................................ 7

Data Sources ....................................................................................................................................... 8

Use of Structured Interviews ................................................................................................................ 9

Use of Literature Review ..................................................................................................................... 9

Use of Questionnaire Surveys .............................................................................................................. 9

Use of Case Studies ........................................................................................................................... 10

Data Analysis .................................................................................................................................... 10

Index Analyses .................................................................................................................................. 12

3.0 Methodology ..................................................................................................14

About the Study ................................................................................................................................. 14

Data Required.................................................................................................................................... 14

Sources of Data ................................................................................................................................. 14

Data Collection .................................................................................................................................. 14

Data Analysis .................................................................................................................................... 15

Expectation ....................................................................................................................................... 16

References ...........................................................................................................17

1

1.0 Introduction Background

For developing economies, road construction constitutes a major component of the construction

industry. This means that much of the national budget on infrastructure development is

channeled to road construction projects (Kaliba et al., 2009 ). The Ugandan government has for

the financial year 2011/2012 allocated Shs. 1,219.41 billion towards road infrastructure

development.

Over the years large construction projects have been plagued by cost escalation (Flyvbjerg et al.,

2002). Scholars use the phrases cost escalation and cost overruns interchangeably but for the

purpose of this study cost escalation shall be used. In too many cases, the final project cost has

been higher than the cost estimates prepared and released at the start of construction. The

ramifications of differences between bid prices and the final cost of a project can be significant

(Shane et al., 2009). The inability to complete projects within budget and its effects are normally

a source of friction between owners, project managers and contractors in terms of project cost

variation subsequent to the owner’s decision-to-build (Creedy et al., 2010).

Cost escalation of highway projects have a serious impact on program budgeting from the view

of the owner. As argued by Wang and Chou (2003), the planning and programming of future

highway construction projects are vitally important tasks in highway organizations. Apolot et al.

(2010) argue that because of construction cost escalation, less and less work is performed despite

the increase in construction budgets.

Azhar and Farouqi (2008) observe that the trend of cost escalation is more severe in developing

countries. Uganda’s road construction projects are not immune to this problem as is evidenced in

the case of the Kampala Northern Bypass that cost the country over Sh.130 billion (49.4% cost

escalation) from an initial estimate of Sh.87 billion, making it the most expensive 21km-road

ever constructed in Uganda (Kato, 2009). It is thus imperative that the problem of cost escalation

in Uganda’s road construction projects be studied with the view of identifying the causal factors

and as well as best practices for cost control.

2

Statement of the Problem

The final cost of constructing a road in Uganda often exceeds the contract price upon which the

tender ‘to construct’ is awarded. This deviation has a serious impact on program budgeting from

the view of the client and often brings a quick reaction from the public, the press and politicians.

Main Objective

The major objective of this study is to analyse cost escalation in road construction projects in

Uganda.

Specific Objectives

The specific objectives of this study are;

To identify the causes of cost escalation in Uganda’s road construction projects

To quantify proportional cost significance of causal factors to cost escalation

To identify best practices to control cost escalation in Uganda’s road construction

projects

Scope

This study refers to cost escalation that occurs from the time the contract ‘to construct” is

awarded to the time of project handover. It is further limited to road construction projects in

Uganda completed between 2005 and 2010 and to national roads only.

Justification The justification for this study is that road construction projects are very expensive and Uganda

like other developing countries has limited financial resources available to meet other

developmental needs. Therefore, it is important to identify and avoid factors associated with road

construction projects that have the potential to result in of cost escalation. Furthermore, an

efficient transport system is a pre-requisite for the economic and social transformation of

Uganda. Over 90% of cargo freight and passengers move by road. Roads account for 96.5% of

freight cargo as well as 95% of passenger traffic (NDP 2010/2011-2014/2015). The development

of road infrastructure impacts other sectors such as agriculture, health, and tourism. Additionally,

it is necessary for the commercial, industrial, socio-economic and political development of the

country.

3

2.0 Literature Review Cost Cost is among the major considerations throughout the project management life cycle and can be

regarded as one of the most important parameters of a project and the driving force of project

success. Despite its proven importance it is not uncommon to see a construction project failing to

achieve its objectives within the specified cost (Memon et al., 2010). Whenever a project cost

exceeds the budgeted amount cost escalation is said to have occurred.

Cost Escalation Construction projects, private and public alike, have a long history of cost escalation and as

Flyvbjerg et al. (2003) observe cost estimates have not improved and cost escalation not

decreased over the past 70 years. Approximately 50% of the active large transportation projects

in the United States have overrun their initial budgets (Shane et al., 2009) and the actual

construction costs of major transport infrastructure are on average 28% higher than estimated

costs and escalation occurs in nearly 9 out of 10 projects (Flyvbjerg et al., 2003). This implies

that for a randomly selected project, the likelihood of actual costs being larger than forecast costs

is 86%.

Cost escalation is a global phenomenon existing in both developing and developed countries

across all continents with the trend more severe in developing countries where these overruns

sometimes exceed 100% of the anticipated cost of the project (Memon et al., 2011, Kaliba et al.,

2009 , Flyvbjerg et al., 2003, Le-Hoai et al., 2008).

Definitions According toKaliba et al. (2009 ), cost escalation refers to the increase in the amount of money

required to construct a road project over and above the original budgeted amount. It occurs when

actual costs exceed previously estimated values.

4

Mahamid and Bruland (2011) define cost escalation as the difference between the final actual

cost of a construction project at completion and the contract amount, agreed by and between the

client (the project owner) and the contractor during signing of the contract.

Cost escalation, also known as cost development, according to international convention, is

defined as the difference between the actual costs and estimated cost as a percentage of the

estimated cost, with all costs calculated in constant prices (Jin-Kyung, 2008, Flyvbjerg et al.,

2003).

For the purpose of this research, however, cost escalation refers to the difference between the

final actual cost of a road construction project and the contract amount agreed by and between

the client (MoWT/UNRA) and the contractor during the signing of the contract.

Actual costs are the real, accounted costs determined at the time of completing a project while

estimated costs are defined as the budgeted or forecast costs at the time of decision to build a

project or project approval and are typically similar to costs presented in the business case for a

project (Flyvbjerg et al., 2003, Jin-Kyung, 2008).

While this study adopts the definition of actual costs postulated by Flyvbjerg et al. (2003) and

Jin-Kyung (2008), the researcher opts to regard estimated costs as the contract amounts or prices.

This decision is arrived at because, as Flyvbjerg et al. (2003) observe, often the real decision to

build a project has been made well before the formal decision and based on informally developed

forecasts that are substantially more optimistic than those developed during the subsequent

formal planning and decision-making process. It is intended in this study to calculate cost

development on the basis of the cost estimate at the time of the award of the contract to construct

for it is possible to obtain information about the cost estimate of the best evaluated bid.

5

Causes of Cost Escalation Project cost increases, as reflected by budget overruns during the course of project development,

are caused by a number of factors that have been individually identified through a large number

of studies and research projects. The causes of cost escalation differ from project to project,

geographical area to geographical area and what exactly causes cost escalation in projects is

substantially more difficult to predict than the fact that cost escalation is likely to haunt projects

(Flyvbjerg et al., 2003).

Mahamid and Bruland (2011) reveal the top five causes as; materials price fluctuation,

insufficient time for estimate, experience in contracts, size of contract, and incomplete drawings.

Memon et al. (2010) identify the practice of assigning contract to lowest bidder, contractor's poor

site management and supervision, cash flow and financial difficulties faced by contractors,

incorrect planning and scheduling by contractors, inadequate contractor experience, shortage of

site workers, delay in material procurement incompetent project team (designers and

contractors), fluctuation in prices of materials and underestimating project duration resulting in

schedule delay as the key causes cost overruns.

In their study, Shane et al. (2009) classify the causes of cost escalation under either internal or

external causes. Among the internal causes identified are; bias, delivery/procurement approach,

project schedule changes, engineering and construction complexities, scope changes, scope

creep, poor estimating, inconsistent application of contingencies, faulty execution, ambiguous

contract provisions and contract document conflicts. The external causes indentified include;

local concerns and requirements, effects of inflation, scope changes, market conditions, scope

creep, unforeseen events and unforeseen conditions.

According to Iyer and Jha (2005), conflicts among project participants, ignorance and lack of

knowledge, presence of poor project specific attributes and non-existence of cooperation, hostile

socio-economic and climatic conditions, reluctance in timely decision, aggressive competition at

tender stage and short bid preparation time affect cost performance in India’s construction

projects. Poor site management and supervision, poor project management assistance, financial

difficulties of owner, financial difficulties of contractor, design changes, and unforeseen site

6

conditions account for the cost overruns in Vietnam large construction projects (Le-Hoai et al.,

2008).

Poor design and delay in design, unrealistic contract duration and requirements imposed, lack of

experience, late delivery of materials, and equipment, relationship between management and

labour, delay of preparation and approval of drawings, inadequate planning and scheduling, poor

site management and supervision, mistakes during construction and changes in materials

specifications and types are the causative factors leading to cost overrun (Mahamid and Bruland,

2011).Apolot et al. (2010) identified changes in work scope, inflation and high interest rates,

poor monitoring and control, delayed payment to the contractor and fuel shortage as the key

causes of cost overruns in Uganda’s public sector construction projects while bad weather, scope

changes, environmental protection and mitigation cost, schedule delays, strikes, local

government pressures, technical challenges and inflation were identified by Kaliba et al. (2009 )

as key in Zambia’s road construction projects. Increase in capacity after the feasibility study/

during construction, adjusted supervision fees due to design changes, cost changes due to

changes in construction methods, increases/decreases in compensation, lane addition and

changes of bedrock line are the six major causes of cost overrun (Jin-Kyung, 2008).

However, despite the numerous studies carried out to identify the causes of cost escalation in

infrastructure projects, the studies have been country specific (Memon et al., 2010, Le-Hoai et

al., 2008), concentrated on developed countries (Creedy et al., 2010, Flyvbjerg et al., 2003,

Shane et al., 2009) and Asian countries (Jin-Kyung, 2008, Le-Hoai et al., 2008, Mahamid and

Bruland, 2011, Memon et al., 2010). Flyvbjerg et al. (2003), in there research, identified the

need to study further whether data on roads in other geographical areas (particularly Africa)

would show the same tendency at poor cost performance and high risk as do rail but there is still

little published work (Apolot et al., 2010, Kaliba et al., 2009 ) on Africa in general and Uganda

in particular (Apolot et al., 2010, Luwalira, 2008). Apolot et al. (2010) and Luwalira’s (2008)

studies looked at the causes of cost overruns in Uganda’s public sector projects, specifically

buildings, and construction industry respectively. This study shall concentrate on analysing cost

escalation in Uganda’s road construction projects.

7

Effects of Cost Escalation The problem of cost overruns, especially in the construction industry, and its effects are normally

a source of friction between owners, project managers and contractors in terms of project cost

variation subsequent to the owner’s decision-to-build (Creedy et al., 2010).Large cost escalation

translates into large financial risks (Flyvbjerg et al., 2003), less work is done despite the increase

in construction budgets (Apolot et al., 2010) since the funding profile would no longer match the

budget requirements (Kaliba et al., 2009 ) and news reports of high profile project cost escalation

cause the public to lose confidence in the ability of agencies and governments to effectively

perform their responsibilities (Creedy et al., 2010, Le-Hoai et al., 2008, Shane et al., 2009). Cost

escalation results in project delay, poor quality, project extension, project abandonment and

failure, litigation, reduction of profit margin and compromises client satisfaction (Kaliba et al.,

2009 , Le-Hoai et al., 2008).

Cost Control Projects can be delivered on budget but that requires a good starting estimate, an awareness of

factors that can cause cost escalation, and project management discipline. When discipline is

lacking, significant cost growth on one project can raze the larger program of projects because

funds will not be available for future projects that are programmed for construction (Shane et al.,

2009). Knowledge of the cost escalation factors that impact project cost and an awareness of

their potential significance is the first step to mitigation of prospective consequences.

In general, the literature supports the notion that accurate early cost estimates for engineering

and construction projects are extremely important to the sponsoring organization. Creedy et al.

(2010) observe that accurate cost estimates are vital for business unit decisions including

strategies for asset development, potential project screening and resource commitments for

further project development while Shane et al. are of the view that development of thorough

estimate documentation and approval processes in a cyclical process through project

development will lead to cost estimate consistency, improved accuracy, and better control of

scope changes.

Education and equipping project personnel with proper interaction, coordination and

communication skills coupled with having of regular meetings among project participants and

8

developing a rapport among them (Iyer and Jha, 2005, Kaliba et al., 2009 , Shane et al., 2009)

should go along way in diffusing conflicts and ensuring the issuance of timely instruction to

check schedule delays and cost overruns.

Minimising change in scope of work (Apolot et al., 2010, Kaliba et al., 2009 , Shane et al.,

2009), use of efficient project management tools and practices (Apolot et al., 2010, Kaliba et al.,

2009 , Jin-Kyung, 2008), change from the traditional contract type to the design-build type,

improved cash flow on the side of the client so as to reduce payment delays, proper project

scheduling employment of competent personnel, capacity building and use of appropriate

legislation are some of the best practices that can be employed to control cost (Kaliba et al., 2009

). It is also of extreme importance that project feasibility study receives serious attention and be

carefully done (Le-Hoai et al., 2008).

These attempts to identify best practices to are commendable but most of the published studies

concentrated on identifying the factors causing cost escalation with little effort put in identifying

and recommending best practices. This study shall endevour to identify ways and means through

which better cost control can be effected and cost extensions be minimized.

Data Sources In related research studies, both primary and secondary data sources were used. Primary data

sources included bid documents and payment certificates and these were used to create cost

development data (Kaliba et al., 2009 , Flyvbjerg et al., 2003, Apolot et al., 2010, Jin-Kyung,

2008). Interviews and structured questionnaires were the other sources of primary data. The

secondary data sources were primarily related research reports that had generated the required

cost development data. Flyvbjerg et al. (2003), for example, cites Merewitz 1973a, Hall 1980,

National Audit Office and Department of Transport 1985, Lewis 1986, National Audit Office,

Department of Transport, Scottish Development Department and Welsh Office 1988, Fouracreet

al. 1990, Pickrell 1990, National Audit Office and Department of Transport 1992, Walmsley and

Pickett 1992 and Leavitt et al. 1993 as his sources of data on initial estimates and actual costs..

Secondary data was immensely useful in generating the causes of cost escalation in construction

9

projects that were later subjected to the scrutiny of research respondents.(Apolot et al., 2010, Iyer

and Jha, 2005, Jin-Kyung, 2008, Kaliba et al., 2009 , Mahamid and Bruland, 2011, Memon et al.,

2010, Shane et al., 2009).

Use of Structured Interviews Structured interviews are very instrumental as a primary source of data especially where there is

no proper record of all completed projects. Kaliba et al. (2009 ) used structured interviews to

obtain information on the projects the interviewees had been involved with in the past five years;

and questions relating to the number of projects undertaken, contract values, and the extent to

which the projects had satisfied the objectives of budget requirements were posed. They were

also able to find out the occurrence of cost escalation and the key factors that contribute to

projects failing to meet desired objectives. Structured interviews were used by Jin-Kyung (2008),

Luwalira (2008) and (Iyer and Jha, 2005) to verify the causal factors of cost escalation

indentified from these researchers reviews of literature.

Use of Literature Review Literature review was used extensively by all scholars. The study of government, departmental

as well as consultant/contractor project reports, served as a source of primary (Kaliba et al., 2009

, Apolot et al., 2010) and secondary data on cost development and the causal factors of cost

escalation. Research reports by other scholars are cited as sources of secondary cost data and

both primary and secondary sources of factors that cause cost escalation. Le-Hoai et al. (2008),

Mahamid and Bruland (2011) and Memon et al. (2011), for example, identified 21, 51 and 78

factors respectively that lead to cost escalation through extensive review of literature for their

studies.

Use of Questionnaire Surveys Questionnaires surveys were used by the majority of researchers on cost escalation causes. The

questionnaires designed by Kaliba et al. (2009 ) to determine the major causes and effects of cost

escalation were targeted at 60 participants using the disproportionate stratified sampling

10

technique so as to represent the views of contractors, consultants and clients equally. Flyvbjerg et

al. (2003) report that they had to rely on the second-best methodology of survey questionnaires

to obtain original forecast estimates. The questionnaire survey is often used to obtain data on the

qualification and experience of the respondents. Through the surveys researchers further

investigated the findings of the interviews and in the literature and tested the extent to which the

results could be generalized (Memon et al., 2010, Le-Hoai et al., 2008).

Use of Case Studies Case studies were also employed by researchers in this field. Kaliba et al. (2009 ) studied a

selected road construction projects in Zambia while Apolot et al. (2010) in their study used

Uganda’s Civil Aviation Authority projects to verify their questionnaire survey findings.

Iyer and Jha (2005), Kaliba et al. (2009 ), Jin-Kyung (2008) and Flyvbjerg et al. (2003) forward

the non- availability of documented data on completed projects as the key hindrance in cost

escalation studies. According to Flyvbjerg et al. (2003) data on cost development in projects are

relatively difficult to come by because it is quite time-consuming to produce data of this kind.

They postulate that data on cost development may be held back by project owners, because cost

development more often than not equals cost escalation, and cost escalation is normally

considered an embarrassment to promoters and owners and as such they tend to keep data from

the hands of scholars.

Data Analysis Data on cost estimates and actual costs obtained from primary and secondary sources was

tabulated. Table 1 below is an extract from Kaliba et al. (2009 )’s study showing data from

selected road projects in Zambia.

11

Table 1: Performance of Selected Projects in Zambia

Using the internationally accepted definition of cost escalation, cost escalation was computed according to the formula

퐶표푠푡 퐸푠푐푎푙푎푡푖표푛 = 퐹푖푛푎푙 푐표푠푡 − 퐼푛푖푡푖푎푙 푐표푠푡

퐼푛푖푡푖푎푙 푐표푠푡 × 100% The use of statistical methods yielded graphical representations such as the Frequency vs. Cost escalation plot extracted from the study of Flyvbjerg et al. (2003) and shown in Fig.1 below

12

Fig. 1: Cost Escalation in Infrastructure Projects

Participants of the questionnaire surveys were asked to rate the causes of cost escalation with respect to their significance on a 4 or 5 Likert scale (Kaliba et al., 2009 , Apolot et al., 2010, Iyer and Jha, 2005, Le-Hoai et al., 2008).

Index Analyses Kaliba et al. (2009 ) computed the weighted opinion averages of each cause of cost escalation in road construction projects to assess their perceived significance using the formula below:

where WA is the average weighted perceived significance; Ri is the response type on the Likert

scale, i ranging from 1 to 4 on the Likert scale; Fi is the frequency or total number of respondents

choosing response type i on the Likert scale, with i ranging from 1 to 4.

Apolot et al. (2010) and Le-Hoai et al. (2008) calculated the frequency, impact and importance of the various factors on cost escalation using the index analysis equations adapted from Al-Khalil and Al Ghafly (1999).

13

Where a = constant expressing the weight assigned to each responses (ranges from 0 for Never to 3 for Always); fi = frequency of each response; si = frequency of each response on impact; and N = total number of responses The results of computations from index analysis were then tabulated in tables similar to the one in an extract from the study of Le-Hoai et al. (2008) shown below. Table 2: Importance Index and Ranking

For this study checklists shall be used in the identification of cost escalation causes and quantify proportional cost significance of these causal factors to cost escalation. In the following chapter the methodology is discussed.

14

3.0 Methodology

About the Study This is an investigative study. This study shall investigate road construction projects in Uganda

completed from 2005 to 2010. This shall involve the judicious study of the contract documents

signed for the award of the construction tenders. Of particular interest shall be the cost estimates

presented in the bills of quantities and the actual amounts paid upon completion of works.

Data Required The study shall require two broad data sets, namely, the cost estimates and the actual costs.

Sources of Data Principally the above data shall be sourced from the bills of quantities section of the contract

documents and the certificates of payment issued by the client / client’s representative for the

cost estimates and the actual costs respectively.

Contract documents shall be obtained from the offices of contracting firms while the data from

the certificates of payment are obtainable from the offices of consulting firms.

Data Collection The data shall be collected using checklists. The tables 3 and 4 shown below are hypothetical

checklists to be used in the collection of data.

Table 3: Completed Road Projects Checklist

Project Name Contractor Contract Sum ($) Actual Amount

Jinja-Iganga-Bugiri Reynolds/Sonitra 60.17m 94m

15

Table 4: Bills of Quantities Checklist

Item Description Quantity Unit Cost Estimate Actual

Clearing and

grubbing

30000 1.5 45000 70000

Data Analysis The cost data shall be analysed using the mathematical formula for cost escalation shown below.

퐶표푠푡 퐸푠푐푎푙푎푡푖표푛 = 퐹푖푛푎푙 푐표푠푡 − 퐼푛푖푡푖푎푙 푐표푠푡

퐼푛푖푡푖푎푙 푐표푠푡 × 100%

Table 3 above used in the data collection process shall be modified to include columns for cost

change and cost escalation. A hypothetical modification of table 3 is shown below.

Table 5: Cost Escalation in Projects

Project Name Contractor Contract

Sum ($)

Actual

Amount ($)

Cost Change

($)

Cost

Escalation

(%)

Jinja-Iganga-

Bugiri

Reynolds/Sonitra 60.17m 94m 33.83 36

Table 4 above used in the data collection process shall be modified to include columns for cost

change and cost escalation and the causal factor of cost escalation.

16

Table 6: Cost Escalation Causes

Item Description Quantity Estimate Actual Cost

Change

Cost

Escalation

Cause of

Escalation

Expectation It is expected that the study shall depict the discrepancies between the bills of quantities item cost estimates and the actual costs of completion of itemised works and the resulting glaring difference between the contract sum and the actual sum at the completion of the project.

17

References

APOLOT, R., ALINAITWE, H. & TINDIWENSI, D. 2010. An Investigation into the Causes of Delay and Cost Overrun in Uganda’s Public Sector Construction Projects

Second International Conference on Advances in Engineering and Technology. AZHAR, N. & FAROUQI, R. U., , IN THE 1 2008. Cost Overrun Factors in the Construction Industry of

Pakistan. 1st International Conference on Construction in Developing Countries: Advancing & Integrating Construction Education, Research and Practice. Karachi, Pakistan.

CREEDY, G. D., SKITMORE, M. & WONG, J. K. W. 2010. Evaluation of risk factors leading to cost overrun in delivery of highway construction projects. Journal of Construction Engineering and Management, 136, 528-536.

FLYVBJERG, B., HOLM, M. K. S. & BUHL, S. L. 2002. Underestimating Costs in Public Works Projects: Error Or Lie? APA Journal, l 68, 279–295.

FLYVBJERG, B., METTE, K., HOLM, S. & BUHL, S. L. 2003. How common and how large are cost overruns in transport infrastructure projects? Transport Reviews, 23, 71-88.

IYER, K. C. & JHA, K. N. 2005. Factors affecting cost performance: evidence from India construction projects International Journal of Project Management, 23, 283-295

KALIBA, C., MUYA, M. & MUMBA, K. 2009 Cost escalation and schedule delays in road construction projects in Zambia

International Journal of Project Management 27, 522–531. KATO, J. 2009. Northern Bypass Yet to Open. The New Vision, 7 February 2009. LE-HOAI, L., LEE, Y. D. & LEE, J. Y. 2008. Delay and Cost Overruns in Vietnam Large Construction

Projects: A Comparison with Other Selected Countries. KSCE Journal of Civil Engineering, 12, 367-377.

LEE, J.-K. 2008. Cost Overrun and Cause in Korean Social Overhead Capital Projects: Roads, Rails, Airports, and Ports

Journal of Urban Planning and Development © ASCE 59-62. LUWALIRA, M. 2008. An Analysis of cost escalation in the Construction Industry in Uganda. Makerere

University. MAHAMID, I. & BRULAND, A. 2011. Cost Overrun Causes in Road Construction Projects:

‘’Consultants’ Perspective’’

In: IPEDR (ed.) 2nd International Conference on Construction and Project Management. Singapore: IACSIT Press.

MEMON, A. H., RAHMAN, I. A., ABDULLAH, M. R. & AZIS, A. A. A. 2010. Factors Affecting Construction Cost in Mara Large Construction Project: Perspective of Project Management Consultant. International Journal of Sustainable Construction Engineering & Technology, 1.

MEMON, A. H., RAHMAN, I. A. & AZIS, A. A. A. 2011. Preliminary Study on Causative Factors Leading to Construction Cost Overrun. International Journal of Sustainable Construction Engineering & Technology, 2.

SHANE, J. S., MOLENAAR, K. R., ANDERSON, S. & SCHEXNAYDER, C. 2009. Construction Project Cost Escalation Factors. Journal of Management in Engineering © ASCE, 221-229.

WANG, M. T. & CHOU, H. Y. 2003. Risk Allocation and Risk Handling of Highway Projects In Taiwan. Journal of Management in Engineering © ASCE, 19, 60-68.

1

Appendix 1: Final Year Project Schedule

Final Year Project Schedule

Month/Activity

Sept

Oct

Nov

Dec

Jan Feb Mar Apr May

Jun

Identification of Research Topic Assignment of Supervisors Literature Review Prepare Research Instruments Writing of Mid Year Report Mid Year Presentation Testing Research Instruments Review Research Instruments Issuing of Questionnaires Data Compilation Data Analysis Writing of Final Year Report End of Year Presentation Editing of Report/Corrections Submission of FYP Report

Appendix 2: Final Year Project Budget

Item Amount

Literature Review 1200000

Questionnaires 100000

Tape Recorder 350000

Transport 400000

2 Reams of Paper 30000

Data Analysis 500000

Total 2580000