Cost Overrun Analysis in Road Projects: Insights from ADB’s Funded Projects

Abstract

This study aims at investigating cost overruns in road construction, rehabilitation, and/or improvement projects that are financed partially or entirely by the Asian Development Bank (ADB). A dataset comprising 70 completed road projects that experienced cost overrun in the course of the year 1990 to 2015 is generated using their project completion reports. The dataset was developed using a variety of project characteristics including starting date of the project, completion report date, country, operation type, type of road access provision, length of the road, total project delay, total project cost overrun, civil work-related cost overrun, cost overrun causes related to civil works. Furthermore, different statistical analyses including descriptive analysis, frequency analysis, and cross-tabulation analysis are first performed to describe the dataset while other inferential analyses such as deferential and correlational hypothesis testing aimed at exploring the differences and relationships between various project characteristics and cost overrun. The results from hypothesis testing revealed that there are meaningful differences among different project operation and road access provision types. Focusing on the examination of the causes and consequences of the cost overruns in road construction projects funded by ADB, the results of this study could be an indication of enhancing project planning, project monitoring, improved risk response plan, and identification of the project characteristics that could assist prevention of the cost overruns. Eventually, the outcomes provide valuable insights for project managers, policymakers, and other stakeholders involved in the road construction industry. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024.