Delays and Cost Overruns in Infrastructure Projects -- An Enquiry into Extents, Causes and Remedies
AbstractMedia reports abound on instances of prolonged delays and excessive cost overruns in infrastructure projects. Only a small number of projects get delivered in time and within the budget. Examples of successful project implementation, like construction of the Delhi Metro Rail, are few and appear only far in between. Indeed, the problem of time and cost overruns in India is widespread and severe. Yet, very few empirical studies exist on the subject. Even rarer are the studies based on completed projects. As a result, the extents as well as the causes behind delays and cost overruns have remained under-researched. This study investigates the various issues related to delays and cost overruns in publically funded infrastructure projects. The following questions are posed and answered -- How common and how large are the time and the cost overruns? What are the essential causes behind these delays and cost overruns? Are the underlying causes statistically significant? Are Contractual and Institutional failures among the significant causes? What are the policy implications for planning, development and implementation of infrastructure projects? The study is based on, by far, the largest dataset of 894 projects from seventeen infrastructure sectors. Among other results, it shows that the contractual and the institutional failures are economically and statistically significant causes behind cost and time overruns.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 181.
Length: 28 pages
Date of creation: Aug 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
- NEP-CWA-2010-05-02 (Central & Western Asia)
- NEP-PPM-2010-05-02 (Project, Program & Portfolio Management)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Cesare Dosi & Michele Moretto, 2012. "Procurement with Unenforceable Contract Time and the Law of Liquidated Damages," Working Papers 2012.45, Fondazione Eni Enrico Mattei.
- Lundberg, Mattias & Jenpanitsub, Anchalee & Pyddoke, Roger, 2011. "Cost overruns in Swedish transport projects," Working papers in Transport Economics 2011:11, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vinayan. K.P).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.