International conference on construction engineering and project management (국제학술발표논문집)

  • 2024.07a
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  • Pages.137-144
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  • 2024
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  • 2508-9048(eISSN)
Korea Institute of Construction Engineering and Management (한국건설관리학회)
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Evaluation of the Effect of Project Delay on Future Benefits in the Nepal Highway Infrastructure Construction Sector

  • Chhabi Lal PAUDEL (Graduate School of Engineering and Sciences, Shibaura Institute of Technology) ;
  • Michael HENRY (Department of Civil Engineering, Shibaura Institute of Technology)
  • Published : 2024.07.29
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Abstract

Public infrastructure projects are implemented to achieve targeted economic development of nations. However, due to the delayed execution of projects, the investment cost of the project increases in proportion to time overrun. The increased investment cost for the defined scope of project may have an effect on the achievement of planned future benefits, but the effect of delay on the loss of estimated benefits is not well explored. The primary objective of this research is to assess the effect of delayed execution of road and bridge construction projects on the estimated future benefits. Furthermore, the relationship between delay and the percentage loss of future benefits is modeled using the linear regression analysis. The data consists of 395 road and 248 bridge construction contracts under the Department of Roads, Nepal. The statistical analysis of road and bridge construction contracts showed that there is a reduction in estimated benefits in future years due to the effect of delay. The relationship between the percentage loss of estimated benefit and delay period in months was found to be significant for both road and bridge contracts. The results show that delay not only affects the short-term cost overrun but also the achievement of estimated future benefits. This research thus contributes valuable insights into the understanding of the impact of project delays on both cost overruns and the loss of estimated future benefits. Furthermore, this research has practical implications for policymakers, private sector investors, and financing agencies involved in infrastructure development projects.

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Acknowledgement

This research was supported by a scholarship for road asset management from the Japan International Cooperation Agency. The authors are also grateful to the Department of Roads, Government of Nepal, for providing the project data.

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