Assessment On Prolongation Cost Estimation Practice For Road Construction Projects In Ethiopia

Road construction projects in Ethiopia are used to encounter considerable time and cost overrunsrnwhen compared with their planned values. And, one of the main factors for cost overrun is foundrnto be prolongation cost. Besides, in handling the prolongation cost claim, it can remain unsettledrndue to the calculation and presentation of damages, even after entitlement to recover additionalrncompensation.rnHaving this, the research assess the problems in relation to justifying time delay, data recordingrnand documentations, suitability of conditions of contract and methods of estimation inrnprolongation cost claim administration. So that; it identifies and understand gaps (problems andrnchallenges) in estimating prolongation cost in road construction projects.rnTo address the problems, a questionnaire was designed and distributed to contractors, consultantsrnand employers participating in road construction sector. To supplement the questionnaire, a deskrnstudy was conducted on prolongation cost claim documents.rnConsequently; analysis of data are processed using simple statistical approach, examining,rntabulating and categorizing based on the chosen measurement scale. And, Likert’s scale was usedrnto gauge the potential factors, together with, Kendall coefficient of concordance (W) to testrncorrelation among the parties.rnAs a result, the findings show that; incomplete recording and documentation, unclear estimationrnmethods and contractual provision are the main problems in justifying time delay and estimationrnof prolongation cost compensation. The practice of data collection and documentation becomes arnproblem due to lack of competent and experienced professionals and lack of awareness.rnEstimation technique currently used is found out to be actual cost records. Where, there is lack ofrndocuments to estimate head office overhead, the Direct Method is found to be suitable with %agernmark up for HOOH set in the contract for current road construction projects situation in Ethiopia.rnPPA condition of contract needs improvement to handle prolongation cost estimation and claim,rnwhile FIDIC condition of contract is known to be good to administer prolongation cost issues.rnSo that the research implies the administration practice in prolongation cost claim needs a look inrnrelation to data collection and documentation, local conditions of contract and adopt suitablernestimation formula that harmonize the current situation.rnKey Words: Prolongation cost, Acceleration, Inefficiency and Conditions of Contract

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