Effects of Project Cost Overruns and Schedule Delays in Sub-Saharan Africa


  • Paul Terna Gbahabo
  • Oluseye Samuel Ajuwon




Effects of Project Cost Overruns and Schedule Delays in Sub-Saharan Africa


This paper provides conceptual insights on the economic impact of project cost overrun and schedule delays on infrastructure procurement in developing countries with huge infrastructure deficit in Sub-Saharan Africa. Projects cost overruns and schedule delay are a major and widespread problem in infrastructure procurement the world over. It has received a lot of attention in the recent past. However, the literature reveals that extant studies on project overruns are heavily skewed towards causative factors, with little or no attention to the effects it has on the economy as a whole. The paucity of studies on the effects of project cost overrun and schedule delay will further reinforce the imperative to reacquaint policymakers and infrastructure developers, as well as project financiers with the gravity and import of the problem for infrastructural development in particular and the wider economy in general. The study undertakes an exploratory approach drawing from a wide range of secondary information and materials obtained from policy documents, study reports and peer-reviewed articles. The findings show that cost overrun and schedule delay in infrastructure procurement can have a damaging economic effect ranging from allocative inefficiency of scarce resources, further delays, contractual disputes, claims and litigation to project failure and total abandonment. The study recommends project management capacity-building for infrastructure developers, project managers as well as a number of innovative control mechanisms such as reference class forecasting, public-private partnership and computer-aided cost estimating tools including artificial neural networks, data mining, building information modelling as well as fuzzy neural inference model, genetic algorithms, and stochastic simulation to curb the menace of the problem.




How to Cite

Gbahabo, P. T., & Oluseye Samuel Ajuwon. (2017). Effects of Project Cost Overruns and Schedule Delays in Sub-Saharan Africa. European Journal of Interdisciplinary Studies, 3(2), 46–59. https://doi.org/10.26417/ejis.v3i2.p46-59