Cost Implications Of Delays Of Public Construction Projects: A Case Of Morogoro Municipality

ABSTRACT

Construction projects are series of projects related to the construction field that have limited time dimension with specific allocation of resources, in order to realize an idea and a particular purpose, after the idea but in Tanzania most of projects has cost implications due to late completion of the projects and execution. In particular, time and cost increases in large public construction projects seem to be a global phenomenon. Similarly, after the decision to implement a project, it is important that the project organization and project management are strictly set up operate in ways to minimize cost implications. Project delaying has effects on, variation of projects costs, change of allocation of fund, change of contract sum, change of work schedule and price inflation, which has cost implication leading to late completion of projects, increase cost of project and loss of profit for contractor, consultant and client. This study observed that inadequate supply of material, and contractor financial difficulties were the main causes of delays, in construction projects, categorized into three kinds of projects that are small projects, medium projects and large projects. These projects are determined through the cost of the project and time of the project. It should also be noted that each project may have unique requirements for this and that in such circumstances, project managers and developers should attempt to develop suitable monitoring and evaluation mechanisms. Bureaucracy and formalities should be reduced in client organizations in order to speed up the slow decision making process. Claims should be settled quickly so that they do not become a source of delays. Public institution should look forward the condition, which allows penalties to consultant in order to minimize unnecessary cost implication in public construction projects caused by consultant, while to contractor must avoid delays in order to minimize cost implication caused by liquidity damag