Latent geotechnical pathogens inducing cost overruns in highway projects

Amadi, AI; Higham, AP

Abstract

Purpose:
This paper investigates the statistical validity of geotechnical risk factors in accounting
for cost overruns in highway projects. The study hypothesizes that ‘Latent Pathogens’
due to mismanaged geotechnical risk, which lay dormant in the organisational
practises of highway agencies, trigger cost overruns.
Design/methodology/approach:
To test this hypothesis, cost and geotechnical data gathered for 61 completed
highway projects, executed in the Niger Delta, recording unusually high cost overruns,
along with qualitative data from 16 interviews with the project commissioners,
were comprehensively analysed via regression modelling, to statistically
explain recorded cost variance.
Findings:
The results provide empirical evidence supporting a cause-effect relationship between
the extent of cost overrun and key geotechnical factors. It is suggested that positive
changes made in the geotechnical practises of the highway agencies will
produce an expected exponential decrease in the level of cost overruns recorded in
highway projects.
Research Limitations/Implications:
The study is limited to explaining the propagation of unusually high cost overruns in the geologic setting of the Niger Delta region of Nigeria. As such there is need to test the generalisability of the theory
presented.
Practical Implications:
The emergent view of geotechnical practice, calls for further research, necessary to
align geotechnical best practice into highway project delivery in the Niger Delta region.

Citation

Amadi, A., & Higham, A. (2017). Latent geotechnical pathogens inducing cost overruns in highway projects. Journal of Financial Management of Property and Construction, 22(3), 269-285. https://doi.org/10.1108/JFMPC-03-2017-0008

• Journal Article Type: Article
• Acceptance Date: May 22, 2017
• Online Publication Date: Sep 20, 2017
• Publication Date: Sep 20, 2017
• Deposit Date: Jun 13, 2017
• Journal: Journal of Financial Management of Property and Construction
• Print ISSN: 1366-4387
• Publisher: Emerald
• Volume: 22
• Issue: 3
• Pages: 269-285
• DOI: https://doi.org/10.1108/JFMPC-03-2017-0008
• Publisher URL: http://dx.doi.org/10.1108/JFMPC-03-2017-0008
• Related Public URLs: http://www.emeraldinsight.com/loi/jfmpc