Assessment of the cost overruns in subcontracted construction projects in Uganda: A case study of Roko Construction

Abstract

The study aimed at assessing the cost overrun in subcontracted construction projects in Uganda; with particular emphasis on Roko Construction Company limited a leading construction company in Uganda. The objectives of the study were; to identify the procedures of subcontracting and categories of construction projects that are subcontracted by Roko Construction Company Ltd in Uganda, to examine the causes of cost overruns in the subcontracted construction projects in Uganda and to propose strategic procedures to facilitate proper subcontracting in-order to avoid cost overruns on construction projects. The study employed descriptive cross-sectional design. Both Qualitative and Quantitative approaches were used during the research. The study employed purposive and systematic random sampling, a sample of 155 was adopted from a population of 253 respondents at Roko Construction. Primary data were obtained through the use of interview guides and semi-structured questionnaires which were formulated and conducted among different subcontractors, employees and management at Roko Construction Ltd. The study found that Roko Construction ltd used a mixed kind of procurement method for subcontractors depending on the nature of the project whether public or private. Factors that cause cost overruns in subcontracted projects were identified and included the following; Inflation, project variations, incomplete and design failures, Omissions, errors and project underestimations in the Bill of Quantities, lack of proper modes and channels of communication and absorption of allocated funds by stakeholders. The study identified and recommended adoption of the critical strategies for proper facilitation of subcontracted projects. These included the need to improve cost reporting and proper communication channels, encouraging the use of insurance covers, the need to change the subcontractor procurement method and encouraging full client involvement in subcontracting matters, requiring appropriate time schedules and quality assurance plans as well as strong safety practices.