COST OVERRUN ANALYSIS OF WATER RESOURCES PROJECTS

V. CHOWGULE, K.H. KULKARNI

Abstract


Rising population, industrialization, urbanization, and agricultural expansion are expected to drive up demand for irrigation projects.  This study focuses on analyzing cost overruns in dam projects in Maharashtra's Konkan area, specifically in the basin of west-flowing rivers.  Based on data from a few chosen projects, cost overruns and project underperformance have been determined. It has become extremely challenging to execute infrastructure projects on time and within the budget allocated, which frequently creates a burden on the state treasury.  Determining the primary root causes of cost overruns in water-sector construction projects and proposing improvements are the main goals of this study.  Issues with site acquisition, excess quantity execution, and project scope variations require priority. To prioritize the influencing factors, Garrett’s ranking technique was employed. A detailed questionnaire was circulated among contracting agencies and officials from the irrigation department. The analysis highlighted major causes of cost escalation, including paucity of funds, excessive costs due to high tender rates, delays in land acquisition, increased land acquisition costs, and claims for additional work involving boulders. Furthermore, the Earned Value Method (EVM) was utilized to assess the performance of an ongoing dam construction project, offering insights into cost and schedule efficiency. The findings of this study are intended to assist policymakers, planners, and project managers in implementing effective control mechanisms to mitigate cost overruns in future irrigation infrastructure developments.


Keywords


Dam Projects, land acquisition, Cost overruns, Garrett's ranking, Earned Value.

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