FACTORS AFFECTING COST OVERRUNS AND DELAYS IN PHILIPPINE CONSTRUCTION PROJECTS: BASIS FOR AN IMPROVED PROJECT MANAGEMENT FRAMEWORK
Keywords:
Construction management, Cost overruns, Project delays, Philippine infrastructure, Relative Importance Index, Structural Equation Modeling, Republic Act 9184, Project management frameworkAbstract
Budgetary expansion and timeline slippage represent endemic structural challenges in public and private infrastructure delivery across developing nations, undermining macroeconomic productivity and public financial efficacy. This investigation evaluates the structural determinants driving project delays and cost escalations in the Philippine construction sector to formulate an evidence-based, adaptive project management framework. Using an explanatory cross-sectional quantitative research design, empirical data were collected from 384 key industry stakeholders—including public project owners, main contractors, and engineering consultants—operating across major Philippine administrative regions, including Metro Manila, Central Luzon, CALABARZON, Northern Mindanao, and BARMM. Quantitative evaluation employed the Relative Importance Index (RII) ranking, Pearson product-moment correlation, Multiple Linear Regression, One-Way Analysis of Variance (ANOVA), and Partial Least Squares Structural Equation Modeling (PLS-SEM). The empirical findings demonstrate that raw material price volatility (RII = 0.912), delayed acquisition of Road Right-of-Way (RROW) (RII = 0.898), inaccurate pre-construction cost estimation (RII = 0.886), and contractor liquidity constraints (RII = 0.842) constitute the primary structural drivers of project failure. Bivariate correlation revealed a strong, positive linear association between schedule slippage and budget inflation (r = 0.824, p < 0.001). PLS-SEM path modeling validated that operational schedule delays exert a direct mediating effect on overall cost growth (beta = 0.412, p < 0.001), while material cost instability (beta = 0.321, p < 0.001) and contractor working capital constraints (beta = 0.264, p < 0.001) serve as primary exogenous predictors. One-Way ANOVA demonstrated significant cross-stakeholder perceptual divergence regarding land acquisition and progress payment bottlenecks, but absolute convergence regarding material price volatility. To mitigate these vulnerabilities, the study formulates the Integrated Adaptive Construction Management Framework (IACMF), introducing mandatory pre-procurement site clearing, dynamic index-based price adjustments under Republic Act 9184 reforms, and digitized progress payment auditing.
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