Assessment of Life Cycle Cost of Roads Projects in Palestine: A Case Study of the Palestinian Municipalities

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Al-Makharzah, Mais
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Mais Hassan Al-Makharzah
Road projects are considered of the most important projects in Palestine in general, and in the West Bank at specific, since they play a major role in the economic development in Palestine. Since most of the municipal road projects in the West Bank suffer from cost overrun phenomena, and since there are only few studies made on this subject, there is need to study and analyze the factors that cause cost overrun in road projects in the different phases of the life cycle of projects, so that recommendations to limit this phenomena can be suggested. The research goals were achieved through analysis of the results of the responses to a questionnaire that studied 47 cases of municipal road projects in the West Bank municipal road projects with cost overrun. Analysis was also done to the outcome of interviews were held with 15 experts in the field of roads. Quantitative and qualitative analysis was conducted to find the causes of the cost overrun, identify what leads to the success of road projects without cost overrun, and then suggest the necessary procedures to minimize cost overrun. It was found that the factors with the highest impacts on cost overrun for municipal road projects include the rough terrain area of the project site, and that the preparation of design drawings and tender documents is not conducted by a specialized engineering office adequately classified by the Engineers Association for the size and complexity of the project. In addition, other major factors include not considering the timing for tender release and the starting of the project, especially at the start of the winter season. Furthermore, other major factors were found to be awarding the project to the bidder with the lowest price, having changes in project activities during the implementation phase, and financial issues facing project client/government. The results also showed that the reasons behind the success of projects without having cost overrun include following a clear and professional methodology beginning from the planning and design phase to handover, and that project implementation, is performed by a qualified contractor, and followed up by specialized and professional municipal staff.
Assessment of Life Cycle Cost of Roads Projects in Palestine: A Case Study of the Palestinian Municipalities