An Analysis of Cost Overruns and Time Delays of INDOT Projects [Technical Summary]
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2004-12-01
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Edition:Technical Summary
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Abstract:A commonality among state Departments of Transportation is the inability to complete projects on time and within budget. This is a chronic problem for the Indiana Department of Transportation (INDOT) as well. Time delays, cost overruns and change orders are generally due to factors such as design errors, unexpected site conditions, increases in project scope, weather conditions, and other project changes. In 2001, INDOT incurred approximately $17,028,000 in cost overruns, representing approximately 9% of the total amount for all contracts in 2001. As the construction program grows this is causing planning and budgeting problems within INDOT. For example, with a current annual construction program of $700 million at this percentage, this is costing INDOT in excess of $60 million. The money has to be set-aside and creates scheduling problems for determining what projects cannot be let. For these and other reasons, INDOT requested a study to analyze the extent of the cost overrun and time delay problem and to make appropriate recommendations.
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