EXPLORING THE COST DEVIATIONS BETWEEN DESIGN STAGE COST PLAN AND THE INITIAL CONTRACT SUM

Abstract

This study is to investigate the reasons for disparity between design stage elemental cost plan and the contract sum as far as related to road projects in Qatar. A number of risk factors responsible for such variations were identified through the literature survey. A two round Delphi method was utilized in complementing responses from expert interviewees, resulting in further dominant factors influencing early cost overrun. The interviews further indicated that risks have both positive and negative impact on the initial budgeted sum responsible for the deviations experienced. Relative importance index method was used for hierarchal assessment of factors. The top 3 most significant factors of cost deviation are change of the mode of procurement after tender calling, red carpet negotiations just before the contract award and increase in markup due to client’s pressure to early completion. With this information, Quantity surveyors are more able to accurately forecast the likely contract sum, thus increasing the accuracy of design stage elemental costing. There is no recent empirical evidence of an investigation into the reasons for disparity between design stage elemental cost plan and final tender sum in procuring road projects in Qatar.