CAPITAL PROJECT COST OVERRUN IMPLICATIONS ON SOUTH AFRICAN ELECTRICITY SUPPLY: THE CASE OF LIMLANGA CLUSTER CONSTRUCTION PROJECTS
Blessing Javani, Simphiwe Nelisiwe Mgaga and Kgashane Stephen Nyakala
Published: Journal of Construction, Volume 18, Issue 01
DOI: https://doi.org/10.64755/TZTM6709
Keywords: Construction Project, Capital Project Delivery, Project Cost Overrun, South Africa
ABSTRACT
PURPOSE
Electricity plays a vital role in all aspects of human activity, however access to electricity is inadequate globally, and intensive efforts are being made to bridge this gap. Few empirical investigations exist of the delivery of electricity for construction and infrastructure projects in South Africa. This study determines the factors impacting cost efficiency and sustainability in the delivery of construction project for enhanced electricity supply.
DESIGN
The study follows a survey approach in which a three-section questionnaire was administered to 117 purposively selected project employees in the Eskom Limlanga Cluster. Simple random and purposive sampling techniques were used to select the participants. Data were analysed using the Statistical Package for the Social Sciences (SPSS) version 26. Descriptive statistics were used to determine the reliability of the various constructs, together with graphs, mean scores, and standard deviations.
FINDINGS
The survey identified unexpected cost overruns, ineffective communication skills, unclear goals and objectives, unrealistic deadlines, inexperienced project managers, and inadequate stakeholder management as the major key factors influencing project inefficiencies at the Eskom Limlanga Cluster of South Africa.
VALUE
The study concludes by suggesting strategies to implement policies to improve capital project delivery and specifically managing project cost overruns to improve electricity supply in South Africa.
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