Analyzing Construction Delays: A Cost Analysis of The Kohat-Karak N-55 Highway

Abstract

Infrastructure delays impose significant financial and road user costs, affecting economic, resource allocation, and project efficiency. This study examines the cost of inaction in project delay of the N-55 Indus Highway using a mixed-methods approach, incorporating both quantitative and qualitative data. The sludge method was applied to assess PC-1 revision costs, while the private cost method evaluated financial burdens on contractors and consultants. Findings reveal that delays account for 59.1% of the total project budget, with private costs contributing 13.87%, accounting costs making up 25.1%, and social costs comprising 20.13%. These delays lead to increased expenditures, rising labor costs, inefficiencies in resource utilization, and commuter inconveniences. Furthermore, prolonged inaction exacerbates financial instability, disrupts economic activities, and reduces public trust in infrastructure development. To address these challenges, this study recommends enhancing financial planning, ensuring timely fund disbursement, strengthening transparency, and improving interdepartmental coordination. Reducing political interference and adopting proactive management strategies can help mitigate future project inefficiencies and economic losses, ensuring sustainable infrastructure development.