ABSTRACT

Human living standards are improving by each passing day and infrastructures, especially, road network, is a basic yardstick for assessing this improvement. Road construction provides the required vital components for the growth of economy of a nation as it increases utmost utilization of economic prospects and also mobilizes services and goods in the desired direction. But it is very difficult to manage all the required activities of constructing a road and that too abiding by the estimated or given cost, time and also to the user’s approval. It is all because of delays. When cost of such delays is considered, then the situation becomes more disturbing and freighting. This study examines the financial and social costs of delay in a case study of road construction project, the N-55 Indus Highway from Kohat to Karak. A mixed-methods approach has been adopted in the study by combing quantitative data from project documents and qualitative data from commuter surveys to analyze the private, the accounting, and the social costs associated with the project. It has been found in the study that the private cost accounts for 13.87%, the accounting cost constitutes 25.1%, and the social cost makes 20.13% of the total project cost. Together these findings come to an estimated total cost of inaction of 59.1% of the project budget, thereby imposing significant financial and social burdens on stakeholders as well as impacting project budgets, labor costs, equipment expenses, and commuter inconveniences. Therefore, study has emphasized on ensuring timely action against inaction by sufficient funding through the Public Sector Development Program (PSDP), and improving project planning and execution. Moreover, the study has also highlighted the importance of enhancing data transparency and accessibility, strengthening interdepartmental coordination, and minimizing political interference. By adopting these recommendations, the impact and challenge of project delays can be mitigated in future ventures.