More robust due diligence is needed during project design and formulation to enable the closest possible cost estimates and to set aside enough resources to cover contingencies. This can result in considerable time savings. The values of the works contracts were significantly higher than originally estimated. Further, the amounts had to be increased during implementation because of an unprecedented increase in material costs, besides the extra earthwork needed. At cost estimation, prices of materials should be examined carefully and in relation to neighboring markets, and also by looking at the unit costs of similar items in previously awarded contracts. A sufficient allowance should be kept under contingencies for any unexpected cost increases for construction material and/or changes in contract scope.
Dushanbe - Kyrgyz Border Road Rehabilitation Project, Phase II