Analysis of Cost Deviations in Road Construction Activities: A Case Study from Palestine

This study investigates the statistical relationship between actual and estimated cost of road construction activities. It is based on a sample of 100 road construction projects awarded in the West Bank in Palestine over the years 2004 2008. Based on this data, regression models were developed. The investigated construction activities in this study are earthworks, base works, asphalt works and furniture works. The findings reveal that the average cost deviation in the investigated activities is as follows: earthworks= -15.7%, base works = 12.9%, asphalt works = 18.5% and furniture works = 36.4%. The relationship between cost divergence of each investigated activity and physical project characteristics (i.e. project size, terrain condition, ground condition and soil quality) is discussed.