The Economic Consequences of Delayed Infrastructure Projects: A Review of Mitigation Strategies

Abstract

Delays in infrastructure projects impose significant economic consequences, including cost overruns, labor market disruptions, and reduced investment confidence. This systematic review synthesizes existing literature to examine the financial implications of delayed infrastructure projects and the effectiveness of various mitigation strategies. Key findings indicate that prolonged project timelines lead to inflated costs due to inflation and increased labor expenses, while also causing regulatory inefficiencies and productivity losses. Mitigation strategies such as Building Information Modeling (BIM), blockchain technology, performance-based contracting, and modular construction have demonstrated effectiveness in improving project efficiency. The review highlights the need for streamlined regulatory frameworks, enhanced risk-sharing mechanisms, and digital project management tools to minimize economic setbacks. By integrating these strategies, infrastructure projects can be delivered on time, ensuring sustainable economic growth and efficient resource allocation.