The Dulhasti Power Plant Case Study Example | Topics and Well Written Essays - 1000 words - 1

The Dulhasti Power Plant - Case Study ExampleIn addition, the selected region was actually poor in terms of infrastructure development. More precisely, the region did not have an adequately certain logistic network including roads and rail lines. As a result, almost all expression supplies such(prenominal) as raw materials and labor had to be brought to air transportation. Another issue is that the construction site was furthermost away from larger cities and urban areas. Therefore, the construction firms had to spend more on food and accommodation for its workers. In addition, the non-proximity to larger cities significantly increased the transportation termss of the French consortium. Since the company had to wait for a comparatively long period to obtain the supply of raw materials, this situation led to delay in the expiration of the project. Evidently, time delay involved in the project completion would end up in cost escalations. Probably, the adverse climatic conditions in this mountainous terrain might have also contributed to the project cost escalation. centering professionals point out that even highly experienced construction firms cannot accurately perform cost bringing close together when working under harsh geographical condition due to unforeseen contingencies. There are somewhat regions that are extremely prone to natural contingencies like earthquakes, floods, drone, and wildfire. While working in such giving geographical regions, construction firms are most likely to experience cost overruns. Such threats not solely impede the project development but also cause damages to construction firms resources including tools, pieces of equipment, and labors. Sometimes, issues like a landslide or icy roads may disrupt transportation, and hence the construction firms may be compelled to stop their work temporarily. Undoubtedly, such incidents would cause construction firms to incur unanticipated ancestry needs. In order to manage eventuality c osts, construction firms are forced to increase the level of contingency funding.