Methodological Proposal for Budgeting Civil Construction Works

a conceptual approach to mitigating overpricing for public works in Mozambique.

Abstract

Public works play an important role in the socioeconomic and cultural development of any country. In these terms, this article aims to identify, in small and medium-sized Mozambican companies, the factors that constitute risk in the process of budgeting works and propose a methodology for mitigating these risks. To achieve this goal, quantitative research was applied using questionnaires with closed questions. The questionnaires were sent to 65 Mozambican construction companies located in the southern zone of Mozambique. To process the contractors' responses, the Relative Importance Index (IIR) was applied, where it was possible to identify the risk factors that influence the budgeting of works: (1) rising prices in the market, (2) delay in payment of invoices for work performed by the contractor and (3) lack of clarity in tender documents. Finally, with a view to mitigating these risks, a model was proposed to be incorporated into the State Financial Administration Information System (e-Sistefe), with a view to proposing a computerized methodology, based on clear and objective criteria, to assist the budgeting of public works, avoiding overpricing of public works.