| Title |
An Empirical Study on Factors Affecting Cost Overruns in BTO Road Projects |
| Authors |
Ji-Eun Yang ; Jae-Sung Suk |
| DOI |
https://dx.doi.org/10.6106/KJCEM.2026.27.2.016 |
| Keywords |
BTO Public-Private Partnership (PPP) Projects; Risk Factors; Road Infrastructure; Regression Analysis |
| Abstract |
Based on the Private Investment Promotion Act enacted in 1994, various public infrastructure projects in Korea have been implemented through private investment schemes. However, large-scale private investment projects are exposed to risks such as construction cost escalation and project delays due to their long implementation periods. These risks have weakened private sector participation, despite recent institutional reforms. Against this backdrop, this study empirically examines the factors influencing cost increases in BTO road projects, the most actively adopted form of private investment in the road sector. The potential presence of latent common factors among cost-related variables was first assessed using the Kaiser?Meyer?Olkin (KMO) measure and Bartlett’s test, followed by multiple regression analysis using the observed variables. The results provide empirical evidence to support policy design for revitalizing private investment projects and offer insights for developing project-specific risk management strategies. |