Panel data estimation reveals cost-saving potential of process-control systems in urban infrastructure projects, suggesting further adoption.
This study evaluates process-control systems in South Africa's urban infrastructure projects to assess their cost-effectiveness. Panel data estimation was employed to analyse the cost-effectiveness of process-control systems in South African urban projects, focusing on infrastructure improvements across multiple regions over time. A significant proportion (85%) of monitored projects showed a decrease in costs when implementing process-control systems compared to non-implemented projects, with an estimated reduction in total expenditure by $10 million per year on average. Process-control systems have demonstrated cost-saving potential in South African urban infrastructure projects, warranting further implementation and evaluation. Authorities should prioritise the adoption of process-control systems to enhance cost-effectiveness and efficiency in future urban development initiatives. The maintenance outcome was modelled as Yᵢₜ=β₀+β₁Xᵢₜ+uᵢ+εᵢₜ, with robustness checked using heteroskedasticity-consistent errors.
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Dlamini et al. (2008) studied this question.
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