Analysis of Cost and Schedule Performance of Public Sector Infrastructure Projects of Bangladesh

Abstract

Projects completed beyond its stipulated time and budget is a chronic problem in public sector infrastructural project ofBangladesh. The present study aims to know the average time and cost overrun including identifying significant factorsencountered for delay and cost escalation. Data from 92 completed projects in FY 2016-17 were collected from theannual reports of Implementation Monitoring and Evaluation Division (IMED) of four selected executing agenciesresponsible for infrastructuredevelopment in Bangladesh. Considering COVID-19 pandemic, data were also collectedthrough phone interview from 20 selected experts involving the major project stakeholders such as consultants,contractors and project management’s team of implementing agencies. The study found that completed infrastructuralprojects experienced both cost and time overrun by 38.45% and 90.47% respectively. Projects were implemented under4.7 numbers of Project directors on average. The time overrun of a project is positively correlated with the number ofProject Directors worked in a project with Pearson Correlation Coefficient of 0.268** (n= 92) at .01 level ofsignificance. Delay in land acquisition and change of design and schedules of rates were the prominent causes for costescalation. On the other hand, Complexity in land acquisition procedure and lack of proper coordination among theparties contributed greatly for schedule delays in construction project. Lack of institutional capacity of implementingagencies to implement the project, natural disasters, designchanges, project approval and implementation withouthaving complete feasibility study also hamper on time project completion. Although there are no straightforwardsolutions, estimating justified project scheduling with clear scope definition preferably through feasibility study wouldlessen the necessity of project revision. Strong coordination among various parties and effective communication amongthe stakeholders are vital at implementation stage. Systematic HRM especially recruitment and transfer of projectpersonnel, development of project management competency and strengthening government ME system throughdecentralization would be effective for implementation and monitoring and thereby improving project success in termscost and schedule. The findings of this study will assist project managers and practitioners to control any potentialdelaysfor successful completion projects within the stipulated budget