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 of
Bangladesh. The present study aims to know the average time and cost overrun including identifying significant factors
encountered for delay and cost escalation. Data from 92 completed projects in FY 2016-17 were collected from the
annual reports of Implementation Monitoring and Evaluation Division (IMED) of four selected executing agencies
responsible for infrastructuredevelopment in Bangladesh. Considering COVID-19 pandemic, data were also collected
through 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 infrastructural
projects experienced both cost and time overrun by 38.45% and 90.47% respectively. Projects were implemented under
4.7 numbers of Project directors on average. The time overrun of a project is positively correlated with the number of
Project Directors worked in a project with Pearson Correlation Coefficient of 0.268** (n= 92) at .01 level of
significance. Delay in land acquisition and change of design and schedules of rates were the prominent causes for cost
escalation. On the other hand, Complexity in land acquisition procedure and lack of proper coordination among the
parties contributed greatly for schedule delays in construction project. Lack of institutional capacity of implementing
agencies to implement the project, natural disasters, designchanges, project approval and implementation without
having complete feasibility study also hamper on time project completion. Although there are no straightforward
solutions, estimating justified project scheduling with clear scope definition preferably through feasibility study would
lessen the necessity of project revision. Strong coordination among various parties and effective communication among
the stakeholders are vital at implementation stage. Systematic HRM especially recruitment and transfer of project
personnel, development of project management competency and strengthening government ME system through
decentralization would be effective for implementation and monitoring and thereby improving project success in terms
cost and schedule. The findings of this study will assist project managers and practitioners to control any potential
delaysfor successful completion projects within the stipulated budget