A Study of Cost Overrun in Road Projects in Bangladesh

Abstract Cost overrun is a primary concern for transportation projects worldwide. Given the significant interconnectedness among various projects in this sector, cost overrun can have serious negative and unanticipated effects on infrastructure project systems. It is therefore crucial to investigate the primary reasons for cost overrun and consider potential solutions to them. To study this problem in the case of road projects, information was gathered from multiple project stakeholders using a purposive sampling technique. A standardized questionnaire survey, centered on 26 common factors, was used, with analysis concentrating on the three indices of frequency, severity, and importance. Findings indicate that frequent design change, delays in site mobilization, lack of coordination among stakeholders, insufficient project preparation, and corporate governance issues are the top five cost-influencing factors in road transportation projects in Bangladesh. Also, using 131 road project data for the years 2012–2020 published in a report by the government’s Implementation, Monitoring, and Evaluation Division ( IMED ), a regression analysis was conducted to examine how various independent factors contributed to cost overrun in this context. The study findings are expected to assist policymakers and relevant stakeholders in reducing cost overrun and aim for more economically efficient road projects in Bangladesh.