A comparative analysis of cost and schedule performance in public and private construction projects

Abstract

This research investigates the cost and schedule performance differences between construction projects from public and private organizations, emphasizing the significance of effective management for successful project execution. Utilizing data from the Construction Industry Institute (CII), the study analyzes 481 projects from both sectors through statistical methods and benchmarking techniques. The analysis did not find statistically significant differences in the overall cost and schedule performance between public and private projects in the dataset, with an average cost factor of 0.99 for both and average schedule factors of 1.08 for public projects and 1.06 for private projects. However, a few specific subsets of projects did show statistically significant differences. For instance, projects with budgets over 100 million dollars and modernization projects with budgets under 50 million dollars demonstrated that private projects outperformed public projects, showing better performance and greater consistency in term of cost performance. Thus, the study's findings indicate that while both public and private sectors generally manage costs effectively, schedule management poses a more significant challenge across the board. Public projects, in particular, show higher variability in scheduling, often leading to delays.Civil, Architectural, and Environmental Engineerin