The comparison on the milestone and monthly payment of project performance in public works department

Abstract

Payment is very crucial factor to make sure projects are performing better and to be delivered according to quality, time and within the original cost allocated. In order to minimize complaints from clients and also to increase project performance, Public Work Department (PWD) has introduced one alternative payment concept known as the Earned Value Milestone Payment (EVMP). This research's main objective is to compare the project performance between EVMP and MPP method in PWD projects. The specific objectives of this study are firstly to identify the performance issues related to MPP and EVMP projects, secondly to evaluate the critical performance factors in term of quality, cost and time and to propose the best payment method to be implemented in PWD projects. This study was conducted by using a qualitative and quantitative approach. Data were collected through survey questionnaire, case study, documents pertaining the project performance and also by conducting interviews with the relevant project stakeholders. The study found that 77% of the respondents agreed that EVMP is good method to make sure the projects can be completed in time, quality and cost allocated if been implemented properly with competence project team members. Positively the case studies revealed that EVMP projects scored the excellent remark for quality of site management, administration, planning, facilities given and also excellent quality of infrastructure works. This research is very important as it will change the future way of payment method in PWD projects. With regard to the benefits and advantages ofEVMP method, it is timely and the right move for PWD to make it mandatory in all projects throughout the country in order to enhance the project performance in the future.