Abstract
Many infrastructure projects have cost overruns and there has been a lot of research both on why these cost overruns occur and what can be done to reduce hem. Bent Flyvbjerg is the leading researcher in the area and in this article his proposals are used as the starting point. Besides a literature review, a questionnaire was sent out to experienced Swedish project managers to find out what they thought could reduce cost overruns. The literature review and the questionnaire were the foundation for the proposals formulated in this article. Proposals concerned three areas: (1). Organisational macro-structure, e.g. using more PPP projects but also decentralisation of budgets where cost overruns in one project in a region lead to less alternative projects in the specific region. (2). Organisational quality: It should be easy to see when and where cost overruns occur and who was responsible. There should be a well-developed knowledge management system in the organisation and an organisation culture of openness with a focus on improvements. (3). Organisational processes, e.g. a systematic use of external reviewers in different stages of a project. Keywords: Cost overruns, Infrastructure projects, Policy measures
Highlights
Cost overruns have been a regular problem in large infrastructure projects
Beside the view from researchers covered in the literature review, we wanted to find out the view of experienced project managers concerning what could be done to reduce cost overruns
The experienced project managers on the contractor side was found by asking leading staff in each company to recommend suitable persons that could participate in a questionnaire about cost overruns in infrastructure projects
Summary
Cost overruns have been a regular problem in large infrastructure projects. Flyvbjerg, Skamris Holm and Buhl (2003) presented results from a database with over 250 large projects from different countries and different time periods. A recent Swedish dissertation showed that there were large cost overruns in almost all major infrastructural projects in Sweden during the last decade (Lundman 2011). This raises two main questions: Why is this the case and what can be done about it? As we were especially interested in policies that might be efficient in Sweden, a questionnaire was sent out to experienced project managers on both the client and contractor sides This material was used to formulate a credible policy package that should be able to lead to a reduction in cost overruns. This paper is a combination of a review paper, an empirical study and a conceptual policy paper
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
