Policies to avoid cost overruns:Critical evaluation and recommendations
2014 (English)Report (Other academic)
Many infrastructural projects have cost overruns and there has been a lot of research both on whythese cost overruns occur and what can be done to reduce cost overruns. Bent Flyvbjerg is the leadingresearcher in the area and in this article his proposals are also the starting point. Beside a literaturereview a questionnaire was also sent out to experienced Swedish project managers to find out whatthey thought could reduce cost overruns. This has been the foundation for the proposals formulated inthis article. Proposals concerns three areas 1. Organizational macro-structure, e.g. using more PPPprojectsbut also decentralization of budgets where cost-overruns in one project in a region leads toless other projects in the specific region. 2. Organizational quality: It should be easy to see when andwhere cost overruns occur and who was responsible. There should be an well-developed knowledgemanagement system in the organization and an organization culture of openness and a focus onimprovements. 3. Organizational processes, e.g. a systematic use of external reviewers in differentstages of a project.
Place, publisher, year, edition, pages
KTH Royal Institute of Technology, 2014. , 16 p.
, Working Paper Series, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), 14/6
Cost-overruns, infrastructural projects, policy measures
IdentifiersURN: urn:nbn:se:kth:diva-148427OAI: oai:DiVA.org:kth-148427DiVA: diva2:736569
QC 201408192014-08-072014-08-072014-08-19Bibliographically approved