liu.seSearch for publications in DiVA
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Cost Overruns of Infrastructure Projects – Distributions, Causes and Remedies
Linköping University, Department of Science and Technology, Communications and Transport Systems. Linköping University, Faculty of Science & Engineering. Swedish Transport Administration.ORCID iD: 0000-0003-1789-9238
2024 (English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper analyzes the accuracy of cost estimates for Swedish transport infrastructure projects 2004-2022, discusses causes of cost overruns, and suggests remedies. Cost estimates for all projects in the national investment plans 2010-2022 are tracked from early planning to completion. Final costs for all projects finished 2004-2022 are compared to decision-stage cost estimates. Results show that cost estimates increase considerably during the planning stages, on average, while cost estimates at the final decision stage are close to final costs, on average. Cost escalations during the planning stage are not uniform, however: the distribution of cost changes is highly skewed with a long right tail. The reason that final costs tend to exceed early cost estimates is that project decisions are effectively locked in before projects’ costs and benefits have been thoroughly assessed. Lock-in of premature decisions does not only cause cost overruns; even worse, it distorts project selection and design, reduces incentives to search for more cost-efficient designs, and increases opportunities and incentives for project beneficiaries to underestimate costs and overestimate benefits. Several ways to tackle these problems are suggested. 

Place, publisher, year, edition, pages
2024.
Keywords [en]
cost overruns, transport infrastructure, project management, decision processes, transport policy
Identifiers
URN: urn:nbn:se:liu:diva-213405DOI: 10.2139/ssrn.5044048OAI: oai:DiVA.org:liu-213405DiVA, id: diva2:1956059
Available from: 2025-05-05 Created: 2025-05-05 Last updated: 2025-05-05

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full text

Authority records

Eliasson, Jonas

Search in DiVA

By author/editor
Eliasson, Jonas
By organisation
Communications and Transport SystemsFaculty of Science & Engineering

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 65 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf