15 of the world’s biggest cost overrun projects
Bent Flyvbjerg, professor of major programme management at the University of Oxford’s Saïd Business School, says overruns in the order of 50 per cent in real terms are common for major infrastructure projects.
He says this is because it is not uncommon for demand and benefit forecasts to be wrong by 20-70 per cent compared with actual development.
Public passenger rail and urban projects tend to have especially big overruns.
A study of more than 5,400 IT projects found the average overspend of the starting budget can top...45%
The average budget overrun for producing the Olympic Games since 1976 has been around...200%
Sources: Centre for Major Programme Management,University of Oxford’s Saïd Business School; McKinsey and the London School of Economics