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Cost overrun is defined as excess of actual cost over budget. Cost overrun is also sometimes called "cost escalation," "cost increase," or "budget overrun." In economics, business, and accounting, a cost is the value of inputs that have been used up to produce something, and hence are not available for use anymore. ...
Budget generally refers to a list of all planned expenses and revenues. ...
Cost overrun is common in infrastructure, building, and technology projects. One of the most comprehensive studies [1] of cost overrun that exists found that 9 out of 10 projects had overrun, overruns of 50 to 100 percent were common, overrun was found in each of 20 nations and five continents covered by the study, and overrun had been constant for the 70 years for which data were available. For IT projects an industry study by the Standish Group (2004) found that average cost overrun was 43 percent, 71 percent of projects were over budget, over time, and under scope, and total waste was estimated at US$55 billion per year in the US alone. For other uses, see Building (disambiguation). ...
By the mid 20th century humans had achieved a level of technological mastery sufficient to leave the surface of the planet for the first time and explore space. ...
A project is a temporary endeavor undertaken to create a unique product or service. ...
Information Technology (IT)[1] is concerned with the use of technology in managing and processing information, especially in large organizations. ...
The scope of a given activity or subject is the area or range that it covers. ...
Spectacular examples of cost overrun are the Suez Canal with 1,900 percent, the Sydney Opera House with 1,400 percent, and the Concorde supersonic aeroplane with 1,100 percent. The cost overrun of Boston's Big Dig was 275 percent, or US$11 billion. The cost overrun for the Channel tunnel between the UK and France was 80 percent for construction costs and 140 percent for financing costs. Ships moored at El Ballah during transit The Suez Canal (Arabic: ‎, translit: , French: ), is a large artificial maritime canal in Egypt west of the Sinai Peninsula. ...
Internationally, the Sydney Opera House is the most recognised symbol of Sydney Sydney Opera House at Night The Sydney Opera House is located in Sydney, New South Wales, Australia. ...
The Aérospatiale-BAC Concorde supersonic transport (SST), along with the Tupolev Tu-144, was one of only two models of supersonic passenger airliners to have seen commercial service. ...
Big Dig is the unofficial name of the Central Artery/Tunnel Project (CA/T), a megaproject to reroute the Central Artery (Interstate 93), the chief controlled-access highway through the heart of Boston, Massachusetts, into a 3. ...
Map of the Channel Tunnel. ...
Cranes are essential in large construction projects, such as this skyscraper In project architecture and civil engineering, construction is the building or assembly of any infrastructure on a site. ...
Finance addresses the ways in which individuals, business entities and other organizations allocate and use monetary resources over time. ...
Three types of explanation of cost overrun exist: technical, psychological, and political-economic. Technical explanations account for cost overrun in terms of imperfect forecasting techniques, inadequate data, etc. Psychological explanations account for overrun in terms of optimism bias with forecasters. Finally, political-economic explanations see overrun as the result of strategic misrepresentation of budgets. Psychological and political-economic explanations best explain cost overrun, and for large, costly projects with many stakeholders, political-economic explanations hold the highest degree of explanatory power. An explanation is a statement which points to causes, context and consequences of some object (or process, state of affairs etc. ...
A technical is a fighting vehicle. ...
Psychology (ancient Greek: psyche = soul and logos = word) is the study of mind, thought, and behaviour. ...
Politics is the process by which decisions are made within groups. ...
Economics (deriving from the Greek words οίκω [okos], house, and νÎμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ...
Look up forecast in Wiktionary, the free dictionary. ...
Optimism bias is the demonstrated systematic tendency for people to be over-optimistic about the outcome of planned actions. ...
In contract law, a misrepresentation is a false statement of fact made by one party to another party and has the effect of inducing that party into the contract. ...
Cost overrun is typically calculated in one of two ways. Either as a percentage, namely actual cost minus budgeted cost, in percent of budgeted cost. Or as a ratio, viz. actual cost divided by budgeted cost. For example, if the budget for building a new bridge was $100 million and the actual cost was $150 million then the cost overrun may be expressed as 50 percent or by the ratio 1.5. The percent sign A percentage is a way of expressing numbers as fractions of 100 and is often denoted using the percent sign, %. For example, 45. ...
In number and more generally in algebra, a ratio is the linear relationship between two quantities of the same unit. ...
List of projects with large cost overruns
Many projects associated with Nuclear Power have had large cost overruns. Image File history File links Flag_of_the_United_States. ...
Big Dig is the unofficial name of the Central Artery/Tunnel Project (CA/T), a megaproject to reroute the Central Artery (Interstate 93), the chief controlled-access highway through the heart of Boston, Massachusetts, into a 3. ...
Image File history File links Flag_of_France. ...
Image File history File links Flag_of_the_United_Kingdom. ...
Map of the Channel Tunnel. ...
Image File history File links Flag_of_the_United_Kingdom. ...
Image File history File links Flag_of_France. ...
The Aérospatiale-BAC Concorde supersonic transport (SST), along with the Tupolev Tu-144, was one of only two models of supersonic passenger airliners to have seen commercial service. ...
Image File history File links European_flag. ...
The Eurofighter Typhoon is a twin-engine multi-role canard-delta fighter aircraft, very similar to the US-German Rockwell-MBB X-31 prototype and designed and built by a consortium of European nations formed in 1983. ...
Image File history File links Flag_of_the_United_Kingdom. ...
The National Programme for IT (NPfIT) which is being delivered by the new Department of Health agency NHS Connecting for Health, is an initiative by the National Health Service in England to move towards an electronic care record for patients and to connect 30,000 GPs to 300 hospitals, providing...
Image File history File links Flag_of_Panama_(bordered). ...
The Panama Canal (Spanish: ) is a major ship canal that traverses the Isthmus of Panama in Central America, connecting the Atlantic and Pacific Oceans. ...
Image File history File links Flag_of_Egypt. ...
Ships moored at El Ballah during transit The Suez Canal (Arabic: ‎, translit: , French: ), is a large artificial maritime canal in Egypt west of the Sinai Peninsula. ...
Image File history File links Flag_of_Australia. ...
Internationally, the Sydney Opera House is the most recognised symbol of Sydney Sydney Opera House at Night The Sydney Opera House is located in Sydney, New South Wales, Australia. ...
Image File history File links Flag_of_the_United_Kingdom. ...
Taurus was a program that set to transfer the London Stock Exchange from paper communication to an automated system. ...
A nuclear power station. ...
See also Definition of Megaproject Megaprojects (sometimes also spelled mega projects) are very large investment projects. ...
Sources and further readings Flyvbjerg, Bent, Nils Bruzelius, and Werner Rothengatter, Megaprojects and Risk: An Anatomy of Ambition (Cambridge University Press, 2003).
Flyvbjerg, Bent, Mette K. Skamris Holm, and Søren L. Buhl, 2002, "Underestimating Costs in Public Works Projects: Error or Lie?" Journal of the American Planning Association, vol. 68, no. 3, 279-295.
Standish Group, 2004. CHAOS Report (West Yarmouth, MA: Author)
UK Department for Transport, 2004. Procedures for Dealing with Optimism Bias in Transport Planning: Guidance Document (London).
Mayo-Smith's Pyramid A pyramid designed so that it retains a pyramidal shape as it’s being constructed. ...
External links Journal of the American Planning Association: [2]
UK Department for Transport: [3]
UK Treasury: [4]
Dictionary: [5]
Dictionary: [6]
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