Why Major Projects Are Always Over Budget

Read Danny Westneat’s column Sunday on why the deep-bore tunnel project is almost certain to be far more expensive to build than what’s being projected today.

An English professor (English as in he’s from England, not that he teaches English) has done a series of studies as to why major government projects often come in over budget. There are two things at play.

1. Delusional optimism on the part of those who want to see the project done and are the ones crunching the numbers, which leads to

2. Lying.

2 thoughts on “Why Major Projects Are Always Over Budget

  1. It’s very simple, the government doesn’t write a precise specification for the work to be done and then they allow “change orders” to fix what they forgot. Once that happens, the contractor has the upper hand.

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