Project over-runs….again

My earlier blog about Terminal 5 showed a real lack of planning, training and co-ordination. But, at least the terminal was completed on time!

What about other transport projects? My thanks to Donnie MacNicol who pointed to a recent report published in the Financial Times. This report suggested that Europe’s 30 most important transport projects will cost far more than first thought. The report queries how some financially strapped governments will find the necessary funds.

An independent study by PwC, blames the €40bn ($63bn) cost overrun on poor project management, planning difficulties, changes in project specifications, lawsuits and lack of funding.

Bear in mind this is public money - the UK’s cost forecast according to the article is
€26.7bn.

Now we all finish up paying for these over- runs in one way or the other - money or delays in the transport system. What is being done to ensure that large scale projects are delivered on time and to budget and of course to customer quality standards? Not a lot it would seem.

There are many examples of past projects failing to deliver on time and to budget and it looks as though we have not learned from these; lessons learned seems to be lost and forgotten.

Read the article here - it makes chilling reading with high costs and poor delivery.