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    Cost performance of public infrastructure projects: the nemesis and nirvana of change-orders

    Access Status
    Open access via publisher
    Authors
    Love, Peter
    Irani, Z.
    Smith, J.
    Regan, M.
    Liu, J.
    Date
    2017
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Love, P. and Irani, Z. and Smith, J. and Regan, M. and Liu, J. 2017. Cost performance of public infrastructure projects: the nemesis and nirvana of change-orders. Production Planning & Control. 28 (13): pp. 1081-1092.
    Source Title
    Production Planning & Control
    DOI
    10.1080/09537287.2017.1333647
    Additional URLs
    https://bradscholars.brad.ac.uk/handle/10454/14128
    ISSN
    0953-7287
    School
    Department of Civil Engineering
    Funding and Sponsorship
    http://purl.org/au-research/grants/arc/DP160102882
    URI
    http://hdl.handle.net/20.500.11937/58457
    Collection
    • Curtin Research Publications
    Abstract

    © 2017 Informa UK Limited, trading as Taylor & Francis Group. The cost performance of a wide range of public sector infrastructure projects completed by a contractor are analysed and discussed. Change-orders after a contract to construct an asset was signed were, on average, found to contribute to a 23.75% increase in project costs. A positive association between an increase in change orders and the contractor’s margin were identified. Taxpayers pay for this additional cost, while those charged with constructing assets are rewarded with an increase in their margins. As the public sector embraces an era of digitisation, there is a need to improve the integration of design and construction activities and engender collaboration to ensure assets can be delivered cost effectively and future-proofed. The research paper provides empirical evidence for the public sector to re-consider the processes that are used to deliver their infrastructure assets so as to reduce the propensity for cost overruns and enable future-proofing to occur.

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