Cost performance of public infrastructure projects: the nemesis and nirvana of change-orders
MetadataShow full item record
© 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.
Showing items related by title, author, creator and subject.
Love, Peter; Ahiaga-Dagbui, D.; Welde, M.; Odeck, J. (2017)© 2017 Elsevier Ltd The cost performance of Light Rail Transit (LRT) systems have been scrutinized by the popular press and public sector infrastructure agencies as they have been prone to incurring cost increases in their ...
Love, Peter; Liu, J.; Matthews, Jane; Sing, C.; Smith, J. (2015)Public-private partnerships (PPPs) are widely used to procure public infrastructure assets and are an effective mechanism for ensuring value for money. However, many PPPs in Australia have been plagued with controversy ...
Asset Management and Governance – An Analysis of Fleet Management Process Issues in an Asset-Intensive OrganizationMardiasmo, D.; Tywoniak, Stephane; Brown, Kerry; Burgess, K. (2008)Efficient asset management is a key performance driver for asset-intensive organizations. Achieving high utilization and return on investment on physical assets are central corporate objectives for public and private ...