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The amoebic growth of project costs

The amoebic growth of project costs
The amoebic growth of project costs
In the public arena, we often hear about projects that have suffered massive cost overruns. Often they are related to large public construction projects such as airports, bridges, or public buildings. Large overruns also exist in private industry. However, often these do not appear in the newspapers, so the public is not as aware of them. Of course, not all projects go badly wrong, but quite a few do, and frequently we find ourselves uncertain of the causes for such overruns. In this paper, industrial projects that overrun and overrun in a surprising manner are considered. In other words, the paper considers those many projects where the extent of the overrun is well beyond what might ever have been anticipated, even though what was going wrong within the projects was, for the most part, understood.

The basis for the content of the paper (that is, the structure and lessons), are drawn from a postmortem analysis of many large projects as part of claims analysis, particularly "delay and disruption" claims for projects whose total expenditure appeared, at first look, inexplicable or surprising. The aim of the paper is to contribute to an understanding of how projects go badly wrong, when they do, and in particular to draw some lessons from this exploration that are likely to help all managers. The reasons for cost escalation are not just the responsibility of project managers.





disruption and delay, project costs, complex projects
8756-9728
15-27
Eden, Colin
db5ed969-1735-4ad2-8694-fafb5c06686b
Ackermann, Fran
de3bfd09-472a-44ee-9adb-d32b0c0b3291
Williams, Terry
085e6e3e-f94e-435c-936e-82fb0c5c4ae8
Eden, Colin
db5ed969-1735-4ad2-8694-fafb5c06686b
Ackermann, Fran
de3bfd09-472a-44ee-9adb-d32b0c0b3291
Williams, Terry
085e6e3e-f94e-435c-936e-82fb0c5c4ae8

Eden, Colin, Ackermann, Fran and Williams, Terry (2005) The amoebic growth of project costs. Project Management Journal, 36 (1), 15-27.

Record type: Article

Abstract

In the public arena, we often hear about projects that have suffered massive cost overruns. Often they are related to large public construction projects such as airports, bridges, or public buildings. Large overruns also exist in private industry. However, often these do not appear in the newspapers, so the public is not as aware of them. Of course, not all projects go badly wrong, but quite a few do, and frequently we find ourselves uncertain of the causes for such overruns. In this paper, industrial projects that overrun and overrun in a surprising manner are considered. In other words, the paper considers those many projects where the extent of the overrun is well beyond what might ever have been anticipated, even though what was going wrong within the projects was, for the most part, understood.

The basis for the content of the paper (that is, the structure and lessons), are drawn from a postmortem analysis of many large projects as part of claims analysis, particularly "delay and disruption" claims for projects whose total expenditure appeared, at first look, inexplicable or surprising. The aim of the paper is to contribute to an understanding of how projects go badly wrong, when they do, and in particular to draw some lessons from this exploration that are likely to help all managers. The reasons for cost escalation are not just the responsibility of project managers.





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More information

Published date: 2005
Keywords: disruption and delay, project costs, complex projects

Identifiers

Local EPrints ID: 36906
URI: http://eprints.soton.ac.uk/id/eprint/36906
ISSN: 8756-9728
PURE UUID: dc7b0b17-3753-4b89-a9b3-0cd6dc4d5535

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Date deposited: 22 May 2006
Last modified: 23 Jul 2020 16:38

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