Toward a Systemic View to Cost Overrun Causation in Infrastructure Projects

A Review and Implications for Research

Article Cost Management, Transportation & Infrastructure 1 April 2017

Project Management Journal

Ahiaga-Dagbui, Dominic D. | Love, Peter E. D. | Smith, Simon | Ackermann, Fran

How to cite this article:

Ahiaga-Dagbui, D. D., Love, P. E. D., Smith, S., & Ackermann, F. (2017). Toward a Systemic View to Cost Overrun Causation in Infrastructure Projects: A Review and Implications for Research. Project Management Journal, 48(2), 88–98.
Infrastructure cost overruns receive a significant amount of attention in the academic literature as well as the popular press. The methodological weaknesses in the dominant approaches adopted to explain cost overrun causation on infrastructure projects are explored in this article. A considerable amount of cost overrun research is superficial, replicative, and thus has stagnated the development of a robust theory to mitigate and contain the problem. Future research should move from single-cause identification and the traditional net-effect correlational analysis to a search for causal recipes through systems thinking and retrospective sensemaking to address the high-level interactions between multiple factors.
member content locked

Become a PMI member to gain access

or Join

Advertisement

Advertisement

Related Content

  • Article Cost Management 1 August 2019

    PM Network

    Reality Check member content open

    By Bodini, Francesca Massive infrastructure projects frequently gain attention not only for their architectural or technical features but also for their incredible cost overruns. Accurately estimating the costs of…

  • Article Innovation, Scheduling, Strategy, Cost Management, Organizational Project Management, Construction 1 April 2019

    Project Management Journal

    Determining Contingencies in the Management of Construction Projects member content locked

    By Ortiz, José I. | Pellicer, Eugenio | Molenaar, Keith R. This research describes the managerial approaches that contractors follow to determine different types of contingencies in construction project management. Two large Spanish general contractors were…

  • Article Risk Management, Cost Management, Government 1 April 2019

    Project Management Journal

    Public-Private Partnerships member content locked

    By Solheim-Kile, Espen | Lædre, Ola | Lohne, Jardar Public-private partnerships (PPPs) have been subjected to considerable public debate. In particular, this debate has concerned PPP financing and its implications. Using insights from agency theory,…

  • Article Cost Management 1 March 2019

    PM Network

    The Science of Uncertainty member content open

    By Thomas, Jen Project estimates can sometimes take on a life of their own. The budget for the new international arrivals facility being built at Seattle-Tacoma International Airport in Seattle, Washington, USA…

  • Article Cost Management, Risk Management 1 February 2019

    Project Management Journal

    Improving Project Budget Estimation Accuracy and Precision by Analyzing Reserves for Both Identified and Unidentified Risks member content locked

    By Kwon, Hyukchun | Kang, Chang W. Project risk is a critical factor in estimating project budget. Previous studies on this topic have only addressed estimation methods that consider project budget reserves against identified risks.…

Advertisement