Essays on cost overruns in infrastructure provision

Abstract By considering project performance along the various phases of the project life-cycle, this paper aims to fill a gap in the literature on cost overruns and project management in Italy. Employing a large dataset of Italian transport infrastructure projects for roads, started and completed during the period 2000-2013, it applies the same methodology used by the construction management research regarding project types and phases. More specifically, the research goal is to assess the generating process of the magnitude of cost overruns in the sample, trying to evaluate the role of cost evolution by project phase distinguish between the costs of physical execution and the other costs. The findings show that contracting authorities seem to overestimate the extent of the final costs systematically. This behaviour was more important in term of financial coverage. The results can be relevant to explain the cost overruns in the execution stage suggesting the adoption of more stringent rules in budgeting and financial coverage of the projects.

Abstract Cost overruns are an endemic feature of transport infrastructure provision all over the world. In the last decades, a considerable amount of studies has been devoted to assessing the magnitude and determinants of cost overruns in the transportation sector. However, empirical findings are scattered among different strands of literature, ranging from the fields of construction engineering and management to that of applied economics. To shed light on the determinants of cost overruns in the execution of transport infrastructure projects, we conduct a systematic review of the empirical literature on the topic. Of the 945 articles retrieved, 26 articles published between the years 2000 and 2016 meet our inclusion criteria. For them, we describe the different empirical approaches, provide a classification of the determinants employed in the analyses and summarise their impact on cost overruns. Finally, we discuss some directions and concerns for further research in the field.