Soon We Won't Be Able to Build Anything:Unsustainable Cost Escalation of Large Construction Projects

The average cost of large capital projects in Western Europe and North America continues to grow faster than inflation. This includes large infrastructure projects, power plants, pipelines, refineries, mines, terminals, etc. Moreover, a significant number of such projects are over budget and behind schedule. Nine out of ten construction projects experience cost overruns, with an average overrun of 28%.

Over the last five years, Intaver Institute researched issues related to cost escalation and cost overruns: what actually happens, why it happens, and what needs to be done about it. Intaver Institute obtained information about multiple capital projects from various public sources. The presentation includes practical solutions to project cost escalation and cost overrun problems.