🚨 The Hidden Costs of the Olympics? 🚨
Hello AACE International - United Kingdom and global AACE International members!
A recent study titled "The Oxford Olympics Study 2024: Are Cost and Cost Overrun at the Games Coming Down?" by Alexander Budzier and Prof. Bent Flyvbjerg reveals a stark reality: Olympic Games consistently exceed their budgets.
Paris 2024 was projected to cost $8.7 billion, a staggering 115% over its initial budget! This continues a troubling pattern of rising costs and cost overruns that could threaten the long-term viability of hosting the Games. Despite reforms like venue reuse, costs are still climbing, as seen with Brisbane 2032, which is already grappling with early budget increases. The study highlights the need for better forecasting, data-driven decisions, and learning from other megaprojects to avoid these financial pitfalls in future events like Los Angeles 2028.
Key Takeaway For project professionals, this study underscores the importance of rigorous financial management and risk mitigation on large-scale projects. Managing costs through forecasting and learning from past projects is essential.
Learn More For deeper insights, check out the full study by Alexander Budzier and Prof. Bent Flyvbjerg, a must-read for professionals managing large-scale projects.
Join the Discussion Please share your comments or experiences in relation to Olympic project costs. Have you been involved in similar high-profile projects, or do you have any insights into how such cost overruns can be managed more effectively? Let's discuss!
Many thanks.
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Moj Kesheh, PSP, FCIArb
Senior Director
Forensic & Litigation Consulting – Construction, Projects & Assets
FTI Consulting
London | United Kingdom
Moj.Kesheh@fticonsulting.com------------------------------