Geographical Variation in Project Cost Performance: The Netherlands versus Worldwide

Journal of Transport Geography, Vol. 24, pp. 324-331, DOI: 10.1016/j.jtrangeo.2012.03.014

22 Pages Posted: 13 Jun 2013 Last revised: 7 Sep 2015

See all articles by Chantal Cantarelli

Chantal Cantarelli

University of Oxford - Said Business School

Bent Flyvbjerg

University of Oxford - Said Business School

Søren Buhl

Aalborg University

Date Written: September 1, 2012

Abstract

Cost overruns in transport infrastructure projects know no geographical limits; overruns are a global phenomenon. Nevertheless, the size of cost overruns varies with location. In the Netherlands, cost overruns appear to be smaller compared to the rest of the world. This paper tests whether Dutch projects perform significantly better in terms of cost overruns than other geographical areas. It is concluded that for road and tunnel projects, the Netherlands performs similarly to the rest of the world. For rail projects, Dutch projects perform considerably better, with projects having significantly lower percentage cost overruns in real terms (11%) compared to projects in other North West European countries (27%) and in other geographical areas (44%). Bridge projects also have considerably smaller cost overruns – 7% in the Netherlands compared with 45% in other NW European countries and 27% in other geographical areas. In explaining cost overruns, geography should therefore clearly be taken into consideration.

Suggested Citation

Cantarelli, Chantal and Flyvbjerg, Bent and Buhl, Søren, Geographical Variation in Project Cost Performance: The Netherlands versus Worldwide (September 1, 2012). Journal of Transport Geography, Vol. 24, pp. 324-331, DOI: 10.1016/j.jtrangeo.2012.03.014. Available at SSRN: https://ssrn.com/abstract=2278187

Chantal Cantarelli

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Bent Flyvbjerg (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Søren Buhl

Aalborg University ( email )

Fredrik Bajers Vej 7E
Aalborg, DK-9220
Denmark

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