W hy do transport projects so often seem to end up costing much more than originally forecast? Professor Bent Flyvbjerg, of the University of Oxford’s Saïd Business School, has spent a lot of time researching this question and his work has shaped the thinking of the DfT and Treasury. He says there is clear evidence that the costs of the vast majority of projects are underestimated at the point the decision is made to proceed with them. As for why this should be so, Flyvbjerg says the...
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