Cost and schedule performance in large government projects

Abstract

This paper uses data from 111 large government projects in Norway. We compare their final cost to the formal budget set by the parliament in their formal funding decision. We use standard statistical measures to illustrate their cost performance and whether the projects have been completed within the agreed schedule. We also examine the proportion of projects that have been fully successful from an operational perspective, that is, how many have been completed without either cost overruns or delays. The results are encouraging and better than most reported in the international research literature. On average, Norwegian government projects are completed 5% below budget. Three of four projects experience cost underrun. Schedule performance is weaker as the average completion is ten months after planned completion. Only about a third of the projects can be considered fully successful according to the performance targets for both time and cost. Despite these somewhat positive results, we warn against the implications of large projects currently under construction and which are experiencing challenges concerning costs and schedule.