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Off the rails: The cost performance of infrastructure rail projects

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  • Love, Peter E.D.
  • Zhou, Jingyang
  • Edwards, David J.
  • Irani, Zahir
  • Sing, Chun-Pong

Abstract

Governments in Australia place great emphasis on the development and expansion of their rail networks to improve productivity and service the increasing needs and demands from businesses and commuters. A case study approach is used to analyze the cost performance of 16 rail projects constructed by a contractor between 2011 and 2014, which ranged from AU$3.4 to AU$353 million. Findings indicate that scope changes during construction were the key contributors that lead to the amendment of each project’s original contractual value. As a result, there is a need for public and private sector asset owners to establish a cost contingency using a probabilistic rather than a deterministic approach to accommodate the potential for scope changes during construction. To improve cost certainty during the construction of rail projects, it is suggested that use of collaborative forms of procurement juxtaposed with the use of Building Information Modelling and Systems Information Modelling are implemented. The utilization of such technological and process innovations can provide public and private sector asset owners charged with delivering and maintaining their rail networks with confidence projects can be delivered within budget and are resilient to unexpected events and adaptable to changing needs, uses or capacities.

Suggested Citation

  • Love, Peter E.D. & Zhou, Jingyang & Edwards, David J. & Irani, Zahir & Sing, Chun-Pong, 2017. "Off the rails: The cost performance of infrastructure rail projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 99(C), pages 14-29.
    • Handle: RePEc:eee:transa:v:99:y:2017:i:c:p:14-29
    DOI: 10.1016/j.tra.2017.02.008
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    Cited by:

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    3. Love, Peter E.D. & Ahiaga-Dagbui, Dominic & Welde, Morten & Odeck, James, 2017. "Light rail transit cost performance: Opportunities for future-proofing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 27-39.
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    5. Love, Peter E.D. & Sing, Michael C.P. & Ika, Lavagnon A. & Newton, Sidney, 2019. "The cost performance of transportation projects: The fallacy of the Planning Fallacy account," Transportation Research Part A: Policy and Practice, Elsevier, vol. 122(C), pages 1-20.
    6. Savindi Caldera & Sherif Mostafa & Cheryl Desha & Sherif Mohamed, 2021. "Exploring the Role of Digital Infrastructure Asset Management Tools for Resilient Linear Infrastructure Outcomes in Cities and Towns: A Systematic Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-25, October.
    7. Temitope Seun Omotayo & Bankole Awuzie & Valerie Kenechukwu Obi & Saheed Ajayi & Lovelin Ifeoma Obi & Oluyomi Osobajo & Adekunle Oke, 2022. "The System Dynamics Analysis of Cost Overrun Causations in UK Rail Projects in a COVID-19 Epidemic Era," SAGE Open, , vol. 12(2), pages 21582440221, May.
    8. Coilín ÓhAiseadha & Gerré Quinn & Ronan Connolly & Michael Connolly & Willie Soon, 2020. "Energy and Climate Policy—An Evaluation of Global Climate Change Expenditure 2011–2018," Energies, MDPI, vol. 13(18), pages 1-49, September.
    9. Love, Peter E.D. & Ahiaga-Dagbui, Dominic D., 2018. "Debunking fake news in a post-truth era: The plausible untruths of cost underestimation in transport infrastructure projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 357-368.

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