Berlin (ots) – If the cost of public projects get out of hand, so crucial mistakes were often made already in the planning phase and in project governance. The case studies show the BER Berlin airport (125 percent cost overrun) and the Elbe Philharmonic Hall (146 percent). Their author Prof. Dr. Jobst Fiedler explains: “In both cases, much of the cost overruns could no longer be prevented, after the project organization set up incorrectly and contracts were concluded on the basis of insufficient planning.” The case studies are part of the study, “large-scale projects in Germany – between ambition and reality” under the direction of Prof. Dr. Genia Kostka, Hertie School of Governance. Kostka Conclusion: “Through major projects with skyrocketing costs, the policy of credibility threatens to lose Our research shows that it is possible to effectively control..”
BER: Pattern negative example
The BER Case Study analyzed ten successive constructive error: The airport company Berlin-Brandenburg (FBB) was entrusted an insufficiently competent institution to the project of a Supervisory Board was set aside without the necessary expertise. No independent, external controlling is installed, the wrong decisions could show. Abandoning a general contractor shifted the financial risk to 100 percent to the taxpayer. The division into many small trades resulted in an exorbitant control effort, which in turn simultaneously planning and construction made it necessary from the outset.
The number of schedule changes, coordination problems, especially in the fire protection system, the inadequate flow of information and the ” Chaos Management “around the ruptured opening date in June 2012 are consequences of failed governance decisions well before the first sod. They led to a cost increase of EUR 2.5 billion to EUR 5.4 billion so far, and a timeout of 200 percent (7.5 instead of 2.5 years). “From a governance perspective the BER is a pattern negative example whilst with other projects often their novelty leads to higher costs, for instance by applying some proven technologies, is the BER -. Apart from the fire protection system -. A standard large-scale project with an external expertise and time and financial resources appropriately sized planning phase would all errors can be avoided, “said Fiedler Conclusion
Elbphilharmonie: overconfidence of managers
The Hamburg concert hall – at a cost of 865 million. Euro instead of the planned 352 million euros and a timeout of seven years (200 percent) with a planned completion in 2017 – has a partially comparable Fehlermix on: An unsuitable project organization with too little expertise to high political influence and a premature conclusion of the contract, which also simultaneous planning and building moved to itself.
An independent Controlling missing here. The financial risk assumed the public sector in unnecessary extent. “The Elbphilharmonie is not a standard project, but one by the elaborate architecture of the generally riskier so-called signature projects. Planning and organizing this claim were but justice in any way. The error coil was primarily through hubris of those responsible and in accordance with overly ambitious goals set in motion, “the authors of the case study Jobst Fiedler and Sascha Schuster judge
ICT projects are often more expensive
Compared to the results of the overall study, involving 170 major projects., are the cost overruns above average in both cases. By comparison, transport projects are on average 33 percent more expensive and public buildings 44 percent. In these sectors, there are also a number of projects that remain in the plan, or even below the planned cost approach. On the list of “Top 10 most fuel-efficient” contains only transport and building projects. At the other end of the scale found Genia Kostka and her team some cost overruns by five or even eleven times, especially in the field of information and communication technology (ICT): Four of the ten projects with the highest percentage in costs attributable to that area. Kostka: “. Our finding that ICT projects are often more expensive by far than planned, in line with international study results In order to analyze the causes precisely would require further research.”
Recommendations
In order to get the problems under control, the researchers recommend four steps: First, a sufficient involvement in the supervisory and control bodies of individuals with expertise in the private sector and in construction. Second, public clients would include project partner with high expertise in the project organization in order to act against private construction companies on an equal footing. Third, improve risk management by incorporating private capital, either through financial involvement in a project company or by integrating a master builder. Finally, in any case, a sufficient depth of planning before the award of the contract must be reached because schedule changes regularly attract high costs.
In addition, make Genia Kostka and her team suggest how the transparency of Building Implementation and cost can be improved , They recommended the establishment of a publicly accessible database, are systematically recorded and evaluated in the major infrastructure projects along the lines of the British Major Project Authority. In addition, a reference class forecasting should be used in public planning. The resulting sectoral reference classes calculate projects a “risk premium” for potential cost increases
For more information
For the study, “large-scale projects in Germany – between ambition and reality.” Under the led by Genia Kostka, Professor of Governance of energy and infrastructure, were recorded 170 in Germany since 1960, realized major projects and analyzed, including 119 completed and 51 ongoing projects. In the areas of public buildings, transport, energy, defense and information and communication technology, the study examines first systematically planned and actual costs. Three detailed case studies for major Berlin Airport BER, the Elbe Philharmonic Hall, as well as offshore wind farms complement the investigation.
The study was realized with the support of the Karl Schlecht Foundation.
Under www.hertie-school .org / Infrastructure, see both short result summaries and detailed representations of interdisciplinary study and the case studies. A scientific book publication is in preparation.
The Hertie School of Governance is a nationally recognized, private university based in Berlin. Their goal is to prepare exceptionally qualified young people for leadership roles in the public sector, the private sector and civil society. With interdisciplinary research the Hertie School also wants to promote the discussion of modern law and encourage the exchange between the sectors. The university was founded in late 2003 by the Hertie Foundation and has since been largely shaped by it
OTS. Hertie School of Governance Newsroom: http://www.presseportal.de/pm/59352 newsroom via RSS: http://www.presseportal.de/rss/pm_59352.rss2
Pressekontakt: Regine Kreitz, Head of Communications, Tel .: 030/259 219 113, Fax: 030/259 219 444, E-mail: press office (at) hertie-school.org, Friedrichstrasse 180, 10117 Berlin.
No comments:
Post a Comment