Public management and cost overruns in public projects

Francisco Pinheiro Catalão · Carlos Oliveira Cruz · Joaquim Miranda Sarmento

30 citations0/0 files storedInternational Public Management Journal

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Construction Project Management and Performance Public Policy and Administration Research Public Procurement and Policy

Abstract

There is a growing concern in the field of public administration regarding cost overruns, which are often perceived to be a sign of project failure. Past studies have identified potential causes and explanatory factors for the occurrence of cost deviations. This article expands the existing body of knowledge by explicitly considering exogenous determinants (political, governance, and economic) to analyze how public management affects cost deviations and overruns. The article provides an empirical analysis of 4,305 projects developed in Portugal from 1980 to 2014. The study found that electoral periods; institutional, legal, and regulatory frameworks; and economic cycles all influence cost overruns.

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References

1990The Motivational Bases of Public Service 1982Project management: A systems approach to planning, scheduling and controlling 2003Public Choice III 2002Underestimating Costs in Public Works Projects: Error or Lie?2002Decentralization and corruption: evidence across countries 2000Privatization and public-private partnerships 2000Capture and Governance at Local and National Levels 2001Origin and theoretical basis of new public management

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