Cost Evaluation for Traffic and Transport Infrastructure Projects Taking Account of Project Risks
June 18-21, 2006
The realisation of large transport infrastructure projects is influenced by a wide range of different factors. The general expectation that a project should be carried out under defined boundary conditions within the planned period and on budget requires a high level of design, planning and controlling. This paper discusses standardised comprehensible fundamental rules and guidelines for defining project costs and project budgets of infrastructure projects taking into account risk assessment and risk management. Adhering to these guidelines and rules contributes to ensure that the structure can be built in the required quality, on schedule and on budget, as well as to estimate the predicted margin of the budget. The paper is based on the ÖGG Guideline ”Kostenermittlung für Verkehrsinfrastrukturprojekte unter Berücksichtigung relevanter Projektrisiken“ (Cost Estimation of Traffic Infrastructure Projects in Consideration of Relevant Projects Risks) published in 2005. The authors of the present paper chaired the working group responsible for the guideline.
The main objective of this paper is to develop an adequate structure of cost in terms of basic costs and risk costs. For the evaluation of risk costs two different methods are described in detail: The deterministic method of risk cost evaluation is based on a certain percentage of the basic costs which is sufficient for simple projects. For complex projects a qualitative risk cost evaluation based on identified risk scenarios is necessary to get a sound basis of the budgeting of the project.
Rudolf Poettler and H. F. Schweiger, "Cost Evaluation for Traffic and Transport Infrastructure Projects Taking Account of Project Risks" in "Geohazards", Professor Farrokh Nadim, International Centre for Geohazards, Oslo, Norway; Dr. Rudolf Pöttler, Managing Director, ILF - Consulting Engineers, Innsbruck, Austria; Professor Herbert Einstein, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA; Professor Herbert Klapperich, TU Bergakademie Freiberg, Institut für Geotechnik, Freiberg, Germany; Professor Steven Kramer, University of Washington, Seattle, Washington, USA Eds, ECI Symposium Series, (2006). https://dc.engconfintl.org/geohazards/30