Principle no.4

Principle no.4 – Costs

Costs, transparent and competitive, reasonable profit for all

Cost overruns are frequent. Their reason very often is “budget underrun”. Political budgets are made in order to get the project going. Costs are not handled in a transparent way. Life cycle costs do often not play the role in development and design which they should, seen from the owners´ or operators´ views. Money problems often lead to project failure and litigation.

Assessment criteria: 

Has the budget been honest and complete, including the necessary reserves in the early phases?

Has professional cost planning been updated and communicated regularly?

Has cost controlling been independent and in professional hands from start to end?

Have the life cycle costs been calculated in the early phases and controlled regularly?