Eli5: why are estimated budgets for big construction projects always wrong and end up spending more than expected? Why can’t we get better at these estimates?
In: Economics
People here are blaming the construction companies but budgets are drawn up at stage 1 of the journey and that sits 100% with the client.
The job will cost, what it will cost. If the client made an arse of their budget, didn’t have a contingency or a catastrophe budget, voila, there’s your delta.
What usually happens then, is they go with the cheapest tender but as my above point (and every project I’ve worked on) the job will cost what it costs, unless you VE the fuck out of it and what started as a country long railway ends up only going from Birmingham to not even the capital city (I’m not bitter, honest)
ELI5: You want a Lego set so you tell your mom it’s £20 but you know it’s more.
Once she’s driven to the store, parked the car, realised it’s £30 and tells you you can’t have it, she buys it you just to stop you having a screaming meltdown and just want to get you out the shop.
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