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
You cant spend time to do a complete design of the project in advance because a huge amount of work need to be done. If it was required all the companies that mad bid would need to do separate complete designed. No one is prepared do it tat detailed in advanced if they do not get paid for the work. So unless you what to pay multiple compaones to do the total design and the just do one it is impossible to know the expected cost in advanced
A major problem is what is unknown. What is below the ground is very had to determine but at the same time very important part of construction. That is even the case if the building is jut above ground because the building need to be supported. It is often during the construction that the true condition can be determined.
For long time projects changes of cost what is needed will also change. It is very had to predict the exact cost of the building material, workses and everything else a couple of year in advanced.
In a large project one delay cause another and if you have people that work the might not be able to do anything at time because of other delays
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