The Problem of Cost

Knut Samset

Chapter 8 in Early Project Appraisal, 2010, pp 76-82 from Palgrave Macmillan

Abstract: Abstract Cost is the management parameter that attracts the most attention in the organization and implementation of a project. As discussed in Chapter 2, the focus on costs is considered by some to be excessive relative to other parameters, such as project relevance. In the long-term view, it may turn out that cost overruns are only of minor importance in project profitability and benefit. Yet in other cases, cost overruns may comprise a death blow. Cost is eminently suitable as a management parameter, because it is expressed quantitatively with great precision and is continuously updated as a part of all transactions in a society. Costs are suited to making participants accountable, to gauging progress and result attainment and to comparing expenses with income to assess economic viability over time.

Keywords: Implementation Phase; Systematic Underestimation; Management Parameter; Cost Overrun; Result Attainment (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28992-5_8

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DOI: 10.1057/9780230289925_8

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