ManagementProject ManagementPublic FinanceBudgetingCost ManagementTransportationCost AnalysisCost EstimationCost MeasurementCost PlanningProject Cost ManagementTransportation EconomicsCost Estimation MethodologyCost Planning AccuracyDetailed Cost EstimationProject Cost TrackingTransportation Project Appraisal
Megaprojects (costing $1 billion+) present unique challenges when it comes to estimating and managing costs. With megaprojects, which may span decades, the challenges can begin as soon as the project is conceived and often do not end until the books are closed. Congressional and other political leaders, auditing agencies, and the public have been paying closer scrutiny to cost increases on major transportation projects. Given stewardship of the taxpayers' money, it is crucial that cost estimates be as complete and accurate as possible if the transportation industry is to maintain the public trust. This article discuses how, even though cost estimating for megaprojects is inherently difficult, efforts are underway to help project managers estimate costs more accurately at every phase of project delivery.