What are some case studies on cost estimation errors?

What are some case studies on cost estimation errors?

There are several notable case studies that highlight cost estimation errors. For instance, the Denver International Airport project faced significant overruns due to underestimating the complexity of the automated baggage system.

What were the main reasons for those errors?

The main reasons included lack of accurate data, overly optimistic timelines, and insufficient risk assessment during the planning phase.

Can you give another example?

Sure! The Sydney Opera House is another classic case where initial cost estimates were vastly underestimated, leading to costs that were 14 times higher than the original budget.

What lessons can be learned from these cases?

Key lessons include the importance of thorough research, realistic budgeting, and continuous risk management throughout the project lifecycle.