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Is South Africa the only country that cocks it up?

Source: SA Good News, 24/08/2015


We`re (hopefully) coming to the end of another home renovation
project, our third in a decade. Once again, the cost went well over
the original quote and we`re weeks past the initial deadline.


Sound familiar? It should. A little research revealed that cost
overruns and deadline misses are the norm in construction. Bidders
have to be over-optimistic to get the job. And actually make their
profit with all the add-ons. So it`s critical to plan properly
up-front.


The Sydney Opera House famously cost 1400% more than the original
budget. The £40m approved in 1997 for the Scottish Parliament building
in Edinburgh was dwarfed by the eventual cost of £431m. Then there`s
the Mounties` Canadian Firearms Registry whose $2m budget ended up at
a final cost of $946m.


So perhaps we shouldn`t feel too bad about Medupi. But with nuclear
power stations among the culprits, the lights should be flashing
around SA`s proposed $100bn fleet. The only defence against cost
overruns is not to sign the contract in the first place. But if you
must, then insist on total transparency. It`s time everyone involved
in the controversial proposal, especially the Energy Minster,
appreciates this.


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