Project Governance

can reasonably be argued that a true ‘cost blow-out’ can only occur when

the out-turn cost significantly exceeds the contract price. And at this

point criticism is probably warranted.

This careful use of terminology accompanied by caveats on the

accuracy of the various estimates will, over time, increase the public’s

understanding of the project development process. Concurrently, while

the media will not always respond in accordance with the logic of this

approach, it will become more apparent when the headlines are sensa-

tionalist rather than accurate. When this occurs, politicians will also be

better placed to defend the government and the project ...