At any given moment, more than 200 large public and private capital investment projects, each worth more than $500 million, are in progress around the world. These figures will only increase, as an estimated $53 trillion needs to be invested in public infrastructure by 2030 to keep the global economy on a firm path to recovery, according to a recent study by the Organisation for Economic Co-operation and Development sponsored by Oliver Wyman.
With cost overruns and delays all too common in large projects, the potential for losses is enormous — but so is the opportunity for savings. Governments and businesses can reduce the cost of their infrastructure investments by more than $5 trillion by 2030 if they improve how they manage the risks inherent in large projects, according to this report from Oliver Wyman's Global Risk & Trading practice.
Infrastructure Cost Overruns and Delays
To avoid catastrophic errors and capitalize on savings, Oliver Wyman recommends a new framework for managing large-project risks that provides critical guidance at three key points of a project’s life cycle: the initial assessment of the investment, the design of the plan for building it, and the project’s execution.
