2.3.2  Results

The optimism bias values in Table 3 below represent the average optimism bias levels for each of the project types studied.

Table 3  Recorded Optimism Bias

Project Type

Optimism Bias (%)

Works Duration

CAPEX

Unitary Payments

OPEX

Benefits Shortfall

Traditional*

Non-standard Buildings

39

51

N/A

No Info

1

Standard Buildings

4

24

N/A

No Info

No Info

Non-standard Civil Engineering

15

66

N/A

No Info

5

Standard Civil Engineering

34

44

N/A

No Info

No Info

Equipment/Development

54

214

N/A

No Info

No Info

Outsourcing

N/A

N/A

N/A

41

No Info

All Traditional

17

47

N/A

41

2

PFI / PPP**

Standard Buildings

-16

2

1

N/A

0

Standard Civil Engineering

No Info

0

0

N/A

0

Equipment/Development

28

No Info

19

N/A

10

Outsourcing

N/A

N/A

8

N/A

5

All PFI / PPP

-1

1

5

N/A

2

*  The optimism bias is measured from strategic outline case or outline business case.

**  The optimism bias is measured from full business case. The capital expenditure optimism bias is measured as a percentage of the contract price.

Note: Do not use Table 3 for calculating the optimism bias levels for current projects. Guidance for calculating optimism bias levels for current projects is provided in Section 4.

The optimism bias levels for PFI / PPP projects were measured at the full business case stage, whereas the optimism bias levels for traditionally procured projects have been recorded at the strategic outline case and the outline business case stages.