Table 7 Average Recorded Optimism Bias for Building Projects

Recorded Optimism Bias (%)14

Non-standard Buildings

Standard Buildings

39

51

-

1

4

24

-

-

Works Duration

Capital Expenditure

Operating Expenditure

Benefits Shortfall

Works Duration

Capital Expenditure

Operating Expenditure

Benefits Shortfall

Risk Area Contributions to Recorded Optimism Bias (%)15

Non-standard Buildings

Standard Buildings

Procurement

Complexity of Contract Structure

2

1

-

50

-

-

Late Contractor Involvement in Design

4

2

-

5

2

-

-

Poor Contractor Capabilities

5

5

-

50

9

9

-

-

Government Guidelines

-

-

-

Dispute and Claims Occurred

11

16

-

10

29

-

-

Information management

-

-

-

Other (specify)

-

-

-

Project Specific

Design Complexity

7

3

-

4

1

-

-

Degree of Innovation

< 1

-

3

4

-

-

Environmental Impact

-

-

-

Other (specify)

3

8

-

-

-

Client Specific

Inadequacy of the Business Case

32

35

-

42

34

-

-

Large Number of Stakeholders

-

8

-

-

Funding Availability

2

-

-

-

Project Management Team

4

2

-

1

-

-

Poor Project Intelligence

< 1

< 1

-

2

-

-

Other (specify)

6

2

-

< 1

-

-

Environment

Public Relations

-

2

-

-

Site Characteristics

5

1

-

10

2

-

-

Permits / Consents / Approvals

< 1

< 1

-

-

-

Other (specify)

4

3

-

-

-

External Influences

Political

9

-

-

-

Economic

13

-

11

-

-

Legislation / Regulations

5

7

-

9

3

-

-

Technology

-

-

-

Other (specify)

2

-

-

-