Infrastructure is popular electorally, and it's not surprising that politicians are tempted to make premature promises.
But they are unwise to specify solutions, let alone scope, cost, or timing, without a realistic idea of what is involved. In the sober assessment of Infrastructure NSW, doing so prematurely may lead to 'disappointment in the community and counterproductive pressure on project delivery teams'.138
Recommendation 3 Ministers and government agencies should disclose the status of cost estimates for infrastructure proposals valued at $100 million or more, including • quoting the wide range of possible values when the proposal is at the concept or indicative-estimate stage, • for more advanced estimates, quoting a range and specifying whether they are preliminary business case estimates or final business case estimates, • specifying what the accepted tender and state costs are, and • reporting the outturn cost. State revenue offices should report these estimates or budgets, and reconcile between them as projects develop and costs become more certain. |
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138. Infrastructure NSW (2020).