Wasted Capital in Major Project Development.
Pearls and Irritations
Dr JOHN WHITE, PETER FARLEY, DAVID GILLETT, CHRIS STOLTZ.
The establishment of the Australian Public Service (APS) Review Panel is a powerful opportunity to examine the state of play of project development at the federal government level and kick-start a positive step change in performance. This will apply pressure to state governments and business to achieve similar step changes in performance.
The inability to shape, define and build sound business cases on which to base project investment decisions, and then execute projects in accordance with the time cost quality and functionality set out in the approved and documented business case, is an endemic problem in Australia across business and government.
Research (by PwC and others) has shown that business has wasted hundreds of billions of dollars in capital project development and that 70% of capital projects fail in terms of cost, schedule or functionality (or all three).
