cost overrun

(redirected from Cost escalation)
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excess of cost over budget

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Given the economic footprint of mega projects it is impossible to ignore the fact that more than 90pc of projects run into cost escalations combined with time delays and this is something that has been valid over the last 70 years.
Rider Levett Bucknall's research indicates that national activity for construction put-in-place jumped by nearly 12 percent between the 3rd Quarter 2014 and the 2nd Quarter 2015; the unemployment rate for construction laborers decreased during the same period; and cost escalation nationally sat at 3.
Most would agree that the nation's decades-long health care cost escalation was unsustainable.
Significant cost inflation in Argentina, country factors, and overall cost escalation have increased the initial estimated capital expenditure at Cerro Negro to $1.
A $5 billion cost escalation has hit British gas giant BG Group's Gladstone coal-seam gas export project amid rising local costs, increased regulatory hurdles and a surging Australian dollar.
We are currently experiencing significant cost escalation in a majority of our raw materials," said Brian Falline, vice president of Valspar's general industrial division.
The potential cost escalation for already strapped state budgets was clear.
Bulgaria has a contract concluded with Atomstroyexport to construct its second NPP for EUR 4 B, but this has previewed the possibility for cost escalation due to inflation, and more impotantly, delays in the project.
These increases are necessitated by the continued cost escalation of key raw materials used to manufacture these products, combined with tightening supply conditions.
As a result CDA not only provided 1,000 tons of iron under the material cost escalation, but also twice increased the deadline to complete the project that could not be completed even in 2009.
These rating strengths are partially offset by ICI's limited track record, exposure to cost escalation risks because a majority of its contracts are fixed cost in nature, and the intense competition and cyclicality in the construction industry.
The state has requested to raise the cost of the project from Rs 2,250 crore to Rs 4,444 crore, in view of the cost escalation, following rejection from Department of Economic Affairs.
This important milestone in the development of the aeroplane will take place just over a month after South Africa cancelled its order for eight A400Ms "due to cost escalation and delivery delays" The A400M programme has been bedevilled by delays - originally, initial deliveries of production aircraft to customers were scheduled for the end of this year, but are now due to start in December 2012.
Rand concluded that the biggest contributors to cost escalation are the sophisticated features and unique specs that the government requests.
Summary: Morocco has become an attractive destination for European investors thanks to its relocation sites "Casashore" and "Rabatshore", and to the very rapid cost escalation in Eastern Europe, Vice chairman of the "Groupe d'impulsion E[umlaut]conomique France-Maroc" (GIEFM) said here Monday.
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