Problem
Underestimation of programme costs
Other Names:
Underestimated project disadvantages Incidence:
In large-scale water projects cost-benefit ratios are often manipulated to give a favourable economic assessment of the projects. Sponsoring agencies underestimate expected costs for annual operation and maintenance of the projects, reservoir-flooding of productive land, loss of outdoor recreation sites, environmental costs of irrigation. Besides, they ignore the costs of decommissioning, fail to account for the energy costs of building, for example a dam, and use unrealistically low discount rates of future value of the currency. Broader Problems:
Undeveloped business planInadequate budgeting practicesFalsification of programme evaluations Narrower Problems:
Drawbacks to cable television Aggravates:
Lack of hiring moneyInsufficient programme fundingCost overruns in large-scale public programmesDisproportionate administrative overhead costs in programmes Strategies:
Estimating programme costsUnderestimating project disadvantagesEstimating accurately project disadvantages Values:
DisadvantageUnderestimation Subject(s):
Commerce → Purchasing, supplyingManagement → Planning
Related UN Sustainable Development Goals:
Problem Type:
F: Fuzzy exceptional problems Date of last update
01.01.2000 – 00:00 CET