The Institution of Civil Engineers has launched a new consultation on its newly-published green paper programme entitled “Why do major infrastructure projects cost so much and take so long?”

The green paper consultation will examine how governments can deliver major projects on time and on budget.

According to ICE, cost overruns and delays continue to challenge major infrastructure projects worldwide, placing immense pressure on public balance sheets and reduces economic returns.

Declining public trust in government is also a key concern, the leading civil engineering body says.

Extent of the challenge

Outlining the background to the green paper, ICE flags up research from Saïd Business School which examined the gap between forecasts and outturns – the estimated and actual cost, time, and benefits – for 3,022 projects.

It found that only 27% remained on or under budget. Alarmingly, only 0.2% completed on time, within budget, and with expected benefits fully realised.

However, ICE also makes clear that these inefficiencies are not unique to any one country, referring to a McKinsey study of 500 global mega projects which showed that only 5% completed within their original budget and schedule.

The Institution is warning that unless the public sector improves major project delivery, the public will lose faith that they will get the infrastructure they need. In addition, investor confidence will also erode, making the private sector less likely to invest in critical projects.

With private capital fundamental to meeting governments’ infrastructure ambitions, this presents a significant challenge, ICE says.

Identifying the solution

In the UK, the Infrastructure and Projects Authority – now superseded by the National Infrastructure and Service Transformation Authority (NISTA) – estimates that adopting best-practice delivery methods could reduce project overruns by up to 25%.

The ICE is interested in how improved governance and assurance can support the use of guidance and lessons learnt more consistently at a project level.

According to the leading civil engineering body, while there is existing guidance, it can be generic and subject to interpretation by project teams.

Acknowledging that the frameworks aim to support accurate forecasting and effective delivery, ICE is asking whether they are fit for purpose or whether they are adding unnecessary complexity that hampers innovation.

The consultation builds on previous ICE work, including a 2019 report on the gap between forecasts and outturns and the principles of the Project 13 enterprise model.

It also draws on the ICE’s recent recommendations for the UK's newly established delivery body, NISTA.

Next steps

The findings from the consultation will inform an ICE policy paper later in 2025 which will offer options and solutions for policymakers to consider when advising on and delivering major infrastructure projects.

ICE is seeking input from decision-makers, infrastructure professionals, civil society groups and other interested stakeholders to the green paper which will help the ICE understand how best-practice governance and assurance can help – and inform effective recommendations to policymakers worldwide.

Deadline to submit responses to the consultation is Friday 11 July – click here to download the consultation document ICE Green Paper: Why do major infrastructure projects cost so much and take so long?