Report for the Edinburgh Tram Inquiry

TL;DR

This report evaluates the risk management strategies of the Edinburgh tram project, emphasizing the importance of assessing cost, schedule, and benefit risks to prevent overruns and benefit shortfalls in infrastructure megaprojects.

Contribution

It provides a detailed analysis of risk assessment and management practices specific to the Edinburgh tram project, highlighting issues like optimism bias and strategic misrepresentation.

Findings

Risk assessment is crucial for successful infrastructure projects.

Common biases can lead to underestimating costs and overestimating benefits.

Effective risk management can mitigate project overruns.

Abstract

This report reviews the Edinburgh tram project's risk management. Projects frequently overrun their cost and timelines and fall short on intended benefits. Cost, schedule, and benefit risk of projects need to be carefully considered to avoid this. The report describes and evaluates risk assessment and management for the Edinburgh tram. The report was produced as part of the Edinburgh Tram Inquiry. Keywords: risk assessment, risk management, infrastructure, megaprojects, optimism bias, strategic misrepresentation, planning fallacy, behavioral science.