August 2024
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This case study explores the problem of underestimating costs in major public infrastructure projects, particularly in Small Island Developing States (SIDS). While previous research focused mainly on developed countries, this paper investigates social housing construction programs in Caribbean SIDS. The study examines whether political or technical factors are the main causes of cost overruns. Data from two political cycles were analysed and the findings indicate that political influences, specifically the psycho-strategic concept, play a significant role in cost overruns. This suggests that decisions made by political leaders have a more substantial impact on project costs than informed technical decisions made during the planning stages.