Wuhan Wastewater and Stormwater Management Project

The project cost overrun is another major lesson learnt. Regardless of common factors, such as Chinese yuan appreciation and raise of labor and material prices, inadequate project preparation and insufficient engineering design contributed directly to the project cost increase because they resulted in costs underestimate at appraisal and frequent contract variations during implementation. Lessons from the project cost overrun suggest the great importance of sound engineering design that can (i) support more accurate cost estimates, (ii) preclude or minimize contract variations during construction, and (iii) secure a more reasonable implementation schedule.