September 11, 2012

Why do American transport projects cost so much?

According to public-transit writer Stephen Smith, referenced in The Economist, for these reasons:

  • Conflicts of interest, with “consultants who consult with consultants and advisers who advise advisers.”
  • A common-law legal system with lots of legal review that slows down infrastructure projects
  • Incredibly strict anti-corruption rules that do more harm than good
  • Not enough emphasis on speed of construction, leading to long projects and escalating costs

Among others.  More here.

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  1. They forgot to mention, the US protectionist laws (40% or so of public money must be spent on US made “stuff”, so a made in Korea train is not an option in US)

    That not only restraint international competition on potential bidder, but also innovation. and you don’t need to go to the LRT to see that, just compare European buses to american buses…

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