Review of the Swedish Transport Administration’s Cost-Control Efforts — Interim Report 3
Transportanalysis latest interim report shows that the Swedish Transport Administration has strengthened its work on cost control, but that clearer governance, better use of experience and stronger life-cycle cost perspectives are still needed to manage costs in transport infrastructure more effectively.
In its third annual interim report to the Government, Transportanalysis reviews the Swedish Transport Administration’s work to improve cost control. The assignment, which runs until 2028, focuses on how the agency manages costs in investment projects, how it considers life-cycle costs and how maintenance can be analysed from a cost-control perspective.
The report finds that the Administration has introduced new procedures and processes that may already have contributed to lower average cost increases in some projects compared with previous planning periods. At the same time, Transportanalysis notes that cost increases still tend to occur early in the planning process, and that internal requirements are a significant driver of estimated increases.
According to Transportanalysis, clear governance is important for cost control, but excessive or unclear rules can create uncertainty for project managers. The report highlights the importance of practical experience and collegial exchange, especially when project managers need to interpret and adapt requirements to individual projects.
Transportanalysis also concludes that life-cycle cost considerations are not yet sufficiently clear or prioritised in investment projects. This may increase the risk that future operating and maintenance costs are underestimated. The agency therefore recommends that life-cycle costs should be reported when construction cost estimates are prepared.
Key recommendations
- Clarify how internal requirements and rules should be interpreted and applied in investment projects.
- Review and streamline internal requirements to reduce unnecessary or conflicting governance signals.
- Strengthen incentives for systematic consideration of life-cycle costs.
- Continue analysing maintenance activities from a cost-control perspective.
- Maintain a long-term focus on cost control through appropriate governance.
Transportanalysis will continue to follow up the Swedish Transport Administration’s work annually until the assignment is completed in 2028.
