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January 10, 2009

Funny story: in "Design by Deception," analysis of megaproject cost overruns, the hero is... Frank Gehry

Atlantic Yards Report

Gehry, in at least one account (but hardly all), is responsible for making sure projects come in on budget. Then again, if that applied to Atlantic Yards, then why did Gehry's Brooklyn arena balloon from $435 million to $637.2 million to $950 million? And why didn't developer Forest City Ratner let Gehry try to deliver the arena on budget instead of (apparently) letting the architect recede? Mysteries remain.

In Design by Deception: The Politics of Megaproject Approval, an article in the Spring/Summer 2005 issue of Harvard Design Magazine, Bent Flyvbjerg described how large construction projects, including public works, defense, and aerospace, around the world inevitably came in way over budget.

He wrote:
Which large projects get built? My research associates and I found it isn't necessarily the best ones, but instead those for which proponents best succeed in designing—deliberately or not—a fantasy world of underestimated costs, overestimated revenues, overvalued local development effects, and underestimated environmental impacts. Project approval in most cases depended on these factors....

Many project proponents don't hesitate to use this approach, even if it means misleading lawmakers, the public, and the media about the true costs and benefits of projects. This results is an inverted Darwinism—an unhealthy "survival of the unfittest"—for large public works and other construction projects.

His analysis sounds a lot like... Atlantic Yards

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Posted by amy at January 10, 2009 12:31 PM