When the state builds bridges, universities, and infrastructure, it can go completely wrong. According to a new report from the National Audit Office, a number of large construction and infrastructure projects are severely delayed - some by several years. The delays not only mean additional costs but also that the planned benefits from the projects are delayed. Especially Banedanmark, the Ministry of Defense, and the Building Agency have had difficulty keeping to the schedules.
The report is based on an analysis of 120 state construction and infrastructure projects, where the original schedules and budgets are compared with the actual completion times and expenditure figures. The National Audit Office's report shows that 60 percent of the state's construction and infrastructure projects are delayed with an average overrun of 2.5 years. But also that 40 percent have become cheaper than expected.
According to Professor of Management Accounting at Aalborg University, Per Nikolaj Bukh, it is clear from the report by the National Audit Office when things go wrong.
- Firstly, changes in a project often lead to significant time deviations, and secondly, the type of contract affects how likely it is that a project will be completed on time, says Per Nikolaj Bukh.
Things are actually going well
The report from the National Audit Office may seem like grim reading, but it actually isn't.
- If these were projects of a private company, I would say that things are actually going quite well. A lot is completed within a margin of ten percent. And some cost less than budgeted, says Per Nikolaj Bukh.
According to the report, 40 percent of the state construction and civil engineering projects have become cheaper than budgeted. And they represent a saving of around 8 billion kroner across the projects. And where it has become more expensive, it is typically due to a few projects. For example, the scandal-ridden construction of the Niels Bohr Building in Copenhagen accounts for 75 percent of the total cost overrun of 4.8 billion kroner.
One of the cheaper projects is the track renewal between Ringsted and Nykøbing Falster, which was completed last year. It was two months delayed, but the bill was only 137.9 million, where it was budgeted at 193.9 million kroner.
Here are the five most delayed projects in Denmark right now:
The Signal Program - 10 years delay
Photo: Banedanmark
The modernization of the signaling system on the Danish railway network was supposed to be a milestone for train operations in Denmark. It was meant to provide more precise and secure signals as well as more efficient train traffic. But the ambitious project has become Denmark's most delayed construction project. The new signaling systems have already been delayed by ten years and are not expected to be fully implemented until 2033. The delays are due to technical challenges, problems integrating the new system with the existing one, as well as political and administrative decisions that have pushed the project further into the future.
Oksbøl Shooting Range - 7 years delay
The Ministry of Defense also has major problems completing its construction projects on time. One of the worst examples is the upgrade of the shooting range in Oksbøl, where the establishment of new tracks and roads has been delayed by seven years. The task, which was supposed to improve the infrastructure in the military area, has been prolonged for several reasons. Complex construction conditions, changed needs, and possible administrative obstacles have contributed to the delay. The project is still not completed.
Niels Bohr Building - 6.5 years delay
One of the most scandal-ridden construction projects in recent times is the Niels Bohr Building in Copenhagen. The university building, which is to house researchers and students in physics and natural sciences, was hit by massive problems. Contractors went bankrupt, errors occurred in the ventilation system, and the budget exploded. The construction was ultimately delayed by 6.5 years. Today, the building is completed but has cost much more than initially planned. The original financial framework was 1.63 billion DKK, but the total expenditure ended at 4.82 billion DKK.
Electrification Roskilde-Kalundborg - 6 years delay
The transition to electric trains is a cornerstone in the green transformation of the railway. But the upgrade of the stretch between Roskilde and Kalundborg has turned out to be far more complicated than expected. The project is now six years delayed, and the work is still not finished. One of the main reasons is the dependency on other delayed projects, including the signaling program. Without the necessary technical systems in place, the electrification cannot be fully utilized.
Storstrøm Bridge - 5.5 years delay
Photo: Danish Road Directorate
The Danish Road Directorate's project for a new bridge between Zealand and Falster has also proven to be far more time-consuming than planned. The new Storstrøm Bridge is to replace the old one and ensure a modern connection for both cars and trains. But contractor issues and political negotiations have pushed the completion by five and a half years. The bridge is still under construction, and the many delays have made the project one of the most problematic infrastructure ventures in Denmark. When the bridge is finished, an arbitration case awaits, which will likely be the largest ever.
