Research from Oxford University reveals that mega infrastructure projects exceed budget expectations nine out of ten times. This analysis, conducted by Professor Bent Flyvbjerg, examined over 16,000 projects and found that cost overruns typically average in the double digits. The findings underscore a critical issue: essential decisions that shape project outcomes are often made too early by owners, when flexibility is highest but information is still limited.
Jasna Sims, head of client delivery at Akordi, highlights the importance of early decision-making. “The decisions you make at the beginning, when you have the most options and the lowest cost to change, fundamentally shape what you can deliver at the end,” she states. Akordi has been recognized in The Australian Financial Review’s 2025 Most Innovative Companies report, largely for its innovative approach to project management.
Akordi employs a model that integrates hindsight analysis, predictive analytics, and optimization models during the pre-feasibility and concept design phases. This method allows clients to clearly visualize the decision landscape, identifying critical decisions and their timing in relation to project goals. “Every recommendation is transparent and grounded in clear reasoning,” Sims adds, ensuring that clients understand the rationale behind each decision.
Complexity in Modern Infrastructure
The landscape for mega projects is becoming increasingly intricate, according to Dr. Regan Crooks, director of strategic programmes at Laing O’Rourke. He notes that economic volatility, geopolitical factors impacting supply chains, talent shortages, and evolving regulations present both challenges and opportunities for large-scale projects. “It’s more important than ever to achieve good community outcomes from these projects,” Crooks emphasizes.
Bringing construction expertise into the planning phase allows teams to anticipate how these external factors might affect project delivery. “What’s changed is the practicality,” Crooks explains. By combining Akordi’s construction knowledge with advanced AI capabilities, stakeholders can evaluate various construction methods and understand their implications rapidly.
If Professor Flyvbjerg’s research holds true, the $213 billion Australian infrastructure pipeline risks delays and increased costs unless there is a shift in the decision-making process.
Innovative Approaches to Scheduling
In a recent large-scale program in Victoria, schedule pressures emerged just six months into the project, endangering timelines due to coordination challenges among multiple parties. Akordi was brought in to explore alternative construction methods. Over several weeks, they modeled variations in construction sequencing and interface management.
“This demonstrated the potential for months of schedule savings and a fourfold return on investment,” Sims notes. The approach allows for mid-course corrections after challenges arise, a capability that Flyvbjerg’s research suggests has been historically rare.
Early results from Akordi’s interventions indicate a five percent cost saving and a reduction in the schedule by between seven and eleven percent. For a $3 billion project spanning ten years, this could translate to a cost reduction of $150 million and potentially save up to a year in construction time.
One of the most promising methods involves manufacturing-led construction, which includes off-site assembly, modularization, and design for manufacturing and assembly (DFMA). Crooks points out that these modern construction methods consistently yield significant program improvements. “The key is getting that expertise to owners early, when the impact and opportunity are greatest,” he asserts.
Akordi’s model enables asset owners to compare and validate manufacturing approaches against traditional methods, quantifying improvements in schedule and risk in real time. This capability is particularly relevant as skills shortages and supply chain constraints complicate traditional construction practices.
As the effectiveness of AI-powered construction intelligence in improving infrastructure delivery outcomes becomes clearer, early indications are positive. “Enhanced decision-making capability in the face of complexity—that’s the differentiator,” Crooks concludes. By merging in-depth construction knowledge with sophisticated analytical tools, stakeholders can significantly enhance their decision-making processes.
For Australia’s expanding infrastructure pipeline, the potential benefits are substantial, and initial evidence suggests that proactive changes in approach are crucial for success.
