Beyond cost overruns: How cost is actually reduced in complex projects

In project research, most cost studies have shown how cost estimation processes can produce more realistic cost estimates and reduce cost overruns. In contrast, the knowledge of the day-to-day practices of project teams during planning to proactively reduce the actual cost of projects is limited. Utilising a project-as-practice lens, this paper aims to identify the practices of cost reduction in the planning of complex projects. We employed a single-case study of a UK major nuclear decommissioning project to find that cost reduction is practiced by setting the project up for cost reduction before developing cost reduction solutions. We show how cultures of collaboration, open communication, and opportunity management are key to realistic cost reduction. Our theoretical contribution entails an understanding of how proactive cost reduction is performed in complex projects. We recommend organisations adopt a collaborative contractual approach and place greater focus on opportunity management.