Answer to Question #294822 in Economics of Enterprise for Fransy

Question

What is the trade-off or opportunity cost of the freeway upgrade

Answer 1

Worldwide, departments of transports are employing advanced technologically advanced techniques in contracting. Such methods, are based on the spur to better infrastructural quality. The developing contracts, have had concerned decision makers under immense pressure, to steadily develop a near-zero fault strategy without compromise of quality. Based on the recent Australian/Victorian government freeway upgrade however, trade-offs in its relation, highlighted and published may whistle blow on some hidden issues. The major disguised trade-off in this project being the assumption of base case transport projects, currently unfunded and unattended. The projects then deliberately excluded from the considered base case, in order to ascertain for an increase in the BCR. 

Reference.

Project Evaluation Summary Monash Freeway Upgrade Stage 2. (2018, June 21). https://www.infrastructureaustralia.gov.au/sites/default/files/2019-06/Monash_Stage_2_IA_evaluation_summary.pdf