Norra länken – A case study

Sammanfattning: This is an essay written at the Royal Institute of Technology in Stockholm in the degree programme Civil Engineering and Urban Management. The focus is on real estate economics, which is a part of the department of Real Estate and Construction Management. The paper studies the construction of Norra länken in Stockholm in a so-called case study. The focus has been directed towards the economics of the project where we analyze the measures that are required to cope with the budget. The analysis shows that the project has benefited greatly from the experience the construction of Södra länken provided. Furthermore savings has also been made in several different areas. The study also shows that the project has managed to keep both the budget and the initial timeline. The calculations underlying the budgets are made with the so-called successive method. This study shows, however, that the reliability and accuracy on this method should be strongly questioned. The difference between the estimated final cost and the actual final cost increases the further into the project should be seen as a sign that the method is flawed.