Identification of the Critical Delay Factors in the Subway Tunnel Construction in Stockholm : An explanatory Study Investigating the Project Delay and its Consequences on Property Developers

Sammanfattning: Stockholm is one of the fastest growing conurbations in Europe, to accommodate for the increased population and urban growth, the current subway system needs to be extended. Appropriately, a joint initiative regarding housing and infrastructure development was signed in January 2014 by the Swedish government, Stockholm County Council and the afflicted municipalities Stockholm, Solna, Nacka and Järfälla. The joint initiative, the 2013 Stockholm negotiation, presented an extension of the current subway system with a total length of 19,6 km and 11 new stations in Stockholm, Solna, Nacka and Järfälla. Large-scale infrastructure projects often suffer from cost and time overruns. The Stockholm subway construction is no exception and has since the project started collected a delay equivalent of five years for Järfälla and Nacka, and a cost overrun of SEK 9,3 billion. The aim of this thesis is to objectively identify the critical delay factors of the subway tunnel construction in Stockholm and unveil the delay implication on property developers with housing projects in the adjacent areas to the new stations. The thesis will be limited to mainly focus on the extension to Järfälla and Nacka. To investigate the research questions, a systematic integration of quantitative and qualitative data has been collected through literature reviews, 9 interviews with the client, designers, consultants and a survey with 13 property developers. This thesis has identified one critical delay factor, linked to the poor project performance regarding the time overruns. With support from the literature review, interviews and surveys, the observed delay can be described as a consequence of political-economic explanations. The cause for the delay is rooted in the inaccurate estimations and unrealistic expectations presented in the 2013 Stockholm negotiation. Thus, the project delay is to be categorized as non- acceptable, due to a five-year prolonged time plan. Additional delay factors have beenidentified but are not to be viewed as critical. This thesis has also identified a general frustrationamongst the developers in Järfälla and Nacka as they have perceived negative implications as a consequence of the delay of the subway extension.