Abstract
This paper investigates how climate-related disruptions influence cost overruns in Québec, using an administrative dataset of 3,134 transport construction projects delivered between 2014 and 2021. Rather than treating cost overrun as a single metric, we develop three complementary measures aligned with key stages of the project cycle: the gap between the engineer’s estimate and the awarded contract price, the difference between final costs and the contract price, and the lifecycle overrun relative to the initial estimate. This approach allows us to pinpoint when cost pressures emerge. The results show that winter climatic exposure proxy during execution significantly increases post-award and lifecycle overruns but is not priced at the bidding stage. Project type, project size, geographical location, and the number of bidders also systematically drive cost growth. Generalized Moment Method and Logit models confirm the robustness of these findings, highlighting the need for climate-responsive budgeting, bid screening, and contract design.
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Article Type: Research Article
EUR J SUSTAIN DEV RES, Volume 10, Issue 4, 2026, Article No: em0432
https://doi.org/10.29333/ejosdr/19150
Publication date: 01 Oct 2026
Online publication date: 15 Aug 2026
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