About CoST
Background and concept of the Construction Sector Transparency Initiative (CoST)
The construction sector plays a vital role in supporting social and economic development. Yet it is consistently ranked - in both the developed and developing world - as one of the most corrupt areas of economic activity.
The costs of corruption in public-sector construction projects extend far beyond increasing contract prices. Corruption can hinder a nation's social and economic development at grass-roots level by undermining the rule of law and hindering the growth of strong and accountable institutions, on which sustained economic growth depends. Corruption can result in unnecessary, unsuitable, defective or dangerous projects, which are often subject to severe delays.
Core concept of CoST
CoST introduces the transparency and accountability concept to the construction sector and focuses specifically on public disclosure of information. The ultimate aim is to enhance the accountability of procuring bodies and construction companies for the cost and quality of public-sector construction projects.
Ensuring greater disclosure of information relating to public construction projects, in particular the basis on which the project was commissioned, project evaluation and any significant changes from the original tender document along with the reasons, in particular on cost, it can help to raise the level of scrutiny. It also aims to ensure greater awareness of the project evaluation. By allowing the public to make the comparisons between what was planned and what was delivered as well as to raise questions the aim is to reduce wasted opportunities and expenditure.
CoST is based on a set of key guiding principles and must be implemented following a set of agreed criteria.
Stakeholders in CoST
The core concept of CoST is 'Get What You Pay For'. The 'You' in this context applies equally to national governments, affected stakeholders, and to the wider public. An essential feature of CoST is the engagement of a wide range of stakeholders in the initiative. Typically, the main groups of stakeholders in publicly financed construction projects are:
- Procuring bodies
- Public financial management bodies
- Construction companies and associations
- Civil society
- External (i.e. non-governmental) providers of finance or loan guarantees
- Other international partners.
