Flexibility, Justification and Financial Results of Land Development Projects by Local Governments

Abstract

This paper analyses municipal land development projects in the Netherlands, which often yield higher profits than initially estimated—contrasting with the cost overruns typical of large public projects. Using the case of Midden-Delfland (2008–2012), the study explores how flexibility, justification, and financial considerations shape decision-making under changing market conditions, such as the global financial crisis. It highlights how uncertainties are managed, how decisions are justified, and how these factors influence final financial outcomes.