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Successful Delivery of Mega-Projects

Publication No
RS315-1
Type
Research & Development Product
Publication Date
Oct 01, 2015
Pages
33
Research Team
RT-315
DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract
The increase in global population demands in recent decades has created serious constraints on resources and put immense pressure on already deteriorating infrastructures around the world. As the demand for new facilities has grown, technological adva
Key Findings

A capital project with a total installed cost greater than $1 billion dollars with any of the following complexity criteria:
(RS315-1, p. 1)

  • A significant number of stakeholders
  • A large number of interfaces
  • A challenging project location
  • An inadequate supply of resources
  • Unfamiliar technology
  • Difficult regulatory constraints
  • Extensive infrastructure requirements
  • Geographically dispersed teams
  • Significant political, economic, environmental, or social influence

The research identifies 34 impact factors, and validated that these factors have high occurrence and performance impacts on mega-projects. The research further identifies the 16 impact factors that, when they occur, most affect performance on mega-projects. The 34 impact factors were categorized into 5 categories:  (RS315-1, p. 9)

  • Category A – Location and Technology
  • Category B – Team, Organization, and Communication
  • Category C – Planning and Execution Processes
  • Category D – Governance and Stakeholders
  • Category E – Delivery Strategy

This tool synthesizes all the research findings into a targeted knowledge structure to help mega-project teams better understand the impact factors. Considering the characteristics unique to mega-projects, the main purpose of the tool is to increase understanding, highlight the importance, provide case study examples, and guide the assessment of these impact factors. (RS315-1, p. 25)

See Implementation Tools below for more information.

The case studies provide a breadth and depth of information on the impact factors, complementing the research data analysis effort and supporting the research findings. Case study findings were grouped by the five categories identified in Key Finding #2. Examples from each category include: (RS315-1, p. 21)

  • Category A – Host governments of mega-projects are restricting the mass importation of craft workers.
  • Category B – Both owners and contractors stressed the need to assign skilled and experienced personnel to lead mega-projects.
  • Category C – Favorable business conditions and the urgency to get to market often influenced owners to skip key planning steps.
  • Category D – As more mega-projects are undertaken as joint ventures, their governance becomes increasingly convoluted, with poorly defined roles and responsibilities.
  • Category E – Host countries often require the use of local resources, where these local contractors and sub-contractors fail to perform.