Managing Cost and Time Overruns of Megaprojects
Megaprojects are large-scale, complex ventures that take many years to develop and build, involve public and private stakeholders, and transform the area in which they are located. They have a higher value, a higher level of aspiration, longer lead time, greater complexity, and need proper management from their planning stage to final delivery. When such projects go wrong, entire companies and national economies can suffer.
Dr. N. Subramanian, Consulting Engineer, Gaithersburg, Maryland, United States
Several years ago, professor Bent Flyvbjerg, working at the University of Oxford, U.K. sought to find out how often ‘mega’ infrastructure projects were completed on time and on budget. At that time, he realized that there is no record of these ‘megaprojects’ and hence created his own database. After analyzing the database, he discovered something extraordinary: The vast majority of these megaprojects - those with a value of more than $1 billion - did not meet their budget or deadline. It wasn’t just the mega infrastructure projects that involved concrete and steel; even the Information and Communication Technology (ICT) projects were among those with the worst outcomes.
Dr. N. Subramanian, Consulting Engineer, Gaithersburg, Maryland, United States
Several years ago, professor Bent Flyvbjerg, working at the University of Oxford, U.K. sought to find out how often ‘mega’ infrastructure projects were completed on time and on budget. At that time, he realized that there is no record of these ‘megaprojects’ and hence created his own database. After analyzing the database, he discovered something extraordinary: The vast majority of these megaprojects - those with a value of more than $1 billion - did not meet their budget or deadline. It wasn’t just the mega infrastructure projects that involved concrete and steel; even the Information and Communication Technology (ICT) projects were among those with the worst outcomes.
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NBM&CW, August 2023