We hear about megaprojects every day—whether they’re airports, power plants, or highways.
According to the Oxford Handbook of Megaproject Management, “[M]egaprojects are large-scale, complex ventures that typically cost $1 billion or more, take several years to develop and build, involve multiple public and private stakeholders, are transformational, and impact millions of people.”
These mighty projects are the essential backbone to our infrastructure, but unfortunately, have very high failure rates.
Many project owners are attempting to apply traditional tools and processes to megaprojects with little success. New contractual relationships and models must be developed—and new team structures put into place—to address the size, complexity, and risks associated with megaprojects.
Megaproject experts share their knowledge
We spoke with several industry experts about how megaprojects are unique in addition to how to avoid common risky pitfalls on the path to success. Bob Prieto, veteran executive of Fluor and Parsons Brinckerhoff, and author of “The Giga Factor: PM in the Engineering & Construction Industry”, and Hans Hoppe, Principle Program Controls Manager with Parsons, share the following:
Megaprojects have completely unique project requirements
Bob Prieto
Prieto says, “It’s not about perfecting an imperfect model, it’s about creating a new one.”
For example, by 2030, the new 743,000 square meter Mexico City Airport will serve 68 million passengers. 82 organizations are working on this massive, extremely complex megaproject which includes numerous systems, security, safety, and regulatory requirements.
Owner and project readiness are essential
Hans Hoppe
Hans Hoppe shares, “How these projects begin makes a huge difference to how they end.”
Projects can quickly start off on the wrong foot—and sometimes never recover—if the substantial scope isn’t defined and the right team members aren’t in place from the beginning.
Lack of project readiness
Many projects start prematurely before the scope is properly defined, the designs well developed, and the essential team members on board. According to Prieto, currently two-thirds of all megaprojects fail due to schedule or budget overruns. Starting a project earlier can appear to save time, but premature launches can result in miscommunication, errors, and a divided, uncooperative project team.
Uncollaborative leadership
Leadership sets the tone for the teams they build. Projects will struggle if project leaders don’t instill a collaborative structure and mindset—a key ingredient to megaproject success. Hoppe says, “The leadership team must strive to deliver one successful integrated project.”
Clear contract terms and language
Clear contract structures and terminology are crucial to a project’s success for all parties involved. “There are enough challenges on megaprojects without introducing adversarial relationships,” Hoppe warns.
