Industrial Megaprojects. Concepts, Strategies, and Practices for Success

  • ID: 2211503
  • Book
  • 384 Pages
  • John Wiley and Sons Ltd
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More than half of large–scale building projects, such as drilling platforms, chemical plants, or dams, have miserably poor results: billions of dollars in overruns, long delays in design and construction, and poor operability once they are finally completed. Occasionally, these fiascos make the news, but for obvious reasons, companies usually bury the disasters with as little publicity as possible. Yet, management at the companies know full well the complexity and the difficulty faced when mounting megaprojects.

Industrial Megaprojects explains the underlying causes of over–budgeted, delayed, and unsafe megaprojects: poor project management, destructive team behaviors, weak accountability systems, an almost pathological focus on the short–term, and the unwillingness to invest in deep technical expertise. Modern life as we know it relies on the success of these projects. Leaders and stakeholders of future megaprojects would be wise to heed the warnings and take note of the best practices outlined in this book.

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Foreword JAMES B. PORTER, JR. vii

Acknowledgments xi


Why Megaprojects Fail So Often: Seven Key Mistakes 1

Part One

Understanding the Projects

Chapter 1

Megaprojects Creators and Destroyers of Capital 11

Chapter 2

Data and Methods 23

Chapter 3

Project Outcomes 37

Part Two

Making the Right Business Decisions Before You Commit

Chapter 4

The Opportunity–Shaping Process 53

Chapter 5

Devising the Shaping Strategy 91

Chapter 6

Megaprojects and Co rporate Governance 123

Part Three

Making the Right Project Decisions

Chapter 7

Basic Data Are Basic: Get Them Right Before You Start to Design 137

Chapter 8

Megaproject Teams: People Do Projects 159

Chapter 9

Organizing Megaproject Teams 185

Chapter 10

Project Defi nition: Getting the Front End Right 199

Chapter 11

Contracting 253

Chapter 12

The Control of Execution Risk 305

Chapter 13

Focus on Success 333

Glossary and Abbreviations 341

Notes 343

Index 347

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Edward W. Merrow is the founder and CEO of Independent Project Analysis, Inc., the world′s leading consulting firm evaluating billion–dollar megaprojects of national and international oil, chemical, pharmaceutical, and major mineral companies, and benchmarking their cost, schedules, safety, startup, and operational performance. Before founding IPA in 1987, Merrow was a research analyst and later the director of the Energy Policy Program at the RAND Corporation.
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