Professional Documents
Culture Documents
Mega and
Complex
Project
Critical Appraisal
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GROUP MEMBERS
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• Introduction
• Gap analysis comparative studies
• Sublimes that drive Mega project development
• Similarities
• Differences
• Characteristics of mega and complex project
• Critical evaluation of emerging themes
• Underlying root cause
• How to improve and enhance the Mega projects methods
• Why strategic project management are not necessarily used effectively in this Mega project
Table of Content • Portfolio management opportunities in Dubailand Mega project
• Programme management opportunity in Dubailand Mega project
• Analysis on how Strategic Risk Management approach could reduce the inbuilt (inherent) risk,
complexities and uncertainties in this Mega Project
• Stakeholders management approaches
• Communication management approaches
• Schedule management approaches
• Cost management approaches ( Analysis on capital control and capital efficiency)
• Value efficiency
• Conclusion
• References
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INTRODUCTION
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GAP ANALYSIS COMPARATIVE STUDIES
US O’Hare Estimated cost was Work on terminal 5 is schedule to It is an expansion to the terminal core, terminal 5
International $8.5B finish in 2022 and the other will will be expanded while terminal 2 will be
Airport finish in stages till 2028 completely rebuilt
Redevelopment
France Estimated cost $20B Work began in 2013 and it is A joint project with 35 nations to help in creating
International schedule to come online in 2025 energy (renewable) from fusion taking place inside
Thermonuclear (12 years) the sun. The core tokamak will contain plasma
Experimental created when particles are heated to over 150M
Reactor ITER degree Celsius.
Japan Chuo Estimated cost $46.4 Scheduled to be completed in 2027 A pioneer in HS rail since 1964, the development
Shinkansen of the maglev HS rail reaching up to 500Km/H to
connect Tokyo to Nagoya and a further expansion
to connect to Osaka
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Gap Analysis continued…
Optimum Bias Sustainability Complexities
Dubailand The uniqueness bias of the project The project has a huge The complexities involved in the
was on a macro level. The optimum sustainability gene embedded project are many, from design of
bias was fair because the stakeholders within it. Dubai already a tourist these Mega theme parks to
did not over-promise and all they set nation (attracting 15M tourist) construction, technology to be
out to achieve exists and available. will attract more making the used to operate as well as for
Aggregating them creatively in a project self-sustaining maintenance.
mega-manner in a particular location economically, boosting several This requires specialised skill
further enhancing the national commercial activities, creating sets such as creative P3M
rebranding and identity. jobs almost indefinitely. (portfolio, programme and
project management)
US O’Hare The covid-19 pandemic disrupted lives It is a sustainable project due The complexities majorly
International Airport and hugely impacted the air travel to the impact it will have on identified are in the HSE while
Redevelopment ecosystem. Both global sporting host cities, jobs will be created, construction work is progressing.
events that will be hosted will definitely products and services will be Technology need of the project
increase air travel affirming the sold and render to commuters will be novel. Having tried it on
optimum bias as fair by the by SME e.g transport and small scale now to be
stakeholder. logistics further boosting the implemented on a grand scale
economy of the city. giving rise for uncertainty on how
02/04/2023 it will respond to the volume.
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Sublimes that drive Megaproject development.
(Flyvbjerg, B., 2017)
Political The ecstasy that politicians get from erecting monuments to themselves and their causes, as
well as the increased visibility that this brings to the public and media
Economical The joy that businesspeople and labour unions experience when they make a lot of money and
create a lot of employment as a result of megaprojects, which includes money made for
contractors, construction and transportation employees, consultants, bankers, investors,
landowners, lawyers, and developers.
Aesthetics The joy that designers and others who appreciate good design derive from constructing and
using something massive that is also iconic and attractive, such as the Golden Gate Bridge,
Barangaroo, Burg Khalifa, and Burg Al Arab, among others.
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MEGA and COMPLEX
projects
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Similarities
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Differences
• The Mega and complex projects are all meeting diverse and different needs of their respective national
needs and stakeholders.
• Projects are unique endeavour in themselves and usually apparent in the strategic objectives it will be
meeting.
• Also cost variation, time variation and scope differs in most MCPs.
• Stakeholders are different in terms of interest and influence as well as their risk appetite and risk
threshold
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Some Mega and complex project characteristics are:
Nyarirangwe et al, 2019)
International Space Station USA, Russia, Japan, Considered as the most expensive $150 billion (as of
Canada and Europe single item ever built 2010)
South-to-North China Built to divert water from the Yangtze River $78 billion (as of
Water Transfer using three huge canals to bring it to the north 2014
Project of the country and considered to be three
times more expensive than the Three Gorges
Dam
Dubailand UAE Mega theme park with the world’s largest hotel $64 billion
(6,500 rooms), sports
venues, eco-tourism, science attractions, and
a giant mall to open in
project will open in 2025 in Dubai
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CRITICAL
EVALUATION OF
EMERGING
THEMES
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Inadequate grasp of project stakeholders, interests and
Power connections. As the many parties involved strive
to engage with government authorities and comply with
regulations, conflicts, inefficiencies and delays Manage the stakeholder by identifying
Stakeholder Engagement frequently
their different driver's interests ,power,
and Management
Developed. culture, resources and expectations
The most common cause of commercial partnership Maximise competition and design
is lack of systematic awareness of interdependencies procurement systems with embedded
Supply Chain Integration
Of interdependencies across project life cycle which flexibility to be adapted if project condition
and Coordination
Affect project at multiple level inter organizational, change.
intra organizational and external
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• Global financial crisis of 2008-2009
• Lack of funds led to halt of different projects globally that period and
Dubailand was not an exception
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Underlying root cause in mega and
complex project (Pitagorsky,G.;2011)
Wishful Planning : Making plans optimistically thinking everything is going to go well instead
of thinking about the risks and reality.
Lack of accountability: Poor accountability from the stakeholder's failure to deliver at time
Absentee sponsors: Poor performance and leverage due to failures from the sponsors in
doing their functions.
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How to improve and • Adoption of appropriate stakeholder engagement methods, with a
focus on transparency and effectiveness that aligns with the project
enhance the Mega plans.
• Implementation of a sophisticated and efficient communication
Projects Management system.
methods • Identifying stakeholders and establishing common goals as well as
risk associated with each.
• Implementation of an effective PMO or P3M processes.
• Cost and resources management must align with the project standard.
• Acquisition and utilisation of cutting-edge, high-quality plant and gear,
including robotics and automation.
• Competent personnel for plant and machinery operation and maintenance
are available.
• Effective supervision and monitoring using appropriate project
management approach
• Ensure that sufficient and high-quality materials are available.
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Why Strategic Project Management
are not necessarily used effectively
in this Mega Projects
• Misinterpretation of data
• Communication gap
• Lack of skill and vision
• Lack of shared values for processes
• Motives for optimal bias differ.
• Strategic plans are not aligned with project plans.
• Inadequate horizontal hierarchy.
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PORTFOLIO MANAGEMENT
OPPORTUNITIES IN
DUBAILAND MEGA PROJECT
Project success depends on doing project the right way and doing the right projects. Using
both Centralised and Decentralised risk management approach Dubailand Mega Project
C O E would reap financial reward from Portfolio Management that helps in resource
allocation, prioritization of projects development and effective investment.
200
SUB PROJECTS
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PROGRAMME MANAGEMENT OPPORTUNITIES IN DUBAILAND
PORTFOLIO
• All these 45 projects and 200 sub projects are all – inclusive of
a programme which require the need for the establishment of
a programme management to ascertain the effective use,
HS Rail DUBAILAND DISALINISATION distribution and allocation of resources across all the projects in
order to achieve the desired end results.
• Programme Management will aid all these projects and sub
projects in achieving the set strategic goals and objectives
45 • The establishment of Programme management will help in making
timely effective decision.
• Programme management aids in the selection of the most
200 appropriate initiatives and the accurate assessment of their
economic, social, and environmental implications (Flyvbjerg et al
2003).
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Analysis on how Strategic Risk Management approaches could
reduce the in-built (inherent) risk, complexities & uncertainties in
this Mega Project
Strategic Risk Management approaches could help reduce the inbuilt risk, complexities and uncertainties in
this Dubailand Mega Project through the following ways:
• Identify and appropriately ranking the risks and uncertainties involved using qualitative and quantitative
analysis approach.
strategic
• Help the management develop a risk management response strategy for each of the risks and uncertainties
identified.
• Risk Insurance: All the risks identified should be insured irrespective of their magnitude and propensity of
occurrence (Knewtson & Qi 2019).
• Continuity: Although the strategy has the likelihood of increasing the overall cost, but it gives Dubailand an
assurance that even if a major disaster occurs, the project will continue.
• Having these strategies not only reduces the probability of occurrence but also makes relevant stakeholders
aware and prepared in case they occur and would help them in monitoring the risks identifed..
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Stakeholders Management approaches in this Mega
project
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Stakeholder management approach…. (Theoretical Framework Bal et al.,(2013))
25
COMMUNICATION MANAGEMENT APPROACH Project
(Billström and Cederqvist, ., 2012) Manager
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(Stevens, W.M., 1986)
Construction
business
management
Engineering and
Project Design
Management
Estimation and
budgeting
Purchasing
/procurement route
Contract
Administration
Field Construction
Finance and
Accounting
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PMBOK Guide, 2008
Project Cost Management
INPUTS
INPUTS Project management plan
INPUTS Activity cost estimates
Basis of estimates Work performance
Scope baseline
Resource calendars information
Project Schedule
Contracts Organizational process
Risk Register
asset
TOOLS AND TOOLS AND
TOOLS AND
TECHNIQUES TECHNIQUES
TECHNIQUES
Cost aggregation Earned value
Expert judgment
Reserve analysis management Forecasting
Analogous estimating
Expert judgment To-complete performance
Parametric estimating
Historical relationships index (TCPI)
Funding limit reconciliation Performance reviews
OUTPUTS
Variance analysis
Activity cost estimates
OUTPUTS OUTPUTS
Basis of estimates
Cost performance Work performance
Project document
baseline measurements
updates
Project funding Budget forecasts
requirements Organizational process
Project document updates assets updates
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ESTIMATED COST DETERMINE BUDGET COST CONTROL
Value Efficiency – Sustainable
Benefits and Value transition – Value
for Monies
• The value efficiency that shows sustainable benefits and value transition
presenting good value for money include a good portfolio and effective
change management. Defining the VfM criteria should be done at the
portfolio level that a specific project or programme will help to achieve,
since it must be in alignment with the strategic goal(s). The Whole Life Cost
(WLC) of a building/project encompasses all associated and relevant current and
future costs and benefits of a building/project that may occur over the course of
the building/entire project's life cycle.. (ISO 2008, Korytárová et al 2014)
• Value for money include the monetised and non-monetised impacts gotten
from the MCP and this can be measured using the cost-benefits analysis.
• The sustainable benefit in terms of economic, material used and their
source (local/foreign), renewable or reusable energy source, all these also
shows the value that can be derived from the benefits reflecting the VfM of
such MCPs through evaluation of cost-benefits analysis
• In project research and practise, project governance is a critical topic. It refers to
the procedures, protocols, and rules that the financing party must implement to
ensure that relevant and viable projects are selected and delivered in a timely
02/04/2023 manner (Volden, 2019) 32
In conclusion, the study went on to look into the o
Conclusion
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•A Guide to the Project Management Body of Knowledge
(PMBOK Guide), Sixth Edition, Project Management Institute,
Newtown Square, PA: Project Management Institute, 2017
•A Guide to the Project Management Body of Knowledge
(PMBOK Guide), Fourth Edition, Project Management
Institute, Newtown Square, PA: Project Management Institute,
2008
•Aiyetan, A.O. & Das, D.K. 2022, "Factors and Strategies for
Improving Construction Management on Sites in Mega-
Projects in South Africa: An Explorative
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