Industrial Megaprojects : Concepts, Strategies, and Practices for Success / Edward W. Merrow.

Format:

Book

Author/Creator:

Merrow, Edward W., author.

Language:

English

Subjects (All):

Project management.

Physical Description:

1 online resource (494 pages)

Edition:

Second edition.

Place of Publication:

Hoboken, New Jersey : Wiley, [2024]

Summary:

This book, 'Industrial Megaprojects: Concepts, Strategies, and Practices for Success' by Edward W. Merrow, explores the landscape of large-scale industrial projects and their evolving challenges, particularly in the context of climate change and post-pandemic adjustments. The author examines the complex dynamics of megaprojects, emphasizing the importance of strategic 'Shaping' to ensure stakeholder alignment and project success. The book addresses the common causes of project failures, such as inadequate planning and team coordination, and offers insights into improving success rates. It is intended for professionals and stakeholders involved in managing and executing industrial megaprojects, providing guidance on navigating the intricate processes and risks associated with these ventures. Generated by AI.

Contents:

Cover

Title Page

Copyright Page

Contents

Preface

Acknowledgments

Why Megaprojects Fail So Often-Seven Key Mistakes

1. I want to keep it all!

2. I want it NOW!

3. Don't worry, we'll work out the details of the deal later.

4. Why do we have to spend so much up front?

5. We need to shave 20% off that number!

6. The contractors should carry the risk

they're doing the project!

7. Fire those #@^! project managers who overrun our projects!

Part 1 Success Is Elusive

Chapter 1 Megaprojects-Creators and Destroyers of Capital

Who Should Read This Book?

What Is an Industrial Megaproject?

Why Study These Projects?

Increasing Numbers

Megaprojects Are Important

Megaprojects Fail Too Often

The Literature Is Sparse

The Organization of This Book

Respecting Confidentiality

Chapter 2 Data and Methods

The Timing of Data Acquisition

The Data Collection Process

The IPA Megaprojects Database

Company Representation

Use of New Technology

Methodology

The Conceptual Model and the Role of Statistical Analysis

Root Cause Understanding from Cases

Some Methodological Notes

Escalation Adjustments

Sample Bias

Chapter 3 Project Outcomes and Trends

The Jemima Principle

Success and Industrial Sector

Trends: What Has Changed Since the First Edition?

Trends in Performance Factors

What Has Generated the Improvements in Outcomes?

Why Do We Learn So Slowly?

Chapter 4 The Roads to Ruin-The Mechanics of Failure (and Success)

Cascading Failures

The Most Common Cascade

Project Types Most Prone to Cascading Failure

Preventing Cascading Failures

Basic Data Failures

Failure from Fear

A Prototypical Example

The Estimating Scam

Cost-Reduction Debacles

Why Are CREs Problematic?

Can Cost Reductions Be Done Well?.

An Effective Example

What Should You Do?

Schedule Slip Is the Slayer of Megaprojects

The Pathway to Success

Part 2 The Three Work Streams

Chapter 5 An Introduction to the Shaping Stream

Why Is Shaping Essential?

The Five Steps in the Shaping Process

A Shaping Nightmare

Chapter 6 Shaping Step 1-Understand the Context

History of Prior Projects in the Area

The Nature and Perceived Value of the Physical Environment

2. The Political and Institutional Environment

3. Regulatory Climate and Stability

Local Content Requirements

4. Local Content Requirements Interact with Contracting Strategy

5. Percentage versus Prescriptive Local Content Rules

6. Do Local Content Requirements Work? Are They a Good Idea?

7. Social, Religious, and Cultural Considerations

8. Local Labor Availability and Quality

9. Competing Projects

Chapter 7 The Next Steps-From Context Knowledge to Project Shape

Step 2: Assess the Potential Value

The Early Economic Assessment

It's All about Capex, Stupid!

Consider Endowment and Context Together

The Endowment Dimension

The Context Dimension

Finding the Right Economic Indicators

How Much Potential Value Is There?

A Note on NPV and Long-Life Assets

Step 3: Identify Comparative Advantage

Comparative Advantage Helps Define Business Objectives

The Business/Project Team Interface Requires Attention

Team Development Depends on Clear Objectives

Step 4: Identify, Understand, and Align the Stakeholders

When Banks Are Stakeholders: Challenges of External Finance

Step 5: Getting Rules Straight with Partners

Shaping Challenges in Renewable Energy Projects

Direct Government Involvement

Early Commitment Businesses

Chapter 8 Devising the Shaping Strategy

If ya don't know where you're goin', you might end up some place else1.

Conceptualizing Shaping

Kill Criteria

Achieving Final Closure

Real Options: Another Way of Thinking about Shaping

When Should Shaping End?

Linking Opportunity Shaping with Project Development

How Shaping Errors and Omissions Lead to Failure

Failing to Achieve Full Stakeholder Alignment

Ceding Too Much Value to Other Stakeholders

Failing to Develop Coherent Objectives

Incurring Impracticable Cost, Schedule, or Quality Trade-Offs

Setting Overly Conservative Targets

Misguided Trade-Offs

Quality Is Sacrificed for Low Cost

Cost Is Sacrificed for Fast Schedules

Quality Is Sacrificed for Fast Schedules

Safety Is Sacrificed for Speed, Killing Projects

Safety Is Sacrificed for Speed, Killing People

An Example of Successful Opportunity Shaping

The Challenges

The Strategy

Project Results

Why Were They Successful?

An Example of Unsuccessful Opportunity Shaping

Why Did They Fail?

Chapter 9 Basic Data Are Basic

Petroleum Production Projects Basic Data

Basic Data Requirements for Minerals Developments

Basic Data Requirements for Expansion and Modernization Projects

What Are the Consequences of Basic Data Errors?

When Should the Basic Data Be Complete and Available?

Under What Circumstances Are the Basic Data Most Likely to Be Incorrect?

New Technology

How New Technology Affects Megaproject Results

Expensive and Difficult to Obtain Data

Inexperienced (and Occasionally Oblivious) Owners

Root Causes of Basic Data Errors

The Basic Data Protocol as an Antidote to Failure

Chapter 10 Project Definition-Getting the Front-End Right

What Is FEL?

Assessing the Scope Development Phases

The Dangers of Starting Scope Development Too Early

Assessing FEL-3

Why Is Complete FEL So Important?.

FEL and Cost Performance

FEL and Schedule Performance

FEL and Production Performance

FEL and Safety Performance

How Well Are Megaprojects Front-End Loaded?

Why Isn't FEL Better?

FEL and the Project Context

The Location: Dealing with Remoteness

Labor Supply Issues

Permitting Problems

How Long Should FEL Take?

Sectoral Challenges to Good Front-End Work

Petroleum Refining Sector

Mining

Liquefied Natural Gas

Renewable Power Projects

Petroleum Development

Poor FEL Devastates Petroleum Development Projects

Turnover in Project Leadership

Schedule Aggressiveness of E&amp

P Projects

A Final Comment on Megaproject FEL

Part 3 People Do Projects

Chapter 11 Megaprojects Teams

Team Precursors

Owner Team Role

Objectives Make Teams

Teams and Project Work Process

Team Structure

Key Team Topics

Timing of Team Formation

Team Size Matters

Integrated Teams Generate Better Projects

Team Integration and Owner Involvement

Where Do We Get All These People?

Absorptive Capacity: A Key Dimension of Team Success

The Role of Megaproject Team Leadership

The Project Business Sponsor

What Does a Good Business Sponsor Look Like?

The Importance of Leadership Continuity

Robust Owner Teams

Special Challenges for Megaproject Teams

Geographic Dispersion

The Effects of "Hybrid Teams"

Integrating Joint Venture Partner Personnel

Interface Management

Can Weak-Matrixed Teams Do Successful Megaprojects?

Chapter 12 Organizing Megaproject Teams

The Role of Organization Charts

Thinking about Organizational Approach

Structuring Megaproject Organizations

Alternative Organizational Models

1: The Traditional Model

2: Hub and Satellite

3: The Organic Model

What about Programs?

Part 4 Getting It Done

Chapter 13 Contracting.

Contracting Approaches

1. EPC Lump-Sum (EPC-LS) (Fixed-Price Contracting)

2. Reimbursable EPC and EPCm

3. Alliance Contracts aka Integrated Project Delivery (IPD)

4. Split Form Contracting

Frequency of Use in Megaprojects

Contracts and Project Outcomes

The Central Issues in Contracting Strategy

Sponsor Capabilities Influence Contract Approach

The Nature of the Project

The State of the EPC Services Market

The Role of External Financing on Contract Approach

What Drives Success and Failure in EPC-LS Contracting?

Some Key Pitfalls on EPC-LS Contracting

Design Competitions Provide the Best EPC-LS Projects

Schedule Incentives and Liquidated Damages

Taking the Very Low Bid

When Governments Control Contracting

Creative Use of EPC-LS Contracts

A Good Example

The Illusion of Wholesale Risk Transfer on EPC-LS Contracting

The Pricing of Risk in EPC-LS Contracts

Other Areas of Priced Risk Transfer

The Myth of the "A Team"

Reimbursable Contracts Are for Higher-Risk Projects

The Use of Incentive Schemes

Controlling Contractor Hours and Fees on Reimbursable Contracts

Why Megaproject Alliances/Integrated Project Delivery Fail

Contracting and Collaboration

Why Split Form Contracting Succeeds

Split Form Contracting and Understanding Construction Management

The Use of a Project Managing Contractor (PMC)

Owners and Contractors Live in Different Worlds

Chapter 14 The Control of Execution Risk

Controls Must Start Early

Priorities for Monitoring and Control

Megaproject Survival in Labor-Short Environments

A Truly Classic Example

How to Survive

The Criticality of Complete Scheduling

Risk Management Practices

Risk Modeling: A Tale of Two Practices

Monte Carlo (MC) Cost-Risk Simulation Does Not Work

Probabilistic Schedule Assessment Does Work.

Reading the Tea Leaves: Key Warning Signs of Trouble Ahead.

Notes:

Description based on publisher supplied metadata and other sources.

Part of the metadata in this record was created by AI, based on the text of the resource.

Description based on print version record.

Includes index.

ISBN:

9781119893189

1119893186

OCLC:

1450836199