A Review on Assessment of Project-Related Factors for Major Construction Projects

Abstract

Major Construction projects are unique construction projects known for their complexity, vast size, expensive cost and long time frame compared to conventional construction projects. They may lead to cost overruns and lower-than-predicted revenues that hinder economic growth instead of advancing it. For ameliorating the performance of the construction industry and delivering successful projects, that satisfies their users, it is imperative to ascertain various project-related factors for Major Construction projects. From the literature analysis, it was found that the type of project, size of project, project complexity, innovations and uniqueness were important attributes under project-related factors. Due to limitations in past researches regarding project-related factors of Major construction projects, this paper aims to study the various project-related factors affecting Major construction projects through literature analysis and emphasizes the important factors among them that are crucial for project success in order to reduce costs overruns and project failures and to forecast the performance level of Major project before it commences. Keywords: Major Construction projects, Project related factors, Costs Overruns, Complexity, Economic Growth I. INTRODUCTIONMajor Construction projects can be seen as the wild beasts in the project world, they are hard to tame, known for their complexity, vast size, expensive cost, and long time frame compared to conventional construction projects. These projects bring big changes in the geography of countries and life of people. Some of these Major Construction projects become landmarks for a country and bring significant prosperity, but some become unforgettable catastrophes. Uncertainty and complexity due to their huge size and long time duration are commonly seen in Major Construction projects. The large scale engineering projects are described on the basis of five attributes: (i) "high" capital cost, (ii) "long" duration but program urgency, (iii) technologically and logistically demanding, (vi) requiring multidisciplinary inputs from many organizations, and (v) leading to a "virtual enterprise" for the execution of the project. Also, they lead to cost overruns and lower-than-predicted revenues that hinder economic growth instead of advancing it. The Federal High Way Administration (FAHWA) defines Major Construction projects as: "Major infrastructure projects that cost more than US$ 1 billion or projects of a significant cost that attract a high level of public attention or political interests because of substantial direct and indirect impacts on the community, environment, and state budgets" (Youcef J.T. Zidane et al., 2012). Major Construction projects are expensive projects that require the management of numerous, concurrent, and complex activities while maintaining tough schedules and tight budgets. The size and complexity are reflected by a price tag that exceeds one billion dollar and by a time frame that may exceed the five year limit. The technological i...

Clarifying megaproject complexity in developing countries: A literature review and conceptual study

“…Unsynchronized technical circumstances (e.g., the scope area, contracts, technology, innovation, labor/experts): For instance, geographical and geological conditions in developing countries are often more challenging to handle, as some megaproject technologies that must be applied are not in line with infrastructure conditions or resource availability in remote locations. 32,144 This is made increasingly complex with a lack of local experts in overcoming these technical conditions. 36,119…”

“…For instance, unsynchronized technology is used to implement megaprojects in developing countries that often lack supporting infrastructure. 32 In another case, Chen et al 89 described the complexity associated with several technological innovations in the case of the Hong Kong-Zhuhai-Macau bridge in China, which was nonlinear, and due to a lack of integration between inventors (many teams and industries), one innovation change had a major impact on others. The nonlinearity of legal and regulatory factors in developing countries has also been highlighted by researchers; for instance, regulatory and bureaucratic issues that overlapped and conflicted, 92 complicated multi-organizational structures, 24 and unsynchronized procurement management due to legal differences between regions.…”

“…Three conditions of nonlinearity in structural aspects that are of concern to researchers in developing countries are: a. Unsynchronized technical circumstances (e.g., the scope area, contracts, technology, innovation, labor/experts): For instance, geographical and geological conditions in developing countries are often more challenging to handle, as some megaproject technologies that must be applied are not in line with infrastructure conditions or resource availability in remote locations. 32,144 This is made increasingly complex with a lack of local experts in overcoming these technical conditions. 36,119 b. Unsynchronized cost aspects: The high level of investment required for megaproject financing is not aligned with the usual financial capacity of developing countries and construction organizations.…”

“…Instability of economic conditions, regulatory laws, and politics: This condition is indeed a characteristic of developing countries 74 that exerts an impact on the implementation of megaprojects. 28 Economic, political, and legal instability can result in sudden changes and uncertainty in infrastructure megaprojects, for example, in Kenya, 98,139 India, 32 and Brazil. 110 This uncertainty is related to the determination of property and land prices for megaprojects, 94 among other considerations.…”

“…The limited number of studies on megaprojects in developing countries offer initial evidence of their high complexity. 32,33 Ongoing research investigates the concepts, types, and management approaches applicable to megaprojects. A phenomenological (“lived experience”) approach is often adopted to describe best practices in addressing complexities from the perspective of professionals, such as those introduced in the study of the Bus Rapid Transit System megaproject construction project in Tanzania 34 and the IR-150 aircraft industry program in Iran.…”