The Strategic Management of Large Engineering Projects

Abstract

The book is based on an international research project that analyzed sixty LEPs, among them the Boston Harbor cleanup; the first phase of subway construction in Ankara, Turkey; a hydro dam on the Caroni River in Venezuela; and the construction of offshore oil platforms west of Flor, Norway. As the number, complexity, and scope of large engineering projects (LEPs) increase worldwide, the huge stakes may endanger the survival of corporations and threaten the stability of countries that approach these projects unprepared. According to the authors, the "front-end" engineering of institutional arrangements and strategic systems is a far greater determinant of an LEP's success than are the more tangible aspects of project engineering and management. The book is based on an international research project that analyzed sixty LEPs, among them the Boston Harbor cleanup; the first phase of subway construction in Ankara, Turkey; a hydro dam on the Caroni River in Venezuela; and the construction of offshore oil platforms west of Flor, Norway. The authors use the research results to develop an experience-based theoretical framework that will allow managers to understand and respond to the complexity and uncertainty inherent in all LEPs. In addition to managers and scholars of large-scale projects, the book will be of interest to those studying the relationship between institutions and strategy, risk management, and corporate governance in general. Contributors Bjorn Andersen, Richard Brealey, Ian Cooper, Serghei Floricel, Michel Habib, Brian Hobbs, Donald R. Lessard, Pascale Michaud, Roger Miller, Xavier Olleros

Risk identification and assessment for build–operate–transfer projects: A fuzzy multi attribute decision making model

“…Global risks are those that are normally allocated through the project agreement and typically include political, legal, commercial and environmental risks, whereas elemental risks are those associated with the construction, operation, finance and revenue generation components of the project. Miller and Lessard (2001) classified risks into three categories: ''Market-related" risks derive from the markets for revenues and financial markets. ''Completion" risks come from technical designs or technologies employed, construction cost and time overruns, and operational problems.…”

Public–private partnership for improved hydrocarbon recovery – Lessons from Norway's major development programs

“…The same trends in reserve growth are observed internationally [17]. 10 A review of large engineering projects outside oil and gas confirms that also these often are ongoing programs rather than discrete projects [6,7].…”

“…However, research on undisturbed sediments at the Massachusetts Institute of Technology and the Norwegian Geotechnical Institute that NPD staff had conducted or been associated with in the past led to the conclusion that horizontal wells would remain open [12e14]. 6 An expert opinion of NilmarJanbu 7 of the Norwegian Institute of Technology in Trondheim confirmed this view.…”

“…The enabling technologies to achieve this were in place or under development. 6 The referenced research demonstrates a more general body of knowledge on the creep that occurs in sediments on the scales of minutes and millenniums to reduce the shear stresses, increasing the ratio of horizontal to vertical effective stress. This "pre-stresses" the sediments and increases their stiffness and strength.…”

“…To elaborate, we present a fifth case, the Gullfaks field to illustrate the potential for engineering systems design in creating large development programs not as a one-shot project, but by securing options early to adapt the facilities later to future changes in the industrial ecosystem [6,7,21].…”