Rise above the 66% failure rate.
We hear about megaprojects every day—whether they’re airports, power plants, or highways.
According to the Oxford Handbook of Megaproject Management, “[M]egaprojects are large-scale, complex ventures that typically cost $1 billion or more, take several years to develop and build, involve multiple public and private stakeholders, are transformational, and impact millions of people.”
These mighty projects are the essential backbone to our infrastructure, but unfortunately, have very high failure rates.
Some people might ask. “Why shouldn’t we just keep working as we always have?”
We may be able to answer that question very simply by looking at growth and opportunity.
PwC projects that by the year 2030 construction output will grow to $15.5 trillion worldwide. That means that just a 1% reduction in costs would provide savings of over $150 billion.
The reality is that the size, volume and complexity of today’s and tomorrow’s projects cannot be supported using yesterday’s methods.
The One Belt One Road (OBOR) initiative in China is an estimated $5 trillion infrastructure program spanning across Asia, the Middle East, Europe, and Africa.
Almost 70 countries and international organizations have signed up for the mega-infrastructure project, focused mainly on transport and energy including: roads, railways, bridges, ports, power plants and gas pipelines.
OBOR has created vast opportunities for construction companies focusing on infrastructure projects. With so many OBOR projects routinely launching, the question looms: how can companies best structure their project management and obtain finances to begin these projects?
Thinking about keeping your infrastructure program on track? The following scenarios might sound familiar – and trigger some anxiety:
- Your program just gained approval and funding, and the clock is ticking. You need to ramp up your program quickly, which means bidding and awarding contracts, getting the site ready, and coordinating the many people, processes, and systems, all in a matter of months.
In a recent survey, industry professionals cited the following major challenges in delivering successful infrastructure projects: Design Complexity, Errors and Rework, and Supply Chain Availability (infographic).
The root of many of these problems is the data — the sheer volume of the data generated can quickly overwhelm the project and overshadow the competencies of all those involved.
How much data is actually produced? The largest infrastructure projects produce an average of 130 million emails, 55 million documents, and 12 million workflows.