Decision-Making on Mega-Projects
Show Less

Decision-Making on Mega-Projects

Cost–benefit Analysis, Planning and Innovation

Edited by Hugo Priemus, Bent Flyvbjerg and Bert van Wee

This book enlarges the understanding of decision-making on mega-projects and suggest recommendations for a more effective, efficient and democratic approach. Authors from different scientific disciplines address various aspects of the decision-making process, such as management characteristics and cost–benefit analysis, planning and innovation and competition and institutions. The subject matter is highly diverse, but certain questions remain at the forefront. For example, how do we deal with protracted preparation processes, how do we tackle risks and uncertainties, and how can we best divide the risks and responsibilities among the private and public players throughout the different phases of the project?
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: Evolving Strategy: Risk Management and the Shaping of Mega-Projects

Roger Miller and Donald R. Lessard


1 Roger Miller and Donald R. Lessard 8.1 INTRODUCTION AND OVERVIEW Project management is often equated with methods that decompose a project into discrete elements, determine their sequencing, and track their completion. Our review of large-scale engineering projects reveals a different reality. In the early stages in particular, project management consists of a series of shaping episodes, first to explore if there is a project, then to recruit participants and explore potential bases of collaboration among them, then to flesh out a holistic proposal – a script for the project if you will – then to advocate and negotiate more precisely the shape of the project and the roles of the various parties, and finally to reach closure and a final agreement. It is at this point that traditional ‘decomposing’ project management begins. Along the way, projects are often abandoned, or the process returns to an earlier stage because of obstacles encountered or new insight or interests that develop. Rather than a ‘Microsoft Project’, the more apt metaphor is a sequence of real options, each of which is shaped and then either exercised or abandoned. In fact, as is often the case with cutting-edge practice, managers have been successful at creating value through the development and exercise of sequential options without explicitly framing the process in options terms, and without explicitly valuing these options since the emphasis is on whether there is a positive value option that justified going forward rather than determining an exact price. The real-options framework is...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.