Prelims
Megaproject Risk Analysis and Simulation
ISBN: 978-1-78635-831-8, eISBN: 978-1-78635-830-1
Publication date: 26 April 2017
Citation
Boateng, P., Chen, Z. and Ogunlana, S.O. (2017), "Prelims", Megaproject Risk Analysis and Simulation, Emerald Publishing Limited, Leeds, pp. i-xxxvi. https://doi.org/10.1108/978-1-78635-830-120171009
Publisher
:Emerald Publishing Limited
Copyright © 2017 Emerald Publishing Limited
Half Title
MEGAPROJECT RISK ANALYSIS AND SIMULATION: A DYNAMIC SYSTEMS APPROACH
Title Page
MEGAPROJECT RISK ANALYSIS AND SIMULATION: A DYNAMIC SYSTEMS APPROACH
BY
PRINCE BOATENG
Koforidua Technical University, Koforidua, Ghana
ZHEN CHEN
University of Strathclyde, Glasgow, UK
STEPHEN O. OGUNLANA
Heriot-Watt University, Edinburgh, UK
United Kingdom – North America – Japan – India – Malaysia – China
Copyright Page
Emerald Publishing Limited
Howard House, Wagon Lane, Bingley BD16 1WA, UK
First edition 2017
Copyright © 2017 Emerald Publishing Limited
The right of Prince Boateng, Zhen Chen, and Stephen O. Ogunlana to be identified as the Authors of this Work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.
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British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Classification (LCC) – HE1-9990
BIC - KJMP
BISAC - BUS101000
Dewey Decimal Classification (DDC) – 388
ISBN: 978-1-78635-831-8 (Print)
ISBN: 978-1-78635-830-1 (Online)
ISBN: 978-1-78714-301-2 (Epub)
Dedication
To our families
Abbreviations
ANP | Analytical Network Process |
AHP | Analytic Hierarchical Process |
BBS | Bilfinger Berger Civil (UK) and Siemens plc |
CEC | City of Edinburgh Council |
CDR | Cost of Dispute Resolution |
CDUD | Cost of Delay in Utility Diversion |
CI | Consistency Index |
CLA | Cost of Legal Action |
CLD | Causal Loop Diagram |
COD | Cost of Delays |
COR | Cost of Rework |
CR | Consistency Ratio |
DEG | De-Escalation to Grievances |
Disp. | Disputes |
DOAF | Delay of All Forms |
DOC | Delay in Obtaining Consent |
EC | Economic Certainties |
EcRM | Economic Risks Model |
ETN | Edinburgh Tram Network (Project) |
EG | Escalation to Grievances |
EnC | Environmental Certainties |
EnR | Environmental Risks |
EnRE | Environmental Regulation Enforcement |
EnRM | Environmental Risks Model |
EnU | Environmental Uncertainties |
EP | Energy Price |
EPC | Engineering, Procurement and Construction |
EPCO | Escalation to Project Cost Overrun |
EPTO | Escalation to Project Time Overrun |
ER | Economic Risks |
ERM | Environmental Resource Management |
ErG | Error Generation |
EU | Economic Uncertainties |
FE | Foreign Exchange |
GCP | Ground Conditions Problem at a Given Site |
GFP | Government Funding Policy |
IPV | Ideal Priority Value |
LA | Legal Actions |
LD | Liquidated Damages |
LIR | Local Inflation Rate |
LRC | Legislative & Regulation Changes |
IRPI | Ideal Synthesized Risk Priority Indexes |
IRPV | Ideal Risk Priority Index |
MCDM | Multi-Criterion Decision Making |
MLDMBI | Multi-Level Decision-Making Bodies Involvement |
MP | Material Price |
MPDS | Modification to Project Design & Specification |
MPH | Material Price Hike |
MUDFA | Multi-Utilities Framework Agreement |
NPV | Normal Priority Value |
O&M | Operations and Maintenance |
PA | Social Acceptability |
PC | Political Certainties |
PDP | Political Debates on the Project |
PH | Political Harmony |
PI | Political Indecision |
PIP | Political Interferences in the Project |
PMPS | Pressure to Modify Project Scope |
PoRM | Political Risks Model |
PQD | Project Quality Deficiency |
PR | Political Risks |
Proj.C | Project Complexity |
PS | Political Support |
Proj.S | Project Scope |
PT | Project Termination |
PU | Political Uncertainties |
RMSI | Respondent’s Mean Scores of Importance |
RPCO | Risks of Project Cost Overrun |
RPI | Risk Prioritization Index |
RPIG | Global Risks Priority Index |
RPIL | Local Risk Priority Index |
RPTO | Risks of Project Time Overrun |
SC | Social Certainties |
SD | System dynamics |
SFM | Stock and Flow Model |
SG | Social Grievances |
SI | Social Issues |
SoRM | Social Risks Model |
SPV | Special Purpose Vehicle |
SR | Social Risks |
SU | Social Uncertainties |
TC | Technical Certainties |
TDUU | Time to Divert Underground Utilities |
TeRM | Technical Risks Model |
TIE | Transport Initiatives Edinburgh Ltd. |
TPAS | Threat to Personal & Asset Security |
TPV | Total Priority Value |
TR | Technical Risks |
TRO | Traffic Regulation Order |
TRPI | Total Risk Priority Index |
TU | Technical Uncertainties |
WCP | Worksite Coordination Problems |
WQS | Weighted Quantitative Score |
WI | Wage Inflation |
List of Figures
Chapter 2 | ||
Figure 2.1 | Stakeholder relationship map for the ETN project. | 25 |
Chapter 3 | ||
Figure 3.1 | The SDANP framework for megaproject risk assessment. | 47 |
Figure 3.2 | ANP network model for risk prioritization. | 50 |
Figure 3.3 | Calculation process for the CR method. | 52 |
Figure 3.4 | The three components of system dynamics models. | 56 |
Figure 3.5 | A simple stock and flow model. | 57 |
Figure 3.6 | Social risk entry points during mega construction projects. | 61 |
Chapter 4 | ||
Figure 4.1 | ANP model structure for STEEP risks prioritization. | 89 |
Figure 4.2 | ANP sub-models for STEEP risks prioritization. | 90 |
Chapter 5 | ||
Figure 5.1 | Causal loop diagram for STEEP risks on the ETN project. | 132 |
Figure 5.2 | Causes tree diagram for technical uncertainties entity. | 134 |
Figure 5.3 | Uses tree diagram for technical uncertainties entity. | 134 |
Figure 5.4 | Causality of technical uncertainties. | 134 |
Figure 5.5 | Causal loop diagram for social risks system. | 142 |
Figure 5.6 | Causes tree diagrams for social risks model. | 144 |
Figure 5.7 | Uses tree diagrams for the social risks model. | 146 |
Figure 5.8 | Causal loop diagram for technical risks system. | 147 |
Figure 5.9 | Causes tree diagrams for the technical risks model. | 149 |
Figure 5.10 | Uses tree diagrams for the technical risks model. | 150 |
Figure 5.11 | Causal loop diagram for economic risks system. | 152 |
Figure 5.12 | Causes tree diagrams for the economic risks model. | 153 |
Figure 5.13 | Uses tree diagrams for the economic risks model. | 154 |
Figure 5.14 | Causal loop diagram for environmental risks system. | 155 |
Figure 5.15 | Causes tree diagrams for the environmental risks model. | 158 |
Figure 5.16 | Uses tree diagrams for the environmental risks model. | 159 |
Figure 5.17 | Causal loop diagram for political risks system. | 160 |
Figure 5.18 | Causes tree diagrams for the political risks model. | 163 |
Figure 5.19 | Uses tree diagrams for the political risks model. | 164 |
Figure 5.20 | A typical stock and flow model (SFM). | 165 |
Figure 5.21 | Integrated stock and flow diagram for the social risks system. | 167 |
Figure 5.22 | Integrated stock and flow diagram for the technical risks system. | 167 |
Figure 5.23 | Integrated stock and flow diagram for the economic risk system. | 168 |
Figure 5.24 | Integrated stock and flow diagram for the environmental risks system. | 169 |
Figure 5.25 | Integrated stock and flow diagram for the political risks model. | 170 |
Figure 5.26 | A typical SD equation representation. | 184 |
Figure 5.27 | Evaluation tests for the STEEP risks models. | 185 |
Figure 5.28 | Dynamic risk-free simulation patterns for social risks system model. | 196 |
Figure 5.29 | Dynamic scenario graphs for the social risks system model. | 199 |
Figure 5.30 | Simulation behaviour patterns for stocks in the technical risk system model | 203 |
Figure 5.31 | Baserun and actual scenario simulation patterns for economic risks. | 206 |
Figure 5.32 | Dynamic patterns for stock entities in the environmental risks model. | 209 |
Figure 5.33 | Dynamic simulation patterns for stock entities in the political risks model. | 212 |
Chapter 6 | ||
Figure 6.1 | Proposed framework for dynamic risks assessment in megaproject. | 225 |
Appendices | ||
Figure A1 | Model validation process. | 251 |
Figure A2 | Behaviour reproduction test for the level of STEEP risks impacts on the system (all variables at baseline levels). | 259 |
Figure A3 | Behaviour mode sensitivity graphs for social risks and social grievances. | 274 |
Figure A4 | Behaviour mode sensitivity graphs for technical risks. | 275 |
Figure A5 | Behaviour mode sensitivity graphs for economic risks. | 275 |
Figure A6 | Behaviour mode sensitivity graphs for environmental risks. | 276 |
Figure A7 | Behaviour mode sensitivity graphs for political risks. | 276 |
Figure A8 | Dynamic confidence bounds sensitivity graph for social grievances. | 277 |
Figure A9 | Dynamic confidence bounds sensitivity graph for technical risks. | 277 |
Figure A10 | Dynamic confidence bounds sensitivity graph for economic risks. | 278 |
Figure A11 | Dynamic confidence bounds sensitivity graph for environmental risks. | 278 |
Figure A12 | Dynamic confidence bounds sensitivity graph for political risks. | 279 |
Figure A13 | Disaggregation of the dynamic simulation models for transportation megaprojects. | 283 |
List of Tables
Chapter 2 | ||
Table 2.1 | Basic information of the ETN project. | 18 |
Table 2.2 | The internal stakeholders of the ETN project. | 19 |
Table 2.3 | The external stakeholders of the ETN project. | 21 |
Table 2.4 | Stakeholder’s attitude and influence on ETN Project. | 23 |
Table 2.5 | Project organization of the ETN project. | 23 |
Table 2.6 | Project environment of the ETN Project. | 24 |
Table 2.7 | Original ETN project board governance structure. | 26 |
Table 2.8 | Bridges built to accommodate Edinburgh Tram. | 27 |
Table 2.9 | Disputes and changes in the ETN project. | 29 |
Table 2.10 | Project delivery against key milestones. | 30 |
Table 2.11 | Organizations and groups consulted during the EIA for ETN Line One. | 34 |
Table 2.12 | Specific risks impacting on the project environment. | 38 |
Table 2.13 | Specific technical risks impacting on the social and natural environments. | 40 |
Chapter 3 | ||
Table 3.1 | Relative importance and data transformation in pairwise comparison. | 51 |
Table 3.2 | The average random index. | 54 |
Table 3.3 | Typical stakeholders involved in transport projects. | 60 |
Table 3.4 | A summary of review on social risks cluster in megaprojects. | 62 |
Table 3.5 | A summary of review on technical risks in megaprojects. | 65 |
Table 3.6 | A summary of review on economic risks in megaprojects. | 69 |
Table 3.7 | A summary of review on environmental risks in megaprojects. | 71 |
Table 3.8 | Sources of environmental risks in mega construction projects. | 71 |
Table 3.9 | A summary of review on political risks in megaprojects. | 75 |
Chapter 4 | ||
Table 4.1 | Summary of interviewees’ profile and demography. | 79 |
Table 4.2 | Summary of survey conducted. | 82 |
Table 4.3 | Summary of descriptive results and analysis for the questionnaire survey. | 83 |
Table 4.4 | Respondent’s mean scores of importance. | 86 |
Table 4.5 | Matrix for project objectives with respect to decision goal. | 94 |
Table 4.6 | Comparison matrices for PR with respect to cost, time and quality. | 96 |
Table 4.7 | Pairwise comparison matrix for social risk variables. | 98 |
Table 4.8 | Pairwise comparison matrix for technical risk variables. | 100 |
Table 4.9 | Pairwise comparison matrix for economic risk variables. | 103 |
Table 4.10 | Pairwise comparison matrix for environmental risk variables. | 106 |
Table 4.11 | Pairwise comparison matrix for political risk variables. | 107 |
Table 4.12 | Unweighted super matrix for potential risks. | 111 |
Table 4.13 | Weighted supermatrix for potential risks. | 112 |
Table 4.14 | Final mode ANP decision-making priorities for potential risks cluster. | 113 |
Table 4.15 | Final mode ANP decision-making priorities for social risk sub-cluster. | 114 |
Table 4.16 | Final mode ANP decision-making priorities for technical risk sub-cluster. | 115 |
Table 4.17 | Final mode ANP decision-making priorities for economic risks sub-cluster. | 116 |
Table 4.18 | Final mode ANP decision-making priorities for Environmental Risk sub-cluster. | 117 |
Table 4.19 | Final mode ANP decision-making priorities for political risk variables. | 118 |
Table 4.20 | Deriving priorities for risks ratings. | 120 |
Table 4.21 | Verbal ratings for potential risks. | 120 |
Table 4.22 | Verbal ratings for social risk variables. | 121 |
Table 4.23 | Verbal ratings for technical risk variables. | 121 |
Table 4.24 | Verbal ratings for economic risk variables. | 122 |
Table 4.25 | Verbal ratings for environmental risk variables. | 123 |
Table 4.26 | Verbal ratings for political risk variables. | 123 |
Table 4.27 | Values of CI, RI, CR and inconsistency for all the pairwise comparison matrices. | 124 |
Table 4.28 | Summary of final ANP decision-making priority results for all risks. | 125 |
Chapter 5 | ||
Table 5.1 | Technical uncertainties influence. | 135 |
Table 5.2 | System boundary for social risks system. | 136 |
Table 5.3 | System boundary for technical risks system. | 137 |
Table 5.4 | System boundary for economic risks system. | 138 |
Table 5.5 | System boundary for environmental risks system. | 139 |
Table 5.6 | System boundary for political risks system. | 140 |
Table 5.7 | Stock variables for STEEP models. | 166 |
Table 5.8 | Mathematical equation for the social risks system variables. | 171 |
Table 5.9 | Mathematical equation for the technical risks system variables. | 173 |
Table 5.10 | Mathematical equation for the economic risks system variables. | 176 |
Table 5.11 | Mathematical equation for the environmental risks system variables. | 179 |
Table 5.12 | Mathematical equation for the political risks system variables. | 181 |
Table 5.13 | ANP inputs to the STEEP risk system modelling. | 195 |
Table 5.14 | Summary of the simulation results for the social risks system model. | 202 |
Table 5.15 | Summary of dynamic simulation results for technical risks system model. | 205 |
Table 5.16 | Dynamic simulation results for the economic risks system model. | 208 |
Table 5.17 | Summary of the dynamic simulation results for environmental risks system. | 211 |
Table 5.18 | Dynamic simulation results for the political risks system model. | 215 |
Table 5.19 | One-way analysis of variance: The extent to which steep risks impact on project objectives. | 217 |
Table 5.20 | Data validity on the ETN project. | 220 |
Chapter 6 | ||
Table 6.1 | SDANP procedure for risks reduction in megaprojects. | 228 |
Table 6.2 | Practical guide for using SDANP methodology in megaprojects. | 230 |
Appendices | ||
Table A1 | Tests for building confidence in the integrated SDANP models. | 253 |
Table A2 | Parameters in the STEEP models. | 256 |
Table A3 | Parameter distributions of stock and exogenous system entities for STEEP risks models. | 261 |
Table A4 | Numerical sensitivity test for the social risks parameters. | 263 |
Table A5 | Numerical sensitivity test for the technical risks parameters. | 265 |
Table A6 | Numerical sensitivity test for the economic risks parameters. | 267 |
Table A7 | Numerical sensitivity test for the environmental risks parameters. | 269 |
Table A8 | Numerical sensitivity test for the political risks parameters. | 271 |
Table A9 | The significance of the dynamics simulation models for transportation megaprojects in addressing policy problems. | 285 |
Table C1 | Respondent’s mean scores of importance for project objectives (Po ). | 291 |
Table C2 | Respondent’s mean scores of importance for potential risks (PR1): Social risks. | 297 |
Table C3 | Respondent’s mean scores of importance for potential risks (PR2): Technical risks. | 303 |
Table C4 | Respondent’s mean scores of importance for potential risks (PR3): Economic risks. | 309 |
Table C5 | Respondent’s mean scores of importance for potential risks (PR4): Environmental risks. | 315 |
Table C6 | Respondent’s mean scores of importance for potential risks (PR5): Political risks. | 321 |
List of Exhibits
Chapter 2 | ||
Exhibit 2.1 | Utility diversions for Edinburgh Trams Network construction | 27 |
Exhibit 2.2 | Road interruption due to tram construction in the Edinburgh city centre | 32 |
Exhibit 2.3 | Rework and adverse environmental impacts such as waste | 35 |
Exhibit 2.4 | The impact of bad weather conditions on productivity and construction delay | 36 |
Exhibit 2.5 | Delayed construction process caused by bad weather conditions | 36 |
Exhibit 2.6 | Poor well-being conditions on construction site: A worker was having his lunch in a cold rainy day | 37 |
List of Equations
Chapter 3 | ||
Equation 3.1 | Weighted quantitative score method | 49 |
Equation 3.2 | Pairwise comparison matrix computation | 52 |
Equation 3.3 | Vector normalization | 53 |
Equation 3.4 | Initial eigenvalue computation | 53 |
Equation 3.5 | Maximum eigenvalue computation | 53 |
Equation 3.6 | Computation of value of consistency index | 54 |
Equation 3.7 | Consistency ratio computation | 54 |
Equation 3.8 | Final risk prioritization index | 55 |
Equation 3.9 | Mathematical definition of the integral for stock computation | 58 |
Equation 3.10 | Basic stock computation | 58 |
Chapter 4 | ||
Equation 4.1 | Respondent’s mean scores of importance | 85 |
Equation 4.2 | Priority matrix computation for the project objectives | 93 |
Acknowledgements
This book summarizes a dedicated research funded and conducted under the megaproject management research theme at Heriot-Watt University and in the Scott Sutherland School of Architecture and Built Environment at Robert Gordon University in the United Kingdom. The research was also conducted through collaborative research amongst researchers from 24 European countries inside the COST Action TU1003 MEGAPROJECT (2011–2015), which was funded by the European Cooperation in Science and Technology (COST) and focuses on the effective design and delivery of megaprojects in the European Union. The COST Action on MEGAPROJECT was chaired by Professor Naomi Brookes at the University of Leeds in the United Kingdom.
The authors would like to thank all participants for making time and efforts to support the research through interview and questionnaire survey for data collection from the Edinburgh Tram Network (ETN) project. The authors would also like to thank colleagues at the COST Action TU1003 for their advice and comments on the research into the ETN project. Without their supports, this research cannot be completed.
The research theme on megaproject management at Heriot-Watt University was set up in 2012 and has been strongly supported by the following world renowned experts:
Geoff Baskir, Chair, Aircraft/Airport Compatibility Committee, Transportation Research Board, National Academy of Sciences, USA
Naomi Brookes, Professor of Complex Project Management, University of Leeds, and CEO, Projektlernen, UK
Volker Buscher, Director, Global Digital Business, Arup, UK
John Connaughton, Professor of Sustainable Construction, Head of Construction Management and Engineering, University of Reading, UK
Henry Ergas, Professor of Infrastructure Economics, University of Wollongong, Australia
Stuart Ladds, Head of Property Strategy & Logistics, College of Policing Limited, UK
Heng Li, Chair Professor in Construction Informatics, The Hong Kong Polytechnic University, Hong Kong, China
Edward W. Merrow, Founder and President, Independent Project Analysis, Inc., USA
Stanley G. Mitchell, CEO, Key Facilities Management International, Scotland. Chair, ISO TC 267 Facilities Management Committee
David Mosey, Professor of Law and Director, Centre of Construction Law and Dispute Resolution, King’s College London, UK
John Pike, Chairman, Bellrock Property Services, UK
Rodney Turner, Professor of Project Management, SKEMA Business School, France.
The authors would like to thank the entire publishing team at Emerald. Special thanks to colleagues at Emerald Publishing Limited, including Amy Barson, Senior Content Editor; Carole Caines, Books Production Controller; Nicki Dennis, Publisher; Charlotte Hales, Editorial Assistant; Liron Gilenberg, Cover Designer; Philippa Grand, Executive Publisher; Jen McCall, Publisher; and Kousalya Krishnamoorthy, Project Manager at MPS Limited.
About the Authors
Prince Boateng, PhD, MASCE, AFHEA, is Lecturer in Building Technology & Quantity Surveying in Koforidua Technical University, Ghana. He is a former Lecturer in Construction and Project Management at Robert Gordon University, Aberdeen, the United Kingdom. He is proficient in working with and analysing complex risk data. He uses analytical and system dynamics modelling tools to prioritize and simulate project risks overtime during risks assessment in megaprojects at the construction phase. He has used this expertise in developing innovative risk assessment tool known as SDANP methodology to model and predict project cost and time overruns in many megaprojects in Europe and Africa. Prince’s areas of expertise include risks analysis and modelling with system dynamics and the analytical network process for multi-criteria decision making for the effective megaproject delivery within the European Union and beyond.
Zhen Chen is Lecturer in Construction Management in the Department of Architecture at the University of Strathclyde. He is a former Lecturer in Facilities Management and the founder and leader of Megaproject Management research theme at Heriot-Watt University. He serves at technical committees (Facility Management; Project, Programme and Portfolio Management; and Service Life Planning) at British Standards Institution (BSI), and technical committees (Airport Planning and Operations; and Infrastructure Resilience) at the American Society of Civil Engineers (ASCE). He is a member of the management committee of COST Action TU1003 (The Effective Design and Delivery of Megaprojects in the European Union). He also serves at editorial boards for several international journals at ICE (Engineering Sustainability; Infrastructure Asset Management; Management, Procurement and Law; and Waste and Resource Management) and Elsevier (International Journal of Project Management). He is the Specialty Chief Editor on Construction Management for Frontiers in Built Environment published by EPFL in Switzerland. He is the Associate Editor for Innovative Infrastructure Solutions at Springer and Frontiers in Built Environment at EPFL. He has engaged in more than 30 research projects, worth over £5 million and has authored over 160 publications in construction engineering and management.
Stephen O. Ogunlana, BSc, PhD, is currently the Chair of Construction Project Management at the School of the Built Environment, Heriot-Watt University. Professor Ogunlana has an international reputation for research in the application of system dynamics simulation to construction projects and organizations. He is the author of over 250 scholarly publications in top-tier journals and refereed conferences. He is also the editor of the book Profitable Partnering for Construction Procurement published by Taylor and Francis and Training for Construction Industry Development published by the CIB/AIT and co-editor of Joint Ventures in Construction (Thomas Telford) and Public-Private Partnership in Infrastructure Development — Case Studies from Asia and Europe (Bauhaus Universitat Weimar). His research work has been funded by the Canadian International Development Agency, European Union, Thai National Housing Authority, UNOCAL, Japanese Government, British Council etc. His works on leadership were awarded Emerald Literati Award for two consecutive years (2009 and 2010) for the most outstanding paper in the journal Engineering Construction and Architectural Management. Professor Ogunlana is the joint coordinator of CIB W107 Commission on Construction in Developing Economies and a member of the Editorial Board for over 10 internationally refereed academic journals including Engineering Construction and Architectural Management, the International Journal of Financial Management of Property and Construction, International Journal of Energy Sector Management, International Journal of Construction Management, Journal of Engineering Development and Technology, Surveying and the Built Environment, Civil Engineering Dimensions and Akruti Journal of Infrastructure. He has acted as external examiner for several top universities in the world.
Preface
This book provides technical details on a dynamic systems approach to megaproject risk analysis and simulation, and it is based on the authors’ long-term research into megaproject management, multi-criteria decision making, and system dynamics. For the first time, the authors have attempted to find a technical solution to tackle overruns on cost and time in megaprojects, and this is based on a comprehensive set of risks associated with social, technical, economic, environmental and political (STEEP) issues in megaproject environment and a dynamic systems approach called SDANP. The approach is an integrated use of tools including analytic network process (ANP) and system dynamics (SD) for risks prioritization and simulation.
The new SDANP model is described in this book with a case study on the Edinburgh Tram Network (ETN) project, which was a live case project during the time of the authors’ research into a dynamic systems approach to megaproject risk analysis and simulation. Through this experimental research, the SDANP model has provided interesting results on cost and time overruns with accuracy rates above 80%, respectively, for the ETN project over the time period between 2007 and 2013. The authors expect that this dynamic systems approach to megaproject risk analysis and simulation can be widely tested for the benefits of stakeholders in dealing with cost and time overruns in megaproject development.
Prince Boateng
Zhen Chen
Stephen O. Ogunlana
Foreword
As our journey into the uncertainties of the twenty-first century continues, of one thing we can be sure: megaprojects are viewed as increasingly important in creating solutions to societal problems. Megaprojects will provide the new power plants that will give us with green energy, they will deliver transport systems that work for all without increasing carbon emissions, they will provide us with the integrated hospitals and healthcare that we need and they will even delight us with cultural and sporting events! We remain optimistic that the huge complexities of megaprojects in people, capital and technology can be tamed and we can look forward to feeling the benefits of their successful implementations.
However, at their heart, megaprojects pose a conundrum. Time after time (and despite their apparent benefits) we do not seem to be able to deliver them on time, to budget and actually producing the output functionality that we need. We only have vague ideas why some succeed and, where they fail, we discover worryingly psychological failings in their planning and design. Given their importance in facing twenty-first century challenges, we desperately need to undertake more research to help us deliver megaprojects more effectively and to insure that the results of that research are available to the widest possible population of stakeholders.
It is precisely this gap that Boateng, Chen and Ogunlana have aimed at with the work that they report upon in this book. They take one of the most clearly identified complexities in delivering megaproject, namely risk, and explore new ways of conceptualizing it and dealing with it. They employ a wide range of novel systems dynamics and frameworks to develop an understanding of risk in megaprojects. They provide interesting applications of techniques used elsewhere in simulation to megaprojects. They illustrate their work with an insightful case of the Edinburgh Tram Project, a megaproject which embodies both the huge benefits that megaprojects can bring and the significant issues that inhibit their delivery. Boateng, Chen and Ogunlana are to be congratulated for the zeal with which they have pursued their research objectives and their fervour to share the results of their endeavours with others.
This book provides a valuable addition to the work currently being undertaken by academics and practitioners alike in understanding megaproject design and delivery. It is through such committed work that we really will be able to tame megaprojects and insure that they can reliably deliver the outcomes that society so desperately needs.
Professor Naomi Brookes, PhD DIC
Visiting Professor in Complex Project Management,
University of Leeds
Chair – MEGAPROJECT COST Action
C.E.O. – Projektlernen