Project management lessons learned on the Big Dig, America's biggest megaproject, by a core member responsible for its daily operations
In Megaproject Management, a central member of the Big Dig team reveals the numerous risks, challenges, and accomplishments of the most complex urban infrastructure project in the history of the United States. Drawing on personal experience and interviews with project engineers, executive oversight commission officials, and core managers, the author, a former deputy counsel and risk manager for the Big Dig, develops new insights as she describes the realities of day-to-day management of the project from a project manager's perspective.
The book incorporates both theory and practice and is therefore highly recommended to policymakers, academics, and project management practitioners. Focusing on lessons learned, this insightful coursebook presents the Big Dig as a massive case study in the management of risk, cost, and schedule, particularly the interrelation of technical, legal, political, and social factors. It provides an analysis of the difficulties in managing megaprojects during each phase and over the life span of the project, while delivering useful lessons on why projects go wrong and what can be done to prevent project failure. It also offers new ideas to enhance project management performance and innovation in our global society.
This unique guide:
- Defines megaproject characteristics and frameworks
- Reviews the Big Dig's history, stakeholders, and governance
- Examines the project's management scope, scheduling, and cost management—including project delays and cost overruns
- Analyzes the Big Dig's risk management and quality management
- Reveals how to build a sustainable project through integration and change introduction
Table of Contents:
Author's Perspectives xiii
Acknowledgments xv
Introduction to This Book xvii
Overview xvii
Key Concepts and Objectives xviii
Transparent Frameworks xix
Shared Values xx
Collaborative Partnerships xxi
Pedagogy xxi
Course Structure xxii
Overview of Course Chapters xxiii
References xxvi
1 Introduction to Megaprojects and the Big Dig 1
Introduction 1
Why Study Megaprojects? 2
Projects, Programs, and Portfolios 7
Characteristics of Megaprojects 12
Megaproject Framework 25
Lessons Learned 30
Summary 30
Ethical Considerations 30
Discussion Questions 31
References 32
2 History and Financing of the Big Dig 38
Introduction 38
The Vision 38
Innovation and Problem Solving 42
The Most Important Benefits of the Big Dig 49
The Financing of Megaprojects 54
Public-Private Partnerships 55
Major Sources of Big Dig Funding 67
Big Dig Revenues by Source, Dollar Amount, and Percentage of Total Funding 70
The Real Cost of a Megaproject 70
Lessons Learned 72
Summary 73
Ethical Considerations 74
Discussion Questions 75
References 75
3 Stakeholders 79
Introduction 79
Defining the Stakeholder 80
Stakeholder Principles 81
Project Stakeholder Framework 82
Stakeholder Management on the Big Dig 87
Conflicts of Interest among Internal Stakeholders 90
Multiple Roles of Project Owners and Sponsors 91
Multiple Roles of the Management Consultant (Consultant) 93
Stakeholder Concerns and Mitigation Tools 94
Corporate Responsibility Initiatives 97
Stakeholder Participation 97
Key Lessons Learned about Stakeholder Management on the Big Dig 101
Summary 106
Ethical Considerations 106
Discussion Questions 106
References 107
4 Governance 110
Introduction 110
What Is Governance? 111
Project Governance 113
Multiple Governance Structures as a Dynamic Regime 115
Developing a Megaproject Governance Framework 117
Projects as Temporary Institutional Structures 117
Governance Framework Development: Five-Step Process 118
Governance as Decision Making 130
The Challenges of Implementing Project Governance Frameworks 137
Lessons from Practice: The United Kingdom's T5 New Product Delivery Project 142
Lessons Learned 143
Summary 146
Ethical Considerations 146
Discussion Questions 147
References 148
5 Megaproject Scope Management 152
Introduction 152
1. Scope and the "Triple Constraint" 153
2. Defining the Scope on a Megaproject 154
3. The Project Organization: Scope Controls Program 157
4. The Technical Scope Statement (TSS) 162
5. Project Work Breakdown Structure (WBS) 162
6. Scope Evolution and Scope Creep 166
7. The Specification Management Plan 169
8. Scope Change and Verification 173
9. The Top Ten Scope Control Tools 174
Lessons Learned 179
Summary 180
Ethical Considerations 181
Discussion Questions 181
References 182
6 Schedule 185
Introduction 185
Schedule-Driven projects 185
The Big Dig's Timeline: A Long and Winding Road 186
Major Phases of Project Delivery 191
Perceptions of Stakeholders on Approaches to Reduce Highway Project Completion Time 193
Impact of Design Development on Schedule 194
Schedule and Cost Integration 196
Project Delays 202
The Big Dig Lessons from Practice: Calculating Delay Costs—Bottom Up 205
Incentives as Tactics for Keeping on Schedule 206
Lessons Learned 209
Summary 210
Ethical Considerations 210
Discussion Questions 211
References 211
7 Cost History 214
Introduction 214
Megaproject Cost Estimation Research 214
Cost Growth History on the Big Dig 216
The Big Dig Cost Construction Summary 229
Lessons Learned 229
Summary 231
Ethical Considerations 232
Discussion Questions 232
References 232
8 Cost Management 235
Introduction 235
1. The Project Budget Process and Cost History 236
2. Cost Centers 236
3. Cost Management Team 236
4. Data Resources 240
5. Cost Control Tools 241
6. Strategies to Address Cost Escalation 257
Lessons Learned 258
Summary 260
Ethical Considerations 260
Discussion Questions 261
References 262
9 Megaprojects and Megarisk 264
The Role of Risk Management on Megaprojects 264
Risk Management Framework: A Shared Vision of Risk 266
The Development of a Risk Model 267
The Broad Context of Risk for the Big Dig 276
Risk Management Organization 278
Risk Strategy 280
Lessons Learned 308
Summary 310
Ethical Considerations 311
Discussion Questions 311
References 313
10 Quality Management 316
Introduction 316
What Is Quality? 317Elements of Quality Management 319
Continuous Improvement 324
Quality Programs at the Big Dig 325
Lessons Learned 341
Summary 344
Ethical Considerations 344
Discussion Questions 344
References 346
11 Building a Sustainable Project through Integration and Change 349
Introduction 349
Project Integration versus Collaboration 350
The Relationship between Project Integration and Change Management 351
Integration of Project Delivery 354
Integrated Project Organization 357
Innovative Process and Program Integration and Sustainability at the Big Dig 358
Structuring the Change Process 382
Lessons Learned 384
Summary 386
Ethical Considerations 386
Discussion Questions 386
References 387
12 Leadership 391
Introduction 391
What Is Leadership? 392
Characteristics of Effective Leadership 394
Leadership Styles 395
Leadership for the Five Stages of Program Management 398
Ten Important Lessons on Leadership from the Big Dig 399
Summary 410
Ethical Considerations 410
Discussion Questions 411
References 412
Appendix 415
Glossary 419
Abbreviations and Acronyms 453
Index 457
