1

• Dr. Khalid Hamdi• Eng. Mohamed Taher

Arafa

Mega Infrastructure Projects:

Challenges & Solutions

27 April 2019

PIN:---

Mohamed Taher Arafa27+ years experience, working in Project/Program

Management with well-known Contractors, Developers, Management firms, and Governmental Agencies in Egypt, Qatar, and UAE.B. SC. Civil Engineer - Cairo University 1991M.SC. Civil Engineering – Construction Management Program

–Cairo University 1998Master of Applied Business research SBS 2017DBA candidate SBS

2

About the Speaker

PMP ® : Project Management Professional : PMI : 2008RMP® : Risk Management Professional PMI : 2012ACP® : Agile Certified Practitioner PMI :2017 FACP : APMG-International Facilitation Practitioner - 2014 AVS®: Save-International Associated Value Specialist - 2014 IAM® Certificate in Asset Management , June 2015.CRP® : Certified ROI Professional – ROI Institute, July 2017PMO-CP ®: PMO Global Alliance – Sep 2018 L.A. : ISO 31000 Risk Management systems Lead Auditor – BSI. : 2018Engineering Expert – SOE – UAE Arbitration Center.

3

www.myproject.officena.org

• Founder of www.officena.net• Co-other of (My Project (مشروعي

International Awards:Microsoft® MVP – 2010-2014 Microsoft Office Systems

Best ROI Impact Study 2017-2018 (ROI Institute)

Presentation Outline

Introduction Planning Complexity

Construction Lessons Learned

1 2 3

65

Mega Infrastructure Projects: Challenges & Solutions

Tendering & Contracting

4

6

Challenges

Mega Projects

?Giant Projects

Major Projects

Complex Project

Large Projects

8

Common characteristics of Mega Projects

O Oliomogbe, G., & J Smith, N. (2013). Value in megaprojects. Organization, technology & management in construction: an international journal, 4(Special Issue),

Kardes, I., Ozturk, A., Cavusgil, S. T., & Cavusgil, E. (2013). Managing global megaprojects: Complexity and risk management. International Business Review, 22(6), 905-917.

What does the PMBOK® Says ?

• Programs are not large projects. A very large project may be referred to as a megaproject*

• As a guideline, megaprojects cost US$1billionor more, affect 1 million or more people, and run for years.*

10

PMBOK is a registered Mark of the Project Management institute, Inc.

A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Six Edition, Project Management Institute, Inc., 2017.

• There has been a significant growth inmegaprojects in the past several years,particularly in the areas of infrastructuredevelopment and engineering projects.Multibillion-dollar projects are now common.

11

A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Six Edition, Project Management Institute, Inc., 2017.

The (6Cs’) of Mega Projects

Colossal

Captivating

Costly

Controversial

Complex

Control issues

Why Mega Projects ?

Bornstein, L. (2010). Mega-projects, city-building and community benefits. City, Culture and Society, 1(4), 199-206.

• Are seen as transformative, placing a city on theworld stage and thereby attracting visitors,investment, jobs, and, ultimately, a higher qualityof life for residents.

• They often bring together efforts to redevelop theurban fabric with the promotion of economicdevelopment.

Why Mega Projects ?

The Past and Present of Megaprojects , Project Management Journal , 1 December 2017

Megaprojects can be viewed as some of the most interesting phenomena in social science. They represent the major achievements by collectives to influence the progress and direction of society and the mustering of collective strength to infuse major institutional change.

Indeed, launching a megaproject is a way of getting attention, a way of getting things done. A way of creating dreams and high aspirations.

Planning

The Planning Challenges

• Large Number of Projects at the Same Time

• Large number of Stakeholders

• Complex Project Structures

• Impossible Deadlines!

Common planning issues thatface majority of megaprojects

• Duration and Cost are underestimated• Contingencies are set too low• Changes in project specifications and

designs are not sufficiently taken into account,

!

Van Marrewijk, A., Clegg, S. R., Pitsis, T. S., & Veenswijk, M. (2008). Managing public–private megaprojects: Paradoxes, complexity, and project design. International journal of project management, 26(6), 591-600.

1. Develop an overall Projects Strategy

2. Establish an Enterprise Program Management Office EPMO

3. Use a robust Portfolio Management System

4. Establish Project Management Offices at different levels

5. Use an Electronic Project Tracking System with Dashboards

Handling a large number of Projects at the Same Time

Managing a Large Number of Stakeholders

Client must develop its own Project Management Plan covering:• Integration of the work of the different

stakeholders• Studying the effects of any changes on all

stakeholders , and on Value Creation.

Managing Complex Projects

• Complex Projects should be treated as a Portfolio of Programs, Projects and related technical work

Portfolio

Interface & Integration Testing&Commissioning

Requirement Mgmt

Arch/Civil/Structures & Utilities Track Works Electro-Mechanical

Systems & Rolling Stock

Stations

Line

Depot(s)

--

-

-

Program Manager Technical Manager Technical Manager Technical Manager Technical Manager

-

-

-

-

-

-

-

-

-

-

-

-

Meeting Impossible Deadlines

• Anything is acceptable except not meeting the deadline

• Lock all players in a room till they develop a workable plan

• Consider activities of all stakeholders and their interdependencies

Mega Projects Complexity

PMI’s Pulse of the Profession In-Depth Report: Navigating Complexity , Sep 2013

Complexity in Mega Projects

Brockmann, C., & Girmscheid, G. (2007). Complexity of megaprojects. In CIB World Building Congress: construction for development: 14-17 May 2007, Cape Town International Convention Centre, South Africa (pp. 219-230). CIB.

Complexity in Mega Projects

Brockmann, C., & Girmscheid, G. (2007). Complexity of megaprojects. In CIB World Building Congress: construction for development: 14-17 May 2007, Cape Town International Convention Centre, South Africa (pp. 219-230). CIB.

Priemus, H., Flyvbjerg, B., & van Wee, B. (Eds.). (2008). Decision-making on mega-projects: cost-benefit analysis, planning and innovation. Edward Elgar Publishing.

• Technical ComplexityManageable if . . . Less well manageable if . . .

Robust (overdesign) Less Robust (under design)Proven Technology Innovative Technology

Divisible IndivisibleLoose coupling Tight CouplingMonofunctional Multifunctional

Incremental Implementation Radical Implementation

Priemus, H., Flyvbjerg, B., & van Wee, B. (Eds.). (2008). Decision-making on mega-projects: cost-benefit analysis, planning and innovation. Edward Elgar Publishing.

Social ComplexityManageable if . . .

Less well manageable if . .

Dependence on user preferences

Limited Major

Preferences and aims of commissioning party/users

Stable Dynamic

Blockage Power by Third Party Little Great DealInfluence of Project on social Environment

Limited Major

Misinformation

• Misinformation undermines Parliament’s ability to exercise democratic control.

• The central challenge when defining decision-making processes for mega projects is to create incentives that deliver more reliable information – particularly in the early stages. Priemus, H., Flyvbjerg, B., & van Wee, B. (Eds.). (2008). Decision-making on mega-projects: cost-benefit analysis, planning and innovation. Edward Elgar Publishing.

How Value creation evolves ?

At Shell Oil, Hutchison and Wabeke (2006)

29

Planning and controlling megaprojects (2014) > 2014 PMI Global Congress Proceedings – Phoenix, Arizona, USA

Tendering & Contract Management

Tendering & Contract Management Challenges

• Multiple Contractors & Consultants

• Many Changes and Variations

• Taking the Right Decisions at the Right Time

!

Multiple Contractors and Consultants• Clear Organization chart for the Project

• Develop strong communications management plans

• Keep informal channels of communications open

• Regular Visits by top management the site

Many Changes and Variations

• Robust Change Management System

• Any and All Changes through the System

• Non-traditional negotiation methods

Right Decisions at the Right Time

Right Decision-The Triple Constraint

Scope

Cost Time

Quality Safety

Un-compromised

Right Decision – The Triple Constraint

Scope Time Cost

Cons

trai

nEn

hanc

eA

ccep

t

• Changing contracting processes.

• Increasingly, the contractor works closely with the client in the procurement process to take advantage of discounts through quantity purchases or other special considerations.

• For these projects, the use of internationally recognized standard contract forms is increasing in order to reduce problems and claims during execution.

35

A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Six Edition, Project Management Institute, Inc., 2017.

Construction

• Mobile Scaffolding on Main Roads.

• Use top down approach for Underground construction

• Factory Assembly and On-site installation

Construction in Congested Areas

Lessons

Lessons Learned (1)• The Leaders of Mega Projects must :

– Have strong unwavering vision– Have High determination for Success– Own A positive can-do attitude at all times– Have The Ability to make the right decisions

at the right time– Influence on everyone working on the project– Be bold in negotiations

Lessons Learned (2)• Mega Projects must be managed as a portfolio of

projects, programs and related technical works

• Pay enough attention to Scope Definition , and also scope updates against Value Creation.

• Rigorous value engineering is required at several stages.

• Investigate and evaluate Innovative Design Techniques and construction methods whenever and wherever possible. Use the most suitable technologies not necessarily the latest

Lessons Learned (3)• The client should :

• Ensure that the integrated Project schedule covers all technical disciplines scope, in addition to governance, and logistic requirements, and covers all stakeholders involvement.

• Audit the work of the Engineer and the Project Management Company

• Monitor the site work on a regular basis• Ensure that Comprehensive and rigorous

systemic risk management• Ensure robust collaboration among partners

Lessons Learned (4)

•Vision determines the direction of the project.

•Leadership determines the success of the project.

•Relationships determine the morale of the project.

Everything rises and falls on Leadership

Thank YouQuestions?