The Project Management Podcast - Planning and Controlling Megaprojects | Episode 304

https://www.pm-podcast.com/304. This Interview with Frank Parth was recorded at the PMI Global Congress 2014 in Phoenix, Arizona. Multiple independent research efforts are beginning to show a more consistent approach to developing successful megaprojects in the areas of oil/gas, mining, and construction projects than have been used in the past. These megaprojects are characterized by high value (often defined as greater than $1 billion), comparably high benefits, years-long timelines, and correspondingly high risk. While there have been great advances in both project management methodologies and in the tools the project managers have available (such as CAD/CAM, BIM, and advanced project scheduling and budgeting tools), the complexity of these multi-year programs has advanced even more quickly than the tools have. Construction and engineering projects have become more complex and ambitious faster than our ability to manage them. Oil/gas/infrastructure projects now are much longer in duration and far more complex than even ten years ago, with concomitant increased risks and failures. The International Energy Agency estimates that meeting global energy needs will require investing more than $17 trillion by 2030. In this interview Frank Parth (https://www.projectauditors.com) looks at the classical project management approaches that focus on delivering the final product within cost and schedule constraints once the project enters the execution phase. We talk about multiple lines of research that show that the ultimate success of a complex program has very little dependency on how the program is managed once the construction phase begins and far greater dependency on what happens before that phase begins. If a $10 billion dollar refinery runs late and over budget, the failure has started long before the project schedule was created or the engineering/procurement/construction (EPC) process began. All of the serious research in this area shows that the only part of the effort where traditional project management approaches make sense in the later stages, the engineering and EPC stages. Earlier phases take a different approach to ensure success. Furthermore we discuss an overview of current project management practices; current research on megaprojects; development stages for efforts on this scale; and some recommendations.