A megaproject is a highly complex, large-scale investment project with multiple partners and stakeholders that often costs $1 billion or more and takes years to build. Recent megaprojects often exceed $10 billion. Unfortunately, many megaprojects encounter disputes or even fail by going over budget, failing to meet deadlines and schedule, and not meeting financial metrics and production goals. Some of the numerous challenges facing megaprojects that can negatively impact their success include:
- Numerous stakeholders with competing interests
- Unrealistically optimistic estimates and schedules
- Poor execution from planning through design and construction
- Incorrect and incomplete design
- Unstable management structure and staffing challenges
- Inadequate processes and controls in place to manage schedule, costs, and scope change
- Poor risk management
- Inflation and supply chain issues
- Geopolitical unrest
- Regulatory and host country community issues
These challenges can lead to schedule delays, increased costs, material shortages, productivity impacts, and scope changes, among other problems. If these issues are not addressed as the project progresses, they can in turn lead to costly claims, disputes, and litigation or arbitration.
Interface Consulting has unique experience throughout the megaproject lifecycle, from project advisory and risk analysis and management to construction management, scheduling, claims and dispute services, and expert testimony. Our consultants understand the complexities inherent in megaprojects and can assist clients with their needs by:
- Providing the proper analysis, estimation, and evaluation of baseline schedules and risks at the early stages of megaprojects to minimize negative impacts and outcomes
- Monitoring the project’s progress, key performance indicators, and forward-looking metrics that often foretell future problems
- Preparing strategies and conducting analyses to assist management with periodically or continuously verifying that plans are being implemented, goals achieved, and deadlines met
- Analyzing, preparing, and opining on construction claim matters such as damages/quantum, schedule delays, design changes, and labor productivity loss
- Providing expert testimony in state and federal courts or in arbitration proceedings around the world