Primary Author: Mr. J. Michael Devine CCP
Audience Focus: Intermediate
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA
Abstract: Many recent publications support the belief that most extremely large or mega projects [10] consistently overrun original cost and schedule due to Optimism Bias [9] baked in during the planning stages of the projects.
Optimism bias can doom projects to failure due to omitted or unidentified scope, poor or unrealistic initial cost estimates, ill-conceived schedules, or the lack of proper consideration of risks. Also, some are inclined to believe that the facts regarding a project’s most likely cost and risk are simply hidden in order to get initial approval to launch the project. However, I propose that there is another equally viable reason why mega projects fail to deliver on time and on budget. That reason is poor project management. We see it every day.
Audience Focus: Intermediate
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA
Abstract: Many recent publications support the belief that most extremely large or mega projects [10] consistently overrun original cost and schedule due to Optimism Bias [9] baked in during the planning stages of the projects.
Optimism bias can doom projects to failure due to omitted or unidentified scope, poor or unrealistic initial cost estimates, ill-conceived schedules, or the lack of proper consideration of risks. Also, some are inclined to believe that the facts regarding a project’s most likely cost and risk are simply hidden in order to get initial approval to launch the project. However, I propose that there is another equally viable reason why mega projects fail to deliver on time and on budget. That reason is poor project management. We see it every day.