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(PM-1202) Economy, Efficiency, and Effectiveness of Capital Projects

Primary Author: Dr Alexia A. Nalewaik, CCE
Audience Focus: Advanced
Application Type: Research
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Capital projects require specialized management, in order to address the cost overruns, delays, and failures with which such projects are associated. The need is greater than ever for careful oversight, especially for projects funded by multiple sources.

Researchers have introduced metrics (such as key performance indicators and critical success factors) for use in capital program evaluation. However, these have shortcomings, as the metrics must both reflect the uniqueness of each project and be adapted as the project progresses through its lifecycle. Audit is commonly a requirement on capital projects, yet current approaches to performance audit are variable, and no appropriate oversight, standards, or guidance exist.

This paper will explore elements of performance audit, and begin to address a real-world approach for capital projects. A flexible and portable methodology for appropriate capital program review could enable continuous improvement while addressing stakeholder expectations of audit. Further, the methodology may also be applied in non-construction industries such as information technology and manufacturing, and in endeavors such as major event planning.