Cost Overruns in Hydrocarbon Megaprojects: A Critical Review and Implications for Research
MetadataShow full item record
Cost overruns are prevalent in hydrocarbon (oil and gas) megaprojects. A recent report indicates that 64% of ongoing megaprojects globally are facing cost overruns. Despite their increasing occurrence, there has been limited published research in the mainstream literature that has specifically examined why and how they occur. Consequently, suggestions regarding how to constructively address cost overruns in hydrocarbon megaprojects are scant. To better understand the causal nature of cost overruns in hydrocarbon megaprojects, this article provides a critical review of the extant literature. Findings from the research indicate that complex interactions between project characteristics, people, technology, and structure and culture contribute to cost overruns occurring. As a result, it is suggested that chaos theory can be used to explain how cost overruns arise in hydrocarbon megaprojects. This article provides a reference point for engendering future research in this pervasive and fertile area.
Showing items related by title, author, creator and subject.
Olaniran, O.; Love, P.; Edwards, D.; Olatunji, Oluwole; Matthews, Jane (2017)Cost overruns are a recurrent problem in hydrocarbon (oil and gas) megaprojects. An understanding of why and how they occur is needed if they are to be mitigated; such knowledge can provide managers with the foundations ...
Mega-project engineering-management processes: pre-planning phase evaluation for construction and miningAlbishri, Abdulaziz Ali M (2015)Mega-projects internationally continue to experience time and cost overruns. Addressing the pre-planning phase has been assessed as a key requirement. This research-project presents two KSA mega-project resources case-studies ...
Love, Peter; Sing, Michael; Wang, Xiangyu; Irani, Z.; Thwala, D. (2014)Transportation infrastructure projects are prone to cost and schedule overruns. At the time of contract award, a construction contingency budget is often used to accommodate for unplanned events such as scope changes. ...