Managing megaprojects successfully is very much driven by the project's capacity, competences, and tools to align strategy with risk management. The present silo based approach to projects should be replIn the latest issue of Insight (Megaprojects, issue no. 4, 2013) KPMG Global has gathered experience from megaproject managers around the world. The experience points out a number of challenges, especially relevant in megaprojects. In Denmark we are facing several megaprojects in the coming years – e.g. hospitals, infrastructure - with Fehmarn as the largest project, and railway projects (signal project, light rail system, etc.). We have gathered the most relevant issues seen from a risk-point-of-view.
The long time frame of the megaprojects enhances the uncertainty in budgets, stability from project owners, speci-fication requirements etc. Therefore, it is a major challenge for the megaprojects to be prepared and ready to handle changes and uncertainties on a long term basis.
The management of megaprojects must pay extra attention to the demands for competencies and capacity in managing the projects. Experience shows that the projects should improve in seeing the projects in both a micro and macro perspective, in order to perceive both the short and the long terms, and evaluate the project from an overall perspective as well as in context with the various phases and projects.
Often megaprojects widely affect society, and they are usually partly financed by public funds. Therefore, these projects are managed with exceptionally many stakeholders. That means that an active and effective management of stakeholders is a relevant focus area in a time with large and complex megaprojects. In projects with many stakeholders having various engagements, communication must be re-evaluated and actively utilized.
The most significant risk in the megaprojects might be creating a coherent and homogeneous vision, to support the strategy of the project, and implement this with all contractors and stakeholders. This is further substantiated by the results from the latest Global Construction surveys by KPMG, in which Denmark still focus on risk management with a priority on identifying risks and the relation to the strategy.
Risk management of megaprojects must be much more integrated throughout the project process. There are lessons to be drawn from looking at how other industries have used and implemented an integrated approach to risk management.
On basis of the generally accepted approved frameworks, established by the professional and industrial bodies, and our own experience with risk management across all sectors, KPMG Denmark has developed the concept "Risk Room". The objective with the "Risk Room" is to create a basis for discusion of the requirements and demands that the project has to risk management, based on the present level of risk management and strategy as well as examples and experience from other organisations and sectors.
For further information:
- Insight: Megaprojects KPMG Global Issue no. 4 / 2013 (PDF 2,92 MB)
Global Construction survey 2012
Global Construction survey DK input 2012 (PDF 1.64 MB)