29 Jul WHAT ARE THE TYPICAL CAUSES OF PROJECTS THAT ARE OVER BUDGET?
The Central Artery Tunnel Project famously known
as the Big Dig was the largest project ever undertaken in the United
States, and for a project of this type, in the world. This week you will
review the tremendous challenges of managing costs on the Big Dig and
the underlying reasons why megaprojects commonly are underestimated and
over budget. Respond to the following questions using your class
readings, outside literature and class lectures and discussions.
1. What was the root cause of the cost overruns on the Big Dig? How
could these overruns have been prevented? (Chapter 7, Question 1 of MM)
2. What are the typical causes of projects that are over budget? Were
the causes of cost overruns on the Big Dig typical of most projects,
unique to large-scale megaprojects, or unique only to the Big Dig?
(Chapter 7, Question 2 of MM)
3. What are your options once you identify the root causes of your
budget overruns if you are midway through a project? (Chapter 7,
Question 4 of MM)
4. How would you incentivize project managers, consultants and
contractors to deliver a project on schedule and budget? (Chapter 7,
Question 6 of MM)
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