A Large Investment Projects

1090 WordsOct 22, 20155 Pages
Megaprojects are very large investment projects. The US Federal Highway Administration describes megaprojects as major infrastructure projects that cost more than US$1 billion, or projects of a significant cost that attract a high level of public attention or political interest because of substantial direct and indirect impacts on the community, environment, and budgets. Some megaprojects, like Boston 's Big Dig at $15 billion or the Channel tunnel between France and the UK at $10 billion, cost numerous times this minimum definition of a megaproject. Other projects that cost less than $1 billion are sometimes also called megaprojects, it depends on the context, because $500 million project in a medium-sized town may be considered "mega," whereas this would not necessarily be the case for a similar-sized project in a major world city. The risks are substantial in a mega-project. Cost overruns of 50% are common, overruns of 100% not uncommon. Similarly, substantial benefit shortfalls trouble many megaprojects. More and bigger megaprojects are being planned and built despite their poor performance record in terms of costs and benefits Project procurement Management Project procurement involves managing contracting activities – from defining the end product, contract and market analysis, through the tendering process, up to the formulation of contracts, specification of performance standards/ timelines etc., and the management and administration of the product/service after the
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