Olaniran, O J; Love, P E D; Edwards, D J; Olatunji, O and Matthews, J (2017) Chaos theory: Implications for cost overrun research in hydrocarbon megaprojects. Journal of Construction Engineering and Management, 143(2): 05016020, ISSN 0733-9364
Abstract
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 to develop techniques to reduce and contain their negative impacts on a project's performance. This paper examines the nature of cost overruns in hydrocarbon megaprojects using the theoretical lens of chaos theory. The underlying principles of chaos theory are reviewed and its research implications for examining cost overruns identified. By viewing megaprojects as chaotic or dynamic systems, the industry and research community may be better positioned to develop innovative solutions to mitigate cost overrun occurrence.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | chaos theory; cost and schedule; cost overruns; hydrocarbon projects; megaprojects |
| Index terms: | chaos theory, foundations, oil and gas, cost overrun, megaproject, manager |
| Subjects: | practitioner, mathematical modelling, financial and cost management, strategic project management, structural engineering, industry analysis |
| Topics: | Research Practice, Project Management, Engineering Principles, Cost Management, Roles and Professions |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here