Cost Control in Mega Projects Using the Delphi Method

Abstract

A major driver to project success is the ability to manage the project cost effectively. Despite agreement among scholars and practitioners on the importance of managing the project cost, major projects continue to experience excessive cost overruns. The purpose of this paper is to investigate the issue of project cost control in major power transmission projects, and to understand the reasons behind cost overrun. The author used a Delphi method to identify problems of controlling the project cost, suggests solutions to overcome these problems, and identifies lessons learned. The study used a three-round semistructured questionnaire with two different project teams to compare and validate findings from one project team to another. Key findings from the study helped to shed some light on the complexity of the learning process itself, and to understand why lessons learned are not truly learned and mistakes are repeated from past to future projects. The paper concludes with specific practices and a set of recommendations that should be implemented by project teams to help in managing the cost of mega projects.