Risk Management for Construction of a Mega Project in Kuwait

Abstract

<p>Mega construction projects are extremely large-scale investment projects that typically cost more than one billion dollars, requiring resources that run into millions of man hours, with numerous stakeholders with an extraordinary amount of interlink. Megaprojects take five years or more to complete and generate high public attention, generates multiple social impact and environmental impact, and high investments by governments. These factors introduce complexities and other unclear risks upon execution. Historical data shows very poor performance for megaprojects. In particular they are often over-budgeted and/or behind schedule and, once finished, they deliver less benefits than originally planned. ‘Megaprojects’ is a concept of growing importance in Kuwait’s construction industry nowadays and is a globally connected business environment. This concept requires closer examination as a result of the expansion of global networks, increasing collaboration among numerous partners and the complexity of managing such projects. Despite the existing research in megaprojects, it is still unclear what risks are associated with these types of projects and which project characteristics promote the delivery of successful megaprojects. It is critical to examine the risks associated with implementation and to identify the factors that contribute to success of megaprojects. This research aims to identifying and assessing essential risks variables associated with construction of megaproject in Kuwait and in developing strategies to manage and mitigate them.</p>