Why megaprojects go wrong: UCL research finds the main causes and solutions for project failure

Academics from The Bartlett School of Construction and Project Management have carried out a systematic literature review of research into the causes of megaproject failure, and outlines what can be done to improve the chances of project success.

The paper -  What Are the Causes and Cures of Poor Megaproject Performance? A Systematic Literature Review and Research Agenda - aims to understand the reasons why megaprojects often run over budget, over schedule, and fail to deliver their intended outcomes. Based on their findings, the research team has developed a research agenda to advance the successful delivery of megaprojects.

To develop their comprehensive review of the research available to date, Dr Juliano Denicol, Professor Andrew Davies and Dr Ilias Krystallis reviewed more than 6000 academic summaries, and analysed 86 papers in full.

Why do megaprojects fail?

The paper - published in Project Management Journal - identifies a number of causes of poor megaproject performance and suggest how they can be avoided.

The study found that no isolated factor was responsible for failure in megaprojects, with a number of interrelated factors contributing equally to poor performance. The paper identifies six themes, which reveal 18 causes of poor performance and 54 solutions:

• Decision-making behaviour
• Strategy, governance and procurement
• Risk and uncertainty
• Leadership and capable teams
• Stakeholder engagement and management
• Supply chain integration and coordination

“We at HS2 were pleased to contribute to what is an impressive and exhaustive piece of research into the world of mega projects, covering both the practical and academic arenas. But what is really crucial is it has concluded on some key themes that those of us who wrestle with these challenges every day, we can apply as a useful guide to help drive success, something that both the profession and wider society will benefit from”.

Mark Thurston, CEO of HS2 Ltd

What are the next steps for megaproject management research?

The review suggests a research agenda with five avenues to advance the successful delivery of megaprojects:

• Designing the system architecture
• Bridging the gap with manufacturing
• Building and leading collaborations
• Engaging institutions and communities
• Decomposing and integrating the supply chain

Lead researcher Dr Juliano Denicol said:

"We have emphasised the solutions rather than problems, in an attempt to shape the academic conversation to a more positive discourse and connect with the needs of senior managers delivering megaprojects."

Professor Andrew Davies, Honorary Professor in the Management of Projects at UCL and Professor of Innovation Management at the University of Sussex, said:

"Despite some great research on optimism bias and inadequate front-end planning, we still don’t know why megaprojects fail to achieve their cost, time and quality objectives. This paper is one of the first studies to unpack what goes on inside the “black box” of megaproject delivery, recognising that successful performance depends on what happens during megaproject planning, execution and handover to operations."

This research was funded by the Project Management Institute (PMI), the leading professional membership organisation for people working in project, programme and portfolio management.

Read What are the causes and cures of poor megaproject performance? A systematic literature review and research agenda, published by Project Management Journal.

About the research team

Dr Juliano Denicol is Lecturer in Project Management at The Bartlett School of Construction and Project Management. His research explores the management of megaprojects through several lenses, emphasising the design of client organisations and
inter-organisational structures.

Professor Andrew Davies is Honorary Professor in the Management of Projects at UCL and RM Phillips Freeman Chair and Professor of Innovation Management at the University of Sussex. His research focuses on the management and organisation of large, complex infrastructure megaprojects.

Dr Ilias Krystallis is Lecturer in Enterprise Management at The Bartlett School of Construction and Project Management. He is interested in the design of structures and processes of decision making under uncertainty.

What are megaprojects?

Megaprojects are large scale, complex construction projects to deliver significant infrastructure projects. These can include transport systems, power plants and aerospace projects, and typically cost over US$1 billion.

Examples of megaprojects include Heathrow Terminal 5, the Thames Tideway tunnel, and Crossrail.

The management of projects

Our research in the management of projects focuses on the contribution that project management can make to address society's broader challenges, such as climate change, the provision of new infrastructure or the application of new technologies, and improving organisational performance.

Why London leads the world at megaprojects

This article for The Bartlett Review 2016 explores how new approaches to major construction works in London have set a model of efficiency for delivering megaprojects on time and on budget.

Media coverage

Crossrail and HS2 were doomed from the start: Academics identify 18 reasons why 'megaprojects' so often fail (Daily Mail, 14 Feb 2020)

Study probes why megaprojects underperform (New Civil Engineer, 14 Feb 2020)

18 Reasons Why Megaprojects Fail and 54 Preventative Solutions (SciTechDaily, 14 Feb 2020)

Researchers pinpoint why megaprojects like HS2 often fail (Engineering and Technology, 14 Feb 2020)

The world's most jaw-dropping megaprojects fail for these reasons (Inverse, 14 Feb 2020)

Industry’s fragmentation has jacked up HS2 cost (Building, 13 Feb 2020)

Se identifican las razones por las que fracasan los megaproyectos en el mundo (El Espectador, 18 Feb 2020)

Academics identify 18 reasons why megaprojects often fail, as well as 54 preventative solutions (Phys.org, 14 Feb 2020)

Why do megaprojects fail (Tribune, 2 Mar 2020)

The trouble with megaprojects (The Boar, 3 Mar 2020)

Coronavirus: what building airports can teach us about how to respond (Inverse, 23 Mar 2020)

Is COVID-19 the Largest Megaproject of Modern History? (Sage Journals Blog, 14 Apr 2020)