Chaos Theory: Implications for Cost Overrun Research in Hydrocarbon Megaprojects

AbstractCost 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...

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Bibliographic Details
Published in:Journal of construction engineering and management 2017-02, Vol.143 (2)
Main Authors: Olaniran, O. J, Love, P. E. D, Edwards, D. J, Olatunji, O, Matthews, J
Format: Article
Language:English
Subjects:
Case Studies
Case Study
Chaos theory
Communities
Construction engineering
Dynamical systems
Foundations
Hydrocarbons
Management
Natural gas
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Summary:AbstractCost 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.
ISSN:0733-9364
1943-7862
DOI:10.1061/(ASCE)CO.1943-7862.0001227