Table of Contents

Foreword JAMES B. PORTER, JR. vii Acknowledgments xi Introduction Why Megaprojects Fail So Often: Seven Key Mistakes 1 Part One Understanding the Projects Chapter 1 Megaprojects-Creators and Destroyers of Capital 11 Chapter 2 Data and Methods 23 Chapter 3 Project Outcomes 37 Part Two Making the Right Business Decisions Before You Commit Chapter 4 The Opportunity-Shaping Process 53 Chapter 5 Devising the Shaping Strategy 91 Chapter 6 Megaprojects and Co rporate Governance 123 Part Three Making the Right Project Decisions Chapter 7 Basic Data Are Basic: Get Them Right Before You Start to Design 137 Chapter 8 Megaproject Teams: People Do Projects 159 Chapter 9 Organizing Megaproject Teams 185 Chapter 10 Project Defi nition: Getting the Front End Right 199 Chapter 11 Contracting 253 Chapter 12 The Control of Execution Risk 305 Chapter 13 Focus on Success 333 Glossary and Abbreviations 341 Notes 343 Index 347

About the Author

Edward W. Merrow is the founder and CEO of Independent Project Analysis, Inc., the world's leading consulting firm evaluating billion-dollar megaprojects of national and international oil, chemical, pharmaceutical, and major mineral companies, and benchmarking their cost, schedules, safety, startup, and operational performance. Before founding IPA in 1987, Merrow was a research analyst and later the director of the Energy Policy Program at the RAND Corporation.