Mega Projects Procurement Problems

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mega-projectS procurement problems

April 27, 2014

April 27, 2014

Introduction

In the world of mega-projects it is next to impossible to find a reference to a project that was well planned from the beginning and did not encounter any mega-sized problems during procurement management or in the management of just about any other part of the project. There are several reasons for this. First, the procurement processes are treated as an administrative function rather than as an important part of successfully managing a project. Second, the plan procurement process is almost without fail severely lacking, and this normally trickles into the next processes and phases of procurement management compounding the initial problems. What this really says is that the problems encountered in procurement for mega projects are directly related to how the organization in charge of the project views the tasks associated with procurement management as “the main source of procurement problems is institutional” (Priemus, Flyvbjerg, & Bert, 2008, p. 217).

This paper will discuss the many problems can arise from not treating procurement management as part of a successful project management strategy, this extends into the improper planning and conduction of project procurements. In addition, it will discuss how improper handling of the plan procurement process can affect the entirety of the procurement management efforts. In order to illustrate these points, this paper will provide examples of mega projects and where they went wrong. This paper will also cite works which provide examples, strategy and key factors in successfully managing mega projects.

The View of Procurement

Many organizations view procurement as an administrative function provided by someone on the outside of the project team and therefore not part of project management. While it is true that most organizations do not give...