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An essential guide to the structure, dynamics, and management of construction megaprojects Advanced Construction Project Management is a comprehensive resource that covers the myriad aspects of implementing a megaproject from a contractor's perspective. With many years' experience of managing construction megaprojects, the author provides an in-depth exploration of the structure, dynamics and management of these demanding projects. In addition, the book gives all stakeholders a clear understanding of the complexity of megaprojects and offers contractors the insight and essential tools needed for achieving results. As the trend to plan and implement ever-larger projects looks likely to continue into the future, the need for a guide to understand the challenges of managing a megaproject couldn't be greater. Comprehensive in scope, the book explores the theoretical background, economics, complexity, phases, strategic planning, engineering, coordination, and common challenges of megaprojects. The book also provides the tools for managing stakeholder integration. This important book: * Describes the structure, dynamics and management of megaprojects * Explores the management activities required and examines the appropriate tools for the management of megaprojects * Includes tools for stakeholder integration * Provides an advanced understanding of construction management concepts Written for managers, project managers and engineers, and cost consultants, Advanced Construction Project Management covers, in one complete volume, the information needed to lead a successful project.

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Table of Contents

Cover

Advanced Construction Project Management

Copyright

Dedication

1 Introduction

1.1 Let me Start with a Story

1.2 Status of Megaprojects

1.3 Purpose

1.4 Methodological Approach

1.5 Readership

1.6 Structure of the Text

2 Theoretical Background

2.1 Definitions

2.2 Cognitive Maps

2.3 Descriptive Management Research

2.4 Guiding Theories

3 Advanced Construction Project Management

3.1 Construction

3.2 Management

4 Characteristics of Megaprojects

4.1 Project Typology

4.2 Complexity of Megaprojects

5 International Construction Management

5.1 International Construction Joint Ventures

5.2 Global Contractors

5.3 Goals for International Construction Joint Ventures

5.4 Success Factors for Megaprojects

5.5 Key Personnel

5.6 Expatriate Life

6 Megaproject Phases and Activity Groups

6.1 Project Idea and Project Development

6.2 Design Phases

6.3 Market Contacts, Bidding Period, and Contract Negotiations

6.4 Construction and Maintenance

7 Descriptive Megaproject Management Model

7.1 Management Functions

7.2 Management Functions and Complexity

7.3 Combining Management and Complexity

8 Engineering Management

8.1 Design and Design Management

8.2 Project Management

8.3 Production Planning

8.4 Site Installation

8.5 Construction

9 Management Functions

9.1 Planning

9.2 Controlling

9.3 Organizing

9.4 Directing

9.5 Staffing

10 Meta‐Functions

10.1 Decision‐Making

10.2 Communication

10.3 Coordination

10.4 Learning

11 Basic Functions

11.1 Project Knowledge

11.2 Trust

11.3 Sensemaking

11.4 Commitment

12 Cultural Management

13 Innovation in Construction Megaprojects

13.1 Aspects of Innovation

13.2 The Innovation Process

13.3 Progress Functions

14 All in All, What Does It Mean?

References

Index

End User License Agreement

List of Tables

Chapter 1

Table 1.1 Value of this book to different readers.

Table 1.2 Priorities for different groups of readers.

Chapter 3

Table 3.1 Characteristics of contract (construction) vs. exchange goods.

Chapter 4

Table 4.1 Characteristics of systematic orders.

Table 4.2 Existing combinations of dimensions.

Chapter 5

Table 5.1 Benefits and risks of goals in ICJVs.

Chapter 6

Table 6.1 The 10 top international contractors, 2018.

Table 6.2 Management roles and activity groups.

Chapter 7

Table 7.1 Relationships between management and complexity.

Chapter 8

Table 8.1 Aspects of engineering tasks and functions.

Chapter 9

Table 9.1 Characteristics of strategic and operative planning in megaprojects...

Table 9.2 Agreement to using the informal organization.

Chapter 10

Table 10.1 Communication methods used in R&D projects.

Table 10.2 Coordination in orchestras and megaprojects.

Table 10.3 Sources and ways of learning.

Table 10.4 Differences between external and internal knowledge.

Chapter 11

Table 11.1 Prisoner's dilemma.

Chapter 12

Table 12.1 Values for Hofstede's dimensions.

Chapter 13

Table 13.1 Product innovations, BangNa Expressway.

Table 13.2 Construction technology innovations, BangNa Expressway.

Table 13.3 Innovations in the technical organization, BangNa Expressway.

Table 13.4 Innovations in the management organization, BangNa Expressway.

Table 13.5 Innovations in the legal organization, BangNa Expressway.

Table 13.6 Innovation process models.

Table 13.7 Research cases.

Table 13.8 Differences between learning, progress, and experience curves.

Table 13.9 Research possibilities for the four expressway projects.

Table 13.10 Characteristics of the four expressway projects.

Table 13.11 Quantity comparison.

Table 13.12 Comparative costs of the four expressway projects.

Table 13.13 Selected costs in percent of total project costs by size.

Table 13.14 Data for the evaluation of different ways of learning.

List of Illustrations

Chapter 1

Figure 1.1 The world in iconic buildings and statues.

Figure 1.2 The Elbphilharmonie in Hamburg.

Figure 1.3 The Great Pyramid of Giza in Egypt.

Figure 1.4 Global urbanization trends (United Nations 2014).

Chapter 2

Figure 2.1 Luhmannian systems theory and megaprojects.

Chapter 3

Figure 3.1 General management model.

Chapter 4

Figure 4.1 Conceptualization of construction projects.

Figure 4.2 R‐projects with generic resources.

Figure 4.3 I‐projects with generic resources.

Figure 4.4 S‐projects with specific resources.

Figure 4.5 Typology of construction projects.

Figure 4.6 Expansion path for contractors.

Figure 4.7 Complexity of a system.

Figure 4.8 Concept of construction project complexity.

Figure 4.9 Relationship between chaos and complexity in megaprojects.

Figure 4.10 Complexity development (project management).

Figure 4.11 Complexity development (design).

Chapter 5

Figure 5.1 International construction joint venture.

Figure 5.2 Competencies of global contractors.

Figure 5.3 Goal configurations.

Figure 5.4 Goal formulation in ICJVs.

Figure 5.5 Goal system.

Figure 5.6 Success factors for the design of megaprojects.

Figure 5.7 Required qualifications for key personnel.

Chapter 6

Figure 6.1 Basic contractual options for the owner.

Figure 6.2 Megaproject phases for a design/build project.

Figure 6.3 Design phases and alignment gates for design/bid/build contracts....

Figure 6.4 Construction activity groups.

Figure 6.5 Team formation process.

Figure 6.6 Tunnel‐boring machine.

Figure 6.7 Mastering and stabilization activity groups.

Figure 6.8 Reduction of task, social, and cultural complexities.

Figure 6.9 Course of task complexity.

Figure 6.10 Course of social complexity.

Figure 6.11 Course of cultural complexity.

Figure 6.12 Course of cognitive complexity.

Figure 6.13 Course of operative complexity.

Chapter 7

Figure 7.1 Descriptive management model for megaprojects.

Figure 7.2 Management functions and task complexity.

Figure 7.3 Management functions and social complexity.

Figure 7.4 Management functions and cultural complexity.

Figure 7.5 Management functions and cognitive complexity.

Figure 7.6 Management functions and operative complexity.

Chapter 8

Figure 8.1 Complex engineering tasks.

Figure 8.2 Pont de Millau by Foster + Partners.

Figure 8.3 Example of a design schedule.

Figure 8.4 Additional manhours for innovation in design budget.

Figure 8.5 Design options for an elevated expressway.

Figure 8.6 Project management process groups.

Figure 8.7 Deming circle.

Figure 8.8 Staff origin for international construction joint ventures.

Figure 8.9 HR management activities.

Figure 8.10 Information and resulting situations.

Figure 8.11 Risk levels.

Figure 8.12 Risk management process.

Figure 8.13 Identified stakeholders on the first level for a megaproject in ...

Figure 8.14 Organization chart with contract manager.

Figure 8.15 Cost and time relationship for constant resources.

Figure 8.16 Substitutional production function.

Figure 8.17 Limitational production function.

Figure 8.18 Limitational production function for the BangNa Expressway.

Figure 8.19 Alignment of 11 partial plans for production planning.

Figure 8.20 Profitability of high investments.

Figure 8.21 Precast yard for the BangNa Expressway in BangPo.

Figure 8.22 Workflow for segment production.

Figure 8.23 Complete rebar cage with D6 molds.

Figure 8.24 Production line for D6 segments.

Figure 8.25 Aerial view of the precast yard in BangPo.

Figure 8.26 Segmental construction with an underslung girder.

Chapter 9

Figure 9.1 Management functions in the descriptive management model for mega...

Figure 9.2 Planning and controlling over the project duration.

Figure 9.3 SWOT analysis for planning.

Figure 9.4 Developing a new solution for a plan.

Figure 9.5 Analytic framework for planning.

Figure 9.6 Summary of plans for megaprojects.

Figure 9.7 Controlling system.

Figure 9.8 Earned value management.

Figure 9.9 Cognitive map for project controlling.

Figure 9.10 Culture and preferred organizational structure.

Figure 9.11 Functional organization for a metro.

Figure 9.12 Functional organization for an expressway.

Figure 9.13 Functional organization for a rail project.

Figure 9.14 Matrix organization on the third organizational level.

Figure 9.15 Delegation of tasks in an ICJV.

Figure 9.16 Cultural structure.

Figure 9.17 Success of rules.

Figure 9.18 Cognitive map for organizing.

Figure 9.19 Managerial grid from Blake and Mouton.

Figure 9.20 Leadership in ICJVs.

Figure 9.21 Influences on leadership effectivity.

Figure 9.22 Cognitive map for directing.

Figure 9.23 Staffing.

Chapter 10

Figure 10.3 Meta‐functions in the descriptive management model for megaproje...

Figure 10.1 Management functions as discreet variables.

Figure 10.2 Meta‐functions as continuous variables.

Figure 10.4 Classical and NIE decision‐making models.

Figure 10.5 Cognitive map of decision‐making.

Figure 10.6 Decision process according to Cyert and March (1992).

Figure 10.7 Encoder/decoder model of communication.

Figure 10.8 Communication barriers in megaprojects.

Figure 10.9 Noise in megaproject communication.

Figure 10.10 Organizing communication in a megaproject.

Figure 10.11 Information flow and content.

Figure 10.12 Information loss in a hierarchy.

Figure 10.13 Cognitive map for communication.

Figure 10.14 Coordination methods.

Figure 10.15 Barriers to coordination.

Figure 10.16 Cognitive map of coordination.

Figure 10.17 Model of knowledge creation.

Figure 10.18 Progress curve as manifestation of repetitive learning.

Chapter 11

Figure 11.1 Basic functions in the descriptive management model for megaproj...

Figure 11.2 Development and influences on project knowledge.

Figure 11.3 Decision‐making and project knowledge.

Figure 11.4 Necessitated and face‐to‐face trust.

Figure 11.5 Cognitive map for trust.

Figure 11.6 Sensemaking through communication.

Figure 11.7 Cognitive map of sensemaking.

Figure 11.8 High‐performance teams.

Figure 11.9 Commitment to the parent company and ICJV in case of a hidden ag...

Figure 11.10 Cognitive map of commitment.

Chapter 12

Figure 12.1 Cultural dimensions in the descriptive management model for mega...

Figure 12.2 Comparison of cultural values.

Figure 12.3 Influence of cultural dimensions on management functions.

Figure 12.4 Cultural analysis of a Thai/German ICJV.

Chapter 13

Figure 13.1 Innovation transforming the cognitive map for megaprojects.

Figure 13.2 Increased output due to innovation.

Figure 13.3 Technology space and technology frontier.

Figure 13.4 Innovation process.

Figure 13.5 Comparison between progress and learning curves.

Figure 13.6 Different types of progress curves discussed in the literature....

Figure 13.7 Schedule for the four expressway projects.

Figure 13.8 Comparison D3 overhead girder (left) and D& underslung girder (r...

Figure 13.9 Progress curve for four expressway projects in Bangkok, Thailand...

Guide

Cover Page

Title Page

Copyright

Dedication

Table of Contents

Begin Reading

References

Index

WILEY END USER LICENSE AGREEMENT

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Advanced Construction Project Management

The Complexity of Megaprojects

Christian Brockmann

Hochschule BremenBremen, Germany

 

 

 

 

 

 

 

This edition first published 2021

© 2021 John Wiley & Sons Ltd

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Library of Congress Cataloging‐in‐Publication Data

Names: Brockmann, Christian, 1954- author.

Title: Advanced construction project management : the complexity of megaprojects /

      Christian Brockmann, Hochschule Bremen, Bremen, Germany.

Description: Hoboken, NJ, USA : Wiley-Blackwell, 2021. | Includes

      bibliographical references and index.

Identifiers: LCCN 2020020092 (print) | LCCN 2020020093 (ebook) | ISBN

      9781119554769 (hardback) | ISBN 9781119554745 (adobe pdf) | ISBN

      9781119554752 (epub)

Subjects: LCSH: Engineering--Management. | Building--Superintendence.

Classification: LCC TA190 .B75 2020 (print) | LCC TA190 (ebook) | DDC

      624.068--dc23

LC record available at https://lccn.loc.gov/2020020092

LC ebook record available at https://lccn.loc.gov/2020020093

Cover image: © Kyle Garrity/EyeEm/Getty Images

Cover design by Wiley

To those who strive to close the gap from man to man

By viewing culture as a gift and not a hassle;

To those who love to build a bridge from place to place

For mankind, culture, place and space go hand in hand.

1Introduction

Construction megaprojects capture our imagination. They are the most visible and most lasting products of human ingenuity. Humankind has erected iconic buildings and statues across time in all parts of the world. Most of them were megaprojects at the time of construction. Although the examples shown in Figure 1.1 are in black and white, most readers will be able to recognize them. The chosen examples include monuments from the East to the West:

Sydney Opera House (Sydney, Australia, 1973) is the best‐known building in Australia

Akashi Kaikyo Bridge (Kobe, Japan, 1998) is the longest spanning bridge in the world

Oriental Pearl Tower (Shanghai, China, 1994) has a unique shape and is 468 m high

Taj Mahal (Agra, India, 1653) is a masterpiece of Muslim architecture

Burj Khalifa (Dubai, UAE, 2008) is the tallest building in the world

Kremlin (Moscow, Russia, 1561); the St. Basil's Cathedral is a fine example of Russian Orthodox architecture

Pyramids of Giza (Cairo, Egypt, 2560 BCE) are some of the oldest and most massive structures in the world

Hagia Sophia (Istanbul, Turkey, 537) was built as a Byzantine church, and remodeled as a mosque after 1453

Eiffel Tower (Paris, France, 1889) is a representative structure built with wrought iron

The Statue of Liberty (New York, USA, 1786) is a symbol of and dedication to liberty

Machu Picchu (Peru, fifteenth century) is a city built by the Incas

The Moai statues (Easter Island, Chile, after 1200) are spiritual statues

The list is anything but exhaustive since I have omitted civil structures such as tunnels (Gotthard Base Tunnel, Switzerland), dams (Hoover Dam, USA; Three Gorges Dam, China), or roads (New Silk Road, Asia, Africa, and Europe) because it is not easy to depict such structures. No products from Airbus, Apple, Gucci, JP Morgan Chase, or Porsche can boast of the same imaginative power that these structures emanate.

Awe and attraction are not the only feelings we develop toward megaprojects. Many of them have met with outright rejection during planning and execution. Not everyone appreciates spending billions for a single project, and not everyone makes use of the same structures. Some people might enjoy a football match at the Wembley Stadium (completed 2007), while others prefer a visit to the Oslo Opera House (completed 2008). Nobody likes a nuclear power plant in the backyard or a highway in front of the house. All megaprojects have positive and negative aspects; individuals can choose their own perspectives. It is not the task of civil engineers to make decisions for the implementation of megaprojects; this, in many countries, is a democratic procedure. However, each civil engineer must decide for himself whether to engage in a megaproject or not; this is his civil duty.

Figure 1.1 The world in iconic buildings and statues.

A case in point is the Elbphilharmonie in Hamburg designed by Swiss architects Herzog and de Meuron (Figure 1.2). Its scope changed considerably over time, construction costs increased more than tenfold, and construction time exceeded the initial plan by years. Reports in German and international publications were scathing during construction. Immediately after opening, journalists heaped praise over praise on the building. Founded on an historic storehouse in the port of Hamburg, the peaks of its roof soar into the sky. Hamburg became a wealthy city through trade, and its music transcends the borders of our world (Brahms was born in Hamburg). We can read this and much more into iconic buildings. The number of visitors at the Elbphilharmonie in 2017 equaled that of the Sistine Chapel in the Vatican in the same year. The experience is two‐sided: not all criticisms of megaprojects turn to praise. However, many megaprojects are not only the dreams of civil engineers but of humankind.

Literature on megaprojects often concentrates on the front‐end, stressing how important governance structures are. Construction itself seems a mere nuisance. This turns the reality upside down and I will call it the fallacy of retrospectivity, because authors often interpret earlier events based on information that becomes available much later. Construction without a plan for the front‐end is not advisable. Planning without construction might be fun but not worth the expenditure. We should try to avoid decisive mistakes during planning and construction.

Planning and construction are like the two blades of scissors: they work together. One without the other is useless, and both are equally important. Overestimating the front‐end is a serious mistake; underestimating it will also prove catastrophic in megaprojects. Given the abundant front‐end literature, this book is for those who can hold a shovel and grasp complex ideas at the same time – people with a strong foundation in construction and ideas soaring into the skies just like the roof of the Elbphilharmonie.

Figure 1.2 The Elbphilharmonie in Hamburg.

Source: sirius3001/123RF.

1.1 Let me Start with a Story

Imagine you meet Choi from South Korea at an international contractors' conference. He was the project director of the Burj Khalifa, the tallest building in the world with a height of 828 m. You see him discussing something with an American, Alex, who was the former project manager for a petrochemical plant in Taiwan. Also present is Khaled, responsible for the construction of Masdar City, projected to achieve zero carbon emissions while housing a population of 50 000. Khaled is from Syria and has worked in the United Arab Emirates for the past 15 years. Since you are standing next to them, you cannot help following their discussion. As it continues, you become more and more intrigued.

ALEX:

…so awfully proud when we opened the plant on time; it was pure exultation.

CHOI (LAUGHING):

Yeah, yeah, I remember our celebration when we reached 828 m, it filled us with pride and we were cheering. After all the headaches we faced over the years, we finally finished our task. I guess it doesn't matter whether you break a record in height or in length or no record at all. The pride comes more from all the difficulties we had to overcome.

ALEX:

Of course, I also remember all those sleepless nights, especially at the beginning when everything was chaos. It was a hard fight, finding solutions for all the technical and the management challenges. All the different stakeholders with all their different goals drove me mad at times. My boss was only concerned about the profit. There was no visit without him asking about profit, from the beginning to the end of the project. I can tell you we had a very tight budget. It was definitely a most demanding time. But man, I tell you, we did it! Yes, we did it!

CHOI:

I agree, it was demanding in my case as well. However, sometimes I had the feeling I went bungee jumping every day and my company even paid me well for it; this was the adrenaline pumping from morning to evening. I simply cannot understand people who are bored by their work.

KHALED:

I wish I could join your jubilation but I'm stuck in the middle of my project, and some days, I just try to keep my head above the water. I'm fighting all day long to get some structure and routine installed. There are thousands of loose ends, and I have no clear idea where to start and how to proceed. Of course, when my boss comes, I can't show my doubts; in my culture, you can never show weakness. Certainly, I'm never bored; I've reached my limits. To me, this is the bloody mother of all projects.

CHOI:

…the adrenaline?

KHALED:

…surely keeps pumping. If I would just know that I would somehow reach our goals. This insecurity when making decisions and this ambiguity in so many problems… I sometimes feel like I'm lost in the desert. There is not enough information, no clarity. Everything affects everything else, nothing is straightforward. There are so many iterative steps…

ALEX:

I can understand and empathize with you. It does take a lot of patience and perseverance. Choi, do you also remember those endless days when nothing seemed to move?

CHOI:

…and some days when I didn't want to leave the bed in the morning, just keep hiding under the blanket.

KHALED:

Masdar City is not my first megaproject, of course. I've been involved in so many of them, I can't keep track. In the Middle East, there are so many of them. Yet, every megaproject is so very different. We are always facing new challenges, and there is no one recipe for success.

CHOI:

I believe the most important characteristic for the top management is the ability to learn, to learn very quickly.

KHALED:

I did not start my project; there was another project director in the beginning. He had a big ego and told everybody about his experience. He impressed our bosses by his self‐assurance and he was quite a bigmouth. I believe he actually expected a sure path to success. He tried to do everything the same way as in his last project, which had been very successful. Only in our case the situation, the tasks, and the problems were quite different. He never understood that he had to find new ways; that he had to learn. It ended in disaster.

ALEX:

I have seen that on many projects. Project leaders who did not understand the importance of learning. I mean, how can you think to use the same old tools for a completely new challenge? That's so stupid.

CHOI:

Of course, it is easier to apply a tested and proven approach…

ALEX:

…did you try it in your project?

CHOI:

Yes, in the very beginning, but we soon found out that it does not work. We hit roadblocks every single step. It took time to find a way bypassing them. This is what I call learning, finding a way.

KHALED:

In the Arab world, we like hierarchies. Therefore, when my bosses promoted me to the position of project director, they expected me to control everything. I went crazy working 16 hours every day, and still the unsolved problems kept piling up. I found out that I had to share the burden with colleagues. An old company friend was the construction manager and we have been working together for many years. We also come from the same area in Syria. I shifted some of the burden and decision‐making to him. That was easy, as I trusted him.

ALEX:

In megaprojects, hierarchies simply don't work. You have to delegate work, to share the decision‐making. We have been working with lean management in the USA for quite some time, something we invented, I guess. There is too much dynamism in megaprojects for a strict hierarchy. Agility is what we need.

CHOI:

…If you are not able to trust, I do not know how you can manage a megaproject…

ALEX:

…yeah, you even have to trust complete strangers, since there are always new colleagues in every project. It's easy to trust someone you've known for many years, but I have problems with newcomers. However, there is no way out of it; the workload is too high.

CHOI:

…Sharing the burden, delegating the work, and trusting others to perform well – they are indispensable. It is also tough because, in the end, I got the blame when something did not work out. My bosses kept to the traditional hierarchical thinking.

ALEX:

…We were a team of six who made all the big decisions; everyone took smaller decisions by themselves. If you would ask me to describe how we worked, I would answer that all six of us were exploring different paths and venues, many of them leading to dead ends, maybe even most of them. Then, suddenly something works and you keep pushing ahead until there is another dead end and you have to take a turn again. Most of the time, our paths were divergent, and sometimes, they became convergent for a bit, only to drift apart again. Yet, after a while, a solution emerged that seemed promising. The disappointments became fewer and the successes more frequent. Indeed, a structure appeared, and we kept pushing it. I wish we could have known this structure in the beginning!

CHOI:

As you said before, there is only chaos in the beginning. In the end, this is the fun part, to keep working on the chaos until it becomes structured and manageable. That is so very satisfying.

KHALED:

I know this from other projects, but in my case, I can't see the end, I don't see the structure. We still do not have enough information, and when I have to make a decision, I feel quite inadequately prepared.

CHOI:

You make a decision and, half a year later, someone will criticize you based on the information accessible at that time. They don't take into account the difference in information. It is so easy to predict the result of a football game after its end! Yes, we face all the problems we discussed, but, in the end, megaprojects can give you more joy and satisfaction than any other work that I can think of. They fill you with the pride of an astonishing accomplishment. In the end, I am a world champion. I have built the tallest structure in the world!

ALEX:

Yeah, that's true!

KHALED:

I am not so sure at the moment…

The Korean name “Choi” means pinnacle. The name “Alex” is short for Alexander, and we know Alexander the Great for his conquests. Finally, “Khaled” means immortal. Choi, Alex, and Khaled are purely fictional characters, and they were in no way involved in the construction of the Burj Khalifa, a petrochemical plant in Taiwan, or Masdar City. This makes the conversation fictional as well. However, its content is very pertinent to megaproject management in general. I have also taken some liberty to play with cultural stereotypes.

1.2 Status of Megaprojects

Megaprojects are a fact in our daily lives, and they are part of our history. The Egyptians built the Great Pyramid of Giza almost 4700 years ago, and it was definitely a megaproject (Figure 1.3).

Six of the seven wonders of the ancient world were megaprojects at the time of construction (Great Pyramid at Giza, Hanging Gardens of Babylon, Temple of Artemis at Ephesus, Mausoleum at Halicarnassus, Colossus of Rhodes, and Lighthouse of Alexandria). Both admiration and big challenges are associated with ancient and recent megaprojects as the introductory discussion among the managers of Burj Khalifa, the petrochemical plant, and Masdar City illustrates.

Figure 1.3 The Great Pyramid of Giza in Egypt.

Source: sculpies/Shutterstock.com.

In most countries around the world, there is at least one megaproject under construction. In many countries, daily newspapers report on several megaprojects on a regular basis. Flyvbjerg et al. (2003, p. 1) wrote, “Wherever we go in the world, we are confronted with a new political and physical animal: the multibillion‐dollar mega infrastructure project.” While I can accept the described widespread occurrence of megaprojects nowadays, I cannot support the label “new.” Further historical examples of megaprojects are the Suez or the Panama Canals, the cathedrals of the Middle Ages, the Pont du Gard, or the Colosseum in Rome.

Greiman (2013, p. 11) stresses the growing importance of megaprojects: “Megaprojects are growing at a fast pace, not only in the United States but in all corners of the world.” The main drivers of the demand for megaprojects are trends toward urbanization and globalization. In 1950, 30% of the world's population resided in urban areas; in 2014, this percentage increased to 54%; and by 2050, it is projected to reach 66%. Together with a growing world population, this means that approximately 7 billion people will live in existing or new cities by 2050 (Figure 1.4). A main facilitator of this is the relative abundance of capital to finance more megaprojects than ever before.

This massive movement from rural to urban areas entails construction demands: new cities or new quarters in cities (living, servicing, manufacturing, entertaining, and worshiping), new infrastructure (roads, rail, and utilities), and new logistical hubs (stations, ports, and airports). Globalization requires connections between hubs and shifts facilities from one country to another (e.g. manufacturing or servicing). There are also truly global megaprojects such as China's New Silk Road (Belt and Road Initiative).

Flyvbjerg et al. (2003, p. 1) characterize megaprojects as “animals.” Grün (2004a) speaks of the “taming of the unruly” using a similar terminology. Grün (2004b) clarifies what “taming of the unruly” means by calling megaprojects the “giants among projects” and by concluding “big projects – big problems,” which leads to the consequence of giant projects as gigantic problems.

What might look terrifying to academics might not scare practitioners in the same way. However, this is not true for megaprojects. Alex, Choi, and Khaled discussed big problems, chaos, and just keeping their heads above the water. The threat of drowning is definitely frightening!

Figure 1.4 Global urbanization trends (United Nations 2014).

Source: United Nations (eds.) (2014). World Urbanization Prospects, 2014 Revision, Highlights. New York, United Nations.

Desjardins (2017) provides a list of the seven largest projects under construction in 2017:

1. Al Maktoum International Airport (UAE, 82 billion USD): Once the airport is completed, it will be the largest in the world.

2. South–to–North Water Transfer Project (China, 78 billion USD): Three canals transporting water from the Yangtze River to areas in the north.

3. California High‐Speed Rail (USA, 70 billion USD): A high‐speed rail link from Sacramento to San Diego, passing through San Francisco and Los Angeles.

4. DubaiLand (UAE, 64 billion USD): Theme park, hotels, and malls.

5. London Crossrail Project (UK, 23 billion USD): Expansion of London's underground transportation system.

6. Beijing Daxing International Airport (China, 13 billion USD): The second international airport in Beijing.

7. Jubail II (Saudi Arabia, 11 billion USD). Jubail Industrial City with industrial plants, an oil refinery, and a desalination plant.

This list is most likely incomplete, since nobody collects information about megaprojects systematically. However, these projects show what civil engineers do: planning and constructing the built environment. The built and the natural environments have a common border. When we expand the built environment, the natural environment will suffer. There are trade‐offs to pay while establishing the borderline; it would be naïve to admire the size and grandeur of megaprojects without thinking about their impact on the natural environment.

A case in point is the California High‐Speed Rail. It has the positive ecological impact of reducing CO2 emissions, and it will destroy certain biospheres. It has a political impact as business executives and the Democratic Party support the project in general. Farmers and the Republican Party would rather spend the money on irrigation systems with another set of ecological impacts. Sourcing for megaprojects is global. Tariffs imposed by the Trump administration (e.g. 25% on imported steel) increased the costs for the project considerably. The federal administration has renounced funding on the project. We find that megaprojects trigger ecological, economical, judicial, political, and social impacts.

In sum, megaprojects are part of our history; they have become more prevalent in our times and cause gigantic problems. It is also evident that the “taming of the unruly” continues, which implies that we have not solved the problem of megaproject management. We need to expand and sharpen the tools and approaches of project and construction management for application in megaprojects. This calls for advancing construction project management.

1.3 Purpose

The main problem that managers and engineers are facing is an overwhelming complexity combined with the singularity of a megaproject (Grün 2004b). The singularity of megaprojects implies that previous methods and tools from experience will not provide the best solution for the new project. Using tried and tested approaches will lead to suboptimal results or even outright failure. Very few buildings or civil engineering structures are the same. However, there are degrees of singularity ranging from rather small to very large. This statement must be confusing to a linguist because “singular” describes something that only exists once. The same holds true for “unique.” However, degrees of singularity arise when we evaluate different aspects. A bridge might be very long but of limited height. Such a bridge is less singular than one which is a just a bit shorter but much higher. These are just two aspects; however, many aspects are pertinent for the description of megaprojects. Very large singularity characterizes most megaprojects. Civil engineers must choose from billions of parts and combine millions of them; the possible combinations are countless. The “parts” not only relate to the technical aspects of a project but also to social and cultural ones. For each project, we need to develop a special understanding and approach. On a higher level, this book is therefore about complexity management at the limits of human understanding – about taming the unruly.

We also need to analyze separately the configuration of all involved stakeholders with their different values and goals on the one hand and the available technical and managerial solutions for every megaproject on the other hand. An experienced project manager describes the situation at the start of a megaproject in the following way:

Beginning of a megaproject = (quote) “But what happens in the start of these projects is that you suddenly have to throw a medium to large company together with no procedures, no processes, no understanding, and no trust, and you have to throw it into being as an operational organization from day one. And so, you have a situation where nobody really knows what the other person is doing, why they are doing it, how they are doing it, and even if they should be doing it.”

Thomas, Australian project manager

Thomas led the project to a successful end. From the quote, we learn about the size of the project by referring to a medium or large company. The project manager and his team needed to realize a turnover of more than 700 million USD within the first year. A volume of 700 million USD per year characterizes a company among the top 10 contractors in most countries around the globe. While these top 10 contractors had many years to grow, the megaproject needs to be “an operational unit from day one” without having an organization. This describes pure chaos. Because of the singularity, nobody knows exactly what to do, and because of the complexity, learning to know what to do is not easy.

I can summarize the purpose of this book in a question: What do we need to do in a megaproject to get from a start where nobody knows what to do to a successful end? This is what I want to explain.

1.4 Methodological Approach

I have worked for more than 20 years as a practitioner in construction and another 20 years as an academic at universities. As practitioner, I was involved in megaprojects in Denmark, Thailand, Qatar, and Egypt. As an academic, I have researched and taught on megaprojects in Germany, USA, UK, Thailand, Vietnam, and Myanmar. Combining these perspectives, I can only follow Mintzberg (2009) to describe management as a practice. All our knowledge about managing megaprojects is rooted in the knowledge of practitioners.

Thus, I take a descriptive approach. My data derives from direct experience, participant observation, formal and informal interviews, as well as project documents of all kinds. As a project manager for the Bang Na expressway in Thailand, the largest bridge in the world, I managed the project from the beginning almost to the end. We found a way from universal chaos to a rather well‐structured performance. What we did not have was time for reflection or for explanation, and thus for organizing and canonizing our experience. Becoming an academic gave me this opportunity. I stopped practicing and started theorizing. What I have learned from this personal experience is that academics are well equipped to structure knowledge from empirical data. What does not work in management writing is to come to conclusions by cognitive deduction; such a normative approach assumes management to be a science, which it is not.

Academic writing aims to be precise based on clear definitions and causal links. Watzlawick et al. (1967) ascribe these attributes to what they term “digital communication.” Academics refer to research by others through referencing, thus building theory. Many believe academic language can be objective by refraining from any personal allusions. The personal “I” is then avoided by using the passive voice (“it can be concluded…”), referring to a collective (“we found…”), or by abstracts (“one can deduct…”). As an academic, I feel this rather obscures the source – and, as a practitioner, I dislike this style.

Discussions among practitioners often take the form of storytelling. Stories not only convey content but also emotions and morals, attributes of what Watzlawick et al. call “analog communication.” Stories are lacking in precision but have more reach. In this book, I will freely mix the two modes of digital and analog communication. A purist might not like this approach, but I feel that I have no other choice, as I aim to address practitioners as well as academics.

Readers with academic inclinations will find further elaborations on methodology in Chapter 2 (theoretical background). Other readers might want to skip that chapter.

When I read academic books, I am often not sure what precisely the author is talking about. I find that definitions are missing. Therefore, I will introduce definitions formally and highlight them in the text.

Introducing definitions = (def.) Definitions are indicated in this way. Typically, I will create definitions that mostly apply to this book. My definitions will be nominal – that is, name‐giving definitions. Names and nominal definitions are context‐sensitive.

Sometimes, I will refer to other authors or people that I have interviewed by quoting them directly. On the one hand, I will do this when authors have phrased their idea in a way that seems perfect to me. On the other hand, I believe that quotes from practitioners provide authenticity and are the raw data for many of my explanations and expressed views. Quotes also have a special format.

Direct quotations = (quote) “Most of the time indirect quotations are better suited for writing because direct ones are embedded in a different context. However, sometimes a quote is just perfect. Direct quotations must name the source.”

Source

Practitioners rely on stories by using analog communication. From an academic point of view, stories provide only anecdotal evidence, that is, evidence that we cannot trust academically. Geertz (1973) introduced the term “thick description” to ethnographic methodology. People in megaprojects form a very specific “tribe,” an ethnographic unit. Following Geertz, a description of megaprojects requires the use of stories or observations. I will introduce them formally as follows:

Observations = (obs.) Observations are stories that provide a thick description. As all stories, they are subjective. However, they might and should be exemplary and give a thick description.

1.5 Readership

In 1995, I was flying business class from Frankfurt to Bangkok during the night. There were more flight attendants than passengers, and we enjoyed all imaginable comforts. I should have slept well. Alas, I did not sleep at all! The next day was to be my first working day as a project manager for a megaproject, my first day with a new construction company, and my first day in Asia. I could not turn my thoughts away from the question of what it means to manage a megaproject in a multicultural environment. Back home in Germany, I had met with engineers and managers with international experience from a number of megaprojects on all continents. They could not answer my questions on how to manage a megaproject. Their knowledge was implicit. At that time, I dearly wished I had a book that explained megaproject construction management in some detail.

Such a book does not exist even today. There are a number of authors researching and describing the owner's perspective with a specific focus on the front‐end of megaprojects. These books are of little help to contractors executing megaprojects. This lack is surprising, since there are considerably more engineers and managers working on the contractor's side than on the owner's, and they deal with very different issues. On the Qatar Integrated Railway Project, approximately 1000 employees work directly for the owner while 5000 work for contractors, managing approximately 50 000 workers.

The following groups of readers will benefit from reading the book in its entirety or in parts.

1.5.1 Managers and Engineers Working for Construction Companies

Managers and engineers working for construction companies form the main audience for whom I write this book; they will find explicit knowledge on megaproject construction management. The bulk of knowledge originates from my experience formed by looking over the shoulders of peers on past projects. At the moment, knowledge about megaproject management is mostly implicit and handed over in projects. Existing codified knowledge, such as that laid out in the Project Management Body of Knowledge (PMBOK 2017), only scratches the surface of what is required for megaproject management. Documenting and discussing the implicit knowledge of project participants allow for the description of advanced construction project management and open it for critical discussion.

1.5.2 Owners of Megaprojects

In order to shape and control megaprojects effectively, owners must understand how contractors spend the largest amount of their investment. The biggest risks materialize during construction, even if we can trace their root causes to the front‐end. Planning and execution work together like the two blades of scissors. This book – with its focus on execution – requires knowledge of the front‐end as its counterpart, and the opposite is true as well. The success of a project depends on both planning and constructing.

1.5.3 Designers of Megaprojects

Megaprojects are most often civil engineering projects where product and process design are closely interlinked. Design optimization requires the consideration of construction processes to achieve cost efficiency and buildability. The design of the Sydney Opera House caused many problems during its construction; it was very difficult to implement. In my opinion, the breathtaking structure justifies the 16‐fold cost explosion. However, this is not true for the majority of megaprojects with problematic designs. Designers must understand the repercussions of their decisions from the end of the project. This is especially true for design/build projects where product planning overlaps with process planning and execution.

1.5.4 Project Managers and Quantity Surveyors Working for the Owner

Project managers (PM) and quantity surveyors (QS) are heavily involved in planning and controlling all processes of megaprojects. They are an integral part of the implementation processes. A deep understanding of the construction phase is indispensable for them.

1.5.5 Managers and Engineers of Large Civil Engineering Projects

Megaprojects act as magnifying glasses for general construction project management. Because of their complexity, few problems remain hidden. Each problem might (and often does) bear heavy consequences, which would not manifest in smaller projects. Lessons learned from megaprojects will provide managers and engineers of smaller projects with the foresight to avoid unaccustomed pitfalls.

1.5.6 Lecturers and Students

Megaprojects are eye‐catching and frequently discussed in the press. This generates high interest among students. After completing introductory courses in project or construction management, students can deepen their understanding of these topics while dreaming of their futures. Lecturers will need to prepare for this demand. I have taught courses on megaproject management at Stanford University (USA), University of Reading (UK), in an executive master program of the Asian Institute of Technology in Vietnam and Myanmar, as well as at my own university, the University of Applied Sciences Bremen in Germany. These optional courses always found wide interest among students.

The structure of this book is not like a textbook. However, at the center is a management model, and I will discuss the elements of the model in sequence. This allows for easy adaptation at the university level.

1.5.7 Academe

Academic interest in megaprojects is large while often focusing on policy implications (macro‐view). To some researchers, the micro‐view of contractors might be of interest as it allows understanding complexity. While the theoretical concepts and the research methodology in this book are academic, some of the language is not scientific (cf. the discussion at the introduction). One practitioner at a premier academic conference summed up his impression about academics by remarking, “You people talk funny.” Well, this book on megaprojects intends to give sound and practical help to practitioners. Academics, in turn, might find the walk and talk funny at times. Those who are willing to put up with this funny talk will find new fields for promising research.

Table 1.1 summarizes the value of the book to the different groups of readers.

1.6 Structure of the Text

Chapter 2 (titled ‘Theoretical Background’) develops the theoretical background that forms the foundation for all the following chapters. As an academic, I need such a foundation to have a clear understanding of my assumptions. Values and a view of the world always generate assumptions. Spelling out the assumptions allows readers to check and compare them with their own views. It also permits a discussion of the validity of different views and values. From teaching practitioners in Asia, I know that I hold a Western view of the world that Asians cannot accept in its entirety. However, the data used in this book come from the East as well as the West. Practitioners and students might want to skip this chapter. Academics might want to read it and will certainly find points to disagree with.

Table 1.1 Value of this book to different readers.

Practitioners

Academe

Managers/engineers in megaprojects

Core readership

Owners of megaprojects

Core readership

PM/QS supporting owners

Highly beneficial

Designers of megaprojects

Very beneficial

Managers/engineers of large projects

Beneficial

Managers/engineers of small projects

Of interest

International students

Of high interest

Professors and lecturers

Helpful

Chapter 3 (titled “Advanced Construction Project Management”) tries to explain the components of the book title. First, it introduces some basic definitions and the required knowledge to go on reading an advanced book. Next, it looks at construction as an industry with certain idiosyncrasies. This explains my belief that we need not only project management but also, more specifically, construction project management. Moreover, the chapter dwells on how I view management. There are so many books on management with so many different views that it seems indispensable to take a stance.

Chapter 4 (titled “Characteristics of Megaprojects”) provides further definitions on projects and complexity to minimize the ambiguity of the text. It also expounds a typology of projects that allows separating megaprojects from others. Finally, it discusses the construct of complexity. This construct is key to understanding and managing megaprojects. Again, academics might find it interesting, and practitioners as well as students less so. If this is true, then a word of warning is necessary: one can manage a megaproject without referring to complexity, but not to its full potential, because the understanding would be lacking.

Chapter 5 (titled “International Construction Management”) places megaprojects in the context of the international construction industry and discusses constraints on the management approach imposed by this project‐based industry. International or national construction joint ventures usually implement megaprojects, but not exclusively. In fact, very few contractors are strong enough to execute a megaproject single‐handedly. This chapter is not essential for academics or practitioners, although both will benefit. For students, this is a must‐read.

Chapter 6 (titled “Megaproject Phases and Activity Groups”) develops a sequence of phases in megaprojects from first conception to operation. It touches on the activities that precede the signing of a contract. While execution of works starts with the signature, many decisions made earlier impact the execution. These decisions form expectations and restrictions. It will also become clear that the front‐end and execution of works are mutually interdependent. There is no one‐sided sequential impact from the front‐end to later stages. I believe that this chapter will be beneficial to all groups of readers.

Table 1.2 Priorities for different groups of readers.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Contractors in megaprojects

For all

+

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

For all

Contractors in general

+

+++

++

+

++

+++

+++

++

++

++

+

+++

Owners of megaprojects

+

++

+++

+++

+++

+++

+++

+++

+++

+++

+++

++

Designer, PM, and QS in megaprojects

+

+

++

+

++

+++

+++

++

+++

++

++

+++

Students, lecturers

++

++

+++

+++

+++

+++

+++

+++

+++

+++

+++

+++

Academics

+++

+

+++

+

++

+++

++

++

++

++

+

+++

Chapter 7 (titled “Descriptive Megaproject Management Model”) introduces the model that forms the backbone of the book. It serves to describe the purpose of the model as well as the importance of all elements and their interactions. It is a synopsis of what follows later. When using this book as a textbook, this and the following chapters are essential. The contents of this chapter will help practitioners manage megaprojects better. The same holds true for Chapters.

Chapter 8 (titled “Engineering Management”) advances the civil engineering knowledge required for megaproject management from the basic courses taught in most universities. The knowledge pertains to design and design management, project management, production planning, site installation, and managing construction.

Chapter 9 (titled “Management Functions”) places the often‐discussed activities of planning, organizing, staffing, directing, and controlling in the context of megaprojects. These activities form the core of knowledge in business administration. Unfortunately, most managers and engineers in megaprojects have had little exposure to these thoughts. It becomes necessary to repeat and adjust the management functions to the environment of megaprojects. Managers perform at least some of these functions every day in ever‐changing sequences and with ever‐shifting attention.

Chapter 10 (titled “Meta‐Functions”) introduces the activities of decision‐making, communication, coordination, and learning, which are going on continuously, sometimes in the foreground and sometimes in the background. As Watzlawick et al. (1967) said of communication: “You cannot not communicate.” The reasons for presenting these functions are the same as for the management functions: managers and engineers have had little exposure to them, and we need to adjust them to the environment of megaprojects.

Chapter 11 (titled “Basic Functions”) continues with the explanation of project knowledge, trust, sense‐making, and commitment. It stresses on the importance of factors that managers often overlook. Yet, without the right amount and the right mix of basic functions, megaprojects are doomed to fail.

Chapter 12 (titled “Cultural Management”) takes a somewhat fresh look at cultural management. Most experienced megaproject managers see cultural diversity not as a problem but as an indispensable component for success. The chapter describes a process that allows maximizing the positive and minimizing the negative aspects of cultural diversity. By analyzing culture, we can also become better at distinguishing between behavior that is culturally determined or a personality trait.

Chapter 13 (titled “Innovation in Construction Megaprojects”) focuses on an important dynamic factor. The singularity of megaprojects makes innovation a necessity. In megaprojects, we often use not only cutting‐edge technology but also new approaches to management. While I believe this chapter to be beneficial to all readers, I feel it might be of specific interest to academics.

Chapter 14 (titled “All in All, What Does it Mean?”) provides a conclusion from a different perspective: What constitutes advanced construction management with regard to megaprojects? What is all the fuss about?

Table 1.2 summarizes the priorities for different groups of readers.

2Theoretical Background

In this book, I will mix logic and myth, data and stories. Both, logic and myth have their own rationality. While academic professionals prefer basing their conclusions on data, construction professionals often use stories to explain and provide leadership. Data are more reliable and able to cut through a thicket of obscure networks of factual relationships to expose causality; however, anyone who understands data from a complex social environment as objective is plainly naïve. Data are also sometimes limited in reach. Stories are rich in content, albeit sometimes purely subjective, i.e. meaningful to only one (deranged?) person. The pervasiveness of stories in the construction industry – small or large – must impress anyone who has encountered it. To disregard stories means to refuse understanding. A bridge between data and stories are “thick descriptions” (Geertz 1973). Thick descriptions filter contextual data (versus raw data) from stories.

Two philosophical ontologies are hidden behind the juxtaposition of data and stories: the objective external world governed by natural laws (Bacon 1620) and the socially constructed world (Berkeley 1710, esse est percipi). Instead of taking one of these exclusive positions, I prefer to follow Popper's Three World Theory (Popper and Eccles 1977). According to this view, there exists a World 1 of physical objects (external world), a World 2 of psychological states (internal world with thoughts, emotions, and impressions), and World 3 (intersubjective knowledge composed of theories, artifacts, myths, and religions). These three worlds are interrelated and influence each other in different ways. I believe that we must concentrate on World 3, especially when researching management, as it contains both relevant data and stories.

2.1 Definitions

We learn our everyday language by trial and error during the different stages of our socialization. In schools and universities, we learn a more professional use of specific terms. However, these terms often lack codification or acceptance of any existing codification. This might lead to misunderstandings, especially when different professional languages mix. In construction projects, this could be business and engineering language. Accordingly, we need definitions to formulate our thoughts more precisely.

In philosophy, we distinguish between