Building Sustainable Megaprojects: Lessons from the Big Dig and Other Complex Megaprojects

2014 PMI SILICON VALLEY CHAPTER ANNUAL SYMPOSIUM AUDACIOUS UNDERTAKINGS: MEGA- PROJECTS AND PROGRAMS

Virginia A. Greiman Professor of Megaprojects and Planning Boston University

Copyright © 2013 Virginia A. Greiman What is a Megaproject? Any project of $1 billion or more in size, or projects of a significant cost that attract a high level of public attention or political interest because of substantial direct and indirect impacts on the community, environment, and state budgets. (Federal Highway Administration)

“Initiatives that are physical, very expensive, and public" (Altshuler 2003).

Long Life

Substantial Interface Management and Systems Complexity

Extensive Public Scrutiny

Ambiguity and Uncertainty

Large Scale Policy Making and Quality of Life Issues

Complex Organizational and Governance Structures

“Measuring the success of a megaproject is not linear. There are twists and turns not only in terms of engineering and the emergence of new technology, … but in the moving target of pubic expectations.”

Anthony Flint, Atlantic Cities.com, September 18, 2013 What is Project Success?

Being on Time and Budget?

Meeting Goals?

Achieving Sustainability?

Realizing the holistic benefits of a project and the anticipated return on this investment that demonstrates the value added in the long term.

The Planning of a Megaproject must be different if a highway agency expects to achieve success. Project leaders and the management team must do more than just manage a project; they must manage a “public journey.”

Richard Capka, former federal highway administrator and CEO/executive director of the Massachusetts Turnpike Authority (Capka 2004)

Design Development Delay

Lack of Knowledge

Political Infighting and Inherent Conflicts

Weak Governance

Canary Wharf Terminal One of the five £10m tunneling machines

The Independent, 21 September 2014 Independent Safety Report

On 26 April, The Observer newspaper reported details of a leaked internal report, compiled for the Crossrail contractors by an independent safety consultancy. The report was claimed to indicate poor industrial relations over safety issues and that workers were "too scared to report injuries for fear of being sacked".

Boffer, Daniel (26 April 2014). "Crossrail managers accused of 'culture of spying and fear‘”, The Observer, London

Puget Sound Business Journal, September 18, 2014, Seattle Cloud Computing: Megaprojects in Cyberspace

“While I am glad that the toll payers are finally able to cross the new eastern span of the Bay Bridge, it is important that we examine the problems that caused the construction of the new span to be 10 years late and $5 billion over budget,” Creating legislation that creates greater accountability at Caltrans, and improves the management of future projects, will be a top priority of mine during the 2014 legislative session.” Senator DeSaulnier, California Housing and Transportation Committee Chair, October 30, 2013 California $68 Billion High Speed Rail

California high-speed rail will connect the mega-regions of the state, contribute to economic development and a cleaner environment, create jobs and preserve agricultural and protected lands. By 2029, the system will run from San Francisco to the Los Angeles basin in under three hours at speeds capable of over 200 miles per hour. Legal Uncertainty

Citizens for California High Speed Rail Accountability (CCHSRA) cautioned that a newly certified environmental document covering Fresno to Bakersfield will have serious ramifications if implemented (CCHSRA May 8, 2014).

“There are more cows than people [in Kings County],and people take care of these cows,”

- Testimony of Diane Friend on behalf of CA Farm Bureau, Senate Hearing on AB 1501 in support of Rail Accountability Act, April 28, 2014

1. How do you define success? 2. How do you manage shifting goals? 3. What governance and evaluation structures are needed during project development? 4. What is the role of the legislature and government agencies in megaprojects? 5. How do you identify performance based criteria? 6. What is the role of delivery method in project success?

California Senate Transportation and Housing Information Hearing, November 13, 2013, Sacramento Peer Review Group

The California legislature established a Peer Review Group (PRG) whose duty is to evaluate the California High-Speed Rail Authority's funding plans and prepare its independent judgment as to the feasibility and the reasonableness of the Authority's plans, assumptions, analyses and estimates, and any observations or evaluations the PRG deems necessary.

AB 3034 (Galgiani, Chapter 267, Statutes of 2008) Boston’s Big Dig

• 54 Designs • 132 Construction Packages • 161 Lane Miles • 5 Major Interchanges • Landmark Cable-stay Bridge • Jacked Tunnels • Immersed Tubes • Soil Freezing • Deep Soil Mixing • 8 miles of Slurry Wall • Jet Grouting • Excavation and Parks

190,000 Vehicles

EIS - Environmental Impact Statement ICE - Interstate Cost Estimate CSU – Cost and Schedule Update

Greiman, V. (2013) Megaproject Management, John Wiley & Sons, Inc., New York, London, Hoboken The Rose Kennedy Greenway

Source: National Transportation Safety Board I-35 Highway Bridge Accident Report, p. 19

Cost Time

Design, Risk, Safety and Quality Decisions!!

• OPEN SPACE, PARKS AND ISLANDS • RE-KNITTING NEIGHBORHOODS AND ENTRY POINTS • EXPANSION OF THE SHELLFISH POPULATION • VENTILATION / AIR QUALITY • SMART HIGHWAY SYSTEM • ECONOMIC OPPORTUNITY/TRAINED WORKFORCE/MINORITY/WOMEN BUSINESS DEVELOPMENT • UTILITY CORRIDOR • INCREASED PROPERTY VALUES • INTERMODAL Copyright © 2013 Virginia A. Greiman Partnering/ Dispute Resolution

Technology Stakeholder Advancement Participation

Risk Management Claims & Changes The Top Ten Programs! Central Artery/Tunnel Quality Project Integrated Audit and Assurance Programs Oversight (OCC)

Safety and Knowledge Health Transfer and Innovation Utility Protection

To protect the Commonwealth of Massachusetts, Big Dig contractors, consultants, workers and the general public against catastrophic loss by:

Operating an integrated world-class Risk Management Program for: – Engineering and Construction – Loss Control – Safety and Health

Copyright © 2013 Virginia A. Greiman What Have We Learned? Megaproject investments are for future generations as real worth takes decades. Megaprojects require “Transparent Systems” due to their complex, interrelationships with the communities and the citizens it serves. Projects should focus on Sustainability and not just the iron triangle! Sustainability is multidimensional and extends to economic, social, financial, technological, institutional and environmental benefits! Megaprojects can be Transforming – Seize the Moment!!!! Copyright © 2013 Virginia A. Greiman Thank You! Questions???

Virginia A. Greiman Professor Megaprojects and Planning Boston University 617-353-6860 [email protected]