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Technical & Practical

December 1, 2012

Avoiding Project Failures

Recognize these key project-failure modes, so that corrective action can be taken

Jeffrey Harding, CH2MHILL

Companies in the chemical process industries (CPI) spend billions of dollars every year on capital projects. Most are successful, yielding the desired results. Some projects are only partially successful (and therefore partial failures), in that they are ultimately completed and work as desired, but only after a budget or schedule overrun. And some projects fail completely, sometimes spectacularly, never providing the desired results. This article discusses some of the key reasons for project failures. The intent is to assist the reader in recognizing some of the failure modes, so that corrective action can be taken and project failure — even partial failure — can be avoided. The article assumes some basic knowledge of capital projects and is intended for the novice project manager or capital manager. Project professionals will recognize many of these failure modes, and could probably contribute many more....

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