Chaos Theory: Implications for Cost Overrun Research in Hydrocarbon Megaprojects

Article

Olaniran, O. J., Love, P. E. D., Edwards, D. J., Olatunji, O. and Matthews, J.. 2017. "Chaos Theory: Implications for Cost Overrun Research in Hydrocarbon Megaprojects." Journal of Construction Engineering and Management. 143 (2), pp. 1-8. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001227
Article Title

Chaos Theory: Implications for Cost Overrun Research in Hydrocarbon Megaprojects

ERA Journal ID40479
Article CategoryArticle
AuthorsOlaniran, O. J. (Author), Love, P. E. D. (Author), Edwards, D. J. (Author), Olatunji, O. (Author) and Matthews, J. (Author)
Journal TitleJournal of Construction Engineering and Management
Journal Citation143 (2), pp. 1-8
Article Number05016020
Number of Pages8
Year2017
PublisherAmerican Society of Civil Engineers
Place of PublicationUnited States
ISSN0733-9364
1943-7862
Digital Object Identifier (DOI)https://doi.org/10.1061/(ASCE)CO.1943-7862.0001227
Web Address (URL)https://ascelibrary.org/doi/10.1061/%28ASCE%29CO.1943-7862.0001227
Abstract

Cost overruns are a recurrent problem in hydrocarbon (oil and gas) megaprojects. An understanding of why and how they occur is needed if they are to be mitigated; such knowledge can provide managers with the foundations to develop techniques to reduce and contain their negative impacts on a project's performance. This paper examines the nature of cost overruns in hydrocarbon megaprojects using the theoretical lens of chaos theory. The underlying principles of chaos theory are reviewed and its research implications for examining cost overruns identified. By viewing megaprojects as chaotic or dynamic systems, the industry and research community may be better positioned to develop innovative solutions to mitigate cost overrun occurrence.

KeywordsChaos theory; Cost and schedule; Cost overruns; Hydrocarbon projects; Megaprojects
ANZSRC Field of Research 2020330299. Building not elsewhere classified
330207. Quantity surveying
330203. Building industry studies
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Byline AffiliationsCurtin University
Birmingham City University, United Kingdom
Institution of OriginUniversity of Southern Queensland
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