ABSTRACT

This chapter describes how the macroprojects under consideration are: the largest undertakings known to date, beyond the capabilities of any single organization, difficult to control and socially and culturally incongruous. The sheer magnitude of the Third World projects makes them a strain as well as a challenge; the skills and talents that must be engaged call for major feats of coordination and planning. Projects in the developing world are usually collaborative efforts between organizations in the host country and one or more guest multinationals. Cost escalations and completion delays are quite common on Third World macroprojects. During the development lifecycle of a project, there are many factors that contribute directly to cost escalations, completion delays, and postponements or suspensions. One of the world's major oil companies and one of the major engineering/construction firms were required to use only local Indonesian labor to construct and operate one of the most sophisticated plants with state-of-the-art technology.