Article

The multifaceted challenges of megaprojects

Name: Implement Consulting Group
Price range: $

Megaprojects shape the world we live in.

Published

26 May 2025

Traditionally funded largely by taxpayers but increasingly driven by private investment, they impact almost everyone – directly or indirectly – and leave a lasting mark on society. Yet, they are notoriously difficult to get right. In fact, only 0.4% succeed in delivering on time, on budget, and with the intended benefits. Clearly, megaprojects are overdue for a change. In this article, we delve into the complexities of megaprojects and share our approach to navigating them.

Over budget, over time, and underwhelming

Megaprojects often fall victim to the so-called Iron Law of Megaprojects: they run over budget, over time, and underdeliver on promised benefits. Imagine a megaproject as an ambitious construction – designed to reshape cities, boost economies, and improve lives. But when the Iron Law takes hold, cracks begin to show.

A staggering 52% of megaprojects exceed their budgets, eroding the financial foundation.
Only 8.7% are completed on time and within budget – like buildings that reach completion but miss key design specifications.
And just 0.4% meet all three criteria: on time, on budget, and delivering the intended benefits.

At that point, what was meant to be a landmark structure ends up as little more than a blueprint of good intentions. This consistent underperformance raises a pressing question: how can we ensure that these towering ambitions are met with equally solid execution?

What makes megaprojects so complex?

Their complexity arises from various factors. First, the transformational scope of these projects is immense, especially for organisations that execute them themselves. The objectives often evolve over time given their long lifecycle. This constant change means that the overall scope for a megaproject may shift as it progresses.

Second, megaprojects frequently involve innovative solutions, placing groundbreaking technical advancements at their core. These solutions often push the boundaries of what is possible, driving forward new technologies or methodologies.

Third, megaprojects profoundly impact society, organisations, and the environment. As a result, they require engagement with a diverse range of stakeholders, including governments, regulatory bodies, organisations, communities, and market participants. Their influence extends well beyond the immediate project scope, shaping broader societal dynamics.

Lastly, the human side. Megaprojects involve a vast array of individuals who must work together across different cultures, countries, and domains. The collaboration required to bring such projects to fruition can be as challenging as the technical aspects themselves, demanding effective coordination and communication at every stage.

The ecosystem of megaprojects

Effectively managing stakeholders in megaprojects is crucial for successful outcomes, and their involvement significantly contributes to the complexity of these projects. At Implement, we have identified four key stakeholder groups that add layers of complexity to the ecosystem of megaprojects: society, media, market and supply chain, and political actors.

Society comprises individuals, communities, and civil society, whose diverse interests and needs not only impact megaprojects but also influence their direction, adding complexity through varied perspectives.

Media engagement introduces complexity by requiring careful management of public image, key messages, criticisms, and relationships with journalists.

The market and supply chain involve a global network of economic players, scaling complexity as local actors integrate into a broader, interconnected economic framework.

Political actors, including government bodies, policymakers, elected officials, and regulatory agencies, further complicate megaprojects by shaping and enforcing laws and policies that influence development and operations.

Taken together, these groups interact within a dynamic network, requiring proactive engagement and communication to address concerns, align expectations, and foster collaboration.

Addressing the complexity of megaprojects

While megaprojects present significant challenges, they also offer unparalleled opportunities for innovation and progress. By understanding their unique characteristics and complexities and addressing human biases, we can navigate the complexities of these ventures and achieve successful outcomes for the benefit of society as a whole.

Though the fundamental principles of project management also apply to megaprojects, traditional approaches and methods must be scaled up and sometimes reimagined to address the magnified challenges of realising benefits, governing the megaproject, adapting to changing circumstances, handling risks, and engaging stakeholders.

This involves developing a broader and more comprehensive view of how to manage and lead megaprojects. By doing so, we can better address the multifaceted challenges of megaprojects and improve their potential to deliver lasting benefits.

Two things need doing

When planning, designing, and executing a megaproject, a clear priority should be to reduce complexity and uncertainty. This means addressing several key areas to keep the project on track. By their nature, megaprojects involve multiple stakeholders, extensive coordination, and a high degree of technical, financial, and regulatory challenges – making it essential to actively manage this complexity to avoid delays, cost overruns, and miscommunication.

Doing so will, in turn, enhance both simplicity and predictability – two qualities critical for ensuring that objectives are met within scope, on time, and within budget. Simplification involves removing unnecessary layers of bureaucracy and zeroing in on clear, measurable goals, while predictability is built through careful planning and the disciplined use of proven practices to minimise surprises during execution.

Mastering the unpredictable

This article offers a glimpse into our approach to megaprojects and, as such, it can serve as a starting point for steering your megaproject in the right direction – from the very outset. While megaprojects are among the most inspiring expressions of human ingenuity, they are also some of the most failure-prone ventures of our time. With a deeper understanding of the megaproject ecosystem and an approach that blends structure with adaptability, we can guide these projects to successful outcomes. And when we do, their impact is immense – not just measured in concrete and steel, but in the lives and societies they shape.