Table of Contents
1. Introduction. 3
2. Literature Review.. 3
Discussion of key drivers of mega projects commonly
found worldwide. 3
Complex procurement arrangements. 3
Society or public demand. 4
3. Causes of Barriers in Procurement of Mega Projects. 5
Incompetent and Corrupt Bureaucracy. 5
Lack of Funding. 6
Lack of availability of technical human resource. 6
4. Recommendations of Critical Success Factors. 7
Efficient and Effective. 7
Effective communication management. 8
Adequate Planning. 9
Leadership Skills. 9
Weather Conditions. 10
Effective Coordination of Project. 10
Recommendations proposal of an innovative procurement eco-system of mega
projects in Oman. 11
Take care of all stakeholders. 11
One-Window Operation. 11
Implementation of Artificial Intelligence. 11
Efficient financial management. 12
5. Conclusion. 12
6.
References
1. Introduction of MEGA PROJECT in Oman
This study will be discussing about the challenges and
barriers involved in mega projects. The mega project consists of large number
of transactions and each transaction has its own complexity. The reader shall
gain the knowledge about how mega projects are going to becoming the challenge
at later stages and what are the most common barriers in completing the mega
project. The study will also be discussed about what are the key drivers of
mega project as what makes them to originate and initiate by the government.
The study will also consist of presenting the innovative and perfect eco-system
available for mega projects which can ensure that they are completed on time
and within the budget. This study will be really useful for the reader who is
more interested in what it takes to complete the mega project and how can it be
ensured.
2. Literature Review of MEGA
PROJECT in Oman
The literature review has been conducted for the same topic
and previous researches have been studied in order to grasp the secondary data
and collect the all important information, discussed in the following.
Discussion of key drivers of mega projects commonly found
worldwide.
There are various key drivers of the mega projects which
need to be discussed in the following.
Complex procurement arrangements Of MEGA
PROJECT in Oman
It is depended upon the nature of mega projects whether it
is physical mega project such as motorways, railway lines or it is more based
on Information technology structure. There is complex procurements arrangements
involvement in physical mega-projects because its materials, machinery, labor
and other essential inputs are very challenging to manage from all over the
world or even within the country. Efficient and effective procurement is the
key to the mega projects successful completion on time and within the budget.
It requires negotiations with the suppliers and choosing the cheapest supplier
offering high quality. There is massive level procurement required and good
price negotiation can help the government saving millions or billions of
dollars from the budget(Sharf, 2019).
Otherwise, it is studied that majority of the infrastructure
projects experiences the massive corruption at procurement level. This is the
reason majority of the projects becomes the victim of corruption which leads to
time delays. Therefore, a best manager must be hired at the procurement level
that is having relevant experience and expertise in managing the procurement at
huge levels. He has to be contacting to large number of suppliers who are
willing supplying raw-material and labor to complete the mega project(Sharf, 2019). As far as mega
project in information technology is concerned, they do not require
raw-material but expert labor, its procurement requires hiring the most
efficient technical staff.
Society or public demand Of MEGA
PROJECT in Oman
Mega projects like road network are mainly originating
because of public demand living in society. People have to be transporting to
work, houses or entertainment which helps in developing the whole society and
life is there. Therefore, such mega projects are driven by demand coming from
general public and society because it is the basic need of it. There are also
other natures of megaprojects which demands coming from government such
building the security network to strengthen the defense system or building the
space program to ensure having better defense system(McCarthy, 2018). Such projects are
not for the use of general public because government needs it most.
3. Causes of Barriers in Procurement of Mega Projects in Oman
There are various barriers involved in procurement of mega
projects globally and particularly in Oman, discussed in the following. These
barriers are causing the delays in mega projects discussed in the following.
Incompetent and Corrupt Bureaucracy
This is the biggest barrier in procurement of mega projects
in Oman because corrupt and incompetent bureaucracy does not help in completing
the mega project and even make its procurement impossible to achieve.
Incompetent bureaucracy does know much how to initiate and what system needs to
be implemented so that mega project can be ensured. Civil services are not much
mature in Oman and civil bureaucracy is not much trained what communications
needs to be established, what things need to be settled because starting the
mega project. In mostly developed countries bureaucracy has critical role into
the economic growth of those countries(Johnson, 2017).
In Oman, government bureaucracies are not much competent and
strong which can handle the project of multi-billion dollar. Therefore, it
needs to be handled by private-public model where private sector managerial and
technical staff can manage the complex challenges, activities and issues. The
government would be responsible for managing the funds and funding to mega
project. This is how Oman’s government can successfully implement the mega
project and otherwise things would be difficult and probably impossible.
Therefore, the private sector involvement would be must in Oman case;
government must be inviting the foreign investors so that technology transfer
can be possible accordingly(Agard K. , 2019).
Lack of Funding of MEGA PROJECT in Oman
Lack of funding is the major cause behind the time delays in
mega projects and it does not complete on time. Mostly mega projects worth more
than one billion dollars and such a huge funding is the challenging for the
government. Most of the times governments are suffering from big deficits in
accounts and they even do not have funds to meet its interest expenses on loan.
There are multiple suppliers involves in mega projects which responsible for
supplying variety of inputs, components and machines so that it can be
completed on time. When these suppliers are not paid in return they stop the
supplies and this causes the major big issue. The continuous funding becomes
issues where financial constraints are higher or the lender wants to see the
progress and then extend the remaining amount(McCarthy, 2018).
This is where the efficient and brilliant bureaucracy
required which monitors the progress, keep close interaction with suppliers and
ensures that things are going into the right direction. In the case of
incompetent bureaucracy, they would not be able to manage the funds on time and
always going through financial constraint. Since mega projects are already very
expensive and its over-costing can cause millions of dollars extra injection
into the budget which is huge. Anyway, lack of funding is one of the barriers
in procurement of mega projects. Oman’s government must be allocating the
dedicated budget to complete the mega project on time and then wonderful things
can happen on time(McCarthy, 2018).
Lack of availability of technical human resource
Sometimes, the mega project is so complicated and technical
that its human resource is imported at higher salaries because locally no
enough technically people were available. Especially in the countries like Oman
where education level is not much advanced and not highly technical resource is
locally available. Therefore, the major barrier is locally available technical
resource which is not there and Oman’s government have to be making
arrangements so that they can make it available in Oman. They do so through
offering lucrative salaries and benefits to technical people working in Europe,
America and China. In case, more technical staff is required during the mega
project and it is not being available due to any factor then it becomes the
reason of as barrier in mega project. Foreign technical staff can put lots of
conditions in front of Oman’s government and can negotiate bigger benefits
which can also cost more to mega projects but then government have to agree
because the mega project is already initiated(Agard K. , 2019).
Oman can follow the example of Saudi Arabia where they are
inviting the highly competent engineers, technical staff and scientists at the
highest salaries and offering green visa. This is how they are buying the most
technical human resource which takes decades to develop on their own. Human
resource is the most precious asset any society can have even precious than the
natural resources. Therefore, Oman must follow the steps of Saudi Arabia and do
the same. They can invite them to complete their mega projects(Peccarilli, 2019).
4. Recommendations of Critical Success Factors
There are mainly six Critical Success Factors as CSF in
procurement process for mega projects, discussed in the following.
Efficient and Effective of MEGA
PROJECT in Oman
The mega projects development consist of complicated process
and it has to be dealing with critical things during its completion. In the
absence of achieving efficiency in the process, minor mistake can cost
thousands and millions of dollars to the process and time delays are also
possible. Each and every step must be pre-planned and then accordingly
execution needs to be made so that progress is ensured. For Example, railway
lines needs to be designed to achieve the shortest distance possible, its bad
execution will lead to longer distance of tracks which fails its purpose of
providing low cost transportation expenses(Agard K. , 2019).
It is always challenging to complete the mega project
effectively and efficient, if it happens successfully then wonders can be
accomplished. The mega project is going to be benefiting the society at massive
level if it is implemented in its true spirit. Therefore, most competent,
experienced and intelligent staff must be put in the top who can take
responsibility of completing the project in time and moving the things forward
successfully(Johnson, 2017).
Effective communication management
Effective communication management needs to be established
at several points and stages. In the first stage, it has to be communicated why
the mega project is going to be developed, what objectives needs to be achieved
and what is called successful completion. Once these questions are answered
well and effectively, it would help in better decision making throughout the
project. The lack of strong communication can cause over-costing the mega
project and the management may be working on those things which are actually
not required. For Example, a motorway is being developed and we need heavy
machinery for building big roads network, we cannot import a machinery of
structuring information technology, it would be miscommunication and wastage of
money on that machinery. Any weak area in communication network can make disaster
in implementation of mega project. Therefore, the strong communication must be
ensured through clear reporting lines, frameworks and delegating the authority
which is not over-lapping. This is how good communication system can be
developed which proves effective to achieve its goals(Peccarilli, 2019).
Adequate Planning of MEGA PROJECT in Oman
There are various stages involved in mega project completion
and its execution is different in different stages. Each stage has its own
needs, requirements, technicalities and challenges. An adequate planning and
anticipation can make wonders and the successful completion of mega project on
the basis of within the initial cost and time. Management and bureaucracy has
to procurement everything on time as per the plan so that no delays in
execution and also do not face the technical issues. The most important is
designing phase where final decision needs to be made which cannot be reverted
in the later stage, once a designed is made of the mega project then the all
rest of the things depended upon that design. If design is wrong, then the
whole mega project leads to the failure, therefore the most time must be spent
on that design which is complicated and critical(Agard K. , 2019).
An adequate planning can produce the disaster results which
can increase the cost of mega projects many times. Therefore, it is believed
that planning is the most important and useful phase of management which can
make wonders in order to complete the mega project successfully(Sharf, 2019).
Leadership Skills of MEGA PROJECT in Oman
A leadership skill ensures that all resources and technical
staff have been made arrangement by leader. For Example, Oman’s government can
play a leadership role and demand the technical resource from friendly country
if the technical have privately refused to provide the help. This is where
leadership is demanded and Oman’s government has to play their due role which
is not possible by private sector. Leadership makes the hard and challenging decisions
during the mega projects because initially they are un-popular and people
criticize them, but later they are going to benefit the massive people. For
Example, building the transportation system disturbs the whole urban city life
which makes the people criticizing, once the transportation system is developed
and then same people will be benefited(Peccarilli, 2019).
Leadership plays an important role in the completion of mega
projects because it requires lots of complex and hard decisions. Therefore, it
must be noticed that who should be leading the mega project one who can take
pressures and take the decisions in the interest of massive. Therefore,
government must be leading from the front and enhance the awareness among
people that it is in their best interest(Johnson, 2017).
Weather Conditions of MEGA PROJECT in Oman
Weather conditions are extremely dangerous and critical in
preventing the mega project completion on time, if the nature of mega project
is physical such as infra-structure or building the transportation system. It
must be planned that how to execute the mega project during bad weather and how
can it affect the execution of mega project. For Example, building the
motorways during dust clouds is not possible. The machinery and equipments gets
affected from dust cloud and also got broken. Construction machinery is mainly
exposed to the bad weather and specific weather conditions, machinery gets
broken when they are exposed to high temperature or moisture is there. Once the machinery or equipment is broken
down, the whole mega project can be delayed(Agard K. , 2019).
Effective Coordination of Project of MEGA
PROJECT in Oman
Coordination plays a key role throughout the mega project;
this is the skill which requires handling of multi-tasking at efficient level.
Mega projects is having several stages, layers of multi-tasking, several
incomplete jobs due to weak coordination, only strong coordination allows each
stage completes on time without wasting resources and time(Sharf, 2019).
Recommendations proposal of an innovative procurement
eco-system of mega projects in Oman
In the following, the outline of proposal of innovative
procurement eco-system of mega project has been discussed in the following.
Take care of all stakeholders
There are several stakeholders involved in the mega project
and leader has to take care of interests of all of them. If their interests are
not being taken care by leader, then they can create hurdles and would not
offer the solution they have. The all stakeholders and their willingness can
provide perfect eco-system of mega projects in Oman. This can be possible by
keep the monetary share benefits for all of them and also keep the share of
other kinds of interests for all stakeholders(McCarthy, 2018).
One-Window Operation of MEGA
PROJECT in Oman
The execution of mega projects requires interaction of
various departments, institutions, stakeholders and components. It would be
very helpful for the government to open the one window operation where all
kinds of requests have been entertained and met. This is how things can be
progressed in the most efficient and fastest manners. One-window operation is
going to make huge difference in the progress of mega projects and this is
going to be improving the coordination of projects a lot. There are studies
conducted where the failure of mega project reasoning was it was not making
available one window operation(Agard K. , 2019).
Implementation of Artificial Intelligence
Artificial intelligence is going to play an important role
into the mega projects completion. It informs the executor about the future
expected requirements and needs which can be critical for the mega project. It
gives the advantage of knowing the things before the time and then it can be
made available so that no time wastage and money resources. Therefore,
leadership needs to ensure that highly advanced AI system is installed which
monitors the progress of mega project and accordingly enables the things. There
is no comparison of AI and human intelligence, AI is faster, more intelligent
and can predict the upcoming things. According to the studies, there are
various mega projects failed because there were no pre-arrangements of required
things in project and resulted as huge cost increments and more time delays(Browlee, 2018).
Efficient financial management of MEGA
PROJECT in Oman
All the activities of mega projects need to be financed so
that things can progress and happen on their due time. Every stakeholder and
member of the project needs to be financed as remuneration and cost of input
requires in mega project. Therefore, proper financial system must be developed
which is dedicated to the specific mega project in providing perfect
eco-system. Finances are like a blood in the body which circulates all around
and requires each and every second. Moreover, other arrangements also need to
be made such as cheap source of financing and the management of its tenure
short-term and long-term both. Sometimes, mega projects are not complicated and
complexes in its nature but it are the failure in its financial management(Agard K. , 2019).
Several mega projects are stopped by government because
there were not enough funds available during its completion. It looks like
financial management is the easiest thing in mega project development but it
has its own critical importance. In the planning stage, the availability of
funds must be planned and then the project needs to be initiated(Agard K. , 2019).
5. Conclusion of MEGA PROJECT in Oman
It is concluded that mega project are built to benefit the society
and people in the massive level. Mega projects are also initiates the massive
economic activities and development takes place quickly. There are various
nature of mega projects physical, information technology based, space programs
and many more. The physical mega projects such as building infrastructure,
railway lines are the most expensive and requires huge budget. One of the major
challenge is involved in physical mega project is its procurement taking place.
There is large number of procurement of variety of goods and raw-material which
helps in completing the mega project. It also requires communicating various
number of suppliers who have been negotiated about supplying the raw-material.
Mega projects are also nature of technical such as space
programs or cyber security infrastructure, such mega projects are established
in order to secure the defense system of country and it is not used for public
purposes. It does not hold much economic activities and it is more complicated
in its management because it includes highly advanced technicalities. According
to the studies, mostly mega projects are failed due to inadequate planning,
lack of financial resources and technical blunders. The study supports the
evidence that mostly mega projects were initiated without analyzing its real
effectiveness and things were not calculated in the context of society interest
and benefits. The relevant technical staff must be presented in the managerial
team of mega project; otherwise it would become a disaster for the people,
government and society.
6. References of MEGA PROJECT in Oman
Agard, K. (2019, January 22). Megaproject Trends
For 2019: Antonio Nieto-Rodriguez On Leadership In The Age of AI.
Retrieved December 12, 2019, from Forbes:
https://www.forbes.com/sites/karleneagard/2019/01/22/megaproject-trends-for-2019-antonio-nieto-rodriguez-on-leadership-in-the-age-of-ai/#af33a471c7e6
Agard, K. (2019, January 22). Megaproject Trends
For 2019: Antonio Nieto-Rodriguez On Leadership In The Age of AI.
Retrieved December 13, 2019, from Forbes:
https://www.forbes.com/sites/karleneagard/2019/01/19/megaproject-trends-for-2019-yewande-akinola-on-the-next-frontier-in-design/
Browlee, D. (2018, November 21). 4 Project
Management Trends On The Horizon…Are You Ready? Retrieved December 13,
2019, from Forbes:
https://www.forbes.com/sites/danabrownlee/2019/07/21/4-project-management-trends-on-the-horizonare-you-ready/
Johnson, P. (2017, March 12). These 8 Companies
Are Bringing The 'New Silk Road' To Life. Retrieved December 13, 2019,
from Forbes:
https://www.forbes.com/sites/wadeshepard/2017/03/12/8-new-silk-road-companies-that-you-can-invest-in/#50b8e5854db9
McCarthy, N. (2018, September 28). Major
Construction Projects That Went Catastrophically Over-Budget [Infographic].
Retrieved December 13, 2019, from Forbes:
https://www.forbes.com/sites/niallmccarthy/2018/09/28/major-construction-projects-that-went-catastrophically-over-budget-infographic/#29a9eabb6ab3
Peccarilli, B. (2019, June 27). Are Smart Cities
The Next Great Disruptor? Retrieved December 13, 2019, from Forbes:
https://www.forbes.com/sites/brianpeccarelli/2019/06/27/are-smart-cities-the-next-great-disruptor/#6b25db041594
Sharf, S. (2019, March 15). Building Is Booming
In These 30 Cities, But Don't Expect It To Last. Retrieved December 13,
2019, from Forbes:
https://www.forbes.com/sites/samanthasharf/2019/03/15/building-is-booming-in-these-30-cities-but-dont-expect-it-to-last/#6ab80df43109