Making Infrastructure Procurement Processes more Flexible under Uncertainty
Author(s)Sakhrani, Vivek; Jordan, Luke; de Neufville, Richard
A third to a half of development projects undergo restructuring due to changes in project objectives, scope or other unanticipated changes, therefore requiring schedule extensions, budget additions and rework. Current procurement processes discourage managers from responding strategically by anticipating and preparing for such changes in advance through better information search and design concept evaluation. This paper suggests three principles for making the front-end phases of procurement more flexible - understanding uncertainty, studying system-wide impacts, and phasing designs. A case study analysis of urban water system design in Kabul demonstrates the conceptual and analytical application of these principles.
Massachusetts Institute of Technology. Engineering Systems Division
ESD Working Papers;ESD-WP-2013-08