Krystallis, I, Locatelli, G orcid.org/0000-0001-9986-2249 and Murtagh, N (2020) Futureproofing Complex Infrastructure Projects Using Real Options. IEEE Engineering Management Review, 49 (1). pp. 127-132. ISSN 0360-8581
Abstract
Existing project performance measures in the infrastructure sector focus on construction performance (time, cost, quality) and pay less attention to lifecycle performance. The consequence of this shortsighted perspective is that decisions taken early lead to poorer solutions. Infrastructure that should last centuries quickly becomes inadequate, leading to costly reconfigurations. Real options reasoning can help managers to overcome this issue by unlocking lifecycle performance thinking in complex infrastructure projects. Real options reasoning enables managers to explore the value of flexibility by employing futureproofing strategies during the development process. From analysis of interviews with experts in healthcare infrastructure, we observed that projects that led to obsolescence were developed using tight design briefs and were focused on capital targets, and decision-makers were less invested in the concept of futureproofing. On the other hand, projects that were futureproofed followed a loosely-defined design brief and shifted focus towards whole-life targets. We make five recommendations for futureproofed infrastructure.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020, IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. |
Keywords: | Uncertainty; Complex projects; Flexibility; Infrastructure |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Engineering & Physical Sciences (Leeds) > School of Civil Engineering (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 17 Nov 2020 12:31 |
Last Modified: | 25 May 2021 14:55 |
Status: | Published |
Publisher: | Institute of Electrical and Electronics Engineers (IEEE) |
Identification Number: | 10.1109/emr.2020.3036446 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:167922 |