The Muskrat Falls project in Newfoundland, Canada is a highly complex mega project consisting of a dam, an 824 MW hydroelectric plant, and associated transmission lines. Project participants had to deal with unique challenges in project planning and execution, such as geography, climate, investment, the demand for fast completion, and other factors, both internal and external to the project.
Unfortunately, this mega project experienced huge cost overruns and delays that are typical of most major capital investments. A Commission of Inquiry was established to investigate the project performance throughout the life cycle of this project with a focus on the root causes of the huge cost overrun and delay that was experienced. The Commission of Inquiry issued a thorough report entitled “Muskrat Falls: A Misguided Project.”
Seminar Description
Dr. Jergeas, who was retained by the Commission of Inquiry to review evidence and provide an opinion, will discuss causes and lessons learnt in some of the following areas:
- Underestimation of project costs, contingencies, and management reserve
- Lack of relevant experience on the team
- Lack of governance and oversight
- Non-disclosure of information and lack of flow of information
- Early warning signs were ignored
- Unsuitable contractual strategies
- Faulty contractor selection and management
- Winter conditions
- Low construction productivity
- Geotechnical and disputes
- Major issues with stakeholder/environmental management
- Failure to consult with First Nations groups
- Lack of teamwork and lack of empowerment
Target Audience
This presentation is relevant to anyone who is involved in the delivery of major capital projects in Canada, especially owners in government organizations such municipal, provincial, and federal agencies.
Learning Objective
Not to repeat history – we can do better.
