Krystallis, I;
Locatelli, G;
Murtagh, N;
(2020)
Futureproofing Complex Infrastructure Projects Using Real Options.
IEEE Engineering Management Review
10.1109/EMR.2020.3036446.
(In press).
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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.
| Type: | Article |
|---|---|
| Title: | Futureproofing Complex Infrastructure Projects Using Real Options |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1109/EMR.2020.3036446 |
| Publisher version: | https://doi.org/10.1109/EMR.2020.3036446 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| Keywords: | Uncertainty, Complex projects, Flexibility, Infrastructure |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10114052 |
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