Schedule and Cost Overruns

This chapter discusses the nuances of the schedule and cost overruns that pertain to the development of mega complex LNG projects throughout their life-cycles. These schedule and cost overruns are usually visible in the execute phase and are due to the lack of maturity of the Scope of Works (SoW) defined in the develop phase. This can be caused by organisations wanting to fast track the Financial Investment Decision (FID) to move into the execute phase as-soon-as possible. Cost and schedule overruns are not new to organisations when developing mega complex LNG projects, which would form part of the risk strategy as they develop these multifaceted ventures. Such ventures inherently involve dealing with multiple stakeholders, such as JVPs, government’s, technical, regulatory considerations, and an ever-evolving SoW. This consequently requires adaptive scenario planning with real-time data integration. This type of planning will assist in navigating risks that can threaten the end dates for delivery of these projects.