Why Cost and Schedule Overruns on Mega Oil Sands Projects?

Developing and constructing oil sand megaprojects are huge technological, engineering, and construction achievements for Alberta and Canada. Thousands of engineering and project management professionals and workers are contributing to the current effort with great pride and sense of satisfaction. But recent large capital oil sands construction projects have all experienced significant cost and schedule overruns. There are a number of reasons for these overruns. This paper provides a definition of a “megaproject,” illustrates the challenges in delivering oil sands megaprojects, and lists a number of reasons for cost and schedule overruns.