Abstract
Capital projects are an investment made to generate future free cash-flow. The extent and reliability of this cash-flow is dependent on many things of which the cost and time of the engineering and construction are only a part. While project cost and time impact the commercial and financial aspects of the project (and vice versa), organizational silos and other constraints often inhibit the management of these interfaces. This chapter will describe the four planes of capital projects: Commercial, Financial, Technical, and Execution, and suggest a holistic approach that not only recognizes the activities and deliverables in each plane, but also the interfaces between them.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
About.Com (2010) Due diligence. http://biztaxlaw.about.com/od/glossaryd/g/duediligence.htm. Accessed 8 Feb 2010
Buehler K, Freeman A, Hulme R (2008) Owning the Right Risks. Harvard Business Review 86(9):102–110
Cullinan G, Le Roux J-M, Weddigen T-M (2004) When to walk away from a deal. Harvard Business Review 82(4):96–104
Flyvbjerg B, Bruzellius N, Rothengatter W (2003) Megaprojects and risk—an anatomy of ambition. Cambridge University Press, Cambridge
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2011 Springer-Verlag London Limited
About this chapter
Cite this chapter
Rolstadås, A., Hetland, P.W., Jergeas, G.F., Westney, R.E. (2011). Improving the Decision Process. In: Risk Navigation Strategies for Major Capital Projects. Springer Series in Reliability Engineering. Springer, London. https://doi.org/10.1007/978-0-85729-594-1_9
Download citation
DOI: https://doi.org/10.1007/978-0-85729-594-1_9
Published:
Publisher Name: Springer, London
Print ISBN: 978-0-85729-593-4
Online ISBN: 978-0-85729-594-1
eBook Packages: EngineeringEngineering (R0)