What is a major project?

Many academics, practitioners and project management associations have written about projects which are large in size and scale. However, the terminology they use often differs.

They describe these large projects using the following terms:

However, the specific term we use is not as important as defining what we mean by a major project.

Major projects have six key dimensions.

1. Large scale finances

Usually,a project is considered to be a major project if large sums of money are involved in its execution. Typically, a major project involves expenditure of over 1,000,000 US dollars. Although this sounds like a large sum, in a country like the USA or China, this is a small amount in relation to the country’s GDP. However, in smaller, or developing countries this might represent a larger proportion of the country’s GDP. The figure of 1,000,000 US dollars is not a rigid constraint. For instance, you might consider a project of 100,000 US dollars to be a major project in a developing country.

2. Long lifespan

Typically a major project has a long lifespan. A major project is a long-term endeavour and it might take several years or even decades to complete the planning and delivery phase, create payback and generate returns. Certain projects (like the construction of a hospital or a university) are not designed to create a return of investment or profit, but are there to benefit the public.

3. Technical and organisational complexity

Major projects are often very complex. Major projects might involve constructing very technical buildings or plants such as nuclear power plants or refineries. The project itself might involve many systems working together: they might involve the integration of civil structures, mechanical elements, ICT (Information and Communications Technology), heating, ventilation and air conditioning (HVAC) services.

Planning and delivering a major project might involve coordinating companies and organisations from several different countries. Each country may have their own cultural, strategic and operational approach.

4. Large impact on the economy, society and the environment

Usually, major projects have a large impact on a country’s economy, society and environment.

For example, the construction of a large dam can provide benefits like creating jobs and taxable revenue. Those taxes can pay for welfare improvements in the local community. A dam also provides a large amount of clean electricity, whilst water from the lake can be used for irrigation purposes. A large dam can also facilitate leisure activities: the public can use the lake formed behind the dam for water sports and large dams often become tourist attractions in their own right (such as the Hoover Dam).

However, constructing large dams can have negative outcomes. Flooding large areas of land can destroy the natural environment. Usually, people living in the valley are forced to relocate because the dam will flood their villages and towns and they will lose their farms and businesses. Some countries forcibly remove their people so that hydro-power schemes can go ahead. In some cases, dams built in one country mean that neighbouring countries have no control over the supply of the river's water; this can lead to serious problems between countries.

A major project is normally huge in its physical size or presence. These projects might involve large scale alteration of the physical landscape to accommodate such a large change.

5. High level political interest

There is often a high level of political interest in these types of projects. Political parties can highlight major projects in their campaigns in order to promote their achievements, or such projects can prove contentious issues for those involved in politics.

6. Symbolic significance

In some cases, major projects become symbolic landmarks (as designed, or by chance) representing a city or community. For instance, if you are asked to picture cities like Sydney in Australia, and Barcelona in Spain, you might think of the major project landmarks associated with these places: the Sydney Opera House, and the Sagrada Familia.

Major engineering projects

There are many types of engineering major projects. In the energy sector, the construction of large photovoltaic plants, wind farms, nuclear power plants, large dams and coal plants represent major projects due to their scope and scale.

Other examples of major projects include high speed railways in the transportation sector; pipeline and refinery construction in the oil and gas sector, and more generally, large scale events such as the Olympic games and exhibitions.

Major projects typically differ from other projects in their structural, cultural, social and economic impact. The size and scale of major projects also makes them very difficult to manage and there are many factors you must consider when managing a major project. These factors form the focus of your study this week and in the week to come.

Please refer to the glossary to check any terminology you are unfamiliar with: Glossary of Project Management Terms

Coming up...

In the next section you will consider the risks associated with major engineering projects.