Flexibility and adaptability within the context of decision-making in infrastructure management

Abstract

Worldwide, large infrastructure projects almost invariably have major delays, cost over-runs, benefit shortfalls, and generally fail to perform up to expectations. This questions the results of many models as tools for decision-making. The design and management of infrastructure systems requires making assumptions and decisions about aspects of the project that change over the project’s lifetime. Thus, for real projects to meet performance objectives, it is necessary to combine short and long-term predictions with an understanding of the stakeholder’s interests and decisions, which unravel as the project evolves with time. In practice, successful projects are those that better adapt to new circumstances as they materialize. Within this context, this paper discusses key elements of the decision-making process and examines the value of incorporating flexibility in the design and management of large infrastructure. It discusses the nature of flexibility, the complexities of integrating it within a project, and the gains of adopting this approach for both stakeholders and users. The ideas presented in this paper builds off of former published literature, including that by the author. At the end, the proposed approach for incorporating flexibility in infrastructure design and management is illustrated with the case of an airport design and expansion.