Prudent and reasonable project management
Despite some successes, too many large construction projects are not prudently managed. Too many encounter problems attributable to management failures. This article describes a model for achieving prudent project management performance. In doing so, it references the $8 billion Trans-Alaska Pipeline System (TAPS), a failed project that the State of Alaska alleges exceeded its budget by $1.6 billion because of imprudent design and construction management. It defines prudent project management and explains its three elements. It then outlines a project management system (PMS), discussing it in relation to managing TAPS, and details the PMS' organizational subsystem, describing its two basic strategies and explaining the relationship between the work breakdown structure (WBS) and the roles within an organizational structure.