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Cost-Benefit Analysis (CBA) is often employed to inform decision makers about the desirability of transport infrastructure investment options. One of the main limitations of traditional CBA approaches is that they do not provide a dynamic view that explicitly illustrates the cost and benefit relationships between component entities over time. This paper addresses this issue by describing a System Dynamics (SD) approach that can perform transport infrastructure CBA through the application of systems thinking to develop a causal-loop model that can subsequently be operationalised into an executable stock-and-flow model. Execution of this model readily enables sensitivity analysis of infrastructure investment options and visualisation of the cost-benefit behaviour of each variant over time. The utility of the approach is illustrated through a case study, the Co Chien Bridge project in Vietnam, using a model that incorporates conventional economic metrics and factors that measure indirect project benefits, such as impact on gross domestic product, unemployment rate, and total taxes gained from affected economic sectors.

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PurposeTraditional “hierarchical” and “network-centric management” approaches often associated with the management of well-defined construction projects lack the adaptability to cope with uncertainty, standardised practices and the required conformance to industry standards. The purpose of this paper is to propose an integrative “holonic” methodology for the management of megaprojects in the construction industry, which incorporates both adaptability and conformance to standards, and to illustrate the associated benefits of such a methodology.Design/methodology/approachA multi-case study comprising three cases delivered in the USA and Australia, namely the Adelaide Desalination Plant (ADP), the Seattle–Tacoma International Airport, and the Olmsted Locks and Dam Replacement project were utilized to demonstrate the key features of the hierarchical, network-centric and holonic approaches to managing megaprojects.FindingsThe case studies demonstrate incorporating the holonic approach into the management of complex construction projects results in increased management effectiveness and project success. The proposed “holonic” methodology provides the potential to efficiently manage megaprojects navigating through high degrees of uncertainty.Practical implicationsThe adoption of the holonic view by project management (PM) practitioners will help them manage megaprojects that are characterised by greater complexity. Second, the proposed methodology enables the discipline of PM to evolve in alignment with rapidly unfolding global transformation trends.Originality/valueThis paper demonstrates the application of the “holonic” methodology to the domain of the management of construction megaprojects. Such an approach is needed as construction projects become increasingly more complex across the world due to technological, political and social uncertainties, larger scale, changing environmental and safety regulations, and the growing involvement of human factors germane to this research.

Projects are becoming more complex given emerging uncertainties that are arising as a result of the exponential growth in technology and the ever‐growing involvement of the human factor. Subsequently, new management approaches are needed to improve project effectiveness and efficiency. This research focuses on identifying the strengths and limitations of two major existing approaches that are fundamentally different in addressing critical issues in complex project management and proposes a new integrative framework. One existing approach, command‐and‐control management, has been proven to be very useful in managing certain types of projects; yet, it can be too rigid to adapt to changes in the environment. On the other hand, network governance, a relatively new existing approach, is flexible and adaptive but lacks conformance and can easily revert to chaos. This paper offers a novel integrative systemic approach, which makes it possible to continuously assess a complex situation and to develop more holistic solutions to project management issues. A case study presented in the paper examines the theoretical application of the new approach in the context of the emergency response and recovery efforts of the Fukushima Daiichi Nuclear Power Plant disaster in Japan. Based on the research related to this incident and the ensuing recovery efforts, it is concluded that existing approaches have not been optimally effective. The proposed approach can bring significant advantages for complex project management by providing flexibility while retaining the ability to regulate the degree of control over the system, as demonstrated through the analysis of the response and recovery of the Fukushima Daiichi case. © 2018 John Wiley & Sons, Ltd.