Collaboration Dynamics in Megaprojects in the Canadian Oil Sands Industry

In the Canadian oil industry, many large scale projects, so-called megaprojects, are undertaken to produce oil sands. However, megaprojects are notorious for their cost overruns and schedule slippages. This study describes the key success factors and key challenges in megaproject collaboration through an ethnographic approach. In total, 17 in-depth interviews with project managers at 7 major oil companies and contractors were recorded. The results show that the main challenge relates to the interaction between the oil companies and the contractors. Furthermore, there is a general hesitance to introduce new, innovative technologies. In addition, external contingencies, i.e. the state of the economy, public acceptance, and, specific for the Canadian oil sands, the climatic conditions have a significant impact on the collaboration dynamics. This would argue that a change in the relationship between the oil industry and contractors creates more effective megaprojects. Partnership-types of collaboration with shared risks may generate a more sustainable relationship resulting in more robust, more resilient, more innovative and, in particular, more on-target projects. Considering these factors, megaprojects can be realized with more efficiency.