Structural complexity of project organizations

Complex projects are more Rely to experience cost overruns than less complex projects. This can be seen in many high-tech and military projects. There are, however, also a good number. of projects that can be termed technologically "simple" and not really complex, yet still cost more in the end than was estimated in the beginning. There are many examples in the construction sector that can be listed as examples. The objective of a project - the product to be developed or to be built - exhibits a certain complexity that influences technological risk. The project objective, during project execution, is embedded in a project organization mirroring the structure of the project objective much as scaffolding allows a glimpse of the shape of the finished building. The project organization, however, contains elements not found in the finished product, such as production machinery, personnel administration, etc. The complexity of the project organization therefore is likely to be higher than the complexity of the project objective. This paper will explore the relationship between project objective complexity and the complexity of the project organization by determining the structural complexity of both, and by identifying factors influencing the complexity of project organizations.