The Role of Due Diligence in Project Management
Contents |
Abstract
Uncertainty is an inevitable part of any given project and project managers employ a variety of tools and techniques to assess and manage the potential risks that might occur throughout the project ‘s lifecycle. A method that is frequently used is due diligence, often called project due diligence, which typically consists of a cost estimation, review of available data, risk analysis and a comprehensive assessment of the project. The assessment helps organizations to identify and potentially mitigate the risks and uncertainties related to the project. The main purpose of due diligence is to acquire available information about a project and assess if the project is feasible and the potential impacts it can have in the future.
The purpose of the article is mainly to evaluate the importance and value of due diligence in project management. Due diligence is a crucial component of project planning and the decision-making process for a specific project, where it aids in project managers’ decision-making. This article will not only give the reader an insight of the purpose and importance of due diligence but more importantly an understanding of the process. A guidance will be provided for the various steps and best practices for the common due diligence techniques, which will help in applying due diligence in different project contexts.
Furthermore, this article provides an insight to the limitations and challenges associated with due diligence in project management. The method will be evaluated based on the potential benefits such as improving project outcomes by lowering risk and improving project planning and decision-making, as well as its potential challenges, such as lack of sufficient or reliable data and significant investment costs.
The Big Idea: An Introduction
The Purpose of Due Diligence in Project Management
The Process of Conducting Due Diligence
The Common Techniques Used
Benefits of Due Diligence
Limitations and Challenges of Due Diligence
Conclusion
Annotated Bibliography
References
Quality Control and Due Diligence in Project Management: Getting Decisions Right by Taking the Outside View, 5th edition (2012)
Construction Due Diligence in Different Project Delivery Systems, 1st edition (2012)
Experiences with wind farm project risk management: Due Diligence and Project Certification, 5th edition (2009)
