This is a good thought provoking question! While there can be challenges in both sets of projects, there are some unique aspects to public sector projects which can make things more complicated such as:
- Much greater likelihood of vastly misaligned stakeholders
- Lack of financial benefits as a primary driver
- Fixed budgets and sometimes fixed time for spending those budgets
Product Operations Program ManagerBarcelona, Cataluña, Spain
The key difference for me is that government projects are always in the public eye. Take the Panama Canal Expansion Project as an example. Funded by the Panama Canal Authority (ACP), a government agency, it was initially budgeted at $5.25 billion and scheduled for completion in 2014. However, final costs escalated to over $7 billion, and the expanded canal did not open until June 2016.
The public eye reacted strongly to these issues, exerting significant scrutiny and criticism over the mismanagement and delays. Saving Changes...
I'm sure it differs by country, but in the US, government projects are far more difficult. The financial accounting rules to prevent fraud for example can add such a big administrative burden to projects that some corporations will have separate companies for government vs. private sector to avoid the burden of extra layers of bureaucracy that kill efficiency.
Government projects also have the risk that when a new administration takes office, projects not in favor with the new rulers can be cancelled overnight. Even when not cancelled, the funding can suddenly change. More budget is approved so go faster. Budgets are reduced so replan for a longer timeline. Saving Changes...
It has to do with the nature of the project and the environment. There are various government and private companies. Any combination of these may impact your experience on handling a project. I experienced both good and bad in both private and government projects. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Both have their own challenges but in general, I do find that government projects are more complex to manage due to regulatory requirements and high level of bureaucracy. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
I was in both. And to be honest, in essence, I did not find to much differences except for the case of stakeholder management mainly when government changed in the middle of the project. Saving Changes...
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