The Impact of Adopting Agile Methodology on the Performance of Large-Scale Construction Projects

Abstract

This research investigates the effectiveness of adopting Agile methodology in enhancing the performance of large-scale construction projects, traditionally characterized by rigidity and reliance on the Waterfall model. While the construction industry represents 13% of the global GDP, it suffers from chronic structural challenges related to low productivity and operational inefficiency. These issues are compounded in megaprojects exceeding 1 billion, which operate in high-risk environments with unprecedented engineering and social complexity. Through a mixed-methods research design, including a systematic literature review and Structural Equation Modeling (SEM) analyzing data from 250 international experts, the study explores how Agile practices can mitigate these challenges. The findings reveal a statistically significant positive correlation between Agile adoption and key performance indicators (KPIs). Specifically, collaborative planning in a Sprint environment improved schedule accuracy by 22%, while the integration of Digital Kanban and Building Information Modeling (BIM) reduced Request for Information (RFI) cycles by 25% and prevented up to 40% of field errors. The paper identifies the "Flexibility-Rigidity Paradox," arguing that construction requires a "Hybrid Agile-Waterfall Framework". This model maintains the Waterfall approach for strategic governance and contracts to ensure financial security, while utilizing Scrum and Kanban for operational daily tasks to enhance execution flexibility. Finally, the study addresses contractual barriers, suggesting an "Agile Addendum" to traditional FIDIC contracts to provide legal coverage for iterative design and incremental approvals.