Project management in construction

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PROJECT MANAGEMENT FOR CONSTRUCTION
PROJECTS
IMPROVING PROJECT PERFORMANCE
QM ZG628T: Dissertation
By
NAVNEET KUMAR JHA
2014HT74039
Dissertation work carried out at
LARSEN & TOUBRO LIMITED, MUNDRA, GUJARAT
BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE
PILANI (RAJASTHAN)
April 2016

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PROJECT MANAGEMENT FOR CONSTRUCTION
PROJECTS
IMPROVING PROJECT PERFORMANCE
QM ZG628T: Dissertation
By
NAVNEET KUMAR JHA
2014HT74039
Dissertation work carried out at
Submitted in partial fulfillment of M.Tech.in Quality Management degree
programme
Under the Supervision of
Mr. Shinde Vilas Ramji
BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE
PILANI (RAJASTHAN)
April, 2016

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ABSTRACT
In construction, project management is an important part and the most vital
part for the success or failure of the projects. Success refers to the completion
of projects with right quality within stipulated time and without any accident.
However a No. of cases are there, where projects get failed and are delayed, if
completed. Delay of projects is a common problem these days for all
companies. In India most construction projects are facing the same problem.
Interest of various contractors, owners and consultants are to be also taken into
account along with the success of the project. At the same time there are
various projects which are in itself a role model and provides a learning
opportunity for the project managers for an effective project management. In
this research the various projects have to be analyzed for the various
parameters that lead to the success and failure of the project , along with this
the project team members i.e owners , contractors , consultants , engineers are
taken for questionnaire survey to obtain the factors involved.

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ACKNOWLEDGEMENT
"I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I
would like to extend my sincere thanks to all of them.
I am highly indebted to Mr. Shinde Vilas Ramji and Mr. Yugandar R. for their
guidance and constant supervision as well as for providing necessary
information regarding the project & also for their support in completing the
project.
I would like to express my gratitude towards my parents & my colleagues of
Larsen & Toubro Limited for their kind co-operation and encouragement which
helped me in completion of this project through fruitful discussions throughout
the project.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.
My thanks and appreciations also goes to my friends who are working in various
organizations at other projects in different organizations in developing the
project and people who have willingly helped me out with their abilities."

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TABLE OF CONTENTS
CHAPTER ONE : INTRODUCTION TO PROJECT MANAGEMENT Page No.
1.1 Overview 1
1.2 Project management attributes 1-10
1.3 Project Management Process 11-13
CHAPTER TWO : CASE STUDY OF SUCCESSFUL PROJECTS
2.1 Al Wahda Master Developments, Abu Dhabi 14-15
2.2 Aqueducts and Large Diameter Trunk Mains Clean & Maintain 16-17
Programme, United Utilities.
2.3 Building Better Communities: Managing Reconstruction after the 18-19
Indian Ocean Tsunami.
2.4 Dawlish Sea Wall Emergency Works 20-21
2.5 Delivery of the Rotary Wing Strategy 2009-2015, UK Ministry of
Defence. 22-23
2.6 Green Park Station Step-Free Access Project, Transport for
London 24-26
2.7 The Construction Programme for the London 2012 Olympic and
Paralympic Games, Olympic Delivery Authority. 27-28
2.8 Powerlines Undergrounding Project, London 2012 29-30
2.9 Transforming Dublin Airport Programme, Turner & Townsend 31-33
CHAPTER THREE: CASE STUDY OF FAILED PROJECTS
3.1 British petroleum 34-36
3.2 Case study: Chrysler and fiat 37-39
3.3 Case study: the millennium dome 40-42
3.4 Columbia shuttle 43-44
3.5 Hurricane Katrina 45-46
3.6 Airbus 380 47
3.7 Lessons learned from failed projects 48-50
CHAPTER FOUR :DATA COLLECTION AND DATA ANALYSIS
4.1 Overview 51
4.2 Data Collection 51
4.3 Data Analysis 51-52
4.4 Conclusions 52
ANNEXURE-I 53-55
Bibliography 58
Checklist 59

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List of Figures
Figure No. Figure titles Page numbers
1. Stages of Project Management
2
2.
Goals of project Management 4
3.
Competencies of a project manager 6
4.
Constraints of project Management 10
5.
Project Management Process 13

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List of Tables
Table No. Table titles Page numbers
1.
SWOT ANALYSIS 35
2.
RELATIVE IMPORTANCE INDEX 52

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CHAPTER-1
Introduction to project Management
1.1 Overview
Project management is the process of organizing the way that changes
are implemented efficiently within an organization. Many businesses achieve
their goals by completing projects that contribute to their objectives. Often,
projects have a finite length, involve a number of activities and people, and
have deadlines and fixed budgets. Project managers plan and monitor these,
and take corrective action when appropriate.
1.1.1 Definition of a Project
The Project Management Institute defines a project as follows:
A Project is a unique undertaking with a defined starting
point and duration directed at achieving defined objectives,
utilizing finite or infinite resources.
The key parts of this definition:
1. A project has a unique objective.
2. A project has a definite start, duration and finish. It has a temporary
rather than open-ended duration.
Some examples of projects are:
 Building a house, plant, roads or any infrastructure.
 Relocating a data center
 Writing a book
 Developing a software program
1.2 Project Management Attributes
Project management is the management of an organized set of activities
directed toward a common goal, using specialized management structures
and techniques.
1.2.1 Determining project objectives
What is the goal (or goals) of the project? Examples of project goals include
building a bridge, relocating the MIS department to a new site or installing a
new phone system. More importantly, some examples of things that are NOT
projects include scheduling the usage for a training facility or scheduling
engineers in a technical service department. These are not projects because
they do not meet all the criteria of a project. They do not have a definitive
start, finish, and duration.

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FIGURE -1(stages of Project Management)
1.2.2 Managing budgets and resources
Projects do not get done without resources to do them. To ensure successful
completion of a project, it is important to estimate correctly the number of
personnel and the amount of equipment needed. With this, it is important to
realize the cost of the project. Some projects can be completed in a shorter
time by increasing the manpower on the project. However, doing this also
increases the cost. One of the project manager’s jobs is to maintain a
balance between reducing costs and reducing the time to complete the
project.
1.2.3 Reporting Progress
Reporting progress is a key to project management. It is essential that key
players in a project know what is happening, and whether they are on track,
behind, or ahead of schedule. By reviewing progress on a regular basis, you
can try to avoid possible problems in advance. For example, if you notice that
a certain task was scheduled to take 10 days to accomplish, but on day 5
only 25% of the work was finished, you could possibly re-allocate resources
to that task in order to complete it on time.

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1.2.4 Evaluating efficiency and effectiveness
During and after a project, it is important to review and analyze the
performance on the project. This information can provide valuable insight
into possible changes to make for future projects. For example, your project
was to build a house, and one of the steps involved was landscaping. After
the project is finished, you notice that it took less time to do the landscaping
than you originally planned. This information could be valuable if you build
another house, because you could reduce the time allocated for landscaping.
By constantly reviewing the efficiency and effectiveness of your project, you
can more accurately plan future projects.
1.2.5 Project Managers
Project managers are responsible for managing projects. They coordinate
projects and related tasks, but do not usually have direct management
responsibilities for resources assigned to their project. The resources involved
in one project may not be the same resources involved in another project.
Project managers focus only on work that is specific to their project, and are
primarily task and time-constrained: “How do I ensure my project gets
finished in the shortest amount of time?” is a question on every project
manager’s mind each day.

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FIGURE-II (Goals of project Management)
1.2.6 The Attributes of Successful Project Management
The effectiveness of project management is critical in assuring the success of any
substantial undertaking. Areas of responsibility for the project manager include
planning, control and implementation. A project should be initiated with a feasibility
study, where a clear definition of the goals and ultimate benefits need to be
established. Senior managers' support for projects is important so as to ensure
authority and direction throughout the project's progress and, also to ensure that the
goals of the organization are effectively achieved within this process. The particular
form of support given can influence the degree of resistance the project encounters.
Knowledge, skills, goals and personalities are all factors that need to be considered
within project management. The project manager and his/her team should collectively
possess the necessary and requisite interpersonal and technical skills to facilitate
control over the various activities within the project.
The stages of implementation must be articulated at the project planning phase.
Disaggregating the stages at its early point assists in the successful development of the
project by providing a number of
milestones that need to be accomplished for completion. In addition to planning, the
control of the evolving project is also prerequisite to success. Control requires

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adequate monitoring and feedback mechanisms by which senior and project managers
can compare progress against initial projections at each stage of the project.
Monitoring and feedback also enables the project manager to anticipate problems (e.g.:
the knock-on effects of late start or finish times) and therefore take pre-emptive
corrective measures for the benefit of the project overall.
Projects normally involve the introduction of a new system of some kind and, in almost
all cases, new methods and ways of doing things. This impact upon the work of others:
the "users". User consultation is an important factor in the success of projects and,
indeed, the degree of user involvement can influence the extent of support for the
project or its implementation plan. An essential quality of the project manager is that of
being a good communicator, not just within the project team itself, but with the rest of
the organization and outside bodies as well (the users may be internal or external).
1.2.7 Features of projects
 Projects are often carried out by a team of people who have been assembled for
that specific purpose. The activities of this team may be co-ordinated by a project
manager.
 Project teams may consist of people from different backgrounds and different parts
of the organisation. In some cases project teams may consist of people from
different organisations.
 Project teams may be inter-disciplinary groups and are likely to lie outside the
normal organisation hierarchies.
 The project team will be responsible for delivery of the project end product to some
sponsor within or outside the organisation. The full benefit of any project will not
become available until the project as been completed.
In recent years more and more activities have been tackled on a project basis.
Project teams and a project management approach have become common in most
organisations. The basic approaches to project management remain the same
regardless of the type of project being considered. You may find it useful to consider
projects in relation to a number of major classifications:
a) Engineering and construction
The projects are concerned with producing a clear physical output, such as roads,
bridges or buildings. The requirements of a project team are well defined in terms
of skills and background, as are the main procedures that have to be undergone.
Most of the problems which may confront the project team are likely to have
occurred before and therefore their solution may be based upon past experiences.
b) Introduction of new systems
These projects would include computerisation projects and the introduction of new
systems and procedures including financial systems. The nature and constitution
of a project team may vary with the subject of the project, as different skills may
be required and different end-users may be
involved. Major projects involving a systems analysis approach may incorporate
clearly defined procedures within an organisation.
c) Responding to deadlines and change

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An example of responding to a deadline is the preparation of an annual report by a
specified date. An increasing number of projects are concerned with designing
organisational or environmental changes, involving developing new products and
services.
1.2.8 Responsibilities of the Project Manager
1. To plan thoroughly all aspects of the project, soliciting the active involvement of all
functional areas involved, in order to obtain and maintain a realistic plan that
satisfies their commitment for performance.
2. To control the organization of manpower needed by the project.
3. To control the basic technical definition of the project, ensuring that "technical"
versus "cost" trade-offs determine the specific areas where optimisation is
necessary.
4. To lead the people and organizations assigned to the project at any given point in
time. Strong positive leadership must be exercised in order to keep the many
disparate elements moving in the same direction in a co-operative.
5. To monitor performance, costs and efficiency of all elements of the project and the
project as a whole, exercising judgement and leadership in determining the causes of
problems and facilitating solutions.
6. To complete the project on schedule and within costs, these being the overall
standard by which performance of the project manager is evaluated.
FIGURE-III(Competencies of a project manager)

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1.2.9 Why do projects go wrong?
There can be many reasons why projects go wrong. The most common reasons are
as follows:
a) Project goals are not clearly defined
b) There can be constraints on the completion of projects arising from the different
objectives of:
 Short time scale
 Resource availability
 Quality factors
 Human factors
Problems with Project Goals
 The project sponsor or client has an inadequate idea of what the project is about
at the start.
 There may be a failure of communication between the client and the project
manager. The may be due to a lack of technical knowledge on the part of the
client or an overuse of jargon by the project manager.
 Specifications may be subject to constant change. This may be due to problems
with individual clients, decision making processes at the client end, or
environmental changes. For example the government may change the basic "rules
of the game" before the completion of the project.
 The project goals may be unrealistic and unachievable, and it may be that this is
only realised once the project is under way.
 The client may become carried away with the idea of the project and may be
unable to see clearly what can be achieved.
 Projects may be highly complex and may have a number of objectives that actually
contradict each other.
There are perhaps two stages which can help in ensuring that goals are properly
defined and achievable:
a) Ensuring that the client specification is clear and understandable. To do this you
must first of all establish the objectives of the project. It would help to ask the
following questions:
 What is it that the organisation is setting out to achieve or is being asked to
achieve?
 Will the suggested project fulfil these objectives?
 Have all the alternatives been considered and is the chosen option the best one
available?
 Have the full effects of the project, both inside and outside the organisation,
been considered?
b) Preparation of Project overviews (Project brief). The brief should take the
objectives set out in the previous exercise and translate them into targets and
goals. Any key constraints should also be identified and stated at this stage. This

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brief should be agreed by the sponsor/client and communicated to the project
manager. Any ambiguities or queries should be sorted out as soon as possible.
A good way forward would be through the establishment of success criteria for the
project. If you want the project to succeed (and who doesn't?), then you have to
know when you have succeeded.
Success criteria can be described as being hard or soft:
 Hard criteria are often the most obvious criteria that are tangible and measurable
and can be expressed in quantitative terms. They tend to pose the question
"what?", that is "what should be achieved?"
 Soft criteria are usually less obvious, but not necessarily less important. They are
often intangible and qualitative. Consequently they may be difficult to measure.
They would tend to ask the question "how?"
a) Hard criteria
 Performance specifications: these may be set out in terms of the ability to deal
with certain demands. For example, this could be throughput of traffic, number
of patients, volume of transactions processed or the number of enquiries dealt
with.
 Specific quality standards: this could relate to technical standards and tolerance,
or may be the achievement of a favourable report from an outside inspection
agency.
 Meeting deadlines: this is probably the most obvious one of them all where
projects need to be completed within a given time scale. For example, a new
system may need to be implemented ready for the start of the financial year, or
a new development may have to meet time requirements as laid down in
contract specifications.
 Cost of budget constraints: an important criterion may be to complete the
project within a cost limit or budget which has been determined. Additionally
there may be requirements in terms of the ongoing cost of the completed
project. For example, a new system may be required to make savings for the
organisation on a continuing basis.
 Resource constraints: there may be other resource constraints such as making
use of existing premises or labour force.
b) Soft criteria
 Demonstrative co-operation: this would be about showing that the project team
could work together effectively and without a degree of conflict. It could be an
important consideration to develop and implement solutions for the organisation
which have a wide element of consensus and stem from a co-operative attitude.
 Presenting a positive image: this may also be important but obviously can be
difficult or impossible to quantify.
 Achieving a total quality approach: this would be more about the adoption of a
philosophy of continuous improvement than the achievement of specific
performance targets on quality.
 Gaining total project commitment: this is again about how the project is
managed and the attitude of the project team to it.

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 Ensuring that ethical standards are maintained: it can be very important to
ensure that no corners have been cut that should not have been and that
professional standards of ethics have not been breached.
 Showing an appreciation of risk: this would ensure that no unacceptable risks
were taken in the pursuit of other project objectives. Again this is about how
the project is developed rather then the end product itself.
1.2.10 Constraints on the completion of projects
a)Time
Our definition of a project stated that it was an activity which had a defined
beginning and ending point. Most projects will be close-ended in terms of there
being a requirement for completion by a certain point in time. This point may be
the result of an external factor such as new legislation, or may be derived from
organisational requirements. It may also be partly determined by other constraints.
There is likely to be some relationship between the time taken for a project and its
cost. A trade-off between the two constraining factors may then be necessary.
b)Resource Availability
There is likely to be a budget for the project and this will clearly be a major
constraint. Cost constraints may be set in a number of ways, for example as an
overall cash limit or as a detailed budget broken down over a number of
expenditure headings. Labour resources in particular may be a limiting factor on the
completion of the project. In the short run it is likely that labour will be fixed in
supply. Whilst the overall resource available may in theory be sufficient to
complete the project, there may be difficulties arising out of the way in which the
project has been scheduled. That is, there may be a number of activities scheduled
to take place at the same time and this may not be possible given the amount of
resources available.

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FIGURE – IV (Constraints of project Management)
c) Quality factors
Whether the project delivers the goods to the right quality.
There are techniques which can be used to overcome the problems referred to above.
These include:
 Budgeting and the corresponding control of the project budget through budgetary
control procedures.
 Project planning and control techniques such as Gantt charts and network
analysis.
An important point to note at this stage is how the various constraints on project
completion are likely to be interlinked with each other. For example, problems with
time constraints or resource constraints may be overcome by spending more through
working overtime, employing more people or purchasing better machines. Budget
problems may have a knock-on effect on the achievement of deadlines.
It is important to remember that while project management techniques are important,
they tend to understate the importance of the key resource: people. In a fact
changing environment where tasks are often difficult, controversial with uncertain
outcomes, "people management" skills are called for.

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1.3 THE PROCESS OF PROJECT MANAGEMENT
1.3.1 Project Initiation
A project is formally started, named and defined at a broad level during this phase.
Project sponsors and other important stakeholders perform their due diligence on
whether or not to undertake a project, or choose to undertake one project over
another. Depending on the nature of the project, feasibility studies are conducted or
as it may require, in an IT project – requirement gathering and analysis are performed
in this phase.
1.3.2 Project Planning
A major decision at the outset of any project is to decide upon the organization and
composition of the project team. In so doing, it is worth remembering that many
members will have dual responsibilities of involvement in the project in addition to a
commitment to other projects or management of a functional area on a day-to-day
basis. It is at this stage that a project manager should be appointed and
responsibilities made explicit for all members of the team.
The selection of the team will be dependent upon the skill requirements of the project,
and upon the matching of those skills to those possessed by individual members of the
team. There may be a conflict here with hierarchical status.
The project management team will, therefore, begin its task in advance of project
proper so that a plan can be developed. An important first step is to set the objectives
and then define the project, breaking it down into a set of activities and related costs.
It is probably too early to determine exact resource implications at this stage, but
expected requirements for people, supplies and equipment should at least be estimated
during the planning stage.
1.3.3 Project Scheduling and execution
This phase is primarily concerned with attaching a timescale and sequence to the
activities to be conducted within the project. Materials and people needed at each
stage of the project are determined and the time each is to take will be set.

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A popular and easy to use technique for scheduling is the use of Gantt charts. Gantt
charts reflect time estimates and can be easily understood. Horizontal bars are drawn
against a time scale for each project activity, the length of which represent the time
taken to complete. Letters or symbols can also be added to the left of each bar to
show which other activities need to be completed before that one can begin.
After the project has been planned it is time to begin executing the project lifecycle. At
this point, two of the project management process groups come into the forefront to
manage the project. Some of these processes are classified as “executing” and some
are classified as “monitor and control”. The biggest different is that the executing
processes are those that are proactively carried out by the project manager. For
instance, managing issues is a proactive project management process. There is no
baseline for issues. When an issue arises, the project manager needs to address it
through issues management.
1.3.4 Monitoring and Control
The second project management process that occurs as the project is progressing is
“monitor and control”. This set of process is more reactive. You first make a baseline
plan, and then monitor the project to detect a change to the baseline. When you
detect the change, you take action. For example, the scope management is a process
of monitoring the project scope. IF the scope changes (from the baseline version) the
project manager invokes scope change management. Likewise you have built a
schedule for your project. You need to monitor progress against your schedule. If you
remain on schedule and your schedule continues to represent the path to project
completion, you may not have to update it again. IF you detect a variance against
your schedule, corrective actions may be necessary. This is the nature of project
management activities that are in this monitor and control section.

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FIGURE-V (Project Management Process)

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CHAPTER-II
Case study of successful projects
2.1 Al Wahda Master Development, Abu Dhabi
2.1.1 Overview:
Located in Abu Dhabi City in the United Arab Emirates (UAE), the Al Wahda Master
Development is a vibrant business and shopping destination in the heart of the city. It
boasts Abu Dhabi’s largest five-star hotel with 850 rooms and apartments, the city’s
biggest inner city shopping mall with more than 400 shops, thousands of square
metres of leasable office space, residential apartments, and is also home to Al Wahda
Football Club. Providing project management and cost consultancy to the
development, EC Harris International Ltd has been involved in every element from
the master planning of the development to the concept development and
management of the interior design, fit-out and furniture, fittings and equipment
installation. In fact, EC Harris’ involvement has been so intrinsic that they were even
responsible for naming some of the restaurants and bars in the hotel.
2.1.2 Objectives:
EC Harris developed detailed and systematic procedures through a project
management gateway approach, which involved design verification checks, employer
sign-off at various phases, value engineering workshops, and risk management. The
project execution plans helped to categorise roles, responsibilities, communication
protocols and approval of flowcharts. The development, which is valued at more than
£400m, was built between 2005 and 2012 with the objective of creating an exciting
shopping mall, five-star business hotel, office and residential buildings, resulting in a
new business and shopping destination within the core of the city. The achievement of
those objectives involved significant project management from EC Harris over the
duration of the seven-year development.
2.1.3 Resources:
It was a truly international project team which comprised a diverse mix of nationalities
and cultures. Those working on project included American, Bangladeshi, Chinese,
Croatian, Egyptian, German, Ghanaian, Indian, Iraqi, Italian, Jordanian, Lebanese,
Malaysian, Moroccan, Nepalese, Pakistani, Palestinian, Philippino, Portuguese, South
African, Sudanese, Syrian, Thai and Tunisian. In total there were 31 different
nationalities working on this scheme. EC Harris deployed a dynamic team who were
happy to multi-task in their daily roles, allowing the client to maximise value from the
project management team. It is down to the dedication of that team which made the
project such a success.

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2.1.4 Challenges:
In 2008, with the project at 70 per cent complete, the worldwide financial crisis
struck, posing the biggest challenge in the three-phase initiative. The UAE was initially
regarded as being immune to the financial downturn. However, the ripple reached
them by late 2008 and the impact was bigger than anyone could have forecasted. EC
Harris, who was then leading the second phase of the development’s construction,
faced huge issues as steel prices rocketed and concrete supply became
unpredictable. Vital early planning to avert supply issues helped to ensure the supply
lines continued – with main contractor Civil co crucially producing the goods at a time
when many projects either stalled or entered into dispute.
2.1.5 Co-ordination:
There was an Arab, an Egyptian and an Irishman…. It sounds more like the beginning
of a joke but, in fact, it’s an important point in demonstrating the multicultural mix of
the management team of client, engineer and project manager. Overcoming
multicultural barriers was a major contributor to the success of the project and is a
challenge that is not normally present in UK-based projects. EC Harris established
best practice, clear processes, and communicated one-to-one coordination with all
team members and stakeholders. Importantly the project team was empowered to
assume responsibility and manage the process effectively.
2.1.6 Project successes:
Ultimately, for EC Harris, the project was a major success. They delivered the largest
hotel in Abu Dhabi along with one of the cities most vibrant shopping malls – key
assets that are providing a return on investment to the owners and wealth to the city.
Constantly focused on the holistic delivery of the project in line with its Built Asset
Consultancy ethos while providing micro-management support to contractors and
suppliers. EC Harris has received many accolades for the project – particularly after
overcoming the challenging market conditions of 2008.

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2.2 Aqueducts and Large Diameter Trunk Mains Clean & Maintain
Programme, United Utilities
2.2.1 Objectives:
As part of an asset management plan from 2005 – 2010, UU invested £3.1 billion in a
wide range of asset and infrastructure improvements through a number of targeted
capital investment programmes. The aqueducts and large diameter trunk mains
(LDTM) clean and maintain programme was part of this and had two main objectives:
1. To plan, design, develop and implement a major programme of inspection,
maintenance and repairs on UU’s two main aqueducts, the Haweswater (HA) and the
Thirlmere (TA), and associated infrastructure, which transfer water from the Lake
District through to areas of Cumbria, Lancashire and Manchester.
2. To clean and refurbish six LDTMs reducing levels of levels of iron and manganese,
which are harmless but can discolour the water supplied to customers.
2.2.2 Resources:
The project included the largest-scale cleaning work ever undertaken in the UK water
industry. Over £143 million was invested across more than 30 co-related projects over
a five-year period. Up to 100 people worked in the TA at any one time, presenting a
huge exercise in logistics, resource health and safety planning. The LDTM projects
were delivered using project manager led project centric teams comprising members
from three organisations, UU and strategic partners Balfour Beatty Utility Solutions
and Montgomery Watson Harza. The team members were drawn from cross business
resource pools of specialist skills, including co-located project management, co-
ordination, control, design, health, safety and environmental teams to ensure
efficiency and effectiveness through open communication. Due to the high risk, high
profile nature of this programme a
governance board was established. This provided an opportunity for reporting the
programme and its co-related projects status, managing senior management
expectations and allowed risks and issues to be escalated to the correct level within
the organisation quickly and efficiently.
2.2.3 Challenges:
The programme had one major constraint – the works could not affect supplies to
customers. This meant a fresh approach to project prioritisation, resource planning,
risk management, integration and scheduling. Other challenges were that the majority
of these strategically important assets were over 50 years old (and in some cases
over 100 years old) and had never been taken out of service for significant
maintenance before, and the nature, scale and uncertainty of unforeseen events, such
as extremes of weather, major bursts, and third party damage, and issues that
required reactive maintenance put pressure on the overall annual budget and caused
project priorities to be frequently re-assessed.

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2.2.4 Co-ordination :
Due to the scale of inspection and maintenance work required and the need to avoid
disrupting customers’ supplies, the aqueduct maintenance and LDTM cleaning projects
were carried out in phases over a five-year period. Work on the two aqueducts – the
Thirlmere one being more than 115 years old – included investigation, survey and
structural repairs. Targeted repairs were carried out along the entire 134-kilometre
length of the TA, but the aqueduct could only be taken out of service for one month
each autumn. Cleaning of the LDTM’s also required complex planning and execution.
For instance, the first mains - supplying more than 1.7 million customers – required
two 25 kilometre mains to be cleaned that were large enough for an adult to walk
through. Access was necessary at more than 80 locations, requiring substantial third-
party negotiations and more than 15 kilometres of access track. Only one main could
be out of service at any one time and cleaning work was restricted to the
autumn/winter period. It was also vital that nearby mains were not affected or
damaged to ensure customer supplies were maintained. Comprehensive contingency
plans were required for each scheme to ensure that assets could be repaired or
returned to service quickly should an incident or emergency occur within the regional
system. Innovative approaches and techniques also had to be developed to scale up
existing technologies to meet the demands of the programme and generate cost
efficiencies. Specialist equipment was developed, including a CCTV device that was
floated through the live systems to identify areas of concern requiring further
investigation and low ground pressure vehicles allowing jetting and removal of wash
water from up to 1km of LDTM.
2.2.5 Successes:
£8 million efficiency savings. Improved customer service standards. Better water
quality. Reduced health and safety risk to employees and third parties by upgraded
access. Improved structural integrity of the aqueducts. Improved regional network
response to incidents such as bursts, with faster diversions, and altered flow rates to
minimise water loss and maintain customer supplies without major discolouration.
Delivered with no lost time accidents and no significant impact on customer levels of
service.

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2.3 Building Better Communities: Managing Reconstruction after
the Indian Ocean Tsunami
2.3.1 Overview:
The Indian Ocean tsunami of 26 December 2004 was one of the worst natural
disasters of recent years. It devastated large areas of coastline in fourteen countries
bordering the Indian Ocean, wiped out entire communities and caused an estimated
300,000 deaths in the region. In 2006 WSP, a global business providing management
and consultancy services to the property, transportation and infrastructure,
environment and energy and management and industrial sectors, was called in by the
Canadian Red Cross (CRC) to re-house more than 11,000 people made homeless by
the tsunami in Aceh, Indonesia. The company oversaw the reconstruction of 21
villages – 17 of which had to be relocated – and the design and rebuilding of nearly
4,000 flood and earthquake-resistant homes.
2.3.2 Objectives:
The Indonesian Government had specified that new housing stock should be of a
higher quality than before, while aid agencies stressed “build communities, not just
houses” to help restore normal life. WSP was given two key responsibilities – the first
to inform, educate and update the client as to the planning and construction process,
including the options and associated risks available to them for achieving the goals of
the project and, secondly, delivering the range of professional services necessary for
managing the construction process to a successful and timely conclusion. The
Canadian International Development Agency (CIDA) gave a deadline to complete the
houses no later than 31 March 2009.
2.3.3 Resources:
The most significant resource that had to be brought into place was the shelter project
management unit (PMU), which included WSP, other consultants and CRC staff. Its
duties ranged from managing field staff in several locations, co-ordinating
stakeholders, programme management, managing several contracts and consultants,
procurement, financial management and addressing project value drivers and risks.
Local people were involved wherever possible, but the bulk of the work was in the
hands of experienced building companies, supervised by lndonesian consulting
engineers. WSP ensured that all materials met standards of quality and were sourced
sustainably. The WSP environmental manager assessed each potential quarry and
extraction point and laid down rules for their management prior to approval being
given. As the large contracts came on stream, timber was removed from the contracts
replaced by Kalsiboard, gypsum board and aluminium framed windows and doors or
treated soft wood timber from outside the area. Bricks in Aceh Jaya consume large
quantities of local timber fuel to produce and the decision was made to replace bricks
with concrete blocks.

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2.3.4 Challenges:
According to WSP the pressure to build, in the numbers covered by the project, in a
variety of remote locations with many unknowns, coupled with a need to complete
urgently, was ‘a challenge of a lifetime’. When the company arrived in Aceh in mid-
2006, it found all contracts behind schedule, confused objectives and programmes, no
project management unit, poor availability of materials, difficult access because of
flooding, damaged roads and bridges, and disaffected communities who refused to
take part in planning because previous promises had been broken.
WSP called a halt to all CRC building activity, so the situation could be analysed and a
well-resourced programme agreed. The company helped CRC establish aims and
priorities to align recommendations and speed up decision-making. WSP advised CRC
on such critical aspects as design and planning and the clear definition of beneficiaries
so progress could be monitored week by week in each village. There was little by way
of design codes at the time in Aceh and WSP made design judgments, based where
possible by calculations and use of codes from similar geographies affected by floods,
high winds and earthquakes. The WSP convinced the CRC to try out a new system
build approach that could be faster and cheaper. The PMU engaged and managed five
Indonesian consulting firms and four major Indonesian contractors. To ensure quality
standards were met, WSP carried out regular audits of systems, materials and
workmanship, including stringent checks to ensure sustainable sourcing wherever
possible.
Relationships were forged with local communities using patience, listening skills,
response to their preferences, and good communication including a poster that
depicted the road to reconstruction. Nearly 4,000 houses were built and handed over
to beneficiaries across 21 villages in 2009 and positive feedback was received. The
government was appreciative and applauded CRC for delivering strong, robust durable
houses amongst the highest quality standards in the relief effort. WSP continued to
maintain a presence for a year to ensure that, at least for some time after the houses
had been handed over, professional and management capacity was available to iron
out issues and build understanding and capacity about quality and safety from future
hazards.

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2.4 Dawlish Sea Wall Emergency Works
2.4.1 Overview:
The images of rail track swinging in the air after the Dawlish sea wall was breached
came to symbolise the devastation caused by last winter’s storms. The damage to the
4.5 mile stretch of Brunel’s famous sea wall and rail track on the South Devon Railway
coastal route was the most destruction to have been caused to the wall and the wider
area since Victorian times. It severed the only rail connection from the South West to
the rest of the UK, so rebuilding the washed away railway as quickly as possible was
critical to communities and business in the West Country. To plan and deliver this
project in a short timescale under the watchful eye of the government and in the full
glare of the media would have been challenging in normal circumstances. Add in
relentless attack from continued storms, appalling weather and surging tides and it
became a heroic effort, taking the commitment, collaboration and ingenuity of
Network Rail, multiple contractors, stakeholders and the community working together.
2.4.2 Objectives:
Opened in 1846, the South Devon Railway is the only rail connection from the South
West to the rest of the UK and has outstanding scenic views – a secondary benefit as
Brunel selected this route to minimise the cost of alternative steep gradients. The first
storm hit on 4 February 2014. Within hours, a team was on site to assess the havoc
wreaked by 80mph winds and 5 metre high waves. Emergency work was instigated to
minimise further risk of damage, stabilise the exposed ground and to protect
properties on Riviera Terrace immediately above the washed out track. The initial
plan was to reconnect the route in six weeks. This quickly became an eight week
programme following a second wave of destructive storms and ferocious seas which
swamped the temporary breakwater on Valentine’s Day, increasing the original
damage by a third and adding 20 per cent to the overall project scope.
2.4.3 Challenges:
As well as nature’s unpredictability, one of the main challenges was managing the
interface between six main contractors on a scheme with unclear scope and immense
pressure to deliver as soon as possible. It was also essential to establish relationships
with local people who had been evacuated and with Teignbridge District Council as
well as managing the involvement of the Marine Management Organisation and Crown
Estates to ensure necessary licenses were in place.
The importance of the work to the public and businesses was never under‐estimated.
It was difficult to commit to a date in the first days as the scope was not only unclear
but increasing all the time, yet people needed to know so they could make plans.
There were also issues with those living alongside the line not only being disturbed by
the work but also impacted by the physical damage to their homes, land and property.
The need to manage their expectations of what the project team could deliver – and
honestly saying what they could not – was another factor to be taken into account.

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2.4.4 Resources:
A collaborative effort between all parties was at the forefront of this project in helping
to sustain motivation, commitment and drive to deliver the project safely and on time.
Less than 48 hours after that first phone call, a joint team comprising Network Rail,
BAM Nuttall, AMCO, Dyer & Butler, Sisk, Tony Gee and Network Rail’s local
maintenance delivery unit had assembled to assess, plan and implement solutions in
response to the damage. Mott MacDonald, Amey (signalling replacement), AmeyColas
(track renewal) and CAN (Specialist access drilling and soil nailing) also joined the
team to provide additional project support in the following weeks. The project leaders
comprised of a team of professionals from Network Rail. An average of 300 people
each day and 150 each night worked tirelessly to re-open the line, clocking up some
300,000 site hours.
2.4.5 Innovation and lessons learned:
Without the encouragement and application of innovation, the project would have not
been a success. No idea was discounted and expert opinion was sought from within
the industry and outside. Simple solutions such as sharing offices and open meetings
were the key to real collaboration among contractors. A single, integrated programme
allowed complex interfaces to be effectively managed and consistent, current
information made available to all parties. Daily drop-in meetings and formal weekly
meetings kept local people informed of progress. A customer liaison phone was set up
so that the residents could contact the team with any queries at any time and a ‘book
of appreciation’ was opened in the local library. As work continued 24/7, fatigue was
controlled through rolling shifts with those living locally working 12 hour shifts and
those travelling working either 8 or 10 hours.
2.4.6 Success:
The rail link to South and West Devon and Cornwall re‐ opened on time to an
extremely ambitious programme, allowing Dawlish and beyond to be reconnected to
their railway and the rest of the UK. The team received good feedback from local
councils and the public, including letters and cards of thanks from local residents. For
the project team, the immediate success of achieving the goal has also led to long-
term networking and relationships, leading to opportunities for collaboration on
future projects. Prime Minister David Cameron, praised the ‘orange army’ of engineers
as they have become known, for their “herculean effort” in completing the repairs.

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2.5 Delivery of the Rotary Wing Strategy 2009-2015, UK Ministry
of Defence
2.5.1 Overview :
After acclaimed and extensive operational service in Iraq and Afghanistan, a new
challenge faced the UK’s fleet of military helicopters if it was to remain battle ready.
By the start of 2009, there was intense media interest in a perceived lack of
operational aircraft, a pressing need to address equipment obsolescence and for
decisions to be made on potential successor fleets. All this was against a backdrop of
the global financial crisis and pressures on Government spending, which meant that
plans had to be modified rapidly or it would be increasingly difficult to sustain
helicopter capability at the required level in the future. In addition to an estimated £1
billion deficit in equipment acquisition plans and rising equipment support costs, there
was also little consensus between the Royal Navy the Army and the Royal Air Force on
a helicopter forward plan. Government ministers called for a holistic review to
determine the most cost-effective future investment. This led to the Rotary Wing
Strategy (RWS) and the first 5-year tranche of a programme to re-capitalise the UK’s
military helicopter types and drive support efficiencies to ensure delivery of a battle-
winning, front line capability.
2.5.2 Objectives:
The RWS programme was set strategic goals to achieve within the five years: Address
forecast gaps in helicopter capabilities that otherwise would have occurred by 2020
without increasing capital investment beyond established budgets; Reduce the fixed
costs of ownership of the overall UK military helicopter fleet through measures such as
reducing the number of fleets and minimising the diversity of aircraft configurations
within each fleet; Address key obsolescence and safety risks to sustain operational
capability.
2.5.3 Challenges:
There were a number of projects – each with its own scope and challenges – within a
programme that was the first of its kind to be attempted by the UK MOD for the
overall military helicopter capability. New Wildcat and Chinook Mk6 helicopters were
to be purchased while existing Puma, Apache, Chinook and Merlin helicopters required
upgrading and modernising. Investment was needed to ensure training aids such as
flight simulators reflected the upgraded fleet while maximising training effect and
efficiencies. Revised support arrangements for each of the core future helicopters had
to be implemented and full ownership of all Merlins was to be transferred to the Royal
Navy. All this had to be achieved despite a change of Government, a strategic defence
and security review, a global financial crisis and changes in the regulatory
environment and framework following the creation of the Military Airworthiness
Authority. It also had be done while maintaining the ‘business as usual’ military
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2.5.4 Resources:
A programme support office was established early to ensure project boundaries were
understood and to support the initiation of projects and governance of the
programme. Dedicated project teams were established to deliver defined elements
and ensure that the transition to deliver the strategy was coherent with ‘business as
usual’. A strong project management culture was established within
each team through a monthly review drumbeat and forward-looking metrics aimed at
avoiding future pitfalls. These arrangements also helped promote ownership of the
promises made in business cases.
2.5.5 Coordination :
There is a natural competitive rivalry between the different Armed Services that had
led to discord and tension in the past. A clear and well-supported strategic narrative
proved vital in helping to coalesce these differing views and in providing benefits to
each of the armed services. It created inter-dependencies that unified customer action
and created stability across the programme.
2.5.6 Lessons learned :
The RWS programme was breaking new ground by taking a programme-level
approach. There were lessons to be learned by the people involved and from the
processes that were developed and refined and which are now seen as best practice.
More formal mechanisms have been used to capture and transfer lessons. Post-project
Evaluations have been conducted, through which managers need to demonstrate as
part of their project assurance reviews how they have reviewed and implemented
lessons of their predecessors. Taking a programme approach has also enabled the
team to identify common risks, for which joined-up mitigations are now being
explored. This work is also providing a key resource for projects as detailed planning
for upcoming phases is undertaken. Work was also undertaken during the life of the
programme to build skills and competencies of those involved in acquisition.
2.5.7 Results :
Through the programme approach, five potent new helicopter capabilities have been
delivered to the UK’s armed forces within the approved time and cost, while making
substantial savings in supporting military equipment. The £1 billion funding gap has
been closed and £440 million has been saved from the forecast cost of supporting the
fleet for the next five years without impacting upon military effectiveness. The support
savings have been achieved through new long-term, incentivised support contracts
and the work on this has laid the foundations for future savings. The programme has
also allowed learning and resources to be shared and driven skills development. It
represents a paradigm from which others within defence, and perhaps wider, can draw
lessons.

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2.6 Green Park Station Step-Free Access Project, Transport for
London
2.6.1 Overview:
It sounds like a run of the mill tube station facelift – installation of a new lift shaft to
give those using the station step-free access to platforms. Now consider that you are
digging the lift shaft 26-metres deep in a building that was constructed in 1906 and
then expanded in the 1930s and again in the 1960s when asbestos was widely used in
construction materials. The lift shaft needs to be built between two active tube tunnels
and alongside a bank of three escalators. The station itself has to remain active
throughout the project and you have an immovable deadline. Finally, you’re next door
to the Ritz and a Royal Park. Not so straightforward after all. The task facing
Transport for London (TfL) was vast, and the successful delivery of the project saw it
awarded Project of the Year at the 2012 APM Project Management Awards. When
London Underground, in its support for London holding the Olympic Games,
committed to the Olympic Delivery Authority (ODA) and the
International Olympic Committee (IOC) to make Green Park station step free by 1st
December 2011, it was designated the ‘accessible station’ for central London. The
project contained some significant risks and was delivered ahead of schedule and
under budget in the constrained environment of a sub-surface operational railway and
a Royal Park.
2.6.2 Objectives:
The Green Park Step-Free Access (SFA) project has its origins in the late 1990s when
London Underground identified a core list of stations it planned to make step-free
accessible as required by the Disability Discrimination Act. A more detailed SFA
programme was developed in 2006, which coincided with the ODA identifying Green
Park station as a strategic transport interchange for the London Olympic Games.
Green Park serves the Jubilee, Piccadilly and Victoria lines and provides access to
Heathrow, numerous main line stations, Olympic venues at Stratford, Wembley, Earls
Court and Lords and, due to its central location, provides easy access to Olympic
events on the Mall, Horse Guards Parade and Hyde Park. When London won the
Games in July 2005, London Underground had to make good its commitment and did
so by August 2011 when Green Park station became the 63rd step-free station on the
London Underground network – the first within the Circle line.
2.6.3 Resources:
The team achieved delivery of this project through application of good project
management techniques in a rigorous manner bringing it in under budget, within the
fixed-time constraint of the Olympics and to a standard that all the stakeholders are
very pleased with. They achieved all they did by getting the best from expert
resources to support them on the wide variety of specialist tasks needed to complete
this project from heavy civil engineering through to artwork. Successful delivery of
such a complex project required clear leadership to keep the project on track. This
was achieved through consistency in the client project management team and main
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alignment of the team, extended team and the supply chain. The project required the
creation of a major building site which, at times, required 24-hour working in a highly
sensitive area, with significant restrictions on noise, traffic, light and vibration being
imposed by the City of Westminster, The Royal Parks and neighbouring buildings,
notably the Ritz Hotel. This has been achieved by maintaining a good working
relationship with all key stakeholders and addressing their concerns throughout, which
resulted in minimal complaints being received. The design was developed to meet the
aspirations of different stakeholders in a highly visible location. This was achieved by
extensive consultation with the City of Westminster, The Royal Parks and English
Heritage, and resulted in a contemporary design that uses traditional materials. The
stone cladding for the surface buildings incorporates artwork reflecting the geological
history of Portland stone and which improves the station environment for station users
and other travellers along Piccadilly, adding to an already high-quality design.
2.6.4 Challenges :
Despite the complexity, and a number of difficult issues to manage particularly early
in the project, the project managers used multi-disciplinary design reviews, risk
workshops and programme workshops to maintain the direction of the project and
improve the quality of decision making. One such example of this was in the relation
to the tunnelling works and how London Underground, the client, Tube Lines Limited,
the main contractor and Joseph Gallagher Limited, the sub-contractor, worked
together to resolve the conflicting requirements for speed while not making noise
outside normal working hours. Because of its duration, and the limited works that
could be progressed until they were complete, the tunnelling works were on the
critical path. Therefore the original intention was to start this activity as early as
possible. But the nature of the tunnelling methodology required meant that both
maximum speed and 24-hour working was required. The associated noise at night
would not be acceptable to The City of Westminster or the Ritz. The solution
developed by all parties was to build an acoustic shed over the work site. The shed
was built large enough to accommodate the material excavated during the night and
the concrete required to stabilise the excavation. Thus when the doors were closed at
the end of the day shift the noise could be controlled.
In addition to making the station step free, the improvements provide a larger station
entrance on the south side of Piccadilly and a new ramped entrance direct from the
park. Three new lifts have been installed taking customers from street to platform
level. One lift takes customers from the street to the ticket hall, then two lifts go from
the ticket hall to the Victoria line and the Piccadilly/Jubilee line interchange
passageway. The constraints of the site required the identification of a scheme that
minimised the impact on neighbouring properties and disruption during construction,
while achieving best value and meeting an Olympics deadline of December 2011. This
was achieved by using detailed options appraisal methodology and value engineering
techniques. The approved scheme that came out of the concept design in 2008
required the construction of the main lift shaft between and under an escalator barrel
and the northbound Victoria line tunnel. The project was set the challenge of
delivering this without causing disruption to services. The team achieved this by
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coupled with the preparation of detailed operational and engineering contingency
plans to be put into action should significant movement occur. This resulted in
minimal movement and the contingency plans ensured no disruption to passenger
services.
2.6.6 Successes:
The changes made by the project allowed Green Park Station to perform as promised
during the London 2012 Olympics and contribute to making sure the Games were as
accessible as possible. The project was completed three months ahead of schedule
and substantially under budget, without using any of the risk or contingency initially
allowed. All this has been achieved while maintaining the highest standards of safety
through continuous improvement. As of June 2012, the project had undertaken more
than 400,000 man-hours with zero lost-time injuries.

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2.7 The Construction Programme for the London 2012 Olympic
and Paralympic Games, Olympic Delivery Authority
2.7.1 Overview :
London’s successful bid for the 2012 Olympic and Paralympic Games created the need
for a major regeneration and construction programme to provide the venues and
infrastructure needed to stage the Games. The programme of construction was
extensive, technically and politically challenging, and up against a fixed deadline of
the Opening Ceremony of the Games in July 2012. Turning the vision of the Olympic
bid into the reality of roads, bridges and stadia was the job of the Olympic Delivery
Authority (ODA), a new publicly funded body.
2.7.2 Objectives:
The ODA had five years to staff up, procure and deliver around £6bn of major
construction works, mainly built on a largely derelict and polluted site in Stratford,
East London. At the same time, the ODA needed to satisfy a plethora of stakeholders
including the government, media, local residents and the public. It needed to
guarantee that it was providing value for money and was on track to provide both the
infrastructure required to stage the Games and a lasting legacy for a relatively
deprived part of London. The ODA’s programme of works included the deconstruction
and land remediation of a 400-hectare site, the construction of around 20km of roads,
13km of tunnels, around 30 bridges and new utilities infrastructure. It also oversaw
the construction of 14 permanent and temporary sporting venues, a broadcast centre,
media centre – for commercial use after the Games – the construction of the Athletes’
Village, the creation of 80 hectares of parklands, gardens and public open space as
well as huge transport improvements, including station and infrastructure works.
2.7.3 Resources:
The ODA budget was set at £8.1bn. The ODA documented the programme scope and
submitted it with detailed budget assessments to the Ministerial Funders’ Group
(Funders) and Olympic Board for approval. It identified the items the ODA planned to
deliver, the allocation of risk between the ODA and Funders and, importantly, those
items which were out of its scope. The development of this document was crucial in
bottoming out areas of scope uncertainty at an early stage in the programme and
gave the ODA a firm footing for delivery of the programme.
2.7.4 Challenges:
The ODA understood at the outset that there would be huge levels of public interest in
London 2012. It also recognised the project could only be delivered in partnership and
with the support of a large coalition of organisations, many of whom had differing
interests. As a result, the ODA adopted a highly proactive and systematic
communications and stakeholder management approach from community and political
engagement, through to daily public site visits and media opportunities. Firstly, the
strategy was to embrace transparency and ensure complete alignment between
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progress with intense focus at big moments. Finally, the ODA wanted to recognise that
“seeing is believing” – let success speak for itself and allow as many people as
possible to see the Park for themselves.
From the outset, the ODA instituted processes, meeting structures and delegations to
ensure strategic direction was clear, performance management was active and value
for money was achieved. CLM, the delivery partner – a private sector consortium
comprising of a partnership from the three parent companies of CH2M Hill, Laing
O’Rourke and Mace – was fully integrated into all aspects of governance, from the
Executive Management Board downwards, and was responsible for leading programme
and project delivery review meetings, with participation from the ODA. Stakeholder
meetings were also held on every project and for each priority theme to ensure that
key stakeholders remained engaged as projects developed.
2.7.6 Successes:
The ODA has successfully achieved its objectives, both for the delivery of the physical
infrastructure of the Olympic Park, and also for significant achievements in its priority
themes, such
as health and safety and sustainability. It has worked closely with the legacy bodies to
ensure that the platform left for future development is fully supportive of their legacy
plans. In delivering this successful outcome, the ODA’s approach to programme
management and organisation did not contain any one magic ingredient; rather it
concentrated on the establishment of a clear delivery strategy, maintaining a high
level of transparency to all stakeholders, clear definition of scope and focused
delivery.

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2.8 Powerlines Undergrounding Project, London 2012
2.8.1 Overview:
This was one of the most complex multidisciplinary engineering and tunnelling
projects in Europe, being delivered against a challenging deadline, in unique
environments, with a series of obstacles and risks encountered along the way. To
deliver this project in half the time of the industry norm, on budget and with an
impressive health and safety record was a considerable achievement. The careful
planning, collaborative working and innovation used by the project team set a
benchmark for world-class delivery, not only for the wider Olympic Park construction
projects, but for the whole industry. The project is considered to be ground breaking
and was the first Olympic Park preparation project for the London 2012 Games. The
significance of the Powerlines Undergrounding project (PLUG) on the wider Olympic
Park cannot be underestimated. This tunnelling and overhead line and pylon removal
project was the key to unlocking the Olympic Park landscape for long-term
regeneration, allowing the skyline of east London to be permanently transformed.
“PLUG” was probably the highest risk and toughest task project to execute. The
completion – on time and on budget – of the work on the powerlines tunnelling is a
tremendous achievement.
2.8.2 Quick facts:
 Project cost: £250 million
 More than 1.5 million man hours on the tunnelling alone.
 420 workers on site (2 main sites and 6 satellite sites) .
 PLUG tunnelling accounted for 85% of the UK’s tunnelling in 2007.
 Tunnelling completed in 424 days 4 x 40 tonne tunnel boring machines working
simultaneously.
 13km of tunnels 175,000m3 of soil produced – enough to fill Wembley Stadium
– 90% of which has been re-used in the earthworks for the Olympic Park
Tunnels.
 Lined with 11,000 concrete rings Construction (and modifications) of four large
electricity substations.
 200km of power cables – enough to stretch from London to Nottingham.
 52 electricity transmission pylons removed and recycled.
 80km of conductors removed – all recycled.
 8 tonnes of porcelain insulators removed – all recycled.
 Early upfront fast track international procurement of plant and materials Period
from start on site to cable energisation was half the industry norm.
2.8.3 Brief project background:
Following the award of the London 2012 Olympic and Paralympic Games in July 2005,
a long-term regeneration plan to relocate 52 electricity pylons that dominated the
landscape in and around the Olympic Park in the Lower Lea Valley needed to be fast
tracked to clear the area ready for Construction. After consideration of a range of
options, it was decided to create two 6km long deep bored tunnels (typically 20-30m

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below ground) and a 850m long spur tunnel to carry the powerlines underneath the
Olympic Park, together with a number of large electricity substations and associated
infrastructure. The tunnels, power cables and substations form part of the strategic
infrastructure of EDF Energy and National Grid. In addition, the project was conducted
in the face of intense public scrutiny, governance and engineering assurance. PLUG
was the first major construction project for the Olympics and, as part of its
commitment to transparency; the ODA published a detailed set of milestones at the
outset. Consequently, any deviation from the original timetable had the potential to
dent public confidence not only in the ODA but in the delivery of 2012 itself.
The key project objectives/priorities were to: meet the exacting programme;
deliver a quality project; remove, mitigate and manage risk; ensure the safety and
well being of all personnel and workers engaged on or affected by the project;
demonstrate value for money; keep London and customer supplies ‘switched on’.
2.8.4 PROJECT MANAGEMENT ACTIVITY:
The project was developed to be executed in six distinct phases:
1) Concept and feasibility.
2) Definition.
3) Implementation – tunnelling, substation construction, cabling and equipping, pylon
removal.
4) Handover of the assets and close out.
5) Operational testing and handover to the end user.
6) Termination/completion.
From the word go, teamwork and trust were absolutely key. All parties worked as one,
focusing on the challenges in hand and buy-in to the common goal rather than on
protecting contractual positions. The fact that individual success would only happen if
everyone was successful was understood and drove positive behaviours (there were
no contractual incentives to link these parties). Organisation and governance were
recognised as key aspects to the successful delivery of the project. Initially, the
project office was set up in a hierarchical way with the project management team on
the top floor, the contractor on the middle and the sub-contractors in separate site
offices which led to fractured and incoherent project governance and organisation.
Following the formation of the integrated management team, behavioural and team
attitude, workshops were held as well as coaching for the project team via an external
facilitator. This led to dynamic change to create a more interactive, cohesive team
where different disciplines (e.g. engineers, commercial managers etc.) sat together
regardless of company affiliation. This enabled the future challenges and possible
areas of conflict to be discussed at a very early stage. It was decided that the project
would comprise framework agreements between the LDA, NG and EDF Energy, which
would be based upon the following principles:
The design of the tunnels complied with both NG and EDF Energy requirements
(including operational, maintenance and health and safety). The LDA procured the
tunnels and novated the contract to the ODA once it was established. NG and EDF
Energy procured the cabling, its installation and the removal of existing OHLs. The
agreements included detailed estimated costs of these elements.

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2.9 Transforming Dublin Airport Programme, Turner & Townsend
2.9.1 Overview:
The Transforming Dublin Airport Programme is Ireland’s biggest ever infrastructure
project, with more than 130 projects in a portfolio ranging in value from €1m to
€609m. The Dublin Airport Authority (DAA) commissioned Turner & Townsend to
provide the full range of management services for the transformation programme
within an Integrated Team. The projects varied from the delivery of roads, aircraft
aprons and taxiways, expansion of existing Terminal One capacity, new passenger
pier, car hire and car parking facilities to the centrepiece of the development
programme – the new 100,000 square metre Terminal 2/Pier E. Overall, the
programme has achieved its aim of delivering the capacity to handle almost double
the current throughput of 18 million passengers a year. Other key objectives – such
as delivering customer service and commercial services required by the airport – have
also been achieved.
2.9.2 Objectives:
The key goal for the programme was to transform Dublin Airport through a major
capital investment programme comprising a series of projects. These needed to be
delivered safely and economically, while the airport remained fully operational, and
without any disruption to airport customers. At the outset, Turner & Townsend set out
detailed programme objectives that would enable the programme team to deliver
against this goal. In addition to targets for health and safety, delivery to time, budget
and to a defined quality, targets were further broken down so that progress could be
tracked at a detailed level. For example, for health and safety, Turner & Townsend
tracked near misses as well as accident frequency and used the data gathered to
determine trends and take remedial action before the near miss became reportable.
For cost, the team tracked indicators such as Value of Work done and Risk Drawdown
to pick up on likely areas of challenge for financial performance. It also kept a
constant watch on delivery performance, tracking programme performance and labour
returns against plan. For quality, the team tracked defects and time to close defects
out. In addition, they established objectives to keep track of training, team
development, process compliance and governance.
2.9.3 Resources:
Turner & Townsend’s appointment as programme management provider within an
integrated team included providing a number of key individuals to manage the
delivery of the programme and the establishment of a programme office, operating as
the single point of control for information flow. The programme consisted of 130
projects in a portfolio ranging in value from €1m to €609m. Phase one of the
programme alone represented €1.2bn. In the initial stages of the commission Turner
& Townsend put in place a series of processes and procedures that were applied to
every aspect of the development programme. The programme management company
also recognised the challenge that these different ways of working would represent for
DAA team members and put in place a structured learning programme to ensure they
understood the new processes and procedures.

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2.9.4 Challenges:
From the outset, there were big challenges facing the programme management team.
First, there was the sheer scale of the job of transforming Dublin Airport. Second
was the need to ensure that
the airport stayed in full operation while work progressed – and that key matters
such as safety and passenger wellbeing were not compromised. Both these factors
demanded a rigorous programme framework, along with the processes and
procedures needed to keep each component project on track. It also required the staff
of both organisations to work together effectively as one team, and move from a
starting point that Turner & Townsend describes as a ‘them and us’ environment.
Finally, to deliver the programme successfully, the programme management team had
to take into account the views of the airport’s various stakeholders. At the outset the
team implemented a stakeholder management plan that identified the whole range of
these and categorised them according to their interest and influence. They included
local community groups, airlines, handling agents and regulatory authorities. The
team then set about understanding what they wanted from the programme and put
in place a communication strategy that kept them informed of progress.
Turner & Townsend understood that the success of this programme, like any other,
would depend on people and their ability to work successfully as a team. At the outset
the focus of the leadership team was on the successful integration of Turner &
Townsend staff with the existing DAA employees. The leadership worked tirelessly to
ensure that cultural and professional barriers were broken down and the team began
to work seamlessly together. This was achieved by developing a common focus
through a set of common objectives. The organisation was developed around these
objectives and everyone within the team had a job profile and clarity on what part
they would play in delivery. The message was reinforced through personal targets
linked to delivery, quarterly performance updates presented by the team and a series
of team building and social events that the team embraced enthusiastically.
Communications between the leadership and team members were also central to
integration. Leaders kept their teams updated on progress and what lay ahead, and at
the same time ensured that everyone had the opportunity to make suggestions that
could be rolled out through the programme.
Turner & Townsend successfully met the needs of the client by implementing a
programme management approach. This has resulted in the transformation of Dublin
Airport into a 21st Century Gateway to Ireland on time and within budget. The
transformation programme increases the airport’s annual passenger capacity from 18
million to 32 million passengers, and the customer experience has been enhanced by
the introduction of new facilities and new revenue generating opportunities. Turner &
Townsend adds that stakeholder feedback on the finished product has been extremely
encouraging and, while traffic through Dublin has fallen as a result of the global

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economic situation, the resounding belief is that Dublin is well placed to take
advantage of the upturn when it happens.

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CHAPTER -III
WORLD’S MAJOR PROJECT FAILURE EXAMPLES
3.1 British Petroleum
In today’s dynamic and ever changing situation have forces the business organization
to adopt and implement the new strategies as it is necessary to survive in the ever
changing and competitive environment. In this case study we will analyse the
situation of BP Oil Spill in Gulf of Mexico situated in United States of America. This oil
spill results in a situation which is not only critical but also new for any oil company in
the world. As this deep oil spill accident was one of the worst disasters ever cost in
the history of modern era. Such situation required some extremely crucial strategic
management decisions.
3.1.1 Background of BP
British petroleum (BP) founded in 1909 as the Anglo-Persian oil and gas company
headquartered in London England, United Kingdom. It’s a sixth largest O&G company
by production and fifth largest company by annual revenue. Its major field of
operations are exploration, production, refining, distribution and marketing of the
hydrocarbon products. BP operating in over 80 countries of the world having over
80,000 employees. Its largest division is operating in America under the name of BP
America and it’s the second largest oil and gas production company in the United
States. It has 22400 service stations selling about 5.9 million barrel per day. It is one
of those oil and gas companies who have invested heavily for the invention and
adoption of new exploration technology to find petro chemical under the earth surface.
3.1.2 Problem:
April 2010, in the region of Gulf of Mexico situated 52 miles southeast of the Louisiana
port of Venice an explosion occurred in the Deep-Water Horizon project. This
explosion cause the oil spill which was one of the worst ever oil disaster in the history
of the modern world. This incident results the loss of 11 worker’s lives. The fire caused
the clouds of smoke covered 30 miles area while the 5 miles radius around the rig was
contaminated by the spill oil. The situation changed so rapidly that the well head
remains open resulting in substantial amount of oil spill eliminating the aquatic life of
the region with estimated death tool of 8000 animals. After many unsuccessful
attempts BP was able to cap the well on 15 July stopping the oil flow. The Deep-Water
Horizon was 9 years old unit specially designed for the offshore drilling. It was a
massive floating structure with the capability to operate up to the 2400 meter deep
and its drilling capability was 9100 meter. The structure was manufactured by the
heavy industry department of Hyundai. BP was using this semi-submersible drilling
unit by leasing it from Transocean from March 2008 to September 2010. BP took the
period of three months to completely cease the oil flow into the ocean on 15th July
but up to this time 4.9 million barrels of oil which is approximately equal to 780
million litres has been spilled into the ocean. During the span of three month almost

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210,000 gallons of hydro chemical leaked on daily basis in Gulf Ocean. This oil spilled
caused the adverse effect on the eco system which disturbed the 40% sea food supply
in United States . The US Government was quick to response and Obama announced
$20 billion fund as a response to cater the environmental disaster. BP also
acknowledged the situation admitting that it will pay for the clean-up cost. Over
30,000 people worked across the coast to collect the oil, took primitive measures to
save the lives of animals but unfortunately disaster was so critical that the effect of
spill still effecting the environment.
3.1.3 SWOT Analysis:
STRENGTHS
 Strong market appearance
 Financially strong Company
 Technological Advantage
 Largest producer
 Product quality
 Brand loyalty
 Diverse geographic experience
WEAKNESSES
 Negative Consumer opinion
 Poor Management
OPPORTUNITIES
 Territories expansion
 Energy alternatives
 High quality and competitive pricing
THREATS
 Legal threats
 Arab spring
 In appropriate measures
 Limited resources
TABLE -1 SWOT ANALYSIS
3.1.4 Reasons for Project Failure
 Extreme geographic location
 Weak risk management
 Lack of timely decisions
 Sluggish response in critical situation
 Undermining the situation
 Lack of planning

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3.1.5 Recommendations for British Petroleum
 Before starting any project the employees must be trained according to their job
responsibilities so that they can perform their duties correctly.
 Line manager and upper level manager must work ensure that all the quality
standards must be fulfilled.
 A company must place adequate number of expert on every project who can work
with skilled workers and can guide them in order for successful implementation of
project.  For any project there must be clear hierarchy so that in any critical situation
the decisions must be taken as quickly as possible.
 The accuracy of all electronic equipments used in the project must be verified after
periodic intervals.
 For the projects located in remote areas the must be some fast transport resources
that can be used in case of emergency so minimize the loss of life of employees.
 Organization must develop a culture where employees can understand their
responsibilities and the potential risk of making wrong decision.
 Main causes of project failure are mostly due to difficulty in performing the critical
task so proper standard operating procedure (SOP) must be defined for such tasks.

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3.2 CASE STUDY: CHRYSLER AND FIAT
3.2.1 Background of case
Chrysler and Fiat are auto-mobile companies. Chrysler's best assets were its Jeeps,
minivans, and light trucks. Fiat's expertise was in small car technology and fuel-
efficient engines, the very thing that Chrysler lacked. Chrysler merged with fiat on
June 10, 2009. Marchionne became CEO of the company. In 1998 Chrysler merged
with Dailmer-Ben. But this merger was not successful one. In 2007 Daimler sold
Chrysler to Cerberus, a private equity firm but again Cerberus was not able to save
company from failure.In the past Fiat was at loss and Marchionne was the one who
saved the company from failure. Now here we will find out what changes a company
has to face while merger? How the leaders handle these challenges?
3.2.2 Organizational Change
Organization change refers to managing different changing aspect of the organization
such as physical environment, introducing new technology, alteration in mission,
business process and policies, change in management team, merger, reengineering
etc. When the change is significant and primary experts call it organizational
transformation. Causes of organizational change Companies face numerous situations
during the process of change which leads to anxiety and ambiguity. In order to
become a prosperous organization, it is imperative for the companies to incorporate
upgraded technologies for producing goods, innovative products to be introduced
which are anticipated by the market, modern methods of administration must be
executed along with improvement in the expertise of the workers. Companies must be
capable of coping with all dimensions related to the reforms. The companies who get
accustomed to change are able to boost their revenues and being appreciated as well.
The management must be competent to deal with all the aspects which influence their
companies. Alterations in the companies are driven by the following internal and
external elements prevailing in the environment;  Political, technical, economical and
societal enticements prevailing in the outer environment of the company can bring
change in the external environment.  On the other hand, the policies, styles,
systems and procedures adopted by the company’s management along with the
behaviour of the workers influence the internal environment.
3.2.3 Merger as a part of organizational change
 Merger A merger is a combination of two companies to create a new single
company.
 Reasons for merger There are numerous reasons for companies to merge.
Mergers provides firm with facility to maintain their market position. It also
provides facilities to companies to combine itself with other to strengthen itself
and work more effectively and efficiently. Company can progress by using new
technologies and innovation and using resources of successful Company. There
is no guarantee that merger will be successful.

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 Cultural Aspect of merger Culture plays vital role in merger and it can be
reason of failure or success of merger. Fiat and Chrysler merger was a cross-
border merger so we will look at cultural aspects of merger with respect to
two different countries.
 Cross-Border Merger Cross-border merger is combination of two
companies of two different countries. Cross-border M&A is defined as an
activity in which an enterprise from one country buys the whole asset or
controlling percentage of an enterprise in another country.
3.2.4 Cultural Differences between Chrysler and Fiat
 Fiat was an Italian company and Chrysler was American. After merger the
company faced culture difference described below:
 Difference between American and Italian Corporate Culture
 In America there is transactional culture, meaning “task” typically comes
before relationship. Legal documentation is involved in it. Italians, on the other
hand, are typically relationship oriented cultures, meaning that “relationships”
come before tasks. Business is done on bases trust and relationship.
 Rulebased cultures in America, as the term implies, tend to play by the rules,
no exceptions. Rule-based cultures typically follow the rules even if it means
putting a strain on personal relationships with friends or family members. It is
situational. Situational cultures in Italy, on the other hand, will treat people
differently based on their immediate individual situations, and the relationship
that one has with that individual and their situation.
 Americans tend to be low-context communicators, meaning they tend to value
saying exactly what they mean. Italians tend to be highcontext communicators,
meaning they do not typically express ideas. Thus, create ambiguity.
Keeping view the dissimilarities between Italians and US Americans, it can be
judged that these dissimilarities will pose issues for all the stakeholders since
such dissimilarities make themselves evident in every phase of the day to day
work liaison ranging from management of project, planning of meeting to
tactical planning . The purpose is to maintain the influence of cultural
dissimilarities in order to lessen the errors and misinterpretations at the time of
enhancement of essential benefits. The only way to achieve success is to offer
adequate training in order to acquaint the leadership, employees and
management with various cultures so that all can work in harmony.
Managing organizational change and cultural difference From above information
it’s clear that organization culture and organizational change are inter-related.
While merger organizational change takes place now CEO of the company has to
manage the change and develop a corporate culture which will be suitable for
employees. Although accepting change for an employee is very difficult. Mostly
employees are reluctant to change. How change can be implemented and what
strategies can be used to manage it so that it can be beneficial for the company.
Change is not one-time occurrence but it is ongoing reality. Effective change
management is part of larger workforce management, which focuses on

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improving overall performance of business to accomplish desired goals. It’s the
responsibility of the top leader to bring an effective process and awareness of
effective behavior change throughout the organization. Furthermore, the leaders
have the responsibility of inducing willingness in the workers to acknowledge the
change throughout the organization.
 Senior leaders have the duty to commence, advice, and support the process of
change. They must assure that all the workers have the complete know-how of
the process of change throughout the company. They must also ensure
accomplishment of the activities and develop suitable reactions to change.
 Middle managers are responsible for assisting the change and guiding their
workers to comprehend the motives behind the change and how to become
accustomed to this change.
 Employees have no role in making the choice on change that is why they
might require guidance to develop policies to deal with the expected
confrontation towards change. It is possible through workshops, evaluations and
group discussions. Moreover, the workers must comprehend the motives behind
the change, their part and how they can add to the procedure. The leaders must
make sure that the workers have defined roles and accountabilities along with
the authority so that they could induce required variations in the tasks assigned
to them.

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3.3 CASE STUDY: THE MILLENNIUM DOME
3.3.1 About Millennium Dome : Millennium Dome is a Dome shaped mega
structure, built in the Greenwich peninsula in south east London. It was designed for
the celebration purpose at the time of third Millennium. Third millennium is a time
period from January 1, 2001 to end of December 31, 3000. At the time of construction
it was considered as the mega structure in the world with respect to its size. The
Dome has a theme park and a scientific exhibition both of which is entitled as the
Millennium experience. The Millennium Dome closed on 31st of December 2000
because it failed to attract the number of visitors which was expected to visit the place
and resulted in many financial problems. As a result the Dome has been sold and
converted into a sports arena.
3.3.2 Background of the case: It was an achievement for opening a
Millennium Dome on time. Initially this Dome attract a number of paying visitors but
eventually this number decreases so much that it beaten the record of visitors in 1999
in England. This Millennium Dome is a fully funded project and it has been funded by
three sources that is national lottery, visitors and sponsors. During its operational
year the company has faced many financial problems. One reason is of decrease in
the number of visitors. In order to deal with these financial problems company has
done a number of changes at senior levels, like in year 2000 the company’s chief
executive, finance director and accounting officers were replaced with new ones. The
company’s solvency issue was a matter of concern throughout the year and it was
solved at the end.
3.3.3 Reasons for failure
 Lack of vision: The project was not properly planned; they were unclear with the
scope of the project. The original plan was to transform the Millennium Dome into a
soccer pitch for use of one the teams of London but in the end none of the teams
seemed interested. At the end, the British Government decided to find the appropriate
buyer because the cost of maintenance was too high, it was reported to be £1M per
month.
 Poor execution: poor execution cause lacklustre content resulting in negative
experiences for visitors and the resulting negative PR stemming for those experiences.
 Criticisms: Initial reaction from the press was poor. Lack of content, themes and
creativity were the common factors of criticism.
 Lack of sufficient operational expertise: The Company lacked sufficient
operational expertise. Running such a major attraction called for specific operational
expertise quite distinct from that required to construct the Dome.
 Poor marketing strategies: Marketing and sales strategies were based on the
Dome selling itself. Poor marketing resulted in shortfall of sales tickets. The
company’s marketing budget in the business plan was originally set very low as
compared to the large visitor attractions. As there were no competitors so the

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company’s estimations about building a good reputation only with word of mouth and
sales tickets were not enough to attract the new visitors.
 Financially mismanaged project: It was financially a mismanaged project which
was failed to attract new visitors. Throughout the planning and construction phase the
cost raised which resulted in more and more dispersion of money to dome’s builders.
 Lack of contingency plan: Due to lack of contingency plan they failed to manage
expectations.
3.3.4 Recommendations after Case study:
Following recommendations with respect to Project management are given below.
Management structure 
Management structure includes that the entire project related tasks are properly
defined, who reports to whom, what interaction patterns should be followed. What is
the communication style, motivational techniques for employees.
 Project manager’s answerability and responsibility related to project should be clear,
focused and straightforward.
 Organizational structure and management’s ability should integrate to meet the
requirements of the project that is to plan, build, run and close.
Project costs
 The projects should only proceed if they are clear with full life cycle assessment cost
of the project.
Risk Analysis
 Risk analysis of the project is necessary so that a project manager should
understand the cost which could arise in the later stages of the project and prepare a
plan for it.
Project income
 Project planning, the most important phase in the life cycle of the project. Resources
like time and money is used at this time. Projects like in Millennium Dome where the
success of the project depends on the number of visitors, the project manager should
keep in mind the uncertainties related to this type of income. This can only be done
with the help of careful and practical assumptions.
 To make realistic decisions about likely visitor numbers, and put in place effective
marketing, the timetable needs to allow for a reasonable period for the development
of a clear vision of what the product is and a fully thought through pricing strategy.
 While working with financial sponsors like in this case of millennium dome it was
funded by three sources so that the project manager working with financial partners

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must estimate the risk associated with financial contribution and discuss it in the
project planning phase itself.
Contingency planning
 If plan A does not work or there may be any changes so plan B should always be
there to help the project to run smoothly.
 Projects which depend largely on trading income, and when there is risk attached to
that income, it is important to be flexible at time of responding if the trading positions
become worse.
 Managers find it difficult to respond at times when there are situations which were
not easily predictable unless and until they have already developed a crises plan or
contingency plan at the time of project planning phase.
Financial management
All expenditure commitments such as expenditures that a company has committed to
spend over a period of time in a project should be recorded on central tracking system
so that all the invoices received against that commitment should be recorded
properly. This will help in identification of all the expenditures and total liability at any
time when needed to check the financial position of the project.
3.3.5 CONCLUSION
Project failure is preventable with good project planning. When a project starts to fail
there are techniques to recognize and trained Project managers minimize the extend
of project failure or recover the failed projects as early as possible. So project
manager needs to be trained in such techniques so that he/she not only recover the
failed projects but also reduce the chances of failure. By following these techniques as
discussed in the document you will enhance project’s chance of success.

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3.4 Columbia Shuttle
3.4.1 Shuttle Disintegrates after re-entry
On February 1, 2003 seven astronauts perished when their Columbia Shuttle
disintegrated as it re-entered the earth’s atmosphere. During launch a piece of foam
insulation, similar in composition to a Styrofoam cup and about the size of a briefcase,
broke away from the main propellant tank. The foam struck the left wing seriously
breaching the protective panels on its leading edge.
3.4.2 Familiar Problem
It was not the first time that a section of foam had broken away during launch. In
fact, it had happened on every previous flight. But on each of these flights the
spacecraft re-entered the earth’s atmosphere without incident and safely returned
home. With no evidence that harm was done to the spacecraft, management
assumed that it was a problem of minor significance and that it did not increase the
risk level of the flight.
3.4.3 Technical or Management Problem?
Just after the 2003 tragedy occurred many experts concluded that technology was to
blame. But a more thorough and comprehensive investigation, undertaken by the
Columbia Accident Investigation Board (CAIB) concluded differently. It maintained
that management was as much to blame for the failure as was the foam strike. The
Board described an organizational culture in which, at every juncture, program
managers were resistant to new information. It was a culture in which people were
unwilling to speak up or if they did speak up were never heard. In their report they
wrote that the organizational failure was a product of NASA’s history, its culture, and
its politics.
3.4.4 Lessons Learned
While there are many lessons that can be learned from this disaster, the one that
stands out is what organizational psychologists refer to as the “recency effect.” It
occurs when decision makers rely on only the most recent information. In this
situation foam insulation had broken away on previous flights and caused no harm. To
those responsible for the mission, these recent events distorted the real danger
presented in this problem.
In addition to the recency effect, a second factor was conservatism, a situation in
which new information is ignored or given too little weight. Senior management
largely ignored the data from previous flights where foam had broken away on every
launch; they failed to revise their prior belief that the system was operating properly.

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