Civil Engineering

Management 2
Assignment 1: Project
Management
Completed By:
Charles Cresswell
Elliot Neale
Jonathan Croft
Ryan Jones &
Thomas Hewlett
Date Completed:
March 2015

Contents
Executive Summary ...................................................................................... 2
1.0

Introduction ......................................................................................... 3

2.0

Case Studies ........................................................................................ 4

2.1.
2.1.1.
2.1.2.
2.1.3.

Project Failures.............................................................................................. 4
Sochi Winter Olympics (2014) ......................................................................... 4
Scottish Parliament Building (2007) ................................................................. 5
Montreal Olympic Games (1976) ..................................................................... 6

2.2. Project Successes ......................................................................................... 7

2.2.1. London Olympic Games (2012) ....................................................................... 7
3.0

4.0

Discussion ............................................................................................ 8
3.1.

Communicating ............................................................................................. 8

3.2.

Forecasting & Planning................................................................................. 8

3.3.

Organising ..................................................................................................... 8

3.4.

Motivation & Control ..................................................................................... 8

3.5.

Co-ordinating ................................................................................................. 8

Conclusion ........................................................................................... 9
4.1.

5.0

Recommendations ........................................................................................ 9

References ......................................................................................... 10

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

Executive Summary
This report discusses the key criteria of effective project management, through a review of previous project
successes/failures and compiles recommendations for the firms project management policy. A selection of
case studies exhibiting poor project management were analysed for their failures and compared with the
London Olympic Games; a project recognised for its managerial success.
A discussion of these projects revealed seven crucial characteristics of successful project management:

Communication
Forecasting
Planning
Motivation
Control
Co-ordination
Organisation

The management failings of the case studies stemmed from a lack of these key criteria, leading to a
plethora of preventable failures. In contrast, the London Olympic Games was managed with these
principles in mind, leading to its widely acclaimed success.
It is suggested that the proposed revision of the companys policy is built on these seven key principles,
with particular onus on effective communication throughout.

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

1.0 Introduction
Successful project management requires the application of the correct processes, methods, knowledge,
skills and experience in order to achieve the targets of a project. A cohesive and effective team must be
formed considering all stakeholders, with an atmosphere that allows all parties individual services to be
delivered effectively.
The balance of three key criteria can be used to define the success of projects; cost, time and quality. A
visual representation of a projects performance in these areas is provided by the Atkinson Element
Triangle. Case studies of such projects have been laid out in Section 2, highlighting their specific failures.

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

2.0 Case Studies

2.1.

Project Failures

The following presents a synopsis of three key projects, each of which has been chosen to highlight
specific failures in project management.
2.1.1. Sochi Winter Olympics (2014)

Client: International Olympic

Committee (IOC)
Initial Value: US $12bn
Actual Value: US $51bn (+325%)

Poor Financial Control: There was no motivation for contractors

to save money on the Olympics as they were viewed as Putins
personal project and, as such funding was guaranteed. Due to
poor control of funding it has been estimated $1.7bn of nonOlympic facilities were charged to the Olympic budget (AntiCorruption Foundation (1), 2014). Private Investment was
supposed to cover 60% of Sochis costs, by the end it covered
less than 4% (Anti-Corruption Foundation (2), 2014).
Non-Existent Tender/Planning Phase: Sole source contracts
were awarded on 15 of 24 sites investigated (Anti-Corruption
Foundation (1), 2014). A lack of planning meant secondary work
was often delayed/unfinished (Futterman, 2014).

Construction Venue Dependant 2007- Insufficient Control of Labour Resources: Un-contracted

Start: 2011
labourers were common on Olympic sites, many of whom were
illegal immigrants. Often, workers were untrained, unmotivated
Estimated January 2014
and unpaid (Shaw, et al., 2014) & (Pitalev, 2014).
Completion:
Deaths: A reported 26 construction related deaths occurred in
Actual February 2014
Sochi during 2012-13 (Shaw, et al., 2014). Total fatalities were
Completion:
estimated at over 120. These deaths often resulted from poor
onsite communication, as in the case of Mihai Cernisov (Shaw, et
al., 2014).

Scope:

Corruption of Organisational Structure: Procurement of

construction contracts commonly required bribery of officials with
$14.2bn of contracts going to companies linked to state officials.
(Anti-Corruption Foundation (1), 2014) There have also been
state investigations into embezzlement by senior officials and
major contractor, Olympstroi (Galli, et al., 2014).

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

2.1.2. Scottish Parliament Building (2007)

Detailed Design Changes & Poor Communication: Elements
of the design were shared between contractors and architects
without transfer of information (Audit Scotland, 2004). This,
combined with a poor understanding of the brief and no
forecasting for increased parliament staff, led to substantial
design changes throughout construction.

Client:
Initial Value:
Actual Value:
Construction
Start:
Estimated
Completion:

Inexperienced and Uncoordinated Client: Poor organisation

and forecasting led to a transfer in responsibility for the project
Scottish Parliamentary
one year into construction. Responsibility for time, cost and
Corporate Body (SPCB) quality were spread amongst different parties without coalition
(Scottish Parliament, n.d.).
109m
Non-Existent Tender/Planning Phase: Poor project planning
413m (+280%)
led to an unrealistic project timeline, resulting in little competitive
procurement (Audit Scotland, 2004).
June 1999
Poor Financial Forecasting: The managing parties did not
produce a full cost plan. Major delays led to the removal of the
December 2002
budget cap, shifting focus to time and quality.

Actual October 2004

Completion:

Insufficient Risk Management: Project management failed to

produce a concise risk management plan, despite initial audits
criticising the lack of allowance for major risks, resulting in
additional unforeseen costs (Audit Scotland, 2004).
Lack of Continual Assessment: Initial finance and progress
reports were not produced until the fourth year. Until that point,
project management had little idea of unplanned expenditures
and how to address the underlying causes (Audit Scotland,
2004).

Scope:

1: Pre 2001
2: Post 2001

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

2.1.3. Montreal Olympic Games (1976)

Under Skilled Client: The original client/manager, (City of
Montreal) did not have the knowledge or experience to organise
and manage a job of this size. The Province of Quebec was later
forced to take over the role (Patel, 2013), resulting in a
breakdown of communications.

Client: City of Montreal

(Province of Quebec)
Initial Value: CDN $124m
Actual Value: CDN $1.5bn (+1,110%)
Construction July 1972
Start:
Estimated June 1976
Completion:
Actual June 1976 (Continued
Completion: maintenance issues)

Scope:

Architectural Free-Reign: Mayor Drapeau appointed himself

project manager, allowing the architect total control of the design
process with little inter-disciplinary co-ordination (Quebec, 1980).
Value added engineering was overlooked, resulting in
unnecessarily complex and labour-intensive construction.
Non-Existent Tender/Planning Phase: Severe delays in the
submission of design documents alongside poor planning and
forecasting, resulted in most contracts going un-tendered (Patel,
2013).
Fixed, Tight Deadlines: Unrealistic construction schedules were
difficult to control and adapt. Additional works led to excessive,
simultaneous activities on site and an extremely crowded and
dangerous working environment, with 12 fatalities (Patel, 2013).
Poor Design Integration/Teamwork: Minimal co-ordination and
communication between parties throughout design and
construction, resulted in minimal cost/quality control and
additional changes during both design and construction.
Shortage of Local Resources: Additional materials, plant and
labour had to be imported from other regions, resulting in huge
transportation costs and a lower-quality workforce.
Extensive Labour Problems: Poor weather, labour union action
and corrupt contractors resulted in approximately 100 days lost to
strikes and slowdowns. The organisational structure allowed
labour unions and contactors to take advantage of the client (Neil,
1979).

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

2.2.

Project Successes

The London Olympic Games were hailed as a success, being completed to the specified quality and
programme whilst under budget (House of Commons , 2013). The project had a clear financial framework,
refined review process and an experienced leadership team. From this, conclusions can be drawn as to
how to avoid the aforementioned mistakes.
2.2.1. London Olympic Games (2012)
Project Coordination: LOCOG (London Organising Committee
of the Olympic Games) were responsible for the planning and
delivery of the Olympics, working alongside the governments
Olympic Delivery Authority (ODA) and a consortium of
construction management professionals. An organisational
framework defined the role of each party, avoiding governmental
micro-management (Dodd & Sathasivam, 2010).
Client: International Olympic
Committee (IOC)
Initial Value: 9.3bn

Project Communication: A clear scope of works facilitated the

early production of a Programme Baseline Report; outlining the
programme, budget and scope of the project. This report helped
communicate and resolve initial uncertainties with the client
(Kintrea, 2012).

Actual Value: 8.9bn (-5%)

Construction March 2008
Start:
Estimated July 2012
Completion:
Actual July 2012
Completion:

Scope:

Planning Resources: Management collaborated with key

industry trade unions to secure labour resources. All parties
agreed to a Memorandum of Agreement (MoA), encouraging
integrated working. The MoA formed part of each contract to
ensure reliability of labour and reduced the risk of union strikes
(Eldred, 2012).
Financial Forecasting: A clear business case detailed the
spending throughout the delivery and operation of the Olympics.
Furthermore, proactive procurement ensured early contractor
engagement, shifting focus towards constructability to create an
efficient and easily understood design (Zayas, 2012).
Project Control Process: The utilisation of an infrastructure
integration governance model ensured a continuous review
process, which monitored the project baseline at each level of
management. Key performance indicators also aided in the
assessment of progress throughout construction (Kintrea, 2012).

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

3.0 Discussion
The case studies in Section 2 indicate that a balance between cost, time and quality is only achievable
through effective project management. These traditional success factors are based on the management of
technical resources, however, as the industry has evolved, so have its management principles. With the
growing complexity of projects and the disciplines which serve them, greater emphasis has now been
placed on the management of human resources; which necessitates upon effective communication.
Previous project failures mainly stem from a lack of compliance to the seven key principles of modern
management shown in Figure 1.0:

Figure 1.0 Atkinson Elements Triangle (Left) and The Heart of Management (Right) (R.E.Calvert, 1995)

3.1.

Communicating
Continual communication between all parties throughout the project is essential in achieving these
principles. Poor communication has plagued the case studies shown with no design integration,
inadequate on-site reporting and a lack of understanding of the brief, leading to costly delays and
low quality.

3.2.

Forecasting & Planning

Expertise in the project start-up and tender phase is also vital; a crucial stage of project
management which may be overlooked by those without sufficient training. Inadequacies in this
area lead to unrealistic budgets, excessive design changes, overpriced/uncompetitive contracts and
generates an environment which promotes corruption.

3.3.

Organising
The organisation of all resources through the effective distribution of responsibilities to all parties
involved is critical. In particular, a client lacking in skill and experience will struggle to provide such
an organisational structure, leading to uncertainties in design obligations and poor risk
management.

3.4.

Motivation & Control

Tight deadlines are ultimately unachievable without a motivated and well-controlled workforce. In
particular, Montreal and Sochi suffered in this regard, although management restructuring resulted
in a significant increase in on-site productivity. Control requires the continued assessment of works,
monitoring schedules/costs and adjusting resources accordingly, a process missing from the failed
projects.

3.5.

Co-ordinating
A lack of managerial structure and poor regulation of the design process itself, has led to several
project failures. In particular, managements failure to fully utilise both engineers and architects have
been shown to have catastrophic effects on both the budget and timescales of the construction
phase. The recurring theme of architectural free-reign actively inhibits effective cross-disciplinary
collaboration. The early involvement of each discipline generates efficient, constructible and
crucially, well understood designs.

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

4.0 Conclusion
Good practices do not emerge from a vacuum, rather, an organizational culture
must exist that values and nurtures good practices - (Cooper 1998)

From a fundamental understanding of the management failures shown, a clear shift in the way the firm
approaches project management is vital. Not just in the way it outlines individual processes, but in the value
it places on each of the seven key aspects presented in Section 3. It is pivotal that these are ingrained in
the companys core values, creating an environment in which effective communication generates
successful projects.
4.1. Recommendations
The following key aspects of management must form the basis upon which the company develops its new
project management policy:

Communication: Initiating and maintaining open dialogues with all parties throughout project work.

Forecasting & Planning: Well-established and continuous planning based on a fundamental

knowledge of the design and tender processes.

Organising: Developing efficient managerial structures and distributing responsibilities effectively, both
internally and with external parties.

Motivation & Control: Ensuring all parties are effectively managed and the correct incentives are in
place to promote productivity.

Co-ordination: Early engagement of all disciplines, facilitating and encouraging design collaboration.

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

5.0 References
Anti-Corruption Foundation (1), 2014. Sochi 2014: Encyclopedia of spending. [Online]
Available at: http://sochi.fbk.info/en/report/
[Accessed 24 February 2015].
Anti-Corruption Foundation (2), 2014. Sochi - Cost of the Olympics. [Online]
Available at: http://sochi.fbk.info/en/price/
[Accessed 18 February 2015].
Audit Scotland, 2004. Management of the Holyrood building project, Edinburgh: Audit Scotland.
BBC, 2014. BBC News - Sochi 2014 - Journalists find hotels unfinished. [Online]
Available at: http://www.bbc.co.uk/news/world-europe-26045502
[Accessed 21 February 2015].
Brady, S., 2014. Project Management Failure: The 1976 Montreal Olympics. The Structural Engineer,
19(3), pp. 30-31.
Dodd, S. & Sathasivam, V., 2010. Mega-Project Management: A Case Study of the London Olympic
Games 2012. s.l., UK Academy for Information Systems Conference Proceedings 2010.
Eldred, A., 2012. Lessons Learned from the London 2012 Games Construction Project: Olympic Park
Industrial Relations: The Memorandum of Agreeemnt, London: Learning Leagcy.
Futterman, M., 2014. The Wall Street Journal. [Online]
Available at: http://www.wsj.com/articles/SB10001424052702304899704579388882111244174
[Accessed 23 February 2015].
Galli, C., Momtaz, R. & Ross, B., 2014. ABC News. [Online]
Available at: 1) http://abcnews.go.com/Blotter/threats-sochi-olympics-whistleblower-drownedblood/story?id=22270000
[Accessed 23 February 2015].
Grove, T., 2014. Reuters: Olympics:- Sochi residents blame Games for ecological damage. [Online]
Available at: http://www.reuters.com/article/2014/01/17/olympics-russia-environmentidUSL5N0IY04720140117
[Accessed 23 February 2015].
House of Commons , 2013. The London 2012 Olympic Games and Paralympic Games - Post Games
Review, London: House of Commons Committee of Public Accounts.
Kintrea, K., 2012. Lessons Learned from the London 2012 Games Construction Project: Programme
Managment, London: Learning Legacy.
Neil, J., 1979. Construction Cost Estimating Concepts and their Applications. Prentice-Hall, Volume NJ, pp.
1-8.
Patel, A., 2013. 1976 Montreal Olympics: Case Study of Project Management Failure.
J.Perform.Constr.Facil, 3(27), pp. 362-369.

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Assignment 1: Project Management
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Pitalev, I., 2014. The Moscow Times - more than 6000 unpaid workers compensated for olympic work.
[Online]
Available at: http://www.themoscowtimes.com/news/article/more-than-6000-unpaid-sochi-workerscompensated-for-olympic-work/494274.html
[Accessed 23 February 2015].
Quebec, P. O., 1980. Report of the Commission of Inquiry on the Cost of the Twent-First Olympiad: 1980,
Quebec: Les Presses du Service des Impressions en Regie du Bureau de l'Editeur Official du Quebec.
R.E.Calvert, G. &. D., 1995. Intorduction to Building Management. 6th ed. Oxford: Butterworth-Heinemann.
Saint, A., 2014. Engineering and Technology Magazine - Sochi 2014 - Infrastructure award and
enviromental disaster. [Online]
Available at: http://eandt.theiet.org/magazine/2014/02/dreaming-of-a-white-winter-olympics.cfm
[Accessed 21 February 2015].
Scottish Parliament, n.d. Milestone dates in the building of the Scottish Parliament. [Online]
Available at: http://www.scottish.parliament.uk/visitandlearn/16333.aspx
[Accessed 23 02 2015].
Shaw, C., Anin, R. & Vdovii, L., 2014. The Black Sea - Ghosts of Sochi. [Online]
Available at: http://theblacksea.eu/index.php?idT=88&idC=88&idRec=1184&recType=story
[Accessed 22 February 2015].
The Assosiated Press, 2013. The Moscow Times - Sochi Landfill Waste Threatens Drinking Water. [Online]
Available at: 8) http://www.themoscowtimes.com/olympic_coverage/article/sochi-landfill-waste-threatensdrinking-water/488768.html
[Accessed 23 February 2015].
Zayas, D., 2012. Delivery London 2012: Managing the Construction of Olympic Park, Berkeley: University
of California.

Civil Engineering Management 2

Assignment 1: Project Management
C.Cresswell, E.Neale, J.Croft, R.Jones, T.Hewlett

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