Carillion Risky Road Construction Project: Issues, Solutions, Essay.

Question:

Discuss about the Seeking Influence Integrated Resource Plan.

The project management is an integral format for the development of the improved functional analysis (Bury 2017). The alignment of the effective project integration would be helpful for forming the supportive development of the project integration and development. The project analysis had provided the support for the alignment of the significant development model for the operations. The analysis of the project management organization structure, analysis of the requirements, and evaluation of the stakeholders are a crucial factor for the project report.

The following assignment covers the project of risky road construction at Carillion for ensuring the proper project documentation is made. The alignment of the integration method would be result in forming the development of the proper documents for the project of the developing the risky roads in Carillion. The project has faced some issues and had resulted in overall failure of the project (Devaux 2014). The following reports highlights the issues of the project, description of the project and project organization structure, management requirements and slackness that occurred in the project, reason of failure and solutions for the project, and involved stakeholders and their influence. The complete analysis of the project would tend to form the detailed project report so that a general overview of the project can be made (Kerzner 2013). It would also serve the purpose of the base document for developing all larger projects in future.

The project of Carillion risk road construction project is implied for developing road across the Aberdeen Western Peripheral Route. The Aberdeen Western Peripheral Route was one of the biggest infrastructure development projects (Cicmil et al. 2017). The project had been formed for ensuring the improvement of the travelling in north east of Scotland. The project had been expected to support the conveyance of the people around the Scotland. The project had been supportive for the alignment of the road development. The road development projects have significant influence on the deployment of the profound alternatives (Hegazy 2013). The project would support the formation of the road in the Carillion area for ensuring that the people get benefit of the simple alignment of the construction activities. The decision of the Scottish government along with the local council was taken for constructing the road in Aberdeen Western Peripheral Route (Heldman 2015). The people have been waiting for development of the 36 mile or 58 km long route so that they can travel across the Scotland. The project was supposed to provide work to thousands of local people for working and earning their livelihood from the project (Bury 2017). These local people had been suffering due to the slowed oil industry and the project would have provided them with an opportunity for earning their bread and butter till the oil industry gains the pace.

Issues Faced by Carillion Risky Road Construction Project

However, the project turned out to be a fiasco and the construction activities could not yield much of the support and development as expected. The project had turned out to be mishap and the project went is grave problems (Larson and Gray 2013). The projects had to be developed for ensuring the deployment of road in Carillion for the development of the 58 km route. The project had contributed to the £845 million for developing the project of Carillion. The project had been running simultaneously with two other projects of UK and Middle East and Canada. The project had been estimated to cost around £295m to £395m. However, the cost of the project rose to £745m. The project for construction was initiated by the end of February 2015 and the project managers realized by November 2016 that the project might not complete on time (Martin 2017). The construction of the roads would be supported by the development of the effective project management principles and the lack of the principles would result in generating the issues of implementing the project.

The project of Aberdeen Western Peripheral Route had faced the development of the issues and it had caused the unsuccessful alignment of the operations (Martinelli and Milosevic 2016). The project had been facing the many problems like delay, increased budget, and off-course of the project operations. The delay in project is the primary reason for the development of the issues in the project of Carillion’s risky road construction. The construction of the road requires the involvement of the profound system integration and development of the road. The project for construction was initiated by the end of February 2015 and the project managers realized by November 2016 that the project might not complete on time (Svejvig and Andersen 2015). However, the lack of the alignment of the project to the principles and theories would result in forming the uncontrollable delay in the development of the project. The various delays in development of the projects were result of the misalignment of the project and requirement of the increased timeline of the project. The increased cost of the project has been caused due to the slackness of the operations and deceased quality of operations (Sallis 2014). The overall cost of the project was quoted without integrating the profiling of the sub-contractors. The project had been estimated to cost around £295m to £395m. However, the cost of the project rose to £745m.

Management Requirements

The cost has been increased due to the introduction of the sub contractors. The project client does not intend to take any risk and their exposure to risk is minimal (Pritchard and PMP 2014). The contractors of the project acted as the risk takers and hence they are responsible for the risk activities. The project was made on Fixed Cost contract and the contractors have pitched a certain amount for the project. However, the sub contractors are free to quote the price of their own choice and the contractor has to manage the cost of the project. The high rates of the sub contractors have resulted in causing the issue in the project completion. The project managers have been using extra money whenever they got stuck or are pushed back in the project for overcoming the problems. It has also resulted in causing the issue of the over budgeting for the project.

Another major problem of the project was the sidetracking of the activities of the project of Carillion risk road development (Mok, Shen and Yang 2015). The project of Aberdeen Western Peripheral Route development had been running simultaneously with two other projects of UK and Middle East and Canada. Hence, it was probable that the project had been sidetracked several times. The project involves the deployment of the effective route construction in Scotland. The construction was side tracked due to shortage of the assets, difficulty in raising money or bailing from the problems. The structure of the road was very brisk and it was also one of the reasons why the project had suffered. The project management organization had to suffer the issues in straitening of the risk road (Nicholas and Steyn 2017). The route to be constructed was 58 km or 36 miles long and the drainage, earthworks, rock crushing, and steel work tolled an amount of £200 million for Balfour Beatty, Aberdeen, Galliford Try, and Carillion.

The project was Aberdeen Western Peripheral Route Development project for constructing Carillion’s risk road. The project was construction based renovation project work and it required the involvement of the technicians for ensuring the project is completed (Sears et al. 2015). The contractor also requires some sub-contractors for drainage, earthworks, rock crushing, and steel work apart from the laying of the roads. The project was contract based and the clause was made for Fixed Cost. The alignment of the profound development would tend to develop the assertive project integration and management. The alignment of the project would also help in forming the development of the construction management. The project of Aberdeen Western Peripheral Route Development has been structured in PMO or project management organization structure that has project governance level, project management level, and project operational level.

Stakeholders and Their Influence

The project governance level consists of the client, president, board of directors, and other governing bodies (Pritchard and PMP 2014). The project would form the development of the profound integration and development. The activities of the project would tend to imply the development of the project operations. The alignment of the project integration would allow the users to form the development of construction project. The alignment of the project integration would form the management of the construction. However, the management level of the project structure consists of the managers and contractors. They are in-charge of the development of the operations and the alignment of the activities to the operational level. This level carries on the management of the operations and forms the bridge between the governance level and operational level. The operational level of the PMO structure manages the activities of the project and includes the sub-contractors, workers, and other members of the project who are responsible for performing the activities. The operational level forms the deployment of the effective and improved operational development (Coombs 2014). The activities of 58 km or 36 miles long route development along with drainage, earthworks, rock crushing, and steel works are all done by this level of people. The operational level members are being instructed by the members of the managerial level to carry on the activities as planned by them.

The management requirements of the project include the scope management, change management, risk management, and cost management plan. The construction of the Carillion’s risky roads development was formed for ensuring that the people gets the benefit of the 58 km long route in Scotland. The construction activities require a number of people and materials (raw materials and equipments). The alignment of the management activities would be helpful for developing the construction of the road (Heldman 2015). The disregard for the development of the construction activities was formed for ensuring that the project is aligned and completed successfully. The management of the equipments and materials would help in ensuring that the project is defined for the equipment handling and development. The analysis of the system would provide the intuition of the formation of the activities for forming the development of the operations (Flyvbjerg 2013). The management requirements would be developed for ensuring the development of the construction project of Aberdeen Western Peripheral Route project for Scotland.

The slackness that occurred in the project consists of the delay, increased budget, and off-course of the project operations (Fleming and Koppelman 2016). The project for construction kicked off by the end of February 2015 and the project managers had understood by November 2016 that the project would not complete on time. However, the lack of the alignment of the project to the principles and theories had resulted in forming the uncontrollable delay in the development of the project. The various delays in development of the projects were result of the misalignment of the project and requirement of the increased timeline of the project. The project had been estimated to cost around £295m to £395m. However, the cost of the project rose to £745m. The cost has been increased due to the introduction of the sub contractors. The project client does not intend to take any risk and their exposure to risk is minimal (Flyvbjerg 2013). The contractors of the project acted as the risk takers and hence they are responsible for the risk activities. The project was made on Fixed Cost contract and the contractors have pitched a certain amount for the project (Hegazy 2013). However, the sub contractors are free to quote the price of their own choice and the contractor has to manage the cost of the project. The high rates of the sub contractors have resulted in causing the issue in the project completion. The project management organization had to suffer the issues in straitening of the risk road (Coombs 2014). The route to be constructed was 58 km or 36 miles long and the drainage, earthworks, rock crushing, and steel work tolled an amount of £200 million for Balfour Beatty, Aberdeen, Galliford Try, and Carillion.

Conclusion

The project failed due to the lack of the proper project management principle alignment and development. The issues of the project include the delay in the project and over budgeting of the project operations (Burke 2013). The construction of the Aberdeen Western Peripheral Route project faced the issue due to the involvement of the sub-contractors. The project was estimated to be completed in a budget of around £295m to £395m and the project client did not intend to take any risk and their exposure to risk was minimal. The contractors of the project had pitched a certain amount for the project and the project was made on Fixed Cost contract. On the other hand the sub contractors had formed the high rates for their work that had resulted in causing the issue in the project completion (Fleming and Koppelman 2016). The company had been cutting back the in-house activities for overcoming the increase in expenses and it has resulted in causing the disruption to the development of the operations of the project. The contractors had been struggling to form the management of their operations in the project and the employment of the sub contractors. The employment of the sub contractors would help in overcoming the payroll and overheads but the control of the project gets slackened from the main contractor (Cicmil et al. 2017). The project of Carillion risk road construction project was implied for developing road across the Aberdeen Western Peripheral Route. The people of Scotland were waiting for development of the 36 mile or 58 km long route so that they can travel across the Scotland.

The implication of the project management structure would form the development of the proper project handling and management (Devaux 2014). Some suggestions for the solution of the issues of delay, increased budget, and off-course of the project operations are given below,

Development of Project Schedule: The development of the project schedule with the help of a proper project scheduling software would help in ensuring the project timeline.

Provisional Budgeting: The development of the provisional budgeting would help in aligning the project with some extra resources for overcoming the probability of the cost overrun.

Monitor System: The monitor system of the project would be helpful for the controlling the operations of the project and mitigate any issue that might affect the project.

The involved stakeholders of the project consists of client, president, board of directors, and other governing bodies at project governance level, managers and contractors at the management level, and sub-contractors, workers, and other members of the project who are responsible for performing the activities at the operational level (Burke 2013). The stakeholders of the project are responsible for the supply and chain management, development of the project plan, communication planning, change management, scope development, activities scheduling, and governance of the project, construction activities, resource accumulation, and completion of the project.

Conclusion

It can be concluded that the project management had an integral format for the development of the improved functional analysis in any type of the project. The assignment had analysed the project management organization structure, analysis of the requirements, and evaluation of the stakeholders for the project of risky road construction at Carillion along with formation of proper project documentation. The report had highlighted the issues of the project, description of the project and project organization structure, management requirements and slackness that occurred in the project, reason of failure and solutions for the project, and involved stakeholders and their influence. The project was supposed to provide work to thousands of local people for working and earning their livelihood from the project. However, the project turned out to be a fiasco and the construction activities could not yield much of the support and development as expected.

The project had been estimated to cost around £295m to £395m that rose to £745m and the project had been facing the many problems like delay, increased budget, and off-course of the project operations.  The project management organization had to suffer the issues in straitening of the risk road. The route to be constructed was 58 km or 36 miles long and the drainage, earthworks, rock crushing, and steel work tolled an amount of £200 million for Balfour Beatty, Aberdeen, Galliford Try, and Carillion. The project was construction based renovation project work and it required the involvement of the technicians for ensuring the project is completed. The project was contract based and the clause was made for Fixed Cost and the project governance level consists of the client, president, board of directors, and other governing bodies. The management level of the project structure consists of the managers and contractors while the operational level of the PMO structure managed the activities of the project and included the sub-contractors, workers, and other members of the project who are responsible for performing the activities. The management requirements of the project included the scope management, change management, risk management, and cost management plan along with equipment handling and development.

References

Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.

Bury, R. (2017). Carillion under pressure to inject funds amid growing pension concerns. [online] The Telegraph. Available at: https://www.telegraph.co.uk/business/2017/07/15/carillion-pressure-inject-funds-amid-growing-pension-concerns/ [Accessed 20 Nov. 2017].

Cicmil, S., Cooke-Davies, T., Crawford, L. and Richardson, K., 2017, April. Exploring the complexity of projects: Implications of complexity theory for project management practice. Project Management Institute.

Coombs, W.T., 2014. Ongoing crisis communication: Planning, managing, and responding. Sage Publications.

Devaux, S.A., 2014. Managing Projects as Investments: Earned Value to Business Value. CRC press.

Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.

Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.

Flyvbjerg, B., 2013. From Nobel prize to project management: getting risks right. arXiv preprint arXiv:1302.3642.

Hegazy, T., 2013. Computer-Based Construction Project Management: Pearson New International Edition. Pearson Higher Ed.

Heldman, K., 2015. PMP project management professional exam deluxe study guide: updated for the 2015 Exam. John Wiley & Sons.

Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley & Sons.

Larson, E.W. and Gray, C., 2013. Project Management: The Managerial Process with MS Project. McGraw-Hill.

Martin, B., 2017. The politics of electricity planning in South Africa: A review of dominant advocacy coalitions seeking to influence the Integrated Resource Plan of 2010 (IRP2010), and its update in 2013 (Doctoral dissertation, University of Cape Town).

Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

Mok, K.Y., Shen, G.Q. and Yang, J., 2015. Stakeholder management studies in mega construction projects: A review and future directions. International Journal of Project Management, 33(2), pp.446-457.

Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Taylor & Francis.

Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. CRC Press.

Sallis, E., 2014. Total quality management in education. Routledge.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

Sears, S.K., Sears, G.A., Clough, R.H., Rounds, J.L. and Segner, R.O., 2015. Construction project management. John Wiley & Sons.

Svejvig, P. and Andersen, P., 2015. Rethinking project management: A structured literature review with a critical look at the brave new world. International Journal of Project Management, 33(2), pp.278-290.

Walker, A., 2015. Project management in construction. John Wiley & Sons.