A the first ever project of that size in

A
clear well-defined scope of work and planning strategy should have been in place before tendering and agreeing to the contracts. In addition, a cost estimation should have
been conducted. Instead, the cost of the project
was grossly underestimated, which led to the initial budget being overrun.

 

Because there were no contingency plans in place, when the project encountered problems, they had to be dealt with then, which was chaotic. The
project failed to meet expectations, leading to additional costs. Poor execution caused negative reviews by the media and
hurt the company’s reputation. The lack of
sustainability was pronounced, as the this
happened to be the first ever project of that size in
the world not to have a car park. The project was rushed, the construction plan was completely unsuitable, and the cost
highly underestimated.

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Conclusion

Cost overruns and late completion are
common in the construction sector as conducted. This paper has discussed the
common causes of the problem and what measures can be taken to avoid the
recurrence on other projects. Accordingly, two
construction projects have been analysed to identify the failures in sticking the initial costs, and what can be done to mitigate these problems on future projects.

 

In my opinion,
lack of planning plays the biggest role in failure
to stick to budget, which then leads to late
completion. The planning of the project should
be controlled and managed adequately. Every
member of the project should perform to a satisfactory level, as any failure in that regard could lead to a domino
effect and cause the project to fall back.

 

Risk is another significant factor and
possibly the most challenging to manage, as no
matter how defined the scope is, there is a likelihood
of some risk and uncertainty. Therefore, risk and the possibility of unforeseen circumstances should always
be considered when planning. This will prevent
delays and overruns in the
project. Cost estimation should be checked thoroughly by experienced
personnel to eliminate chances of underestimating prior to tendering.

 

It is important
to invest more time initially in the designing and planning, as this will compensate for possible delays
in the later phases of the project. If the
project starts to get delayed in the later stages,
it is likely to result in an overrun, with the Millennium
Dome being a prime example.

 

Sometimes changes in the project should
not be seen as a threat. If the project is
managed effectively, these modifications can be
seen as an opportunity to bring the project under budget or bring the project
back on track to the time-scale initially set. 

 

All the parties have a major role to
play in the project. The client should ensure that all funds and payment are available when
necessary, that the scope of work is well
defined and accurate, and that a deadline has been set,
but with allowance for unanticipated delays. The contractor should
employ reliable and dependable subcontractors in
terms of quality of work and timely completion.
In addition, the project should be offered with
cost estimates and not the minimum tender to get the
job. The contractor should have relevant experience working on projects of that size and a good management
plan.