Analysis Of English Stadium Project At Wembley : Contracting Process

Overhead expenses – not project specific, in this case not a direct result from taking on the Super project so the team did not include

A project is a temporary endeavour that creates a unique result. Time, budget, resources, and performance specifications, to meet requirements made by stakeholders, limit a project (Project Management Institute, 2013, pg.3). Project management is the application of tools, techniques, and knowledge to help achieve the three main constraints of scope, cost and time (Project Management Institute, 2013, pg.5). This applies managerial process and gives project managers the opportunity to make a project successful. However, there are still numbers of project failures both big and small projects. This failure does not only affect finances but also demoralizes employees who have laboured diligently to complete the work. The case of Wembley Stadium project failure will be analyzed in this paper to illustrate project management difficulties a project can encounter if appropriate tools and techniques are not successfully developed, implemented, and evaluated within the project management processes. The major problems concerning the Wembley Stadium project were scope, time, cost, quality, and stakeholder issues (Carter, 2002). However, this paper would be focusing on scope, time and cost issues. The format of this paper will include the project analysis, which will provide brief description of the Wembley stadium project, and main reasons why the project failed. This will be followed by the analysis of how the issue of the project failure is related to project management knowledge

Wembley stadium is a great stadium which has been awarded internationally. It was opened in 2007 after long delays of the project. The final cost of the project was £757 million (£918 million in 2014 sterling).

The aim of the Wembley Stadium project was to build a new 90,000 seat state of art stadium. The new stadium was going to be used for a variety of functions ranging from football and rugby matches to concerts and private events. The stadium was to have a 50-year design life, and be both functional and architecturally significant. In addition, it was essential that the stadium allowed as much daylight and ventilation to reach the pitch as possible. A main goal was to have the build achieve UEFA five-star stadium status. The project was to be funded by a combination of state (National Lottery Fund) and private investment.

The Dallas Cowboys Sports Stadium was a large scale project introducing many new features, various vendors, and diverse group of stakeholders. In order to build the first-class entertainment complex as it is known today, the project manager had to build close relationships including collaborating with the community, the owner, and the construction and design teams. The scope of the project consisted of “work performed by more than 100 subcontractors and 2,200 personnel, using materials from vendors in 10 US states and 12 countries to realize a building design that was revised 300 times” (Burma, D.).

Project finance is a kind of Financing that has a priority does not depend on the creditworthiness of the sponsors proposing the business idea to launch the project. Approval does not even depend on the value of assets sponsors are willing to make available as collateral. Instead, it is basically a function of the project’s ability to repay the debt contracted and remunerate capital invested at a rate consistent with the degree of

Finance a project is very crucial in the life cycle of the project. Good cost estimation or budgeting is the first call of importance after successful project task identification. Budgeting involves having information on customer’s cost and properly allocating how individual expenditure will fit into that cost. It’s is very important not to under or over budget the project as it can risk the continuity of the project. Where and when to get sponsors to finance the project and the type of contract deals is also important at this stage. Cost control measures are essential for organisation to effectively work within their estimation. In Corwin project; the ideal of purchasing the entire project material during the testing phase was bad forecasting and resulted in the poor management of financial resources.

To compute the estimated cost of technology components of the project, we take the following into consideration;

Ten per cent cost of the project will come from the Public Sector Development Programme and 90% of the cost as credit financing through the government of China. This will be part of PCEC.

You have been assigned a project leader of this project. Your manager has given you guidance that the project needs to be completed within 6 months and that costs should be minimised wherever possible with given budget of AUD 60000.00.

From the perspective of an owner, the project life cycle for a constructed facility may be illustrated schematically in Figure 1-1. Essentially, a project is conceived to meet market demands or needs in a timely fashion. Various possibilities may be considered in the conceptual planning stage, and the technological and economic feasibility of each alternative will be assessed and compared in order to select the best possible project. The financing schemes for the proposed alternatives must also be examined, and the project will be programmed with respect to the timing for its completion and for available cash flows. After the scope of the project is clearly defined, detailed engineering design will provide the blueprint for construction, and the definitive cost estimate will serve as the baseline for cost control. In the procurement and construction stage, the

The very first stage of all is ‘inception’ which may take up to 4 months (National Research Council staff et al., 2000) to complete. It is a client-led stage when the clients’ ideas and needs are delivered to the project team. At this stage, the project need is confirmed and the project manager is selected. The project team is also given project, environmental and building information modelling mandates. This stage wraps up with a decision by the clients to move on to a detailed appraisal of the development practicability. The pre-design phase has the significance of understanding the clients’ needs.

Researchers have from time to time retaliated that deeper research is still needed on the best way possible to come to a decision on the concessionary interlude of the projects. Another issue that needs consideration is the relational contrasting in the said projects. Projects like infrastructure, power or network transmission and gas or water supply are the most suitable for Public Private Partnership; this is because there are fewer competitors in such projects. Due to the higher cost that PPP comes with, those with huge project sum tend to have upper hand as they are well thought-out to offer a better business case for the private sector.

This practice note sets out a number of fundamental legal and business considerations and issues to address in the context of a project finance transaction.

In the Indian circumstance, the term PPP is adopted for developing public assets in various forms as explained in schemes and modalities. According to Ministry of Finance Government of India, “the PPP project means a project based on a contract or concession agreement,