(MAN6305) project cost management assignment on the London Olympic stadium project costs

Question

Task: how to assess projects costs of the London Olympic stadium using project cost management assignment research methodologies?

Answer

Introduction

The project cost management assignment research shows Numerous projects have incurred cost overruns. Cost overruns are unplanned increases in the budget that boost the project's overall cost. This project cost management assignment report tries to define the causes of the adverse outcomes that can come from completing projects late and beyond budget. In order to successfully prevent cost overruns on large-scale construction projects, it is important to understand the elements that contribute to cost overruns as well as those that have a major impact on these outcomes. Construction projects are stated to require significant financial expenditures for the various tasks that must be performed in order to ensure their successful completion. This project cost management assignment study, which will take the form of a Research Paper that will address the causes, duties, and responsibilities of the project management in order to find a solution to the issue of cost overruns in construction projects.

When a project takes longer to complete than anticipated, both the economy and the population are forced to wait longer than necessary for the delivery of public goods and services, which restricts the economy's ability to grow.

Rationale and Significance of the Research

The project cost management assignment research's purpose is to aid in the execution of the chosen study. The construction of the London Olympic stadium's cost overrun served as the foundation for this investigation. (O'Malley, 2021). On the contrary this project cost management assignment research paper shows the importance lies in figuring out the way to overcome the difficulties and problems brought on by cost overruns in construction projects. This research helps in construction management and we are able to determine the strategies for the success of construction of the London Olympic stadium.

project cost management assignment research problem

Finding the appropriate cause of a construction project's cost overrun is the key problem and the biggest obstacle comes at the time of conducting this research (Herrera, et al., 2020). On the contrary, it becomes challenging to coordinate the information gap about the research's objectives and research topics.

project cost management assignment Aim

The aim of this project cost management assignment is to identify the primary reason and the impact of cost overruns in the management of construction projects.

Objective

• To find main causes of cos overrun in construction project.

• To give recommendation and implications.

Summary of literature review

The scope of the project cost management assignment project expanded as it went along, but the money stayed the same, contrary to the initial plan. The first cost estimate was drastically off the mark. A client is obliged to invest more money than they had planned to finish a project in this situation, which is a different way of stating when an unanticipated change is made to a project's budget, the project overflows its budget. Projects started by the owner have significantly lower costs than those started by contractors or designers. Design changes are to blame for this, as incorrect time estimates for the project, risks and unknowns related to the project, failures by subcontractors, differences among the parties, the velocity of rate, and a lack of skilled labour for funding and compensation. Poor site management is a major contributor to cost overruns in the project management of the London Olympics 2012. The project cost management assignment project manager's responsibility is to supervise and oversee the project site effectively and efficiently in order to meet the needs of all stakeholders and achieve the project's intended results. If a building project's site management is subpar, then it results in a negative reputation, In the end, the project's cost grew over its original budget. since the 2012 London Olympics cost increased Because of this, the Top Prize and some other important taxpayer-funded activities were planned to raise money to run the Olympics that year(Khraiche & Alakshendra, 2020). Planning a project's many phases and the work breakdown structure is not only a few of the project manager's duties nevertheless, encompasses budgeting and cost estimation as well. A program manager should also break the overall project down into smaller components to approximate the cost required to finish each step of the building project. According to the author, there are many causes of cost overrun lack of planning, lack of communication, scope creep, and unplanned cost of the project. These causes play a major role in project failure. The project cost management assignment manager should communicate with the client before planning that step helps the project manager to understand project needs and requirements, if the project manager understands the needs of the project they make well plan for the project. Communication with the stakeholders is also very important if the project manager does not communicate with the stakeholders that means they don’t have updates regarding the project work process which make a reason for project failure. The author gives recommendations for overcoming the cost overrun including enhancing communication with the client and the stakeholders, utilization of project planning tools, well use of resources (Drube et al., 2019). That all recommendations will help a project manager make a plan for project delivery.

project cost management assignment Findings

The project cost management assignment research papers focused on various areas of construction project management. These studies covered management, financial, political, and other relevant fields. The research paper addresses the project management errors and cost overruns in construction projects with the help of conducting data collection process (Amri, & Marey-Pérez, 2020). For the purpose of identifying the factors that can cause cost overruns in building construction projects, a thorough literature review was done. The causes of overruns cost in construction projects are divided into various aspects. This causes are discussed with various construction parties through drafting a questionnaire. In consideration of the study's findings, suggestions for reducing cost overruns in building construction projects were recommended.

project cost management assignment Reflection on Findings

The first priority towards this research report was to develop a suitable direction for the Management of construction project's cost overrun. This project cost management assignment research report provides a proper understanding about the Management of construction project's cost overrun. All findings in this research report are successful and helpful (Park, 2021). In this research paper I am able to know that “Olympic Stadium" was transformed into a "West Ham United football stadium" after the 2012 London Olympics, along with "retractable seats and a cantilever top." However, additional findings have increased the overall rehabilitation cost from the initial $335 million estimate to $397.5 million.

I discovered on this project cost management assignment that the project manager plays a crucial role in preventing cost overruns in building project management is more impactful because if the manager of the project obeys its duty and responsibilities in an appropriate manner then the problem of cost overrun never occurred (Asiedu, & Adaku, (2019). The main duty of the project manager is avoiding cost overruns and keeping a record of the project's progress. The project manager is the one who reviews the budget plan to check that the project isn't using up more resources than planned. Any project may experience cost overruns, but if the project manager did his duty correctly and manage the budget accurately then there is no chance of cost overruns in construction projects (Amadi, A. I., & Higham, 2019). Management of cost overruns can be a lengthy process for a project manager but the project manager has to monitor your project costs constantly and make sure that everything is running perfectly at all times. I found it quiet difficult to get information about the reasons for building project management cost overruns. Cost overruns on construction projects have established themselves as the norm for the whole sector. After reviewing so many articles and websites I found that there are numerous causes of cost overrun in construction project management such as due to design changes, failures of subcontractors, conflicts amongst the involved parties, and many more. Inaccurate cost estimates made during the project's planning stage for the London Olympics in 2012 are one of the common factors for such an unavoidable danger that occurred in construction project (Preuss, 2022). An improper allocation of resources within a construction project will result in a scarcity of raw supplies, which results cost overruns. If any type of poor site management is done during a construction project then its results is negative reputation, a delay in the project schedule, and eventually increase in project costs. Due to the London Olympics' 2012 cost overrun, the National Lottery and other significant taxpayer-funded events were set up to raise money for the games' operation in the year 2012 (Qian, 2022). Another cause of cost overrun identified on this project cost management assignment is change in design so that project requires design adjustments, which will increase expenses and call for better-quality materials, which can be pricey and cause the project's budget to be exceeded.

Implications and Recommendations

• Maintain Communication with stakeholders: If there is a breakdown in the lines of communication between project management and stakeholders then cost overruns occurs and these results that there is a high risk of delays and work starting on the wrong project at the wrong time. (Asiedu, & Ameyaw, 2020). Communication with stakeholders it's crucial that everyone receives accurate information. And also ensure that the project is proceeding according to plan.

• Project Planning: The greatest way to avoid cost overruns is to plan for them before a project even gets off the ground. If the project manager fails to plan construction project management then there is 100% chance of cost overrun (Kavuma, Ock, & Jang, 2019). The project manager has to focus on identification and monitoring of budget plans and resources from the beginning of project. Project planning and management was one of the best strategies used by the London Olympics 2012 project managers to lower project cost overruns as per the project cost management assignment findings. When a large construction project is well planned, it guarantees thorough risk management and prevents going over budget and cost estimates.

• Unbiased project supervision: The approval and financing of the construction project is in the best interest of all stakeholders. In order to advance a construction project, a vested stakeholder's perspective may simply validate their choices. This implies that issues with the project, both obvious and hidden, are quite simple to intentionally ignore (Herrera, et al. 2020). So this is recommended that to get approval from that group of cost experts who are disinterested in project will provide an unbiased review reduce cost overruns in the project of London Olympics 2012.

• Clarity of project: One of the most important steps identified on this project cost management assignment as it reduced the cost overruns in a project is that the London Olympic 2012 stakeholder must clearly communicate the construction project's scope to the team members since this was a necessary step in order to stay within the project's budget (Ammar, Abdel-Monem, & El-Dash, 2022).

• Maintain good relationships with stakeholders: Disaster that was occurred in London the Olympics 2012 has caused the stakeholders to incur huge debts. The interest of stakeholders does not protected which caused the project manager to consult diplomacy about the project's cost overrun (Annamalaisami, & Kuppuswamy, 2022). In that case the project managers need to have friendly relationships with various stakeholders while managing large projects like the London Olympic 2012 in order to ask for assistance in such unpleasant and emergency situations.

Conclusion

In the above project cost management assignment discussion about the project management of construction project this research paper concludes the primary reason for the project's delay, as well as the poor management of a project manager. Construction project managers are advised to address project cost overruns throughout the project planning phase as they are thought to be a common phenomenon in construction project. There are numerous types of cost overrunning construction for the London Olympic 2012. These research report suggests that the project manager has to determine the causes of the project's cost overrun and ask key stakeholder groups for financial support. This project cost management assignment research paper also shows ideas are recommended in order to reduce and regulate cost overrun in building construction projects based on the study's findings such as: Maintain Communication with stakeholders, Project Planning Unbiased project, supervision Clarity of project, and Maintain good relationships with stakeholders.

References

Amadi, A. I., & Higham, A. (2019). Putting context to numbers: a geotechnical risk trajectory to cost overrun extremism. Construction Management and Economics, 37(4), 217-237. https://www.tandfonline.com/doi/abs/10.1080/01446193.2018.1513656 project cost management assignment

Ammar, T., Abdel-Monem, M., & El-Dash, K. (2022). Risk factors causing cost overruns in road networks. Ain Shams Engineering Journal, project cost management assignment 13(5), 101720. https://www.sciencedirect.com/science/article/pii/S2090447922000314

Amri, T., & Marey-Pérez, M. (2020). Towards a sustainable construction industry: Delays and cost overrun causes in construction projects of Oman. Journal of Project Management, 5(2), 87-102. http://growingscience.com/beta/jpm/3705-towards-a-sustainable-construction-industry-delays-and-cost-overrun-causes-in-construction-projects-of-oman.html

Annamalaisami, C. D., & Kuppuswamy, A. (2022). Reckoning construction cost overruns in building projects through methodological consequences. International Journal of Construction Management, project cost management assignment 22(6), 1079-1089. https://www.tandfonline.com/doi/abs/10.1080/15623599.2019.1683689

Asiedu, R. O., & Adaku, E. (2019). Cost overruns of public sector construction projects: a developing country perspective. International Journal of Managing Projects in Business. https://www.emerald.com/insight/content/doi/10.1108/IJMPB-09-2018-0177/full/html project cost management assignment

Asiedu, R. O., & Ameyaw, C. (2020). A system dynamics approach to conceptualise causes of cost overrun of construction projects in developing countries. International Journal of Building Pathology and Adaptation. https://www.emerald.com/insight/content/doi/10.1108/IJBPA-05-2020-0043/full/html

Drube, J., Wan, M., Bonthuis, M., Wühl, E., Bacchetta, J., Santos, F., ... & Haffner, D. (2019). Clinical practice recommendations for growth hormone treatment in children with chronic kidney disease. Nature Reviews Nephrology, project cost management assignment 15(9), 577-589. https://www.nature.com/articles/s41581-019-0161-4

Herrera, R. F., Sánchez, O., Castañeda, K., & Porras, H. (2020). Cost overrun causative factors in road infrastructure projects: A frequency and importance analysis. Applied Sciences, 10(16), 5506. https://www.mdpi.com/793340

Herrera, R. F., Sánchez, O., Castañeda, K., & Porras, H. (2020). Cost overrun causative factors in road infrastructure projects: A frequency and importance analysis. Applied Sciences, 10(16), 5506. https://www.mdpi.com/793340

Kavuma, A., Ock, J., & Jang, H. (2019). Factors influencing time and cost overruns on freeform construction projects. KSCE Journal of Civil Engineering, project cost management assignment 23(4), 1442-1450. https://link.springer.com/article/10.1007/s12205-019-0447-x

Khraiche, M., & Alakshendra, A. (2020). Hosting the Olympics: why are we always getting the cost wrong?. Managerial Finance. https://www.emerald.com/insight/content/doi/10.1108/MF-05-2020-0231/full/html

O'Malley, J. (2021). Did London olympic. Engineering & Technology, 16(6), 38-39. https://ieeexplore.ieee.org/abstract/document/9690440/

Park, J. E. (2021). Curbing cost overruns in infrastructure investment: Has reference class forecasting delivered its promised success?. European Journal of Transport and Infrastructure Research, project cost management assignment 21(2), 120-136. https://journals.open.tudelft.nl/ejtir/article/view/5504

Preuss, H. (2022). Re-analysis, measurement and misperceptions of cost overruns at Olympic Games. International Journal of Sport Policy and Politics, 1-20. https://www.tandfonline.com/doi/abs/10.1080/19406940.2022.2037685

Qian, J. (2022, April). The Olympic Economy. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 1290-1293). Atlantis Press. https://www.atlantis-press.com/proceedings/icssed-22/125973651 project cost management assignment