Construction Project for Denver International Airport

saying estimate for capital of Colorado International Airport1. Project Concept and dodge1.1 Is the decision to get along a refreshed aerodrome at capital of Colorado a strategically sound decision? Give Reasons for your opinion.Yes, the decision to build a new airport at Denver is a strategically sound one. This is beca persona Denvers Stapleton Airport was experiencing b attempt growth prior to deregulations. Deregulation meant escaped market competition that would bring air travel within the pee of average person thereby increasing air dealing at the Stapleton Airport. More all over, the regional council of governments predicted that the airport would not be able to handle the obligatory traffic by 2000.Stapleton could obtain been modernized giving it a adopt of life for an some other five geezerhood yet Denvers remote hole meant that the insufficient capametropolis paradox would still persest and could cause city to lag valuable chore.Denver Stapleton airport w as besides one of the major connecting airports and was class-conscious in top ten worst air traffic bottlenecks in fall in States. These bottlenecks at Denver affected other airports as it had lone(prenominal) twain runways located truly closely to each other which in bad weather were considered one. The new airport was meant to solve this bottleneck problem for Denver city.Stapleton airport was affected by high velocity winds which resulted in operations being shifted from one direction to the other, this procedure wasted 45 minutes. The new airport would bring this sentence to 4 minutes thereby saving address and clock clipping for the airport.1.2 Using the Gray and Larsons model, write a simple intention desktop statement for DIA cast off.Project Objective Constructing a world class international airport that would serve the needs of the city for at least fifty to sixty years with an estimated salute of $1.7 billon.Deliverables- expression a world class internati onal airport for Denver metropolis. ten dollar bill 12,000 runways and two 16,000 foot runway.327 foot FAA air traffic mark off and a base building structure.Runway/taxiway lighting clay.Creation of a moderate zone to protect surrounding residents.Building triad concourses with 72 airline gates and 18 commuter gates.DCV luggage use system for the entire airport.Milestones-Passing of Airport Referendum.Land Selection and other lawful clearanceAirport DesignProject Management groups selection pull of the runwaysConstruction of airport facilitiesOpening DayTechnical Requirements-Continuos busted monitor and limits on business which ar in direct competition with the existing business in whirls County.Prohibiting residential development within 60 LDN noise level.Translucent tent-like roof for the Airport.Runway/taxiway lighting system.All three concourses to provide 70 airline gates and 18 commuter gates. amply automated luggage discussion system.Limits and exclusions-BAE would origination and build the automated baggage handling system.U.S. due west discourse function was obligated for Airports bid services.The City of Denver, Greiner Engineering and Morrison-Kundse Engineering entrust comprise the stray worry team and will be responsible for in shaping counselling, managing cost, computer programmed coordination and administration of the nail downors. upstart siege of siege of Orleans Architectural blotto responsible for creating standards that would unify the whole airport and to do the schematics and image development of the master(prenominal) terminal. examine with customer-Review is to be done with the Denver City Council.2. Project define and intend2.1 Did the enter intent explain how attempt anxiety, and any changes in the intent would be pictureled? Should this be bankrupt of the visualise? Give reasons.DIA come across plan did not explain how fortune counselling or any other changes in the exteriorize would be controlled. Project Management teams often use Statement of engage (SWO) or Project Charter to establish luck limits (Larson Gray, 2011). DIA case study does not provide any evidence as to the use of these documents to establish stake and to manage them. attempt ar endlessly perceived to puddle negative impact but they can also be positive (Turbit, 2011). Therefore, chance of infection management is truly crucial part in experience planing as the future is un sealed and what risk management can do is to identify all the potential risk and aver contingence plan for the same. Turbit (2011), has given the basic steps for risk management, these are-Risk IdentificationRisks QuantificationRisk ResponseRisk monitor and controlBy following these simple steps, risks can be identified and bewitch contingencies plans for them same can be made. These steps if followed correctly vindicate the brilliance of risk management in project management.2.2 How some(prenominal) times has t he DIA project changed the scope and what are the effects of scope changes on project management?Project Scope is The decease that needs to be accomplished to return a product, Service, or result with the specified features and functions.? Going by this comment the scope of DIA has been changed seven times thereby extending the deadline of the project. These are as follows-In March 1993- Denver Mayor announced that opening would be postponed to celestial latitude of 1993. The effect of this is the rise in cost form $1.7 billion to $2.7 billion.In October 1993- Opening date pushed to March 1994. Delay associated with problems in Baggage handling system and fire- security system. The effect of this was the projects cost rising to $3.1 billion and upset cargo carriers.In December 1993- Due to incomplete baggage handling system another stay on announced.In February 1994- Opening rescheduled to May 1994 receivable to the incomplete baggage handling system.In May 1994- Another hold in in opening and Hiring of two German experts who had worked on a similar baggage handling system at Frankfurt airport.In magisterial 1994- Indefinite delay in opening announced, manual backup baggage handling system. The effect is, rising costs now estimated at over $4 billion.The effect of scope changes on project management is scope creep and rising costs. DIA project managers stick start incorporate so many small changes giving rise to so much profital work that the budget in hand and the time needed to accomplish the project is now insufficient resulting in seven delays in project completion.2.3 preach a suitable project establishment structure for DIA project and justify your choice.The project organisation structure that I would recommend for DIA project is Organising projects as employ teams. Following are the reasons for my choice-Simple As the project teams comprise of specialists the functional organisations working is not affected by the formation of such proj ect organisational structures (Larson Gray, 2011). If this structure was adopted the City of Denver would brace been kept out of Project management and only the specialist team would curb been responsible for the projectFast It has been observed that dedicates teams accomplish the projects much more quickly as every team members effort is dedicated to one universal goal (Larson Gray, 2011). In DIA this was not the case as three Project Management teams were coordinating there effort.Staff tenderness and high motivation Team members show high degree of motivation, hamper and responsibility as everyone in the team is working for a common goals (Larson Gray, 2011). If DIA had followed this structure the responsibility and ownership of task would befool been much easier. bell ringer Functional Integration People with divers(prenominal) skill set work towards the optimisation of project even if it is not there area of expertness (Larson Gray, 2011).Freedom to project manage r compared to other to form of project organisation structure the project manager has comparatively more freedom to control their team resulting in better and quicker decision do (Larson Gray, 2011).3. Communication and Stakeholder Management3.1 Project converses were apparently poor. Give examples of two intercourse mishaps and justify your answer.According to Larson Gray (2011) Communication is one of the primary(prenominal) components in project management. However, in DIAs case the colloquy was rather poor.Examples of two parley mishaps are as follows-No inputs from the two major Airlines in the concept phase 80% of the flights at Stapleton airport were controlled by United and Continental yet no inputs or their participation in tendency acquaint was never sought. This was a major communication mishap, because these two would be the major controllers of flights at the new Denver International Airport. Failure to get their decisive input in the plan phase was a fai lure on the part of PMT.DCV system Good project communication plan would bring forth told the team member about the issues and risks associated with this complex baggage handling system. scarce communication in regards to DCA system was a diaster in project management perspective. The terminal construction had already begun and no one knew what the design of DCV system was. No one was aware of the risks and complexity associated with such system. This is an instance of a major failure of communication in the DIA project.3.2 Why was Unites Airline oppose to expansion of Front Range Airport?UPS wanted to build a regional hub at the Front Range Airport. This take federal funds. If FAA apt(p) funds for UPS regional hub then a commercial airlines could not be prohibited from setting up shops in the Front Range Airport. As costs were already fixed the threat to United Airlines was from the low cost carriers who would fork up operated at Front Range Airport. If this happened it woul d reduce the passenger traffic at DIA which equated to less profit for United Airlines. To curb UPS ambitions United filed a lawsuit. Moreover, it also secured the passenger occur at the new DIA airport.3.3 Why is Stakeholder involvement so critical? Briefly explain four briny stakeholders interests or objectives?Stakeholders includes everyone whose interest the project affects negatively or positively (Larson Gray, 2011). This definition of the stakeholder makes it very clear how Copernican stakeholders are to a project. If the Project Manager does not infrastand how different stakeholders affect the project it can de detrimental for the projects completion. Therefore, it is important to manage their dependency on the project.Four main(prenominal) stakeholders and their interest / objectivesAdams County Adam County is interested in DIA because it is being constructed in their area. Their objective is to ensure the interests and rubber eraser of people living in its area. Thi s is being done by creating buffer zones, keeping the noise pollution down and the limits on new business opening as a consequence of DIAs construction.New Orleans-based architectural firm- One of the contractors of DIA. Their objectives are- Creating standards for the unification of the airport and fetching the design of main terminal through design development and schematics.BAE- One of the contractors for DIA. Their objectives are to design and build the baggage handling system within two years.U.S. West Communication Services Is one of the contractors in the DIA project. They are responsible for the telephone services of DIA.4. Risk Management4.1 What appears to be the single greatest risk in the decision to build DIA-discuss?The single greatest risk in the decision to building DIA is that the construction of the Airport began 1989 without a signal contract being signed among DIA and the two major airlines, Continental and United.These two airlines were the main stakeholder i n the project and were likely to control 80% of the flights at DIA as they did in Stapleton airport, they convinced DIA to make some substantial changes and addition to the originally plans. DIA did oblige to their request but without any agreement between them. If the two later on decided not to operate at DIA they could not be forced to do so as they were not legally bound by any contracts.4.2 How did DIA project handle risk? Was this effective? What energy they work done?DIA only did the preliminary risk analysis which involved only three areas, these were weather, cost and human resources. unconnected form this no risks analysis were done. These risks analysis were not that effective as it was seen in cost risk analysis where the bids for construction were received downstairs citys own estimates. DIA project did not have a proper risk management programme. After Mr Waddles left DIA to join State of Colorado the project was without a full-time risk manager for several months and eventually a replacement was found in Molly Austin Flaherty. To sum up whatever endeavours DIA undertook in regards to risk management were unsuccessful.To manage risks more in effect DIA should have undertaken the risk management demonstrate. This play includes four steps, these are (Larson Gray, 2011)-Risk IdentificationRisk AssessmentRisk Response DevelopmentRisk Response ControlIf DIA had diligently followed these steps it would have been in a far better position to identify all the risk involved with the project and develop appropriate responses for them.5. Contracting Services5.1 Construction began without a signed agreement from Continental and United Airlines?- why is a dinner dress signed agreement necessary in this project?Continental and United were the main stakeholders in the DIA project together both controlled 80% of the flights at the Stapleton airport. Given their existing presence in the Denver air blank shell it was given that they would be the major use rs of the new DIA airport.Denver City Council should have buckramly involved Continental and United in the DIA project as they could have given vital inputs at the design phase and should have sign an agreement with them. Instead, DIA project planners made important changes to the original design on suggestions made by the two airlines. Moreover, these changes were made to the original plan without any contract being signed between them and the two airlines. DIA should have signed agreement with both of them as this would have lead to the share-out of risk that would have risen through the changes proposed by the two airlines (Larson Gray, 2011). The fealty would also have assured a commitment of maintaining a certain number of flights at the new DIA airport.However, DIA opted for not having any agreement with the two airlines. This left DIA venerable, as both could reduce their operations at the new DIA airport or withdraw from the new venture altogether. This meant that the ver y companies on whose base the billion dollar investment was planned and constructed could walk out at will as they were not binded by any formal agreements.5.2 What contractors were involved in the DIA project and briefly explain two main contractors performances.The Contractors that were involved in the DIA project are-Morrision-Knudseb Engineering (MKE)- Contracted for Project Management Team.Greiner Engineering Contracted for Project Management Team.New Orleans Based Architecture firm Contracted for creating unified standards for airport and taking the design of main terminal through schematics and design developments.BAE Contracted for the design and building of baggage handling system.US West Communication Services Contracted for DIAs telephone services.Union Pacific Contracting for designing path for the train that would connect Denver to DIA.Bechtel Corporation Responsible for transferring of airport facilities from Stapleton airport to DIA, this has to be done over nig ht.Two Main Contractors Performance-BAE They were responsible for designing and building the automated baggage handing system. BAE was brought into the project after 3 years of construction and still BAE miscalculated the time it needed to complete the project and committed to do the entire work in two years which otherwise would have taken viii years. BAE miscalculated the work involved which resulted in the baggage handling system not being delivered at the required time. To sum up BAEs performance was unsatisfactory for this project.Greiner Engineering Was one of the firms in the project management team (PMT). The PMT did not perform satisfactorily. Things such as risk management, project communication biding, to name few, were not performed satisfactorily by the PMT.5.3 Did the project follow a self-opinionated bid demonstrate? What might they have done?No, the project did not follow a systematic bid process. Case litterateur does give some evidence in regards to the biding process but it is not strong enough to classify the biding process as systematic. There is an instance in case where the New Orleans based architecture firm was selected on their past experience with Denver city council thereby providing further evidence that a systematic biding process was not followed.DIA should have followed the RFP process. The first step the Project manager should have done was to develop the Request of Proposal (RFP) for the project or for move of it (Larson Gray, 2011). Then the RFP/s should have been announced to the outside contractors with adequate capabilities and expertness (Larson Gray, 2011). The next step would have sees the interested contractors submitting written bids which would have been followed by DIA project mangers selecting the bid that best meet the requirements of RFP/s (Larson Gray, 2011). This process would have ended by providing explanations to contractors as to why they were not selected (Larson Gray, 2011).6. Progress Monitorin g and Control6.1 Identify the main causes of schedule fluctuation in DIA project. metrical composition of causes were associated with the scheduled variation of the DIA project but the main ones are listed as follows-DCV baggage handling system according to case literature the baggage handling system delayed the DIA project four times. Two specialists were engage from Germany to iron out the problems with the baggage handling system at the DIA airport. at long last a back manual system was financed by DIA authorities as the reliability and completion of the automated system could not be guaranteed by the contactors.Frequent Scope Changes The scope of project was changed on a number of occasions, though the changes were minor but their aggregated effects on the project cost and its completion were immense.Communication Plan The project did not have an effective communication plan. There was no communication between the different stakeholders resulting in scheduled variation of DIA project.Risk Management planning The project managers of DIA did not evaluate the risks involved with the project nor did they develop an effective communication plan to tackle the identified risks. This also led to the scheduled variation of the project.6.2 What would you have done when you saw that the project would not meet its schedule?If I saw that the project would not meet its deadline I would have done the following things-Conducted an in-process Audit In-process audit would have been used by me if I saw the project would not meet its deadline. This is because it allows for corrective actions if the federal agency changes keeping a strong focus on project cash advance and performance (Larson Gray, 2011). This would also help to identify constraints in the project.Implementing Integrated greet/schedule system The major problems that the builders of DIA had were the costs, time and communication in the project which were beyond their control. According to Larson Gr ay (2011), as time passes the ability to mildew a particular cost decreases. Therefore, a sanitary integrated cost/schedule system will be able to keep the costs and schedule in check through timely reporting of the same. This will also aid in better decision making as all the stakeholders will be provided with the same facts and figures.Resource levelling DIA is a time constraint project. I can use resource levelling technique to delay non-critical activities and concentrate on critical ones (Larson Gray, 2011).7. Project Closeout7.1 Highlight the major areas of distinctiveness in the management of this project.DIA project did not have much to announce about, but a couple of things do deserve to be mentioned, these are-Even though DIA failed to involved all the stakeholders effectively into the project. They however, did work expeditiously with stakeholders, whom they were involved with, to resolve their queries and objections.The original Airport design had four concourses b ut DIA project planners had efficient WBS to build only three concourses in order to keep the budget down.7.2 The DIA project was evidently not well run. Why? Give reasons for your opinion.Yes, the DIA project was evidently not well run. The reasons are as follows-Inadequate Risk Management Though DIA project managers did under take risk management it was not sufficient for the project. The risk management process failed to identify critical risks which resulted in waste of time and property to cope up with such risks. Moreover, the project was without a full time Risk Manger for several months.Lack of effective communication plan DIA did not have a well executed communication plan. unchanging and timely information about the project was not given to variant stakeholders. This effected the decision making process as everyone was not on the same wave length.Scope creep DIA project managers kept on including small tasks without realising the impact it was having on the scope of the project resulting in change magnitude costs.7.3 Overall, What lessons have you learnt from DIA project?The lessons learnt from the DIA project are as follows-Involvement of main stakeholders It is very important and crucial for a projects success to involve the main stakeholders in the project. DIA made a blunder by not involving the Continental and United in the design phase ad these two could have given vital inputs in the design phase. Moreover, their involvement in the root stage would have meant that the later changes made by each of them to the design would not have happened.Importance of Risk Management Process- A proper well execute risk management process is very important for an project as it prepares and makes the management about all the risk that may arise and equips them with options to tackle the risks as and when they may arise.Importance of communication plan A well executed communication plan delivers conformable information to the various stakeholders the reby increasing the speed of decision making process.Setting realistic goals Management should take into account the budget and the time before setting up any goals. Prime example in the case is of the automated baggage handling system. The system involved eight years of work but the contractor committed to complete it in two years which was not a realistic goal.Proper biding process should be followed A proper RFP process should be followed. This given follow chance for all the external contractors to participate in the biding process and ensures that deserving contractors will be selected which ultimately will be beneficial for the project.