The project was supposed to start in 2000 and only take a few years to build

The project was supposed to start in 2000 and only

This preview shows page 6 - 9 out of 16 pages.

The project was supposed to start in 2000 and only take a few years to build; but due to a disagreement between the stakeholders, an onslaught of financial problems, the project did not start until September 2002. Later, it was announced that the stadium will open in 2006. This was also delayed, and the Wembley Stadium project was not completed until 2007, four years after its initial plans foretold. The construction company that was assigned, and the complex structure of the stadium (such as a retractable roof, seats, and luxury places for the public) was also a major factor in the delay. The main problem with this project facing delays was improper time management and changes in the scope several times. Instead of assigning the tasks to very few
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big ventures, the executives could have hired independent PMs with experience for the project. The other important factor was poor communication between these executives. Lack of value- driven project management makes this project a failure even though the end-product resulted as planned. Budget According to PMBOK, “the budget in a project represents the official estimated amount of which will be needed for the entire project to be completed or for a specific planned activity for the project.” It is normal that there might be modification on the budget with the approval of certain people involved in the project but with the approval of certain people involved in the project bits important that the plan is communicated properly. This project lacked any historical data that can be used for the current project and complex decision and plan, this made it more difficult. The estimated cost initially to complete the stadium was £332 million pounds (estimated by WSNL) where £120m was obtained from lottery funds and the rest was agreed with the banks. To be financed, when WSNL decided to work with Australian Construction Company, Multiplex, and the stadium would be provided to the government which was agreed by the FA (Football Association). Since the government (a stakeholder) did not provide any response until 2001, the project was already delayed and result in a raise of funding to £757m, £425m higher than the initial estimate! Finally, FA came into an agreement with a German bank (West LB) which would provide the remaining funding and the project was finally completed in 2007. There were many controversies including a lack of transparency and involvement of investigation during the bidding process. The first estimation of the project was completely
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incorrect which resulted in an almost two hundred percent rise in initial budget. Another incident that came out later in 2008, the construction company, Multiplex sued the designer of the stadium stating that they were denied key design information which lead to an increase in cost of steel used.
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