Eruotunnel

The Eurotunnel is the longest undersea tunnel in the world. The concept of the Eurotunnel was first entertained by Napoleon in the 1800’s; however, it was not actually put together and planned until the 1980’s. Not only would this be one of the largest projects in history, but it would also be the first to acquire private financing to complete.

Financing was procured by several construction companies across the UK and France, and they created the CTG, or Channel Tunnel Group (UK) and France Mache (France). They were known as CTG-FM. This group, along with 5 construction companies, bid 2.8 billion and were chosen in the beginning of 1986; a bid that included simple financing and the concept of using proven technology to complete the project.

Secured in 1987, Eurotunnel the company that operates the tunnel under the English Channel went public. Shortly thereafter CTG-FM became the British and French subsidiaries of Eurotunnel and now Eurotunnel had more design approval authority and say in the project; thus causing tension with TML (TML is Transmanche Link, a joint venture of ten construction companies). Eurotunnel told investors that building the longest tunnel of its kind in Europe should be very straightforward and 10% should be a reasonable allowance for unforeseen circumstances regarding constructing costs. The estimated the completion time to be seven years. However, once built, the costs were double what was projected.

Diagnose the performance of the Eurotunnel project on the dimensions of budget, schedule, and project quality.

Across the globe some things are constant with any culture. One of them is that large infrastructure projects almost habitually arrive late, over-budget and fail to perform up to expectations.

From the get go, there were many issues with The Eurotunnel project. From a budget standpoint, the project was bid out at £2.8 million for the construction portion with a total of £4.8 billion to make it functioning. In order to keep...