Chunnel Project

During the Inception Phase, the planners realized that they did not have the experience or expertise to conduct the procurement process internally. The main purpose of procurement management is to decide what to do internally and what to outsource. According to Fleming (2003), “as our projects become increasingly more complex, more and more we will be finding that we must rely on people from other companies to help us perform our project work” (Fleming, 2003, p. 2). Based on the level of knowledge internally, the planners determined it would be in the best interest of the project to outsource the heavy construction and a majority of the management consulting (Kwak et. Al., 2002).

In the Development Phase, the planners once again decided to consult with the local population and merchants in order to gain an understanding of the effect the construction would impact the local community. Based on the feedback received the planners, decided to offer incentives to contractors in order to decrease the construction timeline and help alleviate the burden placed on the local population and merchants. Quote mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

The incentives initiated during the Development Phase paid off during the Implementation Phase. Because of the incentives stages 2 and 3 were completed six months ahead of schedule (Kwak et. Al., 2002). One of the contracting companies received a significant bonus for completing their portion ahead of schedule. The planners also identified some lessons learned from prior cost estimates and were able to recalculate and determine a more realistic cost of construction.

During the Closeout Phase, the planners identified many lessons learned that if incorporated into future projects will provide a more realistic cost estimate.