The Edinburgh trams project ranks as fourth largest public capital project in Scotland. During the period since the City of Edinburgh Council (CEC) gave its approval to the project’s final business case in December 2007, there has been significant media attention given to it with concerns raised about cost over-runs and delivery delays.
The Decisions which are made by the management for the cause of failure:
A parliament bill was proposed by Scottish national party transport spokesman Kenny McCaskill in support of a tramway between 2000 and 2002. The Scottish executive announced the approval of funding in 2002Factors that effected cost and time overrun:Political issues:
The political dispute was far from over despite the project being finalized and started initial funding. The SNP councillors did not see themselves a bound to support the project even though they were part of the administration sponsoring it. Similarly, the SNP Government ministers at Holyrood lost few opportunities to take forward the progress of project even though they were the main funders. This continued after the Scottish Government cancelled the Edinburgh Airport Rail Link in favour of making the trams the means of linking the City Centre and the main line rail network to the airport.
Contractual arrangements There were four distinct contracts let for the project:
1. System Design Services (SDS)
2. The Multi Utilities Diversion Framework Agreement (MUDFA)
The MUDFA contract was awarded to Alfred McAlpine (AMIS) in October 2006. The contract commenced on July 2007 after some preparatory ad investigation work and was due to be completed by November 2008. The work was delayed by prevarication by first minister Alex Salmond in 2007 before funds were allocated. The decision of the Scottish government to fund a new station at Gogar as a partial replacement for the Edinburgh Airport Rail Link Project was another problem. This decision required a redesign of the tram track layout near to the depot at Gogar and the construction of a few tram stop simplify the interchange.
3. The Tram Infrastructure and Maintenance Contract (INFRACO)
The INFRACO contract undertaken by BBS a consortium of Bilfinger-Berger carrying out the civil engineering works and Siemens company is responsible for the electrical side in May 2008. The contract finally signed in May 2008 with a start on site expected by September 2008 and completion was estimated by January 2011. It was planned that passenger carrying operations would start in 2011. The first dispute elevated in March 2009 when BBS refused o start on the track laying on princes’ street. There were suggestions in the press that BBS were demanding an extra £80 million was agreed before they would commence track laying. The works were completed by the November 2009 deadline. The Disputes continued into 2010.
4. Vehicle Supply and Maintenance Contract (TRAMCO)
The TRAMCO contract was won by the Spanish firm CAF in November 2007.Tramcar construction Works completed smoothly. The first two cars built underwent trails at siemens test track in Wildenrath, Germany. One of them has delivered earlier and is on display in princes’ street. The remaining 26 trams was delivered over the period.
Political influence over the regional parties in nation and disputes between the project contractors and consultants defaced the project and the project come to halt on several occasions. In early 2005 the Scottish parliament sloped the project when new estimated costs disclosed an increase of 30% to the original estimated £375m that was allocated for the project. Although the project did get going again, those early cost increases were a alarming sign of even worse to happen in long run.
Criteria means standards and principles how the project to be deal and taking this into consideration one can agree whether a project can be a success or failure project. we can measure the success or failure of the project at delivery stage as well as end of completion stage and after completion stage of project. Any project that undertaken by an organization can be a success, a failure or it can be both success and failure that depends on the outcome of the project. Over the period of 50 years the main factors that influence the criteria are cost, time, and quantity. These success factors have been considered as The Iron Triangle, over the last 50 years have become inseparably linked with measuring the success of project management. ”Time and costs are at best, only guesses, calculated at a time when least is known about the project where Quality is a phenomenon, it is an emergent property of people’s different attitudes and beliefs, which often change over the development life-cycle of a project” Atkinson, R 1999.
The cost, time are the external points which can be known by internal team and can analyse the status of the project. There will be few type of errors which can be recognised only by project management team in each stage of project. Errors made in early planning can be known directly and some cannot be known at initial stage which can be known after the completion and during the testing phase. After the completion of initial testing phase the team can identify whether the project heading in the proposed budget and given stipulated time. If project includes development life cycles these will be secondary factors and the primary factors will be the quality of the system and the performance which tell the outcome is favourable to the user or not. After the completion of project, the success is measured solely by the revenue generated by the completed project or performance of the system with user satisfaction.
Currently, the organizations have been adopting six sigma success criteria and critical success factors associated to it which is précised and more detailed structure which should be followed by organizations in developing their projects. The six sigma CSF’s will give great impact on the project success as the critical factors of success in every organisation depends on knowledgeable by the training to individual or team and including all the qualities which needs to be qualified for a person to be in a team for projects where different projects demands different needs and technologies.Critical identification and justification:
The criteria that implies the present project case is the iron triangle and the critical factors are cost, time and quality. These are the critical factors which needs to be understanding to get an overview of ETN failures. The major failures happened to ETN project due to lack of proper planning in early stage, lack of communication within the organisation and with project contractors, underestimating the final budget of the project. The city transport council handling the project should be alert in initial stage of the project. Trams network is well established in United Kingdom CEC should have taken advantage and make the design and cost techniques on early stage of project with cost and time efficient.
Cost: The project has been started with an overview of £545 million and the project has completed with an overall budget of £750 million. The tram eventually took its first passenger in 2014, at a cost of approximately £1 billion including loan interest. At a cost of approximately £1 billion, the final cost was a massive £71.4m/km. As a point of reference, the average per km cost for tramlines completed in 17 other cities in the northern hemisphere for the period 2010-2014 was about £22.7m/km.Select projects which are doable in less than six months. If the project scope is broader, the time to completion increases, the cost of the project deployment will increase. This would lead to frustration among the key players due to lack of progress, diversion of manpower away from other activities, delay in realization of financial benefits, etc.