Management Of Mega Projects: Case Study Of The Second Bangkok International Airport

Second Bangkok International Airport is one of the large engineering projects in the history of Thailand. Construction work of this project is divided into several packages and each package comprises of several projects which are running parallel to each other. Each project is designed and constructed by a number of intercontinental firms and involves many suppliers from different countries. Literature entitles such mega construction projects as programs. Management of such programs is not only complex but also multifaceted. Studying this mega project which has been declared as ‘national priority’, as a whole and specifically from management point of view would be of vast interest.

Mr. Shamas-ur-Rehman Toor conducted a research study in 2005 to study the aspects of interface management, coordination and communication among numerous partakers of the project. The questions explored in his research were:

1. How do different parties (Clients, Consultants, Designers, and Contractors) communicate and coordinate on this large construction project; what kind of communication and coordination tools are they using in their work? And what problems are they facing in doing it?

2. What are the key leadership traits of successful project leaders on large construction projects, and how are they affected by the involvement of participants from a range of national and cultural backgrounds?

3. What are the Key Performance Indicators (KPIs), Critical Success Factors (CSFs), and most significant problems faced on large construction projects? What special issues arise due to the presence of a range of different cultural elements on such mega projects?

4. To what extent can we generalize, with validity, the findings related to this airport construction project and what further research do the findings indicate we should undertake?

Conclusions

Results have shown that perception of different project participants is similar about the subject of communication and coordination interface management on large project and the case study project. Though satisfaction on current health of communication and coordination interface management has been low, usefulness of information has been rated satisfactory. Low satisfaction has been a result of several barriers which are: language, lack of experience of staff, lack of experience of project manager, lack of experience and knowledge of subcontractor, difference in local construction practices, lack of cooperation of government agencies, lack of foremen’s experience and knowledge and bureaucratic behavior of employer.

In second part of this study, traits and skills of project leaders which make them successful were investigated. Different leadership behaviors were also examined to find which styles were more important for success. As a result, four Rs were devised: revolutionary, resolving, reverent and rewarding. These four characteristics of project leaders are crucial for success on large construction projects. Moreover, it was found that communication, team, personal and interpersonal and management skills were most important for project leaders. Technical skills were rate low on importance scale along with computer and specialty trades’ skills. It was also found that poor communication skills, wrongful use of authority and lack of experience make project leaders incompetent.

In third part, critical success factors, key performance indicators and problems on large construction projects were aimed for investigation. Among the top critical success factors, effective planning and control, sufficient resources and clear and detailed written contract, defined goals and competent project manager were given higher ranking. Among the key performance indicators, the traditional triangle of completion on time, under budget and according to specification was given high rating along with two more indicators which are safety and efficiency. It reveals that project managers are conscious about the traditional iron triangle of project management but they do consider safety and efficiency as important measures of performance on large construction projects.

His thesis abstract is copied and posted.

ABSTRACT

Construction industry due to its complex nature and dynamic environment is considered to be a difficult area to conduct research. Numerous studies have been conducted on various topics of project management. These studies have their own boundary conditions, limitations and constraints. Generalizing the results for the whole construction industry after analyzing few projects in particular area is difficult. Also, every project in construction industry is different from others in many ways even when it is copied from another similar project. That is the reason that case studies have become common in research related to construction industry. The current research is also a case study of a construction project which is situated in Thailand. Suvarnabhumi Airport is considered to be the biggest construction project in the history of Thailand. The project is exceptional in many terms. It comprises of five work packages and forty eight construction contracts. Several experts from all over the world are participating in the project in different capacities. With a budget of approximately four billion USD, the SBIA has been declared as ‘national priority’ by Thai government.

The current research explores several areas of project management in context of large construction projects, especially the Second Bangkok International Airport. The research has been divided in to three parts. In the first part, it explores the tools and techniques used by project participants to develop communication and coordination interface management on large construction projects. It also investigates the problems faced during developing communication and coordination on complex construction projects. Results have shown that perception of different project participants is similar about the subject of communication and coordination interface management on large project and the case study project. Face-to-face meetings, formal letters and memos, telephones and e-mails have been considered to be used the most on project as communication channels. Though satisfaction on current health of communication and coordination interface management has been low, usefulness of information has been rated satisfactory. Low satisfaction has been a result of several barriers which are: language, lack of experience of staff, lack of experience of project manager, lack of experience and knowledge of subcontractor, difference in local construction practices, lack of cooperation of government agencies, lack of foremen’s experience and knowledge and bureaucratic behavior of employer.

Several problems being faced in coordination on project were due to tight schedule, limited budget, getting access to work area, lack of authority with project manager, absence of most of designers from site, sharing of cost conflicts, several design changes and use of huge and unnecessary documentation. Most of the communication and coordination problems were overcome through face-to-face meetings, telephone calls, using personal informal relations, and letters and memos. Also, severity of problems related to communication and coordination interface management was rated higher by the contractors as compared to other groups. Designers were the other extent as they rated the severity of problems lower.

In second part of this study, traits and skills of project leaders which make them successful were investigated. Different leadership behaviors were also examined to find which styles were more important for success. As a result, four Rs were devised: revolutionary, resolving, reverent and rewarding. These four characteristics of project leaders are crucial for success on large construction projects. Moreover, it was found that communication, team, personal and interpersonal and management skills were most important for project leaders. Technical skills were rate low on importance scale along with computer and specialty trades’ skills. It was also found that poor communication skills, wrongful use of authority and lack of experience make project leaders incompetent. In context of organizational factors which make project leaders ineffective, lack of resources, lack of planning and control, lack of synergy b/w organizational strategy and performance and lack of top management commitment were rated the top factors which make project leaders ineffective.

In third part, critical success factors, key performance indicators and problems on large construction projects were aimed for investigation. Among the top critical success factors, effective planning and control, sufficient resources and clear and detailed written contract, defined goals and competent project manager were given higher ranking. Thirty nine CSFs were given to the respondents and factor analysis was conducted on top twenty which produced four critical COMs for success of large construction projects. These COMs are comprehension, competence, commitment and communication. Among the key performance indicators, the traditional triangle of completion on time, under budget and according to specification was given high rating along with two more indicators which are safety and efficiency. It reveals that project managers are conscious about the traditional iron triangle of project management but they do consider safety and efficiency as important measures of performance on large construction projects.

Respondents were also asked about the problems they face on large construction projects. Problems related to several human and system groups were presented to rating. Results have shown that higher rating was given to human related problems in organizations. Also, higher mean scores were given by the contractors as compared to other project participants. Moreover, problems related to client, designers, contractors and project management/consultants have been ranked high. Only few problems related to labor, site and environment, finance, communication and other factors could achieve high ranking.

The current research has explored several areas of project management and gives a very broad view of how success can be achieved on large construction projects. The study explores the problems which are potential for large construction projects, suggests critical success factors as input to project, devices KPIs to measure the performance on intervals, gives an overview of leadership required for execution and tools, techniques and practices to overcoming communication and coordination issues and developing an adequate communication and coordination interface management system. Wisely considering all these areas definitely leads to the success of a large construction project.

Keywords: Interface Management, Communication and Coordination, Project Success, Leadership, Critical Success Factors, Key Performance Indicators, Problems, Large Construction Projects