Question

Highway Project Project

The Department of Highways in South Carolina was exploring ways to reduce the road construction costs and developed new contracting processes to allow the road builders to bring new ideas for cutting costs. On one project, the contractor proposed cost-cutting ideas throughout the life of the project. At each phase, the client accepted many of the ideas and then revised the budget. The client promoted the revised cost target of the project as an example of the success of the new process. By the end of the project, the final cost was less than 1 percent over the newest target. Although the total cost of the project was almost 10 percent less than the original cost projections and contract obligations, the success of the project was connected to the new expectations that developed during the life of the project. Even though this project performance exceeded the original goal, the client was disappointed.

Biotech Project

A biotechnology company developed a new drug that proved to have a large market demand, and the team that developed the drug was assigned to build a new manufacturing facility to produce the drug. The project manager for the construction company that was awarded the contract to build the manufacturing facility managed the project effectively. Every request for a change in scope was approved, and the result was a 20 percent increase
to the total cost of the project. On most projects, a 20 percent increase in the project cost would be considered poor performance. For the client’s project team, who were accustomed to complex projects with a large number of unknown issues that increase the final cost of the project, a 20 percent overrun in cost was not unusual. Even though the project was 20 percent over budget, the client was happy. Client satisfaction is often tied to expectations about project performance. Identifying and managing those expectations is a primary responsibility of the project manager.

Discussion

What are the differences between the two projects? Identify the single most important difference between the two projects that affected client satisfaction. Suggest an approach to managing client expectations in the highway project that might have resulted in meeting or exceeding expectations rather than disappointment.

Answer 1

Difference Between 2 Projects:

1)The main aim of the highway project is to reduce the road construction costs and developed new contracting processes to allow the road builders to bring new ideas for cutting costs.  and A biotechnology company developed a new drug that proved to have a large market demand.

2)In highway project, the contractor proposed cost-cutting ideas throughout the life of the project. At each phase, the client accepted many of the ideas and then revised the budget.where as On most projects, a 20 percent increase in the project cost would be considered poor performance. For the client’s project team, who were accustomed to complex projects with a large number of unknown issues that increase the final cost of the project, a 20 percent overrun in cost was not unusual.

Important difference:

The client promoted the revised cost target of the project as an example of the success of the new process. By the end of the project, the final cost was less than 1 percent over the newest target. Although the total cost of the project was almost 10 percent less than the original cost projections and contract obligations, the success of the project was connected to the new expectations that developed during the life of the project.

Managing Client Expectation:

Identify the stakeholder’s preferred method of communication.

Keep stakeholders engaged throughout the process with timely updates

Identify which stakeholders will be advocates and which will be road blockers

Engage the stakeholders in decision making.