Political Projects
Political Projects
Political Projects
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that the designs of the Catalan architect Enric Miralles were amongst the most popular. The design team
took account of public opinion on the designs and invited all five shortlisted entrants to make
presentations on their proposed designs before announcing a winner.
On 6 July 1998, it was declared that the design of Enric Miralles was chosen, See Figure 2, and the work
was awarded to EMBT/RMJM (Scotland) Ltd, a Spanish-Scottish joint venture design company,
specifically created for the project. Demolition of the brewery commenced in June 1999 followed by
construction by Bovis.
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MSPs, with the governing party or parties sitting in the middle of the semicircle and opposition parties
on either side, similar to other European legislatures.
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The Auditor General reported that there were clear communication channels between the project team
and other officials planning wider aspects of the operation of the new Parliament, so that the expected
user requirements could be conveyed to the building project team.
HM Treasury's procurement guidelines indicate that good practice in construction procurement requires
the client to establish:
A project team with sufficient skills, knowledge and resources to match the expected demands of
the project
A clear chain of command, to provide the basis for decision making and accountability
Satisfactory arrangements for project appraisal and monitoring, including budgetary control.
Figure 6 shows the roles and responsibilities of the key players shown in Figure XXX above.
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From Figure 7 it should be noted how long the design period ran in parallel with construction activity on
site, to a much greater degree than originally intended. This must also have had a significant impact on
construction cost.
Construction
Figure 8 shows the Holyrood project in relation to the surrounding site and Figure 1 shown earlier
illustrates the project in the context of the surrounding countryside.
Figure 8: The finished site. The complex is bottom right in this photo
Brief notes of construction progress follow.14
1999
Responsibility for the Holyrood project was handed over to the Scottish Parliamentary Corporate Body
(SPCB) on 1 June 1999. Demolition works were completed on the Holyrood site and main construction
work began.
2000
John Spencely commissioned to carry out an independent assessment of the project. His
recommendations are shown in Figure 9. Parliament debated the issues raised by Mr. Spencely and
voted to continue with the project at a cost of 195m with a completion date of December 2002. The
Holyrood Building Project Group were set up to monitor progress of the project against cost and
timetable and ensure completion to "a standard suitable for a Parliament building".
2001
The main superstructure of the MSP's office accommodation completed.
2002
May: Holyrood Progress Group visited the Kemnay Quarry to inspect granite purchased for the
Holyrood Building. September/October: the first oak beams were installed in the chamber roof and the
first of the MSP windows were installed.
2003
The leaf-shaped roofs above the garden lobby became visible for the first time.
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2004
January: the Debating Chamber ceiling was presented to the media. Last tower crane removed from the
site as the project "entered its final construction phase". July: the Holyrood building was largely
complete. August: Staff and MSPs moved into the new building. September: Holyrood opened to over
900 visitors for the first sitting of MSP. October: Holyrood officially opened in the presence of the
Queen. Works continued following occupation.
2005
February: Practical Completion of the Holyrood Building Project was certified by the Construction
Manager (Bovis) and the Architect (EMBT/RMJM) as having been achieved on 17 February 2005.15
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Project Cost
The Auditor General's Report of 2000 observed that the significant increase in the area of the building
has inevitably increased construction costs. However, the average unit cost of construction also
increased, see Figure 10. Proportionately, the increase in the gross area of the building since April 1998
(47 per cent) is close to the increase in unit costs in the same period (48 per cent). Since the 116 per cent
increase in total construction costs is a product of these two factors, the increase in gross area explains
almost exactly half of the 58 million increase in forecast construction costs.
Figure 10: Space estimates and unit cost escalation as at September 200016
The Auditor General then accounted for the remaining difference as follows:
Higher quality finishes.
Increased cost of providing the basic building fabric based on a design incorporating several
smaller buildings instead of the monolithic single building in the original box feasibility
design.
Within this, the use of features such as curved walls and elaborate external detailing in the
facades throughout the structure that are now an integral part of the architects' current design and
that involve the use of high-cost materials and construction methods.
Inclusion of necessary but costly security aspects. For example, in many areas the main
structures of the buildings have to be constructed to be sufficiently strong to withstand bomb
blast.
The relatively high costs of refurbishing Queensberry House. The original feasibility design in
late 1997 did not include Queensberry House within the Parliament site.
Other risk factors associated with the construction process that were not included in the initial
estimates such as the delays to progress of the earliest works packages.
From October 1998, as soon as there was sufficient design information to permit it, project management
received reports from the cost consultant. These were at intervals that varied between a few days and
three months, according to availability of the underlying design information. For most of the project
duration there has been a large gap between the cost consultants' estimates and the approved budget that
was the basis for top-level review, as shown in Figure 11.
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that the architects should be able fairly soon to issue the certificate of practical
completion. The committee will be aware that issuing of that certificate is an important
technical stage because it affects determination of the key date from which retention
periods will run.
Secondly, the committee will recall that the contract for landscaping was originally a
separate Scottish Executive contract, which was eventually transferred with the main
contract to the Scottish Parliamentary Corporate Body. Landscaping has been affected by
prolongation costs, as were other parts of the project. There has also been a need to phase
in work because of pressure to conclude the project. That is perhaps not the most efficient
way of settling the matter, as members will be aware, and there have been some cost
implications. The reserve that was specifically allocated to landscaping has been used up,
so there has been a call on general contingency to the extent of 1.2 million, as the papers
say. That was a predicted risk, although the risk was perhaps a little underestimated vis-vis the eventual outcome.
However, the package that has been finalized since November was agreed at 5 per cent
below the cost plan allowance. I think that that kind of variation in the final figures will
be apparent as the settlement process moves to its conclusionwe are still a little way
from final settlement of all accounts.
That is all I want to say by way of introduction."
The following subsequent exchange also took place at the meeting:21
"Alasdair Morgan (South of Scotland) (SNP): I have a general question to which the
answer is not in the papers that are in front of me. When we examined figures in the first
parliamentary session, an amount for each package was always allocated to risk or the
risk reserve. I am not looking for a precise figure but, broadly, of all the money that was
allocated to risk, what percentage has been spent?
Paul Grice: That is a difficult question to answer, but I would be happy to find out
whether we can do that calculation, at least in broad terms. I do not have the figures to
hand, but I am sure that we could look back and come back to you with some.
Alasdair Morgan: The reason why I ask is that it seemed at the time as if most of it was
being spent.
Paul Grice: My impression is also that most of it has been spent. In some specific cases
the risk has not materialized, but in others it has. I would be happy to go away and find
out to what extent we can do a general assessment of the percentage of risk that has
materialized. I am afraid that I do not have that information to hand.
Robert Brown: It is fair to say that the figure is something of a moving target, in that
some risks that are in the risk register at earlier stages drop off and new risks are
identified.
Paul Grice: Yes. I suspect that the amount might be difficult to determine in detail, but I
am sure that we could find out whether we can give the committee a feel for the
percentage or proportion of risk that has materialized.
Alasdair Morgan: Keeping a risk register might be a normal technique in such building
projects I know that, as you make clear in your report, we will not undertake one again
in the near future but to the layman, risk has perhaps a 50:50 chance of materializing,
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although I suspect that that has not been the case for the risk in this project and that it has
not been so much a risk as a near certainty."
Commentary
The following notes have been abstracted from a presentation by Mr. Crispin "Kik" Piney, PMP, at the
PMI Global Congress EMEA, Edinburgh, Scotland, in 2005.22 Mr. Piney is a principal with Projectbenefits.com, a project management consultancy based near Nice, France. His analysis from the
perspective of project management is based on a few significant published accounts of the project,
including Lord Peter Fraser of Carmyllie's "The Holyrood Inquiry (2004)". This inquiry was conducted
at the request of the Scottish government.
According to Mr. Piney:
1. The failures stemmed from one basic principle: the more inspiring the final goal and challenging
the deadlines, the more key stakeholders are tempted to compromise on best principles of
planning, management and control. In such situations, safeguards for ensuring the application of
best practices must be correspondingly strengthened.
2. Within a couple months after the 1997 general election, parliamentary figures and government
agencies pressed ahead for a fast tracked project with an expectation for the building's
completion by mid 1999.
3. Dozens of people, including the Edinburgh City Council and Secretary of State for Scotland,
were involved in overseeing the project but from the start it was at risk from lack of control and
authority over project scope. A major difficulty arose from everyone being so keen to get going
that no one took the time to plan how.
4. The project was riddled with controversy such as choice of site, choice of architect, timing issues
and escalating costs arising from unrealistic estimates. Renowned architect Enric Miralles of
Spain was selected to envision the building complex. A joint venture was formed between
Miralles and a Scottish architectural firm but Miralles had no experience of working in Scotland,
or in working with Scottish contractors.
5. Donald Dewar, former Secretary of State for Scotland, was the driving force. Under his
leadership, the initial site of the Old Royal High School in Edinburgh was judged too restrictive
in terms of space and accessibility, and the site adjacent to the Queensberry House, known as the
"Holyrood site", was subsequently selected from a short list.
6. The project then evolved from an extensive renovation of the school building at a 24.5 million
estimated cost, to 34 million for a full-blown design and construction of a new building.
7. Clearing of the Holyrood site and construction did not begin until mid 1999, around the time the
proponents of the original project had expected the building to be ready for use.
8. Consistent with large building projects, a construction management firm was hired, but their
responsibility extended only to procurement of contracts. They had no responsibility for project
management control, or delivery of the final product. They set to work before the building was
fully designed and excessive overlap between design and construction lead to redesign and
scheduling errors.
9. The project kept going through budget reviews in parliament and each time, the cost went higher.
In April 2000, parliament agreed to cap costs at 195 million, and in June 2001, members of
Scottish Parliament voted to lift this cap. The project ultimately cost 431 million, with the
Scottish Parliament Building finally opening its doors to parliament in September 2004.
10. According to Lord Fraser, one civil servant hid Davis Langdon's estimates from the rest of her
colleagues. The fundamental problem was putting a person in charge who had never handled a
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building contract. She basically said, "My budget is 55 million, and you will build it at that."
She never said to the political powers that be, "I'm sorry they cannot build it for that." Moreover,
professional fees and value added taxes were among the costs stripped out by the civil servants in
presenting figures to parliament and other project decision makers.
11. During the prolonged project, several project managers and project directors came and went.
There appeared to be no single person with authority, so that no one could take any control
actions on the project. The project manager's role appeared to be limited to reporting on the
current schedule and giving new estimates on the amount of overruns. The role was more that of
reporter and forecaster rather than manager or controller. Apparently at no time was the role and
responsibilities of the project manager ever defined.
12. The reports by the Auditor General of Scotland provided sound project management advice but
the project team did not act upon them nor did they deal with the identified shortcomings. Even a
one-day training session on program governance might have avoided some of the problem areas.
The project was not without drama. Both Mr. Miralles, the project's famed architect, and Mr. Dewar, a
key figure in the project and ultimately the client, died in 2000 without seeing the fruits of their labors.
Issues for discussion
General integration and oversight
1. What was the source of the need for this project? How did that impact the course of the project and
its eventual deliverable? Give your reasoning.
2. Who was really in charge of the project? Who should have been in charge in terms of the
organization recommended by the Auditor General's report of September 2000? Justify your
conclusions.
Scope
3. Was the New Scottish Parliament Building project well conceived? Develop a scope statement from
the case study information provided. Describe how your scope statement compares with what
actually took place.
4. What strategies were in place to achieve the scope objectives? What would you recommend?
Quality
5. How was the quality grade established for the project? In your view, was this quality grade
achieved?
6. Discuss the ramifications of the statement: "On March 2nd 2006, a beam in the roof of the debating
chamber swung loose from its hinges during a debate, resulting in the evacuation of the debating
chamber and the suspension of parliamentary business."
Time
7. The project life span was prolonged in its early stages by delays in conceptual design. Discuss the
impacts of these delays and how you would have handled the situation as project manager-in-charge.
8. The Scheduled plan vs. actual as at September 2000 report project completion by 2002. However,
the building was not certified until February 2005. How would you account for the difference?
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Cost
9. Trace the evolution of "costs" on the project and the apparent causes. What can you learn from this
progression?
10. Describe the process and responsibility for budgeting and cost control on this project. In retrospect,
what would you have recommended?
Risk
11. The project was obviously at risk from the beginning. How was project risk handled and was this
effective?
12. Discuss the implications of Alistair Morgan's observation that " to the layman, risk has perhaps a
50:50 chance of materializing, although I suspect that that has not been the case for the risk in this
project and that it has not been so much a risk as a near certainty."
People
13. Who was really in charge and was the organizational setup effective? Could the project have been
better organized, and if so, how?
14. Auditor General's report of September 2000 recommended an appropriate organizational setup. How
do you think this compares with the actual setup? Do you think that the AG's recommendation
would have solved the problems? If not, why not?
Procurement
15. Auditor General's report of September 2000 recommended a project organization, but responsibility
for procurement is not shown. Where would you place that responsibility and what, in your view,
should be its full extent?
16. The original thrust of the project was "fast track", i.e. to finish as soon as possible. In your view, was
this objective achieved? Justify your conclusions and develop a better alternative. Speculate on the
outcome under your suggested alternative, including any necessary assumptions.
Information/Communications
17. What information can you find in the case study regarding communications? What recommendations
would you make about how communications should be conducted on a project of this size?
18. How should changes, especially scope changes, have been handled? Develop a process flow diagram
for this particular project. What were the consequences of how changes were actually handled?
Photo - http://en.wikipedia.org/wiki/Scottish_Parliament_Building
Ibid.
3
Ibid.
4
UK Auditor General's Report on The new Scottish Parliament building: An examination of the management of
the Holyrood project at Holyrood, Scotland, September 2000, p iv
5
http://en.wikipedia.org/wiki/Scottish_Parliament_Building
2
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Ibid.
Ibid.
8
AG's Report, 2000, p30
9
AG's Report, 2000, p31
10
AG's Report, 2000, p26
11
Ibid.
12
Ibid.
13
AG's Report, 2000, p27
14
From http://www.scottish.parliament.uk/vli/holyrood/projHistory/Constructionanddesign.htm, accessed 5/5/10
15
SPCB Report on Holyrood Project Close-Out (pdf) accessed 5/5/10
16
AG's Report, 2000, p23
17
AG's Report, 2000, p41
18
Ibid.
19
AG's Report, 2000, p26
20
st
The Scottish Parliament Finance Committee Official Report of meeting March 1 , 2005, Cols 2405-6
21
Ibid, Col 2409
22
Abstracted from Plan Has Merit It costs: A Project Manager Analyzes the Construction of the Scottish
Parliament in Edinburgh, PMI Global Congress EMEA, Edinburgh, Scotland, 2005
7
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