Owner’s Rep Uses Project Simulator to Identify Schedule and Budget Risk in $5B Stadium Project
Our client was the owner’s representative on the largest stadium construction project in history. The project was extremely complex – from an engineering and construction perspective. This size and complexity translated into an enormous budget in the $billions. It was also extremely visible, creating a public relations risk for the owner and the firms helping them complete the project.
The original project schedule showed project completion in three years. Based on this schedule, the team arranged for the league championship to be played in the new stadium shortly after completion.
Understanding the risk of projects of this size, our client asked us to utilize Project Simulator to analyze the schedule.
The Problem We Solve
The critical issue was understanding the likelihood that the project could be completed within the three year schedule. Apart from the obvious cost implications of the project exceeding its schedule, the ownership team was very concerned about the implications of promising a league championship venue and then failing to deliver.
We utilize a quick-scan approach to Project Simulator , which essentially stress tests the schedule to assess the inherent risk. It was important to use quick-scan not just because of the rapid answer it provides, but that it requires minimal involvement from the construction team. This was critical to avoiding disruption as well as allowing the work to be completed with little public awareness.
Project Simulator quick scan was completed in one week. It indicated that the three year schedule which had been presented had only a 5% chance of success and that the 90% confidence interval indicated that the project would require an additional 9 months to complete. Based on this information, ownership pushed the league championship game back one year. The project did in fact take the additional 9 months to complete and league championship schedule was met.