Once Upon a Time In Construction, The Impossible Hotel Completion: When Miracles Come At A High Price

Our client attentively listened to the project review regarding the challenges and delays associated with the forty-story hotel and shopping center. After some time, they expressed their confusion, stating, “I do not understand how this happened! I thought we were in good shape because we have substantial funds still available!” I clarified that the alignment of cash flow with planned spending and the achieved completion percentage is critical for project success. In this instance, the delayed performance by the contractors correlated with slower payments on monthly invoices. Additionally, the lack of funding for actual work completion exacerbated the ongoing delays. I explained that contractors cannot finance beyond the planned cash flow and their borrowing limits.

Moving forward, we faced the challenge of accelerating construction in alignment with a fixed opening date for the Olympics—a date that was non-negotiable. Over the course of three weeks, I conducted a Forensic Project Management review and developed a strategy to open the project with a reduced scope, focusing on the top ten stories of condominiums and prioritizing twenty-three critical systems and areas within the hotel and shopping center.

A designated superintendent was assigned to oversee each of the twenty-three critical systems, and we implemented daily status and schedule reviews to drive progress. The estimated cost for accelerating this work was approximately twenty million dollars, covering overtime, expedited processes, and problem resolution. As work commenced in earnest, it became evident that certain design elements were missing. Consequently, a dedicated team of designers was deployed to the work site to address and resolve design and system operational issues effectively.

I am pleased to report that our plan succeeded, allowing the project to open for use just one day before the Olympics, with the hotel fully occupied during both the Olympics and the subsequent Paralympics. The remaining work was completed over the following six months.

It is important to note that this approach is not a model for project planning, as relying on last-minute interventions is not a sustainable practice. However, given the circumstances, we had limited options. Successful construction initiatives begin with a realistic framework that coordinates the design scope of work, integrating cost and scheduling data through a detailed Critical Path Method (CPM) schedule. It is essential to execute this plan using the established completion and spending curves to ensure that planned and actual progress and costs align throughout the project lifecycle.

While the challenges associated with project acceleration are significant, it is crucial to educate the client on the realities of acceleration costs, which typically yield only the progress of the original scope of work. This requires patience and finesse to avoid any feelings of regret once the project is completed.