Project Finance and Procurement: A Detailed Analysis of Boston Big Dig Project

This report provides a detailed analysis of the financial and procurement action plan, risk management plan, and timeframe of the Boston Big Dig project. It also discusses the issues faced during the project and their impact.

Running head: PROJECT FINANCE AND PROCUREMENT
PROJECT FINANCE AND PROCUREMENT
Name of the Student
Name of the University
Authors Note:

2PROJECT FINANCE AND PROCUREMENT
Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................3
Procurement and financial action....................................................................................3
Risk management plan.....................................................................................................6
Timeframe of the project.................................................................................................7
Conclusion.........................................................................................................................10
References..........................................................................................................................11

3PROJECT FINANCE AND PROCUREMENT
Introduction
Big Dig project officially known as central Artery/ tunnel project was considered to be a
megaproject in Boston. It is considered to have pass through the heart of the city through 1.5
miles (Ahmadi et al. 2017). The project is inclusive of construction of Ted Williams tunnel
which is extended to heart of the city. After that there was a plan to establish railway connection
between two train terminal of Boston (Hamid & Kehinde, 2017). The whole construction project
was carried out in between the year of 1991 and 2006. In the end this project was concluded on
31st December when the partnership the project manager and Massachusetts temple ended.
In the coming pages of the report financial and procurement in a Big Dig project has been
discussed in details. Various kinds of issues with respect to Boston Big Dig project has been
discussed in details. After that its impact of various issues on project has been discussed in the
above pages of the report.
Discussion
Procurement and financial action
WBS Task Name Duration Cost
0 Boston Big Dig Project 5840 days $13,006,288,280.00
1 Initiation phase 166 days $126,200.00
1.1 Development of business case 35 days $26,600.00
1.2 Undertaking easibility study 40 days $28,800.00
1.3 Establishing charter 50 days $38,000.00
1.4 Appointing project team 41 days $32,800.00

4PROJECT FINANCE AND PROCUREMENT
members
1.5
Milestone 1: Completion of
initiation phase
0 days $0.00
2 Planning phase 434 days $333,680.00
2.1 Creation of project plan 50 days $38,000.00
2.2 Creation of resource plan 60 days $62,400.00
2.3 Development of financial plan 70 days $50,400.00
2.4 Creation of quality plan 56 days $40,320.00
2.5 Development of risk plan 76 days $54,720.00
2.6 Creation of acceptance plan 65 days $46,800.00
2.7
Development of
communication plan
57 days $41,040.00
2.8
Milestone 2: Completion of
planning phase
0 days $0.00
3 Design phase 1700 days $1,328,000.00
3.1 Creation of rough sketch 300 days $216,000.00
3.2 Integrated design process 450 days $270,000.00
3.3 Architect drawing 500 days $500,000.00
3.4
Arrangement of meetings for
permit
450 days $342,000.00
3.5
Milestone 3: Completion of
design process
0 days $0.00

5PROJECT FINANCE AND PROCUREMENT
4 Construction phase 3400 days $13,004,432,000.00
4.1
Construction of Ted Williams
tunnel
1200 days $6,001,152,000.00
4.2
Extending interstate 90 to
Logan international Airport
1000 days $1,001,360,000.00
4.3
Rail connection between
Boston two major train
terminals
1200 days $6,001,920,000.00
5 Closure phase 140 days $68,400.00
5.1 Post project review 40 days $14,400.00
5.2 Stakeholder sign off 45 days $34,200.00
5.3 Documentation 55 days $19,800.00
5.4
Milestone 5: Completion of
closure phase
0 days $0.00

6PROJECT FINANCE AND PROCUREMENT
Risk management plan
Risk event Impact Risk Level Consequence
Shortage of labor High High Delay in completion
of project.
Unexpected increase
in cost of various
materials
high High Will affect the overall
budget of the project.
Poorly written
contracts
high High Will affect the
stakeholders during
legal activities.
Unknown site
contracts
low Low Will create mess
among the employees
of the organization
(Zhang, Minchin Jr &
Agdas, 2017).
Incomplete drawing
and improper
drawing scope
High High Will affect all the
stakeholders who are
associated with the
project.
Proper management
of change orders.
High low Change in orders will
result in delay of
submission of
project.

7PROJECT FINANCE AND PROCUREMENT
Timeframe of the project
WBS Task Name Duration Start Finish Predecessors
0 Boston Big Dig project 5840 days
Mon 03-
12-91
Fri 20-
04-14
1 Initiation phase 166 days
Mon 03-
12-91
Mon 21-
07-92
1.1
Development of business
case
35 days
Mon 03-
12-91
Fri 18-
01-92
1.2
Undertaking easibility
study
40 days
Mon 21-
01-92
Fri 14-
03-92
2
1.3 Establishing charter 50 days
Mon 17-
03-92
Fri 23-
05-92
3
1.4
Appointing project team
members
41 days
Mon 26-
05-92
Mon 21-
07-92
4
1.5
Milestone 1: Completion of
initiation phase
0 days
Mon 21-
07-92
Mon 21-
07-92
5
2 Planning phase 434 days
Tue 22-
07-92
Fri 19-
03-94
2.1 Creation of project plan 50 days
Tue 22-
07-92
Mon 29-
09-92
6
2.2 Creation of resource plan 60 days
Tue 30-
09-92
Mon 22-
12-92
8
2.3 Development of financial 70 days Tue 23- Mon 30- 9

8PROJECT FINANCE AND PROCUREMENT
plan 12-92 03-93
2.4 Creation of quality plan 56 days
Tue 31-
03-93
Tue 16-
06-93
10
2.5 Development of risk plan 76 days
Wed 17-
06-93
Wed 30-
09-93
11
2.6 Creation of acceptance plan 65 days
Thu 01-
10-93
Wed 30-
12-93
12
2.7
Development of
communication plan
57 days
Thu 31-
12-93
Fri 19-
03-94
13
2.8
Milestone 2: Completion of
planning phase
0 days
Fri 19-
03-94
Fri 19-
03-94
14
3 Design phase 1700 days
Mon 22-
03-94
Fri 24-
09-00
3.1 Creation of rough sketch 300 days
Mon 22-
03-94
Fri 13-
05-95
15
3.2 Integrated design process 450 days
Mon 16-
05-95
Fri 01-
02-97
17
3.3 Architect drawing 500 days
Mon 04-
02-97
Fri 02-
01-99
18
3.4
Arrangement of meetings
for permit
450 days
Mon 05-
01-99
Fri 24-
09-00
19
3.5 Milestone 3: Completion of 0 days Fri 24- Fri 24- 20

9PROJECT FINANCE AND PROCUREMENT
design process 09-00 09-00
4 Construction phase 3400 days
Mon 27-
09-00
Fri 06-
10-13
4.1
Construction of Ted
Williams tunnel
1200 days
Mon 27-
09-00
Fri 01-
05-05
21
4.2
Extending interstate 90 to
Logan international Airport
1000 days
Mon 04-
05-05
Fri 01-
03-09
23
4.3
Rail connection between
Boston two major train
terminals
1200 days
Mon 04-
03-09
Fri 06-
10-13
24
5 Closure phase 140 days
Mon 09-
10-13
Fri 20-
04-14
5.1 Post project review 40 days
Mon 09-
10-13
Fri 01-
12-13
25
5.2 Stakeholder sign off 45 days
Mon 04-
12-13
Fri 02-
02-14
27
5.3 Documentation 55 days
Mon 05-
02-14
Fri 20-
04-14
28
5.4
Milestone 5: Completion
of closure phase
0 days
Fri 20-
04-14
Fri 20-
04-14
29

10PROJECT FINANCE AND PROCUREMENT
Conclusion
From the above discussion it can be easily stated that this report is all about Big Dig
project. A financial and procurement action plan has been prepared with respect to Big Dig
project. A risk management plan has been prepared with respect to given project. The
development phase of the project is provided in details in above pages of the report. Big Dig is
considered to be most expensive kind of highway project in united states. But it was plagued by
cost overruns, risk, charges, flaws in design, leaks. Some issues of substandard materials,
criminal cases and issues of death were also encountered.

11PROJECT FINANCE AND PROCUREMENT
References
Ahmadi, M., Behzadian, K., Ardeshir, A., & Kapelan, Z. (2017). Comprehensive risk
management using fuzzy FMEA and MCDA techniques in highway construction
projects. Journal of Civil Engineering and Management, 23(2), 300-310.
Elmhedwi, T. R., Elmabrouk, S. K., & Sherif, M. A. (2015, March). Practical risk management
plan of Wi-Fi network deployment; case study. In Industrial Engineering and Operations
Management (IEOM), 2015 International Conference on (pp. 1-10). IEEE.
Hamid, R. A., & Kehinde, F. J. (2017). CHOOSING AN APPROPRIATE CONTINGENCY
SUM ESTIMATING METHODS FOR HIGHWAY CONSTRUCTION PROJECTS IN
NIGERIA: A LITERATURE REVIEW. PLANNING MALAYSIA JOURNAL, 15(1).
Hubicki, M. (2014). Risk Management Plan.
Monghasemi, S., Nikoo, M. R., Fasaee, M. A. K., & Adamowski, J. (2015). A novel multi
criteria decision making model for optimizing time–cost–quality trade-off problems in
construction projects. Expert systems with applications, 42(6), 3089-3104.
Tomita, T., Ono, Y., Nejihashi, K., Taogoshi, T., & Matsuo, H. (2016). Description of important
potential risks of Japanese risk management plan on each package insert. Iyakuhin
Johogaku, 18(3), 214-217.
Urban, M. E. (2016). Enhanced Capabilities for Subcritical Experiments (ECSE) Risk
Management Plan (No. LA-UR--16-22988). Los Alamos National Lab.(LANL), Los
Alamos, NM (United States).

12PROJECT FINANCE AND PROCUREMENT
Zhang, Y., Minchin Jr, R. E., & Agdas, D. (2017). Forecasting completed cost of highway
construction projects using LASSO regularized regression. Journal of Construction
Engineering and Management, 143(10), 04017071.