INFS2022 Project Analysis: Heathrow Airport Terminal 5 Construction

This project analysis report examines the Heathrow Airport Terminal 5 construction project, focusing on its planning, execution, and outcomes. The report begins with an executive summary, followed by an introduction that provides background information on the project. It then delves into a stakeholder analysis, identifying key stakeholders such as BAA Airports Ltd, Roger Stirk Harbour, and passengers, and discusses communication challenges and changes in management structure. The project management section details the implementation of standard contracts, risk management strategies, and the use of innovative practices like lean construction and prefabricated components. The critical analysis assesses the project's success, highlighting its ability to handle 35 million passengers annually and the use of integrated teams. The report also acknowledges the challenges faced, including communication issues and technical uncertainties, and the innovative solutions employed to overcome them. The report concludes by emphasizing the importance of effective planning, stakeholder management, and risk management in large construction projects and offers lessons applicable to future projects.

Project Analysis Report
Executive Summary
This report critically analyses the construction project of Heathrow Airport Terminal 5 by
discussing how it was planned and executed. It reflects upon the process of identification of
project objectives and planning of project management activities in the initial stages of
project development. The project was constructed on time and within the allotted budget. The
success of the project is due to innovation and effective collaboration between project teams.
The report also provides a stakeholder analysis of the project that has a large number of
stakeholders. The key stakeholders of the project were BAA Airports ltd, Roger Stirk
harbour, Laing O'Rourke, Passengers, Airport staff, communities, and Airport Authority.
The project also faced several challenges including technical difficulties, baggage handling
issues, and protests from community groups.
The critical analysis reveals if the Heathrow Terminal construction project was successful
and fulfilled its objectives identified in the initiation stage. The success of the project could
be attributed to excellent planning and management. The project had used some innovative
practices for project management that have been discussed in the report which explains show
they resulted into successful completion of the project. It also discussed challenges faced on
the project and how project management helped overcoming them.
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Project Analysis Report
Contents
Introduction................................................................................................................................3
Project Stakeholder Analysis.....................................................................................................3
Project Management...................................................................................................................3
Critical Analysis.........................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7
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Project Analysis Report
Introduction
Heathrow Airport is the busiest airport in UK and this project involved construction of
terminal 5 of the airport which is multimodal transportation exchange system. The project
was assigned to Rogers Stirk in 1989, plan was submitted in 1993, the construction of its
control tower was completed by 2007 and the terminal was opened to public in 2008. The
project scope involved construction of control tower, aircraft stand, departure areas, taxi-
ways, transit system, arrival areas, commercial spaces, check in desks, offices, public
lounges, airside road tunnel, and other facilities at the terminal (Weaver, 2010).
The project scope included designing, planning, and construction, control tower, aircraft
stand, departure areas, taxi-ways, transit system, arrival areas, commercial spaces, check in
desks, offices, public lounges, airside road tunnel, and other facilities at the terminal (House
of Commons Transport Committee., 2008).
Project Stakeholder Analysis
Key stakeholders of the project were BAA Airports ltd, British Airways International (BA),
Roger Stirk harbour, Laing O'Rourke, Passengers, Airport staff, communities, and Airport
Authority. The project needed coordination with internal as well as external stakeholders of
the project through progress reporting and meetings. Sound communication plans were made
to manage stakeholder communication and the information flow across the project life cycle.
However, project had to go through communication challenges because of many stakeholders
involved with difference in expectations. Several delays were experienced because of
disagreements between major project stakeholders, BA and BAA. There were changes made
in the management structure that affected project schedule and other construction related
decisions and a revised project plan was developed (DOW, 2010).
Project Management
The implementation of the project was done relying on standard contracts with suppliers and
contractors. Insurance was also taken to cover the risks involved on the project. Financial
risks of the project was assumed by BA because of which contractors and suppliers could
work carefree and produced better results. 85% of the project went as per the schedule and
could be completed on time. However, there were some delays caused due to conflicts
between BA and BAA that were later resolved. Also, technical difficulties added to some
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Project Analysis Report
complications that caused little variation on the project. However, studied from other
projects, these delays were not uncommon and the Heathrow terminal construction performed
much better in schedule adherence as compared to them. The project was completed at the
cost of GBP4.3 million. In march, 2005, the partial project was released after air traffic
control system construction was completed. The project was a combination of 16 major
projects and 147 sub-projects that were managed by 60 contractors. Multiple contracts were
signed between BAA and the contractors with responsibilities assigned to contractors for
completion but all financial risks were assumed by BAA (BAA, 2010).
Project risks were managed by BAA such that suppliers and contractors of the airport
terminal construction project was released from this burden which facilitated a positive
culture. For managing the project, Project Flow software system was used that collated
material demands and ensured their timely deliveries. There were two consolidation centres
including Colnbrook Logistics Centre and South Logistics Centre developed for minimising
the impacts of construction. Prefabricated reinforcement cages were used on site for ensuring
safety of the surrounding environment (DOW, 2010).
The project involved 8,000 of the total workforce including 2,800 operatives and 700 staff
members. There were 20,00 suppliers and 50,000 people working in integrated project teams.
Innovations were done in managing project by employing lean construction, production
control, and incident & injury free program. Design for Manufacturing and Assembly was
used for delivery of prefabricated parts in the factory to the airport construction site which
was installed by experienced operatives at the airport. Some of these components included
modular plant rooms and car parks. This strategy ensure more safety, less cost, and reduced
environmental impact (Whitfield, 2007).
BAA which was the airport operator had studied all major airport projects completed in past
10 years for two years before planning this project. From 12 major programs of airport
development, the study concluded that no project could be completed on time and radically
different approach was needed to be able to overcome challenges that could cause delay so
that the terminal 5 construction project could be completed on time. With the innovation then
facilitated, 85% of the project could be completed as per plan which was higher as compared
to other projects that could complete only 60% of the work on time (Designing Buildings
Ltd., 2018).
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Project Analysis Report
The success of the project could be attributed to the effective project management approach
used for T5 agreement that involved signing of contracts between BAA and the contractors
including suppliers, architects, design consultants, manufacturers, and specialized
contractors. The contracts were designed to avoid or minimize contractor conflicts that was a
major issue in most other projects (Martin, 2018). The project moved away from the
traditional practice of risk sharing. Instead of putting blame for anything that could go wrong
on the project on respective contractors or suppliers, the agreement was made to put all risks
to BAA (Orourke, 2018). Integrated project management teams were created between
contractors that enabled high performance. With this strategy, even the cost of tenders were
reduced and the money saved could then be utilized to motivate contractors. Assuming
financial risks also gave BAA a greater control over the project decisions and project was
managed with tight budget control (OECD, 2016).
BAA had faced a major challenge earlier on the project when its express tunnel collapsed in
1990s from which lessons were learned on risk management which is why BAA took
responsibility for the financial risks involved in the construction project. Sound risk
management strategies were implemented with clear identification of strategies for risk
management, transfer, control, acceptance, mitigation, and elimination (Williams, 2008).
Critical Analysis
The project was a success despite the initial setbacks it had to face. However, the project used
some innovative strategies and majority of it could be completed on time. It successfully
achieved the project objectives and was able to handle 35 million passengers post completion.
Major outcomes of hits project considering project management were:
 T5 terminal at the Heathrow airport was able to handle 35 million passengers yearly
who travelled to 150 destinations after taking 19 long years to complete the project
from inception.
 The project was executed by 60 contractors in the budget of GPB 4.3 Billion who
managed 16 projects and 147 sub-projects.
 The project used integrated teams that worked together to complete project tasks in
strict deadlines and tight costs.
 Innovative construction management practices were used due to which 85% of the
work could be completed on time which is higher as compared to most other projects
where only 60% of work is completed on time.
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Project Analysis Report
 The project faced some major challenges that included communication issues between
two major stakeholders, BA and BAA, and technical uncertainties but they were
addressed and project was completed successfully.
 BAA assumed the complete financial risks of the project and the contractors were
relieved from the burden which minimized the instances of conflicts between them
thereby creating a positive work environment.
 Prefabricated components were used that were manufactured separately and then
assembled at the construction site by specialized operatives. This strategy saved on
costs and reduced harm to environment.
 BAA took lessons from past projects that were executed in 10 years and utilized the
insights to develop innovation in the project thereby giving enhanced performance.
 The project used sound risk management strategies developed by BAA for managing
risk response which helped BAA reduce impacts of project risks
Conclusion
The project report revealed the importance of effective planning at the initial stages of the
project management. It is important to identify key project objectives before a detailed plan
could be made for fulfil them. Stakeholder management is also an important part of project
management which is not done effectively can cause conflicts and delays. Large construction
projects have risks faced by all the contractors unless project sponsor assumes the
responsibilities of the risks that was done in the case of Heathrow airport construction project
which relieved the burden of contractors and thus, facilitative positive culture. The project
still faced some communication and technical challenges but with strong planning and
innovative implementations, the project was completed successfully in 19 years. The
innovations in the project were the result of studies of past projects by BAA which enabled
completion of majority of project tasks on time as compared to other projects that suffered
major delays. This report can serve as a lesson to identify how project planning can help in
success of a construction project as well as identify project management practices that can
make a positive difference on project outcomes. This report revealed some good construction
project management practices such as learning from past projects before planning, creation of
a positive and collaborative work culture, and sound risk management. These strategies can
be applied to even other projects if managed in future as they have ben proven to give good
results.
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Project Analysis Report
References
BAA, 2010. Heathrow Terminal 5 Case Study, s.l.: BAA.
Designing Buildings Ltd., 2018. Heathrow Airport Expansion, s.l.: Designing Buildings Ltd..
DOW, 2010. Terminal 5 – Heathrow Airport Designed by Rogers Stirk Harbour and
Partners, s.l.: DOW.
House of Commons Transport Committee., 2008. The opening of Heathrow Terminal 5. , s.l.:
The Stationery Office Limited..
Martin, S., 2018. Heathrow Terminal 5. [Online]
Available at: https://www.rsh-p.com/projects/heathrow-terminal-5/
[Accessed 17 March 2019].
OECD, 2016. Country case: Allocation of risks during the construction of Heathrow Airport
Terminal 5 (UK) , s.l.: OECD.
Orourke, L., 2018. HEATHROW TERMINAL 5. LONDON. UK, s.l.: BAA .
Weaver, P., 2010. THE EFFECTIVE MANAGEMENT OF TIME ON MEGA PROJECTS ,
s.l.: Mosaic Project Services Pty Ltd .
Whitfield, D., 2007. Cost Overruns, Delays and Terminations: 105 Outsourced Public Sector
ICT Projects. s.l.:European Services Strategy Unit.
Williams, R., 2008. The perfect storm Underwriting the construction of Heathrow Terminal
5, s.l.: IMIA.
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