Analysis of Contract and Procurement in the Wembley Stadium Project

This report offers a comprehensive analysis of the Wembley Stadium project, focusing on the procurement and contract management aspects. It begins with an executive summary outlining the project's initial failures due to poor planning and delays, and its eventual success as a world-renowned stadium. The report delves into the procurement processes, including roles and responsibilities, project scheduling, estimating, risk management, and vendor processes. It also examines tender evaluation criteria. Key issues such as delays, indecisiveness, poor planning, procurement defects, and communication breakdowns are discussed, highlighting their impact on the project's outcome. The report then provides recommendations for improvement, including effective managerial and leadership skills, stakeholder management plans, and realistic scheduling. The report concludes by summarizing the project's challenges and emphasizing the importance of proactive strategies to avoid similar issues in future projects.

Contract and Procurement based on the
case study of English National Stadium at
Wembley

Executive summary
At the initial stage of the project of Wembley Stadium, project manager faces lots of
issues and that is why the project fails as there is poor planning and delay to meet the project on
time. But in 2007, finally when the project is completed, the stadium is known as one of the
largest and massive stadium in the world and also host major football matches. Thus the report
main aim is to describe the procurement and tender which are associated at the time of execution
the project and further shows the risk which are associated with the project and then provide
recommendations in order to overcome these.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Presenting the procurement and its component and tender evaluation.......................................1
Describing the key issue and risk................................................................................................2
Recommendations.......................................................................................................................4
CONCLUSION................................................................................................................................5
References........................................................................................................................................6

INTRODUCTION
Contract is the written agreement which is especially concerning with employment, sales
which is enforceable by law, on the other side, procurement make sure that the buyers receive the
goods and services at best price if it provide best quality of products. The report is based upon
the case study of Wembley Stadium which fails at its initial level due to having poor planing not
having financial support but in 2007, it is one of the largest and massive stadium of the world.
Currently the seating capacity of the stadium is about 90000 at single time.
The report main purpose is to describe the key issue which were faced during the time of
executing the project and also describe the procurement and its scope. Further, report will also
describe how the risk affect the outcome and also provide recommendations in order to
overcome these issues.
Presenting the procurement and its component and tender evaluation
In 1994, the Sport England decide to establish national stadium competition with the aim
of introducing three sports such as Football, Rugby league and Athletics. Thus, In 1996, the
project was initially begun and it is also financed by a mix of lottery money and partnership
funding. But the project was not funded at proper manner that is why there is a delay in the
project and after that in 1996, Sports England selected Wembley which is the preferred site for
new stadium and then after two years, the project awarded lottery funding of 120 million euro
that Is used for fund acquisition. But in 2000, the Council of Sport England was agreed and
request Wembley to amend he lottery and remove the athletics because it is not able to repay the
amount even after passing the dates. The project is centralized procurement process and it is cost
plus contract which cover actual cost, purchase and other expenses incurred during construction.
Thus, it shows that the delay is decisions and cope alteration makes the project failure and it did
nit completed on time because of poor planning and ineffective leadership.
The component of procurement are as mention below:
Roles and responsibilities: This is important component in which project manager
oversee the process as well as manage the schedule, budget and project risk as well. In this every
member of the project have their own roles and responsibilities such that technical manager
determine the statement of work relate to technical requirements and contract manager provides
advice related to contractual (Component of project procurement plan, 2018).
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Project scheduling: in this, the project manager allocate the resources and made
scheduling related to every task so that the task is proceed with defined time. But as per the case
study due to financing issue, the project did not meet the deadlines.
Estimating: It is the external procurement which has the strong estimating component in
which the estimate need to be produced before the project bidding in order to make sure that the
money is available. But as per the case study, funding is the top issue which cause failure as
well.
Risk Management: Another important procurement component in which every risk is to
be define in the risk profile of the project such that risk tolerance, type of contract, risk
probability and risk severity, but on the other side, this also require fund to resolve the internal as
well as non- procured work.
Vendor Process: This process seeks to make sure that the work of vendor and suppliers
is acceptable or not and the technique applied by the vendor should be written into the
procurement management plan so that the project is passes into next stage.
Tender evaluation: Basically, the tender is evaluated into two basic criteria that is,
Economic advantageous: The tender is actually done when the project is benefited in
financial term such that it will help to leads towards success, such that as per the Wembley
Project, the stadium is made with an aim of three sports in one stadium that helps to get
economic benefit.
Lowest Tender Price: The price of the tender should be least and it must exclude the tax
details. When the tender is evaluated as per the basic evaluation criteria of advantageous, then
the committee has to perform the evaluation on the basis of partial criteria, it is also done as per
the percentage weights which is allotted to them by contracting business.
Describing the key issue and risk
There are various issues that leads to fail the project such as:
Delay and indecisiveness: It is one of the most affecting issue that fails the Wembley
project and creates negative impact upon it as well. The primary setback of the project was its
completed time and it is so because many political as well as financial problem. Though the
completion date of project was 2003 but the project actually started in 2002. apart from this, the
second completed project date was planned was 2006 but the project was also not completed in
this years and this all because of low leadership strategy and lack of taking decision for the
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welfare of the project. Beside this, the alteration of the project scope also consider challenge and
cause of failure Taherdoost & Keshavarzsaleh (2018). Such that initially, the stadium is planned
to accommodate athletics, rugby and football but due to some technical as well as financial issue,
they decided to remove athletics. Thus, this shows that continuously change in the scope of the
project also lead to delay in the project success.
Poor planning and organization structure: The planning of the project is also not up to
date ad it is proved to be many times like, the inexperienced WNSL signed the contract without
knowing actual cost of the project and this affect the entire project in negative way Alotaibi &
Mafimisebi (2016). As a result, the executives also make estimated wrong operational cost of the
project and after that it is realized that it is just half of the actual amount when it is completed.
Due to such wrong estimation the designing is remake and decision are also made in hurry
without actual thinking and that is why there is a lot of changes has to make. Therefore, this all
wrong decision support the project towards failure and even the project is also not met with the
deadline as well.
In later stages, when it is realized that the project did not meet the effective quality and
efficiency, this also leads to fail the project and did not meet the defined time as well.
Procurement issue: It is another the most important issue that also leads to fail the
project such that there are different defect in the procurement policies like House of Common
Committee of Public Account and did not collect the fund for completed the project in deadline,
which cause failure of the project. Moreover, Wembley National Stadium Limited also had so
many construction contracts before string this procurement process and this also provide
advantage to other project Meredith, Mantel Jr & Shafer (2017). Even when the material is
transported from other country they were not properly marked and this also leads in
misidentification of relevant pieces. Sometime there is a delay from the side of contractor and
this also affect the project scope in negative way.
Poor communication and stakeholder management: The project did not get any
support from the government organization and football association and this affect the project in
negative way. Project manager also faces communication problem with the stakeholder such as
The House of Common, media and Sports committee which also delay the project, apart from
this, the Cleveland Bridge also terminated the contract in midway because of lots of conflict and
complaint and that is why they had to come with new members Mafimisebi (2016). This all
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factors leads to affect the project in negative way and also cause to delay. Due to low
organization structure which affect the entire project in opposite manner and lack of
communication also affect the attain the defined aim and objectives.
Recommendations
As per the above discussion, it is to be recommended to project manager to use effective
managerial as well as leadership skills so that the project might might have been success. Proper
and closed monitoring should be done in order to determine whether the project is on track or not
and this also helps to determine whether the project is on track or not. Apart from this, it is also
recommended to the project manager to keep motivated their staff members so that they will help
to achieve the defined goals and also solve issues collectively, in order to overcome the problem
of poor stakeholder communication, the project manager should develop the stakeholder
management plan and it is so because proper stakeholder plan consist register and all
engagement level which have been prepared in order to execute the process in defined time, so
that every member should realize their roles and responsibilities and proceed to work Bas (2016).
In addition to this, if there is any minute changes in designing and reports , then it must
be convey to other network so that everyone should be involved and all the decision must be
carry forward. In order to minimize the problem of procurement, it is to be recommended to the
project manager to set proper procurement management plan and then hire the contractor, it is so
because other key aspect are also analysed such that penalties and fines in there is any delay and
mishaps. All the contract should be public so that it can be reviewed by the general public
because government is also a financier of the project. All the contract and bid should be done at
proper way and before signing the contract the terms and condition should be read so that there
should not be any misconception with regard to designing and other things Taggart (2016).
For not completion of the project the major issue is delay and that is why, the estimation
of the project should be clear and to overcome the problem of delay and late submission, it is to
be recommended to project manager to make realistic duration and scheduling at initial stage of
the project and impractical scheduling should be avoided. Manager also look upon previous
similar construction in order to deduct the realistic duration. Therefore, it helps to manage the
time as well as resources in better way Agyekum-Mensah & Knight (2017). Further, the manager
should also make proper comparison between the schedule duration of the entire activities and
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the actual situation dome in a day. So that it will help to monitor whether the project is on track
or not and the budget should be properly estimated with proper cost management plan. This will
help a business to leads towards success.
CONCLUSION
By summing up above report it has been concluded that initially die to delay and
indecisiveness, the Wembley Project is not meet the time and leads to failure as well. Therefore,
from the report it has been concluded that the project has many risk such as poor communication
with stakeholder, low leadership qualities, financial issue, not having effective procurement
process and these all leads to delay the project up to 4 years. Further, report also suggest
different ways that can be used in order to manage those issues and make the project successful
as well.
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References
Books and Journals
Agyekum-Mensah, G., & Knight, A. D. (2017). The professionals’ perspective on the causes of
project delay in the construction industry. Engineering, Construction and Architectural
Management.24(5). 828-841.
Alotaibi, A. B., & Mafimisebi, O. P. (2016). Project management practice: redefining theoretical
challenges in the 21st century. Project Management.7(1). 93-99.
Basu, R. (2016). The best practices of managing quality in projects. Further Advances in Project
Management: Guided Exploration in Unfamiliar Landscapes, 13.
Basu, R. (2017). Managing quality in projects. Routledge.
Mafimisebi, O. (2016). Project management practice: lessons learned from project failures in
Nigeria.
Meredith, J. R., Mantel Jr, S. J., & Shafer, S. M. (2017). Project management: a managerial
approach. John Wiley & Sons.
Taggart, A. (2016). Project Management for Supplier Organizations: Harmonising the Project
Owner to Supplier Relationship. Routledge.
Taherdoost, H., & Keshavarzsaleh, A. (2018). A theoretical review on IT project success/failure
factors and evaluating the associated risks.
Online
Component of project procurement plan. 2018. [Online]. Available through:
<https://blog.method123.com/2015/05/04/six-components-of-a-procurement-
management-plan/>.
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