Project Management

Executive Summary
The following context will incorporate a critical analysis on the project management processes of the Karntama Village undertaken by Decmil Group Ltd. It was formed in
1979 and is nationally known as the leading provider in engineering construction, maintenance and industrial service to Australian resources, energy and infrastructure
sectors. The overall objective of DGL as a large service provider entails a reliable delivery of achieving unique and cost effective projects – its main focus on
village accommodation with the incorporation of excellent quality and all round safety in order to maintain their impeccable reputation in their field. Decmil was
initially requested to design and construct the Karntama Village in Western Australia by The Fortescue Metals Group.
In order to exert the relevant information on the project management dealings throughout the development of the Karntama Village, a number of critical studies will be
provided. Firstly, the scope of the project is delivered in order to demonstrate the importance what the village brings to the community, identification of the key
stakeholders with their major roles and responsibilities in the development is identified and analysed, a vital consideration of acknowledging the project management
process is categorised, as well as the careful interrelation between the business and project strategy. In addition, a SWOT (strengths, weaknesses, opportunities and
threats) analysis and a risk assessment are initiated in order to withhold awareness of any unexpected conditions that may arise during a construction development.
Finally, to conclude the analytical report, a clarification of the projects key phases and success factors are conveyed to demonstrate the potential impact a project
can have when following the fundamental procedures of project management.
Introduction and Scope The following context will incorporate a critical analysis on the project management processes of the Karntama Village undertaken by Decmil
Australia. Decmil Australia is
nationally known as the leading provider in engineering construction, maintenance and industrial service to Australian resources, energy and infrastructure sectors
(Decmil Group limited n.d). According to Criddle (2011), the initial project objective is to design and construct an accommodation village as part of Fortescue’s
Christmas Creek Expansion with a contract value of $137 million and a time constraint of twenty-one months. The requirement in undertaking this project is formally
confirmed by the two major stakeholders Fortescue and Decmil. The deliverables of the accommodation village includes a 1600 double story transportable accommodation
units, which provides guests with communal dining facilities and tavern, sports oval, a 100 seat cinema, an external barbecue and sports facilities, which include a
three lap lane pool, tennis/basketball court, gym, indoor cricket, golf driving range (Karntama Village Christmas Creek 2011). The major work performance is described
in the deliverables section will be directly performed by the stakeholders mentioned in the following table.
Stakeholder Analysis It is evident in any process of project management that stakeholders are a major key to the development of a project in terms of the physical
construction, financial funding or in any way ‘exert influence over the project and its deliverables’ (Hartley 2009). They have the power and complete control to
either contribute to the outcome of the project or benefit from it. In terms of the major stakeholders that are involved in the development, they all have similar
traits in terms of contributing their time and resources into designing, shaping and producing a highly recognisable accommodation area (Gido and Clements 2008). The
following table demonstrates the major stakeholders that could be extracted from the information, in which was analysed in terms of their nature as a stakeholder and
their key roles and responsibilities throughout the project.
Table 1: Stakeholder analysis (Hartley 2009)
Name Stakeholder Roles and Responsibilities Decmil Australia Owner/Project Organisation Implements business objectives to fit project criteria of Fortescue Fortescue
Metals Group Client/Sponsor/Commercial Suppliers Provide funding, resource allocations and initiate approvals in relation to what
Decmil bring about Scott Criddle (Decmil Aust.) Project Manager Manages the overall implementation of Karntama Village in order to be successful and lead the project
in the right direction Accommodated Guests (Mining Employees of FMG) Customers/End Users The initial back-end users to utilize the project when completed – target
market of the mining construction workers Scope Australia Project Management Team Provide project management, engineering and design services in which supports Decmil
as their ‘right-hand man’ KORE Construction Project Team Members Provide civil works, formwork, reinforcing, precast and concrete placement and finishing – report to
project manager Monford Group Project Team Members Provide services of their project managers, estimators, engineers and tradesmen to support Decmil R-Group
International Project Team Members: Manufacturers/Commercial Suppliers Delivered impeccable accommodation entertainment and communication experience S-Squared Space
Solutions Project Team Members: Manufacturers/Commercial Suppliers Designed PT Dome to shelter workers from the elements at the village tavern. Electrical Intelligence
Group Project Team Member: Completed the transition to
Manufacturers/Commercial Suppliers
high voltage services
As a result, the major stakeholders developed a form of similarity in terms of their contribution in the arrangement, which they provided their full-undivided services
of Decmil’s requirements to develop and construct Karntama Village at the standards they implied. In addition, the interest of the stakeholders was mainly to gain
economic benefits and form a recognisable reputation in terms of their business with the exception of the impending guests as their overall interest is to receive high
class accommodation during their working time (Hartley 2009 and FMG Chichester Expansion n.d). As a result of the analysis, there is not a whole range of stakeholder
diversity as they all have similar traits in support, commitment, confidence, urgency, direction, ownership, decision-making, problem solving, inclusion and
involvement (Gido and Clements 2008) This may have been the case because Decmil have formed a high standard reputation over the years and this has the potential to
motivate and influence the other stakeholders to shadow their business actions and behaviour.
Project Management Life Cycle To begin with it is evident that a detailed analysis of the project management life cycle is determined in order to grasp the process
that was performed in terms of how the project was managed on behalf of Decmil and Fortescue.
In the concept stage, the client (Fortescue) and the construction company (Decmil) agree on the direction, the key objectives and the outcome of the project. In
addition they would have been required to perform a risk assessment, feasibility study and financial modelling. This is performed to further evaluate the project
objectives and a final recommended solution. Fortescue developed the idea in which all factors are communicated to Decmil.
During the planning stage, Decmil and Fortescue discuss the plan and schedule of the project incorporating all elements determined in the concept stage – all dynamics
are finalized in this stage of the project in regards to outlining activities, tasks, dependencies and timeframes. It should take into consideration cost estimates for
labour, equipment and material costs, stakeholder identification, establishment of a communication plan where all issues discussed in the planning stage are
documented.
The execution stage is considered as a putting forward the project plan and implementing all dynamics initially planning. Decmil is in full control of the construction
of the project, in which they strongly involve the stakeholders to perform the plan, as they are fully reliable rendering to the potential result.
The finalisation stage is fairly straightforward in reassurance that all deliverables are fully satisfied as required by Decmil and finally handed over to Fortescue.
Strategy The overall objective of DGL as a large service provider entails a reliable delivery of achieving unique and cost effective projects – its main focus on
accommodation villages with the incorporation of excellent quality and all round safety in order to maintain the impeccable reputation in their field (Longman Mullins
2004). Decmil incorporates their own business strategy as whole when delivering projects as requested by a client. This assures that projects are not directed astray
by utilizing the business’s main driving force to execute a high level of effectiveness. (Artto et all 2008). It would certainly not be any different when constructing
the Karntama Village as Decmil generally undertakes similar types of projects that fall within the same industry. In saying this, the process of their strategic plan
is formed by using previous methods for other completed projects. As a part of their long-term strategy, Decmil continue to strive for 100% ownership of the villages
they design and construct (Decmil Group limited n.d)
SWOT Analysis Using a SWOT analysis to demonstrate the qualities and characteristics Karntama Village in terms of the strengths, weaknesses, potential opportunities
and strengths, which is utilized for future benefits (Hartley 2009 and Munns and Bjeirmi 1996).
Strengths
 Materials used are of high quality  Reputation and brand image of ‘resort style’ village  Copious availability of facilities  Brand leader in design and
construction  Guests are well catered for/retain employee satisfaction  Competitive field in terms of target market  Production quality/ High-class accommodation
Weaknesses
 Target market limited to employees of mining operations  High class can be a result of costly accommodation  Maintaining the up-keeping of the village – costly 
Sensitive to economic changes  Ability to cater for an increasingly excessive amount of guest
Opportunities
 Increase in potential employment/increase in potential guests  Increase in revenue for the area  Potential permanent residency for current and future employees 
Potential expansion – growing industry  Changes in technological advances
Threats
 Competitors that offer less expensive accommodation in the area  Potential tax implications  Changes in government politics – mining tax minister
Risk Assessment As a major project for Fortescue and Decmil, it contains many potential risks especially because it is a construction project (Atkinson 1999). In this
case, many factors need to be considered to reassure that the risks are a clear precaution to all stakeholders as well as all members across the board. A key factor in
risk management is the ability to communicate potential risks, high-level or not to everyone. Karntama Village may undergo risk situations such as (Gido and Clements
2009):
 Not gaining key stakeholder commitment which can result in time consumption (2-3)  Inaccurate estimates in relation to physical measurements as well as financial
requirements (2-3)  Poor performance by individuals heavily involved/lack of performance reporting (3)  Limited resource availability in delivering the project (3) 
Legislative constraints in pursuing important aspects (3)
 Conflicting contractor priorities especially in the construction industry (3-4)  Production efficiencies during the project (3)  Complexity from parallel project
paths (2)  Critical tasks may override other tasks, which will effect time consumption (3-4)  Poor accountability in terms of cost (3-4)  Dual management reporting
conflictions (2-3)
Key events/phases The key events identified and implemented throughout The Karntama Village project was successfully completed in two major stages at Pilbara, Western
Australia; the first stage involved the design and construction of a 1600-man first class accommodation village with a successful completion date of February 2012 and
an initial start date of April 2010 (Criddle 2011 and Karntama Village 2012). In addition, the second stage of the accommodation development involved a broader
expansion program and a one step further endorsement to increase the quality of work. This enabled installation of the accommodation rooms, laundries, universal rooms
as well as extension to the central facilities. The expected completion date of the overall project of January 2012 was successfully achieved (Criddle 2011).
Taking into consideration the factors involved in the implementation stage, the development of Karntama Village is considered planned and executed impeccably. It is
quite rare to be faced with projects that have fulfilled their promises in terms of time deadlines, budget constraints and resource conservativeness (Atkinson 1999).
In saying this, the Karntama Village was completed within the time allocation of 21 months – referring to the dates allocated and achieved (The Breakthrough n.d). As a
result of budget allowance with the generous funding of Fortescue, the contract value of $137 million was maintained throughout the two separate contracts fulfilling
the needs of key stakeholders and more importantly the client, Fortescue (FMG Chichester Expansion n.d).
Conclusion and recommendations It is always possible to perform that little further in relation to extracting the most out of the project experience. Therefore,
Decmil, as the leading company of the project should have considered and executed a more communicative approach toward the public in concerns of the potential
implications and a detailed scope of the progress in a fashion that is easily understood (Khang, Moe 2008 and Criddle 2011). Although, throughout the analysis of the
Karntama Village, it is established that Decmil obtained the ability to deliver all components
in providing the mining operations with an extensive accommodation village ‘setting a new benchmark for village design’ (FMG Chichester Expansion n.d). The results
determine Karntama Village as a successful project performed in Western Australia for a number of factors such as the extensive importance list of stakeholders that
held there end of the bargain, a well-thought out original plan on behalf of Fortescue Metals Group, a substantial and ambitious strategy, which aligned closely with
their objectives on behalf of Decmil, a SWOT and risk analysis, which appeared to have been considered throughout the project as the issues with drastically limited
and the clear identification of key events that supported the project (FMG Chichester Expansion n.d and Criddle 2011).
Final word count: 1609 excluding table
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