The paper "Project Risk Management - the Capital Metro Light Rail Project " is a great example of a management case study. The Capital Metro Light Rail Project is an initiative of the labour government to provide a rapid transport system for the city. This project is the product of decades of investigation and citizens concern over the growing traffic congestion, high cost of transportation, inadequate housing within the city, and the impact of their vehicle emissions on the environment. Construction of the Capital Metro Light Rail Project will begin by 2016 with a budget of $18.7 million.
However, like other large construction projects, the Metro Light Rail project has its share of risks and other issues associated with construction and operation. Risk management according to is generally about anticipating things that could go wrong in a project and formulation of measures that can prevent or control the impact of these risks. It is about making decisions and attempts to optimise the outcome, minimising risks to meet the expectations of stakeholders, and taking actions to positively influence the outcomes. In other words, it includes opportunity assessment, identifying risks, developing mitigation strategies and contingency plans, monitoring, and learning for future project use. The following sections described the various risks associated with the Metro Light Rail project through environmental scanning and review, identified stakeholders and their role in the project, risk and opportunities associated with the project, control strategies and action plan, and effective monitoring, review, and learning plan that may be implemented throughout the project. Environmental scanning and critical review The objectives of the project as mentioned earlier is to ease the growing traffic congestion, reduce the cost of travel from home to work, reduce harmful emissions such as noise and greenhouses gases.
Scanning the environment associated with the project suggest that the project is a political commitment made by the new government which in essence can be affected by changing political atmosphere and pressures from affected stakeholders. For instance, the labour party decided to enter into a private sector partnership in planning, financing, and development of the project but according to this private partner will unlikely to accept the financial risk of payments based on the number of passengers and therefore a financial risk on ACT taxpayers who will carry the cost of the project. Similarly, construction of light rail transport system will have its share of environmental impact as according to, all of the roads in the Northbourne will be excavated during the first stage of the Capital Metro light rail network construction.
Moreover, the construction will require relocation of existing services and new electricity substations along with the 12km Civil to Hibberson Street in Gungahlin. Note that aside from waste and noise from excavation, large scale construction projects such as the Metro light rail will require a large volume of materials and a large number of heavy equipment moving around the construction site producing a significant amount of dust and other health hazards. The social impacts of the project include additional traffic problems, reduced business profitability and significant employment problems during construction.
Another is the concern of the public over private sector partnership, the cost of construction, running cost, and low patronage that will eventually affect taxpayers.
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