The Sydney Opera House Essay

3355 words - 13 pages

Executive Summary

Risk management is a major success key of project management in business world. With major budget overruns in parallel with significant delays, Sydney Opera House is a real example of poor risk management. Risk management requires effective planning, budgeting, and scheduling. First of all, the highest risks should be identified and evaluated in order to find methods to reduce their impact and exposure. Then, factors that cause risk should be addressed while factors that only correlate with the negative impact but do not affect it may be omitted. At this stage, interrelation between various risks should be accounted for to spot the core factors that should be treated in order to ensure effectively and stability of the project's functioning.

This report clearly shows the importance of the role of ‘Risk Management’ for the project of Sydney Opera House and way the risk is supposed to be managed in the areas such as planning, budgeting, cost control, quality and scheduling of the project. Moreover, it demonstrates that risk has to be identified before it could be effectively managed. With the proper identification, the projects go into a blind mode and potential threats are ignored which can easily lead a successful project into a failed project. A poorly designed risk management plan will bring in further risks and uncertainties and this will only result in a more complex and out of control situation in terms of effective project management.

Introduction
Risk management is among the most important practices in the field of project management. A successful project completion and risk management often go side by side. An interesting aspect of project management is that a project can still be a failure despite of meeting its scope requirements for budgets and time lines. A classic example can be the Millennium Dome in London. The project met all its scope requirements whether it was time schedules or budget controls and yet it is considered as a ‘white elephant’ and a ‘solution in search of an application’. In contrast to that, Sydney Opera House project has exceeded its budgets and time lines and still considered as a success. The Sydney Opera House is undoubtedly a wonderful piece of architecture and has attained the position of a cultural asset for the city yet if we critically analyze the whole the construction work was ordered before the design was fully completed. John Utzon, the Danish architect who won the New South Wales Government competition in 1957 and the construction got started in 1959. The government changed the requirements of design from 2 theatres to 4 theatres while the construction had already started (Architecture Week, 2006). This forced the change in designs and plans during the construction. The project had many cost over runs and time delays. In 1965, the new government of NSW withheld payments for Utzon’s plans. In 1966 the Utzon was forced to resign and a team of Australian...

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