1.1 Research focus
The unit of analysis is to develop a document in PRINCE 2 methodology to project management and suggests ways of using it in construction industry related to sustainable development. In line with the nature of the research question, the study takes an interpretivist theory perspective. After critically analysis the literatures, the study provides a better understanding of PRINCE 2 methodology in terms of the impact of a PRINCE 2 methodology on the construction project success, and what factors influence the sustainability development in the construction industry.
These conceptual information findings help construction project managers to understand how to successfully align PRINCE2 methodology to optimize effectiveness in use, which should result in higher project success for sustainability development and reduce the complaints about ill-fitting project methodologies. Finally, by defining the key factors of sustainable development of construction industry can caring to sustainable development challenges ahead. The result may also be applicable as a guideline to successfully handle construction industry with a standard methodology PRINCE 2 in the UK and/or interesting to other countries as well.
1.2.1 Research questions
The purpose of this study is to critically explore the PRINCE 2 methodology and its elements with construction project success, and how this relationship is impacted by sustainability development of the UK. Consequently, the following research question is proposed:
What is the impact of PRINCE2 methodology on Construction project management of London Olympic 2012 as a Sustainable Development in the UK?
1.2.2 Aim and objectives
Aim of this Research
To critically evaluate the London Olympic 2012 construction projects management as a sustainable development in terms of PRINCE 2 methodology success.
Objectives of this research
1. To carry out a literature review to understand the role of PRINCE 2 methodology in the UK construction industry.
2. To examine the effect of PRINCE 2 methodology on Construction Project Success using the case study of London Olympic 2012.
3. To explore the factors, influence in sustainability development in the UK construction industry with the use of PRINCE 2 methodology.
1.2 Background and research context
A) Prospective future of the UK construction:
According to the UK Construction: An economic analysis report 2013, the Construction industry is one of the key sectors of the UK economy with remains one of the largest in the Europe. Report also focus that nearly £90 billion value added in the UK economy (or 6.7%), which covers over 280,000 businesses and facilities 2.93 million jobs that near about 10% of total UK employment. Furthermore, in the global economic market, the UK construction sector has a strong reputation on architecture and advanced technologies called Building Information Modelling (BIM) used for green and sustainable construction both in the UK and abroad (DBIS, 2013). It gives the technological advantage and is relatively specialised in construction research to the UK, also has a relatively higher proportion of patients in comparison to an average of G7 (Group Seven) and BRIC (….) countries (see Figure 1.1).
Together with, the exports of architecture and surveying services trade was surplus of about £530 million in end of 2011 (see Figure 1.3). However, the report evidence shows a good position to take advantage of global market opportunities in construction (DBIS, 2013).
Figure 1.1: Relative Technological Advantage in construction, 2008 -’12
Figure 1.2: UK Trade in construction contracting
Figure 1.3: UK Trade in architecture and quantity surveying services
Source: UK construction report, 2013 (DBIS, 2013, pp. 9-10)
B) Project success-failure and its importance:
Projects management work as a lifeline of an organization’s future grow and progress (PMI 2013). In project management, every pound/euro/dollar invests takes the organization closer to its targeted goals. Therefore, the challenge of how to manage a construction project successfully towards sustainability has attracted substantial research topics in the past couple of decades. (Nguyen, et al., 2004; Joslin and Muller, 2015).
Several researches cite the project success rates are low and not significantly developing (Bloch, Blumberg, & Laartz, 2012; GAO (Government Accountability Office), 2013; The Standish Group, 2010). Moreover, the failure rate has been steadily increasing over the years (Joslin, 2014). Every year, project failure lost hundreds of billions of dollars (McManus & Wood Harper, 2008) wherever failure is not limited into one specific industry (Flyvbjerg, Bruzelius, & Rothengatter, 2003; Nichols, Sharma, & Spires, 2011; Pinto & Mantel, 1990).
C) Construction project nature and why it’s challenging?
Construction work has an integral set of characteristics that make the efficient operation management systems more challenging. In general, the construction project is site-specific and implemented with the connection of several stakeholders. Additionally, the construction project is much unpredictable correlated with another project as it involves a lot more complexity inefficiencies at various levels.
Furthermore, a comprehensive solution is difficult to provide to Large construction projects for its inherently complex and dynamic in nature (Nguyen, et al., 2004). Thus, Chau, 2004 states that nature, normal construction site activities are highly heterogeneous. The intrinsic complexity, uncertainty, and dynamics of most construction projects create difficulties even to the best project managers (Nguyen, et al., 2004).
Therefore, today’s challenging complex projects require more effective planning and communication (Wang et al., 2004), and more advanced tools (Cao et al., 2002; Chau et al., 2003). Furthermore, its need to continuously adapt the new market diverse requirements, upsurge competition and high technological innovation (KPMG, 2012).
D) Importance of methodology selection:
Selection and use of a project methodology as one of the top ten contributing factors to project failure identified by the Standish Group (2010). Their research paper states that project methodologies have provided an improvement to project success (35%), where the failure rate was in contrast (19%) and challenged project performance (46%). For that reason, the conclusion is a focus on concentration should be given to the right choice and use of the methodology, tools, and techniques.
For instance, Cooper (2007) reports that many companies-projects still end up with schedule delays, budget overruns, and compromised specifications as their selection of methods, tools and techniques in consideration of the project type is not appropriate or apply ?nancial selection that is not fitting for the project context.
E) Why needs a comprehensive advance methodology for the construction project management?
Several researchers (Fortune & White, 2006; Shenhar, Tishler, Dvir, Lipovetsky, & Lechler, 2002) mention that it is not just using a methodology that leads to project success; it is the experience of using a project methodology and the ability to tailor to the context of a project that is linked to project success. Many organization managers have reported to low project success percentages by requisitioning the project management associations to develop a standard and acceptable methods to assistance advance project management to achieve increased success rates.
F) How project methodology influence project success?
Association and other researchers retorted to introduction some developed methodologies such as OPM3® from PMI, Prince2 (P2MM) and the Portfolio, Program and Project Maturity Model (P3M3) from the UK government agency Of?ce of Government Commerce (OGC) to help address low success rates (The Standish Group, 2010; Wysocki, 2011). The expectation of the government bodies on the use and establish of proposed standards methodologies and guidelines with their tools, techniques, process, and procedures are to see long-term improvements in project success rates (Morris et al., 2006).
Joslin and Muller’s (2014) conducted research on project methodologies is mainly focused on whether project methodologies implicated the result was changed (Milosevic, Inman, & Ozbay, 2001; Milosevic & Patanakul, 2005), but their project methodologies should be standardized or tailored to the project environment (Lechler & Geraldi, 2013; Payne & Turner, 1999; Pinto & Mantel, 1990).
Over 50 years ago, a management theory developed in opposite site called contingency theory. The theory suggested that there is no single best way to manage and structure an organization (Burns & Stalker, 1961; Woodward, Dawson, & Wedderburn, 1965). In the time train, many researchers trying to give different better understanding considering different project context factors such as innovation types in business (Steele, 1975), leadership competency pro?les (Müller & Turner, 2010), stakeholder management (Turner & Müller, 2004) and HR management (Belout & Gauvreau, 2004), which may or may not be re?ected or used in the respective project methodologies.
G) Why select PRINCE 2 methodology to the construction industry:
Following the others, the UK government agency, OGC (2009) suggested PRINCE 2 methodology is a more acceptable in the UK with 150 countries and 20,000 organization widely use it. UK government already completed large numbers of model construction projects by using this methodology. Its more systematic and documentation oriented with allowing a wide range of usable, flexible, tailoring environment, along with considering green environmental and tentative all risk issues for the sustainable development by justifying every stage of project life cycle considering stockholder needs (OGC, 2009).
Moreover, project widely using it regardless of size or type, because of it’s designed to address the common causes of project failure. UK government making a history of successful completed many recognitions construction project using this methodology. London Olympic 2012 construction work is one of the great sustainable reference (DEFRA report. 2013).
H) Why the London Olympic 2012 construction project selected as a case study?
The United Kingdom has a history of failed, and this time British government wish to ‘get it right’- especially when the all world watching, London Olympic 2012 (Dodd and Yu, 2009). The London Olympic 2012 first time takes a challenge on how to create sustainable games, thereby, set out many outstanding objectives and targets in order to accomplish and deliver the instance mega projects (Kaysi, 2013). London Olympic Committee and the Olympic Delivery Authority believed that the Olympic projects 2012 were successful using PRINCE 2 methodology, delivered on time and within the budget and the event was a “triumph” considered in many facts (Tuchman, 2012). However, in construction industry and project management field, the entire sustainable construction works are a complete triumph, success or failure still arguably (Kaysi, 2013; Brooks and Rich, 2015)?
I) Why needs sustainable construction Development?
The World Population Prospects (United Nations, 2015) published a revision report with projects that likely to increase by more than one billion people within the next fifteen years, reaching 8.5 billion in 2030, and approximately 9.7 billion in 2050. The rapid population growth, with corresponding industrialization, has influence on an expansion of construction and infrastructure development within the built environment in the world (Ochieng et al., 2013). Together with, construction industry is both key for economic growth and prosperity (Brooks & Rich, 2016), because of it plays a vital role in national development through facilitating significant employment opportunities with infrastructure and services required for every sector of the economy to flourish. In meeting these needs, the construction industry gives vast pressure on global natural resources, as a result ‘the future we want’ demands the concept of sustainable construction development (Zuofa & Ochieng, 2016).
This study based on interpretivism theory. Theoretical point of view, qualitative data collected from available documents, journals, articles, newspaper, and legacy learning online sites provided by ODA and different organization. Besides, collected information and literature mostly a different organization or countries experiences and its act as a supportive evidence to address the issues with competitive advantages.
As a limitation, time constrain of the dissertation work is one of the vital issue. Together with, as this study work is based on secondary data and literatures, the findings is conceptual information claims future further study.
1.5 Structure of the thesis
This thesis paper is divided into five sections. Next section 2 summarizes the current information regarding project management methodology, success to sustainability development in construction project based on the literature review, which is followed by the methodology and the methodological approach is presented in Section 3. Section 4 presents and discusses the results analysis. Finally, Section 5 concludes and provides recommendations for future studies.