Troubled projects are not just projects that have been delayed in delivery although this is a key indicator of trouble. In this item we define a troubled project as one that has encountered any one or more difficulties such that the project does not meet its key requirements of fitness of purpose, delivery on time and within budgeted cost.

Therefore a troubled project may suffer from any one or more of the following in no particular order of seriousness.

• • Delayed delivery or stalled progress.
  • Cost overrun – substantially above what was normally expected
  • Compromised fitness of purpose – e.g. performing at a lower capacity
  • Significant design changes during construction
  • Poor management or frequent management changes
  • Poor safety record

The common sense approach – some questions to answer

A. Assess the situation – the current status of the project, what has been achieved, what has been spent, how much of the assigned work time has been used up?

B. What is the status of the contractor? Have we identified why and how much he is behind? Is it materials, manpower, money, mistakes, management, the consultant (design or oversight), the asset owner? Was the original timeline and schedule realistic in the first place? Unrealistic timelines is a common problem since allocated number of work days is often an arbitrarily chosen number without consideration of all the site variables – some of which can be quite onerous.

C. Can we help the contractor in solving any of the issues?

D. Is there any damage control that must be done now before we formulate and implement a recovery plan? E.g. if an excavation or erected structures or partially demolished plant pose a danger that need to be addressed immediately?

E. Formulate a list of options for consideration with the possible outcomes, costs, timelines and potential consequences of failure (risk management)

F. Discuss with my employer – could be the contractor, asset owner, or design consultant.

G. Once the most feasible option is chosen, discuss with the other involved parties and make a consensual decision that everyone can understand and cooperate as required.

H. Assess progress on a regular and real time basis.

Having considered all of the above one must acknowledge that there are so many variables in the life of any project that it is impractical to try to list all of the things that can go wrong, or worse, try to plan for all of the things one can think of that can go wrong. This may sound contrary to the many planning templates generated by many wise people in the business. But I think they all leave out the word “when referring to the number of possible negative things”.

Key to the success of any recovery plan is the management acceptance of what needs to be done and their active intent to be part of the solution. Needless to say, the cost of recovery of the project depends on the causation of the problem in the first place.

Overall, the asset owner has to take a reasonable, and often even a generous perspective on who shoulders the cost, regardless of which party is culpable. Owners must also bear in mind that in the event of litigation, courts tend to be sympathetic to the party with less power in the contest between plaintiff and defendant(s).

This is a synopsis of the thought process that goes into dealing with troubled projects. The recovery plan strategies and implementation are what takes all of the experience and leadership strengths needed for success in these assignments