4.1 Case study 1 Montreal Olympics Case study
This is considered one of the most important cases of project failure due to cost increment in addition to design decisions associated with some circumstances that led to failure. The original cost estimate was planned to be $120 million. However, the final actual cost was $1.5 billion, so this research part of research will be looking for analysing these causes and concluding the learned lessons (Fotheringham, 1999).
At first, the complex of Montreal Olympics consisted of one stadium with its facilities and walkways. The planning started early in 1970 with previously mentioned budgeted cost of about $120 million including $40 million for the main stadium only, but that stadium later on costed $836 million. These cost overruns were associated with time overruns too. Montreal Mayor Drapeau was interested in works of the architect Roger Tallibert and insisted of assigning him to that project. Drapeau refused to cut up to $146 million for converting the plan from precast concrete to steel just because Tallibert was an expert in pre-cast concrete (Patel, 2013). Patel stated that “Montreal wanted to host the “World Cycling Championships in the Olympic Velodrome for the summer of 1974”. The construction began one year before the deadline. However, it was discovered that the rocky subsoil was not capable enough for supporting the roof. As a result, this reason in addition to the labor union problems at that time led to delay in