Answer to Question #200325 in Management for Esethu

Question

Discuss the importance of project management in the light of project delay. Discuss why projects suffer from time and cost overruns.

Answer 1

The importance of project management in light to project delay.

1. Realistic project planning

The project management help to ensure the project's right expectations are set around what can be delivered within a realistic time frame.

2. Quality Control

The project management ensures that all team adheres to the project guideline, deadline, and budget to minimize time wastage and control the quality of whatever is being delivered.

3. Establish a plan and schedule.

Project managers help to set a clear project schedule and stick to it to avoid delays.

Causes of project delay and cost overrun.

1. Project design errors- this is a wrong application of techniques in achieving the results such as the actual implementation phase of the project unfolds the design errors. therefore, the attempt to rectify it will result in delays and cost overrun.

2. The scope of change

The project plan and process are usually designed at the begging of the project scope. Hence any modification in project scope during implementation will transpire in delay and additional cost.

3. Inappropriate and inadequate procurement

These involve the project payment terms, pricing, and employment status. However, when the management does not highlight the whole project plan may result in a dispute in the contract system inferring with the project schedule as they try to settle the dispute.

4. The complexity

Most large projects tend to have an extended implementation period than small projects. This could be effective by inflation, modification in material price and exchange rates such as the initial budget may need to be supplemented for the project or be completed. The results could cost overrun and long organization structure negotiations which will lead to delays.

5.cost execution phase

This phase is always being ignored by the organization when conducting the project, Particularly in the multi-project environment. Consequently, slow project closeout could be seen as pulling the various handover activities course by unsettled disputes linked the client acceptance, contracts, and procurement, poor close out of final accounts, poor documentation of project success and lesson learned will cause the delay and extra charges to be made to the project.