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Elizabeth line: A proposal for a case study investigation on cost management

The case study investigation on cost management within the Elizabeth Line project aims to contribute to the understanding of challenges and opportunities in managing costs effectively in large-scale infrastructure projects.

The Elizabeth Line, a significant infrastructure project in London, has faced numerous challenges, particularly concerning cost management. This proposal outlines a case study investigation aimed at analyzing the cost management practices employed within the Elizabeth Line project. The investigation will delve into the factors contributing to cost overruns and delays, assess the effectiveness of existing cost management strategies, and propose recommendations for improvement.

Part 1: Introduction

Background:

Cost management involves the crucial tasks of allocating, controlling, and estimating project expenses. By effectively managing costs, a project can anticipate and mitigate budget overruns and foresee future expenditures. However, the highly anticipated Elizabeth Line project has turned into a nightmare, plagued by budget overruns and significant delays. Originally slated for completion by 2019, the Elizabeth Line, a flagship project of Crossrail Limited, encountered extensive delays primarily attributed to inadequate planning.

Despite efforts to employ strategies like the six-pillar model of procurement management, aimed at optimizing raw material acquisition for cost reduction and expedited delivery (Lloyd-Davies & Rowark, 2017), the project failed to meet its scheduled completion date. This underscores the critical importance of meticulous project planning. This research endeavors to scrutinize the Elizabeth Line project as a case study to unearth the major pitfalls encountered in handling large-scale construction endeavors.

Moreover, the Crossrail project suffered multiple setbacks, missing several opening deadlines due to budget overruns and infrastructure challenges (Theguardian.com, 2023). Originally targeted for an opening in 2018, the project faced repeated delays, with a subsequent planned opening pushed to 2022 after years of setbacks. These delays underscore the necessity for robust cost management and infrastructure planning in complex construction projects.

Elizabeth Line project’s graphic representation (Source: Londonworld.com, 2023)

The Elizabeth Line project, aimed at alleviating transport congestion and reducing travel times in the city, faced significant delays, finally inaugurated after a 20-year setback (Scoular et al., 2022). Initially planned to encompass 10 new stations and 26 miles of new tunnels, the project’s budget soared from £14.8 billion to £18.9 billion (Sergeeva & Winch, 2021). Poor cost management, highlighted in research by Sergeeva and Winch (2021), contributed to these budget overruns.

In addition to cost issues, mismanagement of the Crossrail project, which the Elizabeth Line is part of, exacerbated delays and financial strain. Problems with the signalling infrastructure of the Crossrail project led to further setbacks for the Elizabeth Line. Tragic incidents, including the deaths of construction workers, not only halted progress but also underscored failures in project management and safety protocols (Newlove-Eriksson, 2020).

The failures in project management strategies, particularly concerning human resource management, have been evident. The motivation of project managers was severely impacted by the accidents and fatalities on construction sites, further hindering progress. Moreover, fines imposed on the construction firm for safety violations compounded financial challenges.

Effective project management is essential for cost control and overcoming critical barriers. Thus, a detailed examination of the failures in managing the Elizabeth Line project and its cost management approach in the UK is imperative.

Aim: Elizabeth line: A proposal for a case study investigation on cost management

This research proposal aims to assess the significance of effective cost management in enhancing project success, drawing insights from the failure of the Elizabeth Line project attributed to inadequate cost management practices.

Research Objectives:

● Assessing the Significance of Cost Management in Major Construction Projects like the Elizabeth Line Project in the UK
● Analyzing Project Management Obstacles in the Elizabeth Line Project Resulting in Cost Overruns and Delays
● Proposing Key Insights for Future Construction Projects’ Cost Management Learned from the Case Study of the Elizabeth Line Project

Research Questions:

  • Why is effective cost management crucial for achieving project success?
  • What are the key success factors in construction projects?
  • What project management methodologies are commonly employed in construction projects?

Part 2: Literature

Significance of cost management in project management:

According to McDermot et al. (2022), project managers must prioritize the safety of construction workers and environmental performance for project success. Effective management of safety regulations can boost employee satisfaction within construction projects. However, unrealistic cost and time estimations, bureaucratic hurdles, inadequate planning, poor stakeholder communication, and insufficient ground investigation can lead to project delays, as noted by McDermot et al. (2022). Conversely, compelling project narratives are essential, as highlighted by Sergeeva and Winch (2021). These narratives should be clear, persuasive, and appealing to both the project delivery organization and stakeholders, emphasizing the long-term value derived from project outputs and outcomes. Additionally, further research is needed to explore strategies for managing costs and other resources in construction projects.

Key elements for effective cost management in project management:

The research conducted by Sergeeva & Winch (2021) on the Elizabeth Line Crossrail project in London underscores the importance of clearly defining the project’s value, aim, and mission to both internal and external stakeholders. Effective communication with stakeholders, including investors, suppliers, and employees, is crucial for project success. Sergeeva & Winch (2021) emphasize that project narratives play a vital role in establishing the project’s vision, mission, and value creation, contributing to its success. However, they caution that a lack of value creation and poor stakeholder communication can lead to significant delays and damage to a project. They suggest that future research should delve deeper into optimizing cost control and quality management in project management.

In addition, Li et al. (2021) propose the use of building information modeling (BIM) and value engineering (VE) to control costs and enhance project functionality in the long term. Integrating BIM into VE processes can lead to substantial cost and time savings, potentially benefiting projects like the Elizabeth Line. Moreover, Li et al. (2021) suggest that employing analytic hierarchy and entropy weight methods can help control project costs. They also highlight the importance of considering various cost factors, especially in underground projects where labor costs, material costs, excavation work, waste management, and organizational processes can significantly impact project expenses. Li et al. (2021) recommend that future research should focus on real-time project scheduling and safety and quality-related aspects.

Unegbu et al. (2021) point out that inadequate cost management can adversely affect construction projects, particularly due to rising labor costs. Effective cost management, closely tied to productivity levels, is essential for controlling project delays and expenses. They warn that neglecting cost management can compromise material quality and productivity, leading to increased project costs over time, especially considering economic fluctuations. Moreover, Muruganandan et al. (2022) highlight the challenges posed by technical assurance processes, which, if prolonged, can result in coordination delays and increased costs. The delay in coordinated activities becomes a significant constraint for projects like the Elizabeth Line, adding to the burden of escalating costs and prolonged timelines.

Challenges and solutions for effectively managing costs in successful project management:

Ghattas et al. (2022) noted a correlation between human resource management and project cost performance, suggesting that understanding this relationship could have potentially led to cost savings in projects like the Elizabeth Line. Effective management of worker performance is crucial in construction projects to meet deadlines and avoid cost overruns. Samimi & Sydow (2021) found that construction managers often focus solely on short-term goals, neglecting long-term employee management strategies. A dynamic approach to employee management is necessary for ensuring project success and cost-effectiveness.

The varying skills and knowledge of construction workers can adversely affect project quality and timelines, potentially increasing project costs. Hussain et al. (2020) argue that managing worker skills is essential for optimizing project performance. However, relying solely on unskilled labor may not guarantee project success. Additionally, ensuring the safety and security of construction workers is a critical responsibility for project managers, as it can enhance worker satisfaction and motivation.

Alsharef et al. (2021) highlight the significant impact of the Covid-19 pandemic on the construction industry in the US, leading to operational disruptions and human resource shortages. The study reports a spike in unemployment rates, reaching 14.7% in the US construction sector in April 2020. Consequently, the construction industry experienced major delays, including the Elizabeth Line project, due to Covid-19-related restrictions. Thus, the pandemic emerges as a prominent factor influencing recent construction industry projects.

Conceptual framework:

Conceptual Framework (Source: Created by www.techwilmar.com)

The diagram above illustrates the various segments of the Literature Review structured in a systematic manner.

Literature gaps:

This research only 9 recent secondary journal articles have been utilized for the Literature Review, despite the Elizabeth Line construction project being older than 3 years. These articles fail to provide a comprehensive approach to construction methods aimed at controlling project costs. Furthermore, the secondary research exhibits a lack of systematic data analysis. Additionally, there is a scarcity of direct literature pertaining to the construction of the Elizabeth Line project, highlighting a significant gap in the existing secondary literature which this research aims to address.

Future research should delve deeper into strategies for managing costs and other resources in construction projects. Current studies have identified a dearth of project narrative work and insufficient evaluation of cost control and quality management optimization. There’s also a notable gap in research on real-time project scheduling, particularly concerning safety and quality. Furthermore, the management of construction workers by construction managers requires more comprehensive description and dynamic approaches, which are lacking in existing research. Enhancing the skills of construction workers is another area that warrants greater scrutiny in future studies. Additionally, the construction industry needs to prioritize pandemic safety measures to increase productivity, an aspect largely overlooked in current online forums and research articles. Therefore, future research should aim to provide better evaluations of research articles, particularly in the realm of cost management.

Part 3: Research proposal methodology

PRISMA for data collection:

The PRISMA Framework (Source: Created by www.techwilmar.com)

The research employs nine peer-reviewed journal articles focused on cost management within construction projects. Data collection from the Google Scholar database will utilize keywords like “construction projects,” “cost management,” “cost management in construction projects,” “project budget,” and “cost control.” Articles unrelated to cost management or not encompassing the specified keywords will be excluded, ensuring a systematic literature review. Only journals published within the last three years will be considered in exploring success factors associated with effective cost management in construction projects. Ethical principles and research guidelines will be strictly adhered to throughout the study.

Data collection:

In academic research, the integrity of the data collection process is paramount. Researchers typically rely on two main approaches: primary and secondary data collection (Sileyew, 2019). While both methods offer avenues for gathering essential data, primary data collection, as highlighted by Cappa et al. (2022), can pose privacy risks to interview or survey participants. To mitigate these risks and ensure timely completion, this study opts for secondary data collection, particularly for investigating the Elizabeth Line in the UK.

By employing secondary data sources like peer-reviewed articles, newspapers, and websites (Worrall & Cohn, 2023), this research aims to conduct a case study investigation into the cost management of the Elizabeth Line. Secondary data collection entails utilizing pre-existing data, thereby saving time and accessing openly available information. This approach aligns with the need for rigorous cost management in the Elizabeth Line project.

This study will involve a systematic literature review, drawing upon nine peer-reviewed articles sourced from Google Scholar. Through this methodological framework, the research endeavors to provide insights into effective cost management strategies for the Elizabeth Line.

Data Analysis and Presentation:

In research projects, various data analysis methods are employed, including statistical and thematic analysis. While statistical analysis is typically used in primary research, this study on cost management in the Elizabeth Line is based on secondary research, making thematic analysis more suitable (Braun & Clarke, 2006). Thematic analysis is crucial for synthesizing the extensive information gathered from secondary sources and providing a structured overview of the research, aiding readers in understanding potential outcomes. Specific themes aligned with the research questions will guide the collection of pertinent answers.

Thematic analysis effectively summarizes key findings from secondary literature. However, it may not always fully interpret the data, as noted by Braun & Clarke (2022), presenting a limitation. Nonetheless, its unsupervised nature eliminates the need for complex algorithms, enhancing the researcher’s ability to select and analyze relevant articles across different themes to address the research questions.

This method ensures clear data presentation by grouping articles under relevant themes. According to Hamel et al. (2021), thematic analysis reduces both the cost and time associated with research, thus streamlining the process while enhancing data clarity.

Research Design, approach and Philosophy:

Design:

In the study on cost management within the Elizabeth Line construction project, researchers will adopt a descriptive research design. According to HR & Aithal (2022), this design involves describing one or more variables and analyzing the characteristics of the data under scrutiny. Therefore, in this research, the descriptive design will be utilized to provide a comprehensive understanding of the cost management aspects within the Elizabeth Line construction project.

Approach:

In this study, the research will commence with a deductive approach to explore cost management within the Elizabeth Line project. Quintão et al. (2020) highlight that employing a deductive approach enables researchers to make logical decisions, thereby enhancing the effectiveness of the research process.

Philosophy:

In conducting research on cost management within the Elizabeth Line project, a positivist philosophy will be adopted. According to Rose & Johnson (2020), positivism enables researchers to make clear and precise decisions, thus enhancing the effectiveness of the research.

Research Time horizon

Compared to other study designs, the “cross-sectional” approach allows for a more in-depth analysis of research variables and components tailored to the research topic (Liang et al., 2020). Despite necessitating less time and cost, this method facilitates comprehensive examination. Conversely, the “longitudinal time horizon” approach may yield unpredictable results due to ongoing unpredictable factors (Ge et al., 2022). However, longitudinal studies require larger sample sizes. Consequently, this research will adopt a “cross-sectional” time horizon to ensure thorough evaluation of research variables.

Research Timeline (Source: Created by www.techwilmar.com)

Part 4: Critical evaluation

The research Onion (Source: Adapted from Saunders et al. 2017)

The research methodology adopted in this study adheres to Saunders et al.’s (2017) research onion framework, diverging from the statistical data analysis method due to its inherent limitations. Statistical methods, as highlighted by Du et al. (2020), are susceptible to errors and potential misuse when not expertly handled. Additionally, statistical data analysis may not always provide the nuanced insights required, particularly in qualitative research settings. Instead, this study opts for thematic analysis, which is better suited for qualitative and secondary data collection methods.

Thematic analysis offers several advantages. Notably, it allows for the systematic organization of qualitative data, facilitating a coherent structure for the research findings (Morgan, 2022). This method accommodates secondary data sources effectively, enabling researchers to draw insights from various authenticated sources such as news articles and peer-reviewed literature (Lochmiller, 2021), without the extensive time and cost investments associated with primary data collection methods.

Furthermore, considerations regarding the time horizon of the study are crucial. While longitudinal studies offer depth, they often entail greater time and cost investments, introducing complexities and potential biases (Ge et al., 2022). In contrast, cross-sectional studies provide a broader snapshot of variables, facilitating deeper analysis of research topics (Liang et al., 2020). This study opts for a cross-sectional approach to allow for comprehensive evaluation of multiple variables within manageable time and resource constraints.

The choice between deductive and inductive approaches is also pivotal. Deductive methods, favored here, allow for hypothesis testing and logical reasoning based on existing theories (Olatunji et al., 2019), aligning with a positivist philosophy that emphasizes empirical verification of hypotheses (Nahar et al., 2021). This approach enhances the rigor of the study by grounding it in established knowledge.

Lastly, the descriptive approach employed in this research enables a thorough exploration of multiple variables, providing rich insights into the phenomena under investigation (Sedyastuti et al., 2021). By embracing these methodological choices, this study aims to offer a robust analysis and interpretation of its research findings.

References

Scoular, J., Ghail, R., Mason, P., and Lawrence, J. (2022). Investigating the Influence of Processing Methods on Measured InSAR Displacements. Quarterly Journal of Engineering Geology and Hydrogeology, 55(4), pp. qjegh2022-049. [Online] Available at: https://www.lyellcollection.org/doi/abs/10.1144/qjegh2022-049

Sergeeva, N., & Winch, G. M. (2021). Shaping Future Scenarios: Narratives of Project Performance and Transformation. Project Management Journal, 52(3), 264-277. [Online] Available at: https://journals.sagepub.com/doi/pdf/10.1177/8756972821995340

Shaturaev, J., & Bekimbetova, G. (2021). Enhancing Business Efficiency through Lean Management. Deutsche Internationale Zeitschrift für zeitgenössische Wissenschaft, (22), 71-73. [Online] Available at: https://cyberleninka.ru/article/n/transformation-of-business-efficiency-with-the-lean-management

Sileyew, K. J. (2019). Research Design and Methodology. Rijeka: IntechOpen. [Online] Available at: https://www.intechopen.com/chapters/68505

The Guardian. (2023, August 21). Crossrail Project Faces Further Delays and Budget Overruns. [Online] Available at: https://www.theguardian.com/uk-news/2020/aug/21/crossrail-delayed-again-until-2022-and-another-450m-over-budget-tfl-covid-19

The Guardian. (2023, May 4). Elizabeth Line Set to Open on 24 May After Delays. [Online] Available at: https://www.theguardian.com/uk-news/2022/may/04/crossrail-much-delayed-elizabeth-line-to-open-on-24-may#:~:text=The%20scheme%2C%20which%20includes%2010,bn%20to%20%C2%A318.9%20bn.&text=Part%20of%20the%20delay%20and,which%20integrates%20three%20different%20systems.

Tucker, W. (2017, May). The Execution Strategy of the Crossrail Project: Delivering London’s Elizabeth Line. Proceedings of the Institution of Civil Engineers-Civil Engineering, 170(5), 3-14.

Hussain, S., Xuetong, W., & Hussain, T. (2020). “Impact of skilled and unskilled labor on project performance using structural equation modeling approach.” Sage Open, 10(1), 2158244020914590. Link

Li, X., Wang, C., & Alashwal, A. (2021). “Case study on BIM and value engineering integration for construction cost control.” Advances in Civil Engineering, 2021, 1-13. Link

Liang, P., Wang, Y., Shi, S., Liu, Y., & Xiong, R. (2020). “Prevalence and factors associated with postpartum depression during the COVID-19 pandemic among women in Guangzhou, China: a cross-sectional study.” BMC Psychiatry, 20, 1-8. Link

Lloyd-Davies, K., & Rowark, M. (2017, November). “Crossrail project: procuring infrastructure for London’s Elizabeth line.” Proceedings of the Institution of Civil Engineers-Civil Engineering, 170(6), 35-41.

Lochmiller, C. R. (2021). “Conducting Thematic Analysis with Qualitative Data.” Qualitative Report, 26(6). Link

McDermot, E., Agdas, D., Rodríguez Díaz, C. R., Rose, T., & Forcael, E. (2022). “Improving performance of infrastructure projects in developing countries: an Ecuadorian case study.” International Journal of Construction Management, 22(13), 2469-2483. Link

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