The Case of Unidentified Risk
This project takes place in South Australia. In September 2000, ACME Fabricators advised its staff that their new factory and offices out in semi rural Angle Vale would be ready for completion by the end of April 2002. ACME was responsible company and liked to keep their premises clean and tidy and their staff happy. The new premises at the Angle Vale were developed on a 4.5 hectare site, previously used for grain crops. Consequently, ACME decided that significant landscaping would be required to enhance the amenity of the otherwise bare land.
The senior executive group pictured some land contouring with an attractive green lawn, and trees and shrubs to soften the impact of otherwise stark commercial …show more content…
The Arbor project manager indicated that pests were ACME’s problem and again the finance manager indicated Arbor should make savings elsewhere within its contract.
The Arbor project manager reviewed his budget and costs and determined that the only way to re-coup the losses from having to replant the shrubs and protect them, was to plant fewer plants and smaller trees which came at a much lower cost. Another way to make some savings was to try and re-design the irrigation system using fewer sprinklers.
Instant lawn was ordered for around the middle of March 2001 so that delivery would miss the hottest part of the year. Unfortunately, the commercial lawn growers had heavy demand at that time and advised that the last shipment could only be made mid February 2001. As it turned out, it was particularly hot when the lawn delivery was made over the two days, with hot gusty northerly winds.
By the third week of February 2001, the project was ahead of schedule by about three weeks due to early delivery of the lawn, although the larger trees and plants had yet to be planted. Unfortunately, water coverage of the lawn proved to be barely enough in windy conditions and, with the sprinkler head reduction, did not fully water all areas. By this time Arbor was over budget by about $24000
Since the original project was scoped and started, the