Project Management
Executive Summary
The following context will incorporate a critical analysis on the project management
processes of the Karntama Village undertaken by Decmil Group Ltd. It was formed in 1979
and is nationally known as the leading provider in engineering construction, maintenance and
industrial service to Australian resources, energy and infrastructure sectors. The overall
objective of DGL as a large service provider entails a reliable delivery of achieving unique
and cost effective projects – its main focus on village accommodation with the incorporation
of excellent quality and all round safety in order to maintain their impeccable reputation in
their field. Decmil was initially requested to design and construct the Karntama Village in
Western Australia by The Fortescue Metals Group.
In order to exert the relevant information on the project management dealings throughout the
development of the Karntama Village, a number of critical studies will be provided. Firstly,
the scope of the project is delivered in order to demonstrate the importance what the village
brings to the community, identification of the key stakeholders with their major roles and
responsibilities in the development is identified and analysed, a vital consideration of
acknowledging the project management process is categorised, as well as the careful
interrelation between the business and project strategy. In addition, a SWOT (strengths,
weaknesses, opportunities and threats) analysis and a risk assessment are initiated in order to
withhold awareness of any unexpected conditions that may arise during a construction
development.
Finally, to conclude the analytical report, a clarification of the projects key phases and
success factors are conveyed to demonstrate the potential impact a project can have when
following the fundamental procedures of project management.
Introduction and Scope
The following context will incorporate a critical analysis on the project management
processes of the Karntama Village undertaken by Decmil Australia. Decmil Australia is
nationally known as the leading provider in engineering construction, maintenance and
industrial service to Australian resources, energy and infrastructure sectors (Decmil Group
limited n.d). According to Criddle (2011), the initial project objective is to design and
construct an accommodation village as part of Fortescue’s Christmas Creek Expansion with a
contract value of $137 million and a time constraint of twenty-one months. The requirement
in undertaking this project is formally confirmed by the two major stakeholders Fortescue
and Decmil. The deliverables of the accommodation village includes a 1600 double story
transportable accommodation units, which provides guests with communal dining facilities
and tavern, sports oval, a 100 seat cinema, an external barbecue and sports facilities, which
include a three lap lane pool, tennis/basketball court, gym, indoor cricket, golf driving range
(Karntama Village Christmas Creek 2011). The major work performance is described in the
deliverables section will be directly performed by the stakeholders mentioned in the
following table.
Stakeholder Analysis
It is evident in any process of project management that stakeholders are a major key to the
development of a project in terms of the physical construction, financial funding or in any
way ‘exert influence over the project and its deliverables’ (Hartley 2009). They have the
power and complete control to either contribute to the outcome of the project or benefit from
it. In terms of the major stakeholders that are involved in the development, they all have
similar traits in terms of contributing their time and resources into designing, shaping and
producing a highly recognisable accommodation area (Gido and Clements 2008). The
following table demonstrates the major stakeholders that could be extracted from the
information, in which was analysed in terms of their nature as a stakeholder and their key
roles and responsibilities throughout the project.
Table 1: Stakeholder analysis (Hartley 2009)
Name
Stakeholder
Roles and Responsibilities
Decmil Australia
Owner/Project Organisation
Implements business
objectives to fit project
criteria of Fortescue
Fortescue Metals Group
Client/Sponsor/Commercial
Provide funding, resource
Suppliers
allocations and initiate
approvals in relation to what
Decmil bring about
Scott Criddle (Decmil Aust.)
Project Manager
Manages the overall
implementation of Karntama
Village in order to be
successful and lead the
project in the right direction
Accommodated Guests
Customers/End Users
(Mining Employees of FMG)
The initial back-end users to
utilize the project when
completed – target market of
the mining construction
workers
Scope Australia
Project Management Team
Provide project management,
engineering and design
services in which supports
Decmil as their ‘right-hand
man’
KORE Construction
Project Team Members
Provide civil works,
formwork, reinforcing,
precast and concrete
placement and finishing –
report to project manager
Monford Group
Project Team Members
Provide services of their
project managers, estimators,
engineers and tradesmen to
support Decmil
R-Group International
Project Team Members:
Delivered impeccable
Manufacturers/Commercial
accommodation
Suppliers
entertainment and
communication experience
S-Squared Space Solutions
Electrical Intelligence Group
Project Team Members:
Designed PT Dome to shelter
Manufacturers/Commercial
workers from the elements at
Suppliers
the village tavern.
Project Team Member:
Completed the transition to
Manufacturers/Commercial
high voltage services
Suppliers
As a result, the major stakeholders developed a form of similarity in terms of their
contribution in the arrangement, which they provided their full-undivided services of
Decmil’s requirements to develop and construct Karntama Village at the standards they
implied. In addition, the interest of the stakeholders was mainly to gain economic benefits
and form a recognisable reputation in terms of their business with the exception of the
impending guests as their overall interest is to receive high class accommodation during their
working time (Hartley 2009 and FMG Chichester Expansion n.d). As a result of the analysis,
there is not a whole range of stakeholder diversity as they all have similar traits in support,
commitment, confidence, urgency, direction, ownership, decision-making, problem solving,
inclusion and involvement (Gido and Clements 2008) This may have been the case because
Decmil have formed a high standard reputation over the years and this has the potential to
motivate and influence the other stakeholders to shadow their business actions and behaviour.
Project Management Life Cycle
To begin with it is evident that a detailed analysis of the project management life cycle is
determined in order to grasp the process that was performed in terms of how the project was
managed on behalf of Decmil and Fortescue.
In the concept stage, the client (Fortescue) and the construction company (Decmil) agree on
the direction, the key objectives and the outcome of the project. In addition they would have
been required to perform a risk assessment, feasibility study and financial modelling. This is
performed to further evaluate the project objectives and a final recommended solution.
Fortescue developed the idea in which all factors are communicated to Decmil.
During the planning stage, Decmil and Fortescue discuss the plan and schedule of the project
incorporating all elements determined in the concept stage – all dynamics are finalized in this
stage of the project in regards to outlining activities, tasks, dependencies and timeframes. It
should take into consideration cost estimates for labour, equipment and material costs,
stakeholder identification, establishment of a communication plan where all issues discussed
in the planning stage are documented.
The execution stage is considered as a putting forward the project plan and implementing all
dynamics initially planning. Decmil is in full control of the construction of the project, in
which they strongly involve the stakeholders to perform the plan, as they are fully reliable
rendering to the potential result.
The finalisation stage is fairly straightforward in reassurance that all deliverables are fully
satisfied as required by Decmil and finally handed over to Fortescue.
Strategy
The overall objective of DGL as a large service provider entails a reliable delivery of
achieving unique and cost effective projects – its main focus on accommodation villages with
the incorporation of excellent quality and all round safety in order to maintain the impeccable
reputation in their field (Longman Mullins 2004). Decmil incorporates their own business
strategy as whole when delivering projects as requested by a client. This assures that projects
are not directed astray by utilizing the business’s main driving force to execute a high level of
effectiveness. (Artto et all 2008). It would certainly not be any different when constructing
the Karntama Village as Decmil generally undertakes similar types of projects that fall within
the same industry. In saying this, the process of their strategic plan is formed by using
previous methods for other completed projects. As a part of their long-term strategy, Decmil
continue to strive for 100% ownership of the villages they design and construct (Decmil
Group limited n.d)
SWOT Analysis
Using a SWOT analysis to demonstrate the qualities and characteristics Karntama Village in
terms of the strengths, weaknesses, potential opportunities and strengths, which is utilized for
future benefits (Hartley 2009 and Munns and Bjeirmi 1996).
Strengths

Materials used are of high quality

Reputation and brand image of ‘resort style’ village

Copious availability of facilities

Brand leader in design and construction

Guests are well catered for/retain employee satisfaction

Competitive field in terms of target market

Production quality/ High-class accommodation
Weaknesses

Target market limited to employees of mining operations

High class can be a result of costly accommodation

Maintaining the up-keeping of the village - costly

Sensitive to economic changes

Ability to cater for an increasingly excessive amount of guest
Opportunities

Increase in potential employment/increase in potential guests

Increase in revenue for the area

Potential permanent residency for current and future employees

Potential expansion – growing industry

Changes in technological advances
Threats

Competitors that offer less expensive accommodation in the area

Potential tax implications

Changes in government politics – mining tax minister
Risk Assessment
As a major project for Fortescue and Decmil, it contains many potential risks especially
because it is a construction project (Atkinson 1999). In this case, many factors need to be
considered to reassure that the risks are a clear precaution to all stakeholders as well as all
members across the board. A key factor in risk management is the ability to communicate
potential risks, high-level or not to everyone. Karntama Village may undergo risk situations
such as (Gido and Clements 2009):

Not gaining key stakeholder commitment which can result in time consumption (2-3)

Inaccurate estimates in relation to physical measurements as well as financial
requirements (2-3)

Poor performance by individuals heavily involved/lack of performance reporting (3)

Limited resource availability in delivering the project (3)

Legislative constraints in pursuing important aspects (3)

Conflicting contractor priorities especially in the construction industry (3-4)

Production efficiencies during the project (3)

Complexity from parallel project paths (2)

Critical tasks may override other tasks, which will effect time consumption (3-4)

Poor accountability in terms of cost (3-4)

Dual management reporting conflictions (2-3)
Key events/phases
The key events identified and implemented throughout The Karntama Village project was
successfully completed in two major stages at Pilbara, Western Australia; the first stage
involved the design and construction of a 1600-man first class accommodation village with a
successful completion date of February 2012 and an initial start date of April 2010 (Criddle
2011 and Karntama Village 2012). In addition, the second stage of the accommodation
development involved a broader expansion program and a one step further endorsement to
increase the quality of work. This enabled installation of the accommodation rooms, laundries,
universal rooms as well as extension to the central facilities. The expected completion date of
the overall project of January 2012 was successfully achieved (Criddle 2011).
Taking into consideration the factors involved in the implementation stage, the development
of Karntama Village is considered planned and executed impeccably. It is quite rare to be
faced with projects that have fulfilled their promises in terms of time deadlines, budget
constraints and resource conservativeness (Atkinson 1999). In saying this, the Karntama
Village was completed within the time allocation of 21 months – referring to the dates
allocated and achieved (The Breakthrough n.d). As a result of budget allowance with the
generous funding of Fortescue, the contract value of $137 million was maintained throughout
the two separate contracts fulfilling the needs of key stakeholders and more importantly the
client, Fortescue (FMG Chichester Expansion n.d).
Conclusion and recommendations
It is always possible to perform that little further in relation to extracting the most out of the
project experience. Therefore, Decmil, as the leading company of the project should have
considered and executed a more communicative approach toward the public in concerns of
the potential implications and a detailed scope of the progress in a fashion that is easily
understood (Khang, Moe 2008 and Criddle 2011). Although, throughout the analysis of the
Karntama Village, it is established that Decmil obtained the ability to deliver all components
in providing the mining operations with an extensive accommodation village ‘setting a new
benchmark for village design’ (FMG Chichester Expansion n.d). The results determine
Karntama Village as a successful project performed in Western Australia for a number of
factors such as the extensive importance list of stakeholders that held there end of the bargain,
a well-thought out original plan on behalf of Fortescue Metals Group, a substantial and
ambitious strategy, which aligned closely with their objectives on behalf of Decmil, a SWOT
and risk analysis, which appeared to have been considered throughout the project as the
issues with drastically limited and the clear identification of key events that supported the
project (FMG Chichester Expansion n.d and Criddle 2011).
Final word count: 1609 excluding table
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