Project operates in a dynamic environment

A project is not carried out in a closed laboratory; it works in an environment that keeps changing. Because of this, activities seldom progress exactly as scheduled.

Sources of change

• Political: change of government or policy, strikes and bandhs.
• Economic: price escalation, exchange rate, interest rate.
• Social: local objections, land and compensation disputes.
• Natural: monsoon, floods, landslides, earthquakes (such as the 2015 Gorkha earthquake).
• Technical: design change, new technology, unexpected geology.
• Resource: delay in funds, material shortage, equipment breakdown, labour shortage.
• Stakeholder: client's change orders, delayed approvals.

Technical example: a hydropower tunnel project

Plan: a 1,500 m headrace tunnel excavated in 12 months. In practice, poor rock is met at 600 m, so extra support is needed and progress falls. Heavy rain floods the adit, and a fund release is delayed. The schedule slips, the cost rises and the lining design is revised.

How the project manager responds

1. Monitor progress and the environment regularly.
2. Update the schedule and budget (re-planning).
3. Keep contingency time and money.
4. Use risk management and change control.
5. Maintain communication with all stakeholders.

Hence planning must be flexible, and control must be continuous.