A case study is considered for this assessment. The case description is provided as an attachment to this document. You must carefully read the cases and questions and answer to each question logically by using quality references from academic journals, books, PM standards (e.g. PMBOK and other authenticated sources (such as PMI and APM websites). You must clearly link theory to the case throughout your discussions.

This assignment must be delivered in a report format containing:

• Executive summary - overview of the purpose of report, findings and lessons learned,
• Table of content,
• Introduction - purpose of the report, cases summaries, and the structure of the report,
• Body - Answer to the questions by referring to relevant project management knowledge and use of techniques. Cite high quality and relevant references,
• Conclusion - concluding each case finding and lessons learned,
• Reference list -Harvard style
• Appendices (if any).

Assessment case study is Sydney light rail budget surpassed $3 billion, auditor-general's report finds

The New South Wales auditor-general has found the true cost of Sydney's controversial CBD light rail project is $150 million more than the Government said it was when it opened in December last year.

Key points:

• The light rail cost is $3.147 billion, not $2.9 billion as announced by the State Government
• The auditor-general's report raised concerns about public transparency around the project's costs
• It pointed to reduced bus services that Transport NSW expected to save $8-10 million per year, but for which a plan has not yet been finalised

The report puts the final figure at $3.147 billion, rather than the $2.9 billion announced by Transport Minister Andrew Constance.

The auditor-general, Margaret Crawford, found costs were "omitted" in the final price tag.

"We identified $153.84 million in additional costs incurred by TfNSW (Transport NSW) that should be attributed to managing and commissioning the CSELR project," the report said.

Those additional costs include early works and a small business assistance package.

"We consider these costs to be directly related to the cost of delivering the light rail regardless of how TfNSW funds them," the report said.

Public transparency around Sydney light rail project 'limited'

The report also raised concerns about the up-to-date information made available about how the money was being spent on the project.

"Transport for NSW has not consistently and accurately updated CSLER project costs, limiting the transparency of reporting to the public," the report found.

It also found Transport NSW had failed to publish information on the project's benefits.

"TfNSW intends to measure benefits after the project is completed and has not updated the expected project benefits since April 2015," the report said.

The report stated that Transport NSW had expected save $8-10 million per year by reducing bus services, but "the final integrated bus service plan is yet to be finalised and endorsed".

The CBD light rail project has been plagued by delays, cost blowouts and a court case with a sub-contractor, which the Government settled.

Transport NSW has disputed the auditor-general's findings.(ABC News: Rani Hayman)

Howard Collins from Transport NSW denies the Government figure is wrong, saying "we still believe" it is "under that $3 billion mark".

"Some of the other costs that the auditor-general has raised is actually outside the context of the project," he said.

Opposition Leader, Jodi McKay, pointed out this was not the first time the auditor-general had found Government omitted costs in the light rail's price tag.

"I am accusing the Transport Minister of covering up the true cost of this project," Ms McKay said.

"I also note back in 2016 the Premier was also accused of covering up the true cost of the project."

When it was officially announced in 2012 after the Government took office, the project was set to cost $1.6 billion.

That figure became $2.1 billion in 2014 an increase the auditor-general later found to be the result of "mispricing and omissions in the business case".

Please carefully explore the following material before attempting to answer the questions:

Sydney light rail opens and takes passengers down George Street again after 58 years

CBD South East Sydney Light Rail: follow-up performance audit

Best-laid plans: Sydney's light rail fiasco

Audit report reveals public misled on Sydney's light rail cost blowout

There are more resources to explore - Do your own research.

Questions

Question 1. Discuss four (4) different cost estimation methods in project cost planning. The discussion should provide the description and pros and cons of each method.

Question 2. For each cost estimation technique explained in question 1, describe each scenario in the project case (Sydney light rail) where these techniques can be effectively used. Discuss your rationale linked directly to the case.

Question 3. Based on the literature on project management, explain four (4) factors that affect the precision of cost estimates.

Question 4. Discuss four (4) specific factors that could have appeared (or already appeared) in the Sydney light rail project and affected the precision of cost estimates. Support your arguments with evidence and references linked to the project. Students should describe the scenario where these factors occurred.

Question 5. At the project planning phase, the existence of the factors discussed in question 4 is uncertain; they should be treated as potential risk events and need to be managed. Use risk management theory to design a risk management plan to manage these risk events to reduce the mispricing outcome. The risk management plan should include the risk assessment, risk response strategy, etc. Discuss your rationale. Students can suggest certain assumptions when assessing risk events.