Hazelton Case Charter

PRAXIS BUSINESS SCHOOL

A report

Submitted to

Prof. Rajiv Mishra

In partial fulfilment of the requirements of the course

Project Management

On DATE

15-08-2009

BY

Manoj Mani Iyer

Hazelton Project Charter Page 1

 Table of contents

Section 1 Project Overview

1.1 Project Statement

1.2 Project Description

1.3 Critical success factors

1.4 Limits and Constraints

Section 2 Project Authority and Milestones

2.1 Funding Authority

2.2 Project Oversight Authority

2.3 Project Milestones

Section 3 Project organisation

3.1 Project Stakeholders

3.2 Organisation Structure

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1 Project Overview

1.1 Project Statement

 To design, construct and supervise a 245km highway along the western coast of island of Tola
from Maralinga in the north to Ladawan in the south as a part of Soronga’s development
plans, emphasis being on transportations and communications sector.

1.2 Project Description

 Over the life of the project Hazelton will send 22 expatriates, including highway designers,
engineers, mechanics and operators.
 Hazelton personnel were to be sent as advisors on techniques of road construction and
equipment maintenance.
 The training program would use formal classroom instruction and a system of counterparts.
 Each expatriate engineer will have a Sorongan engineer, (Objective being by the time
Hazelton phases out its personnel, Sorongan is ready to take over).
 Both in-class training and On the job (OTJ) training will be conducted at operator and
mechanic levels.

1.3 Critical Success Factors

 The deadline for this project is 5 years with Hazelton phasing out in 4 years.
 The project cost is $1.6 billion (fifth largest for Hazelton).

1.4 Limits and Constraints

 Hazelton basically is in the middle as it is the supervising arm of the organisation on behalf
of another arm as well as working as a supervising engineer, but the client also ran the
construction, this Hazelton lacked control over the SHD staff.
 As the method of training adopted was OJT, it would start only when the construction starts.
 Inefficiency of SHD staff was a bottleneck slowing down the project.
 Budgeting was done on an annual basis and not for the project period thus it lacked flexibility
and was vulnerable to the volatile oil prices.
INDEX
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  Also the Sorongan managers would arbitrarily reassign job to other people thus making
counterpart training ineffective.
 At low operator and mechanic levels poor supervision was adding to the problem.
 Construction equipments to be imported from Canada.
 Local workers need to be trained on it and to be given expert advice.
 Technically SHD could lay claim to 15 meters but had to pay compensation for any crops lost
even though those crops were planted on state land.

2 Project Authority and Milestones

2.1 Funding Authority

 The financing agency was Sorongan Highway department (SHD) which is also the client for
the project.

2.2 Project Oversight Authority

 SHD, the client as well as the funding partner was responsible to provide counter staff,
ensuring that there was housing built for expatriates and providing fuel and spare parts for the
equipment that would be coming from Canada.
 Hazelton basically is in the middle as it is the supervising arm of the organisation on behalf
of another arm as well as working as a supervising engineer, but the client also ran the
construction, this Hazelton lacked control over the SHD staff.

2.3 Project Milestones

 In the first year the project was lagging behind and the project actually took off almost a year
after it was originally scheduled to start mainly due to SHD project manager’s
ineffectiveness.
 Towards the end of second year, the project was under construction section of SHD rather
than maintenance section enabling SHD to understand Hazelton’s construction view and the
parameters of the job also began to change.
 The SHD was directing the construction, but there didn’t seem to be any plan of attack as
SHD manager was rarely on site and the crew suffered badly from a lack of directions.

INDEX

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  In the third year the project was given back to maintenance section of SHD, starting the
budget process again and construction finally started even though it was in desultory fashion.

3 Project organisation

3.1 Project Stakeholders

Financning
Partner in project Staff
partner and client
• Hazelton • SHD ( Sorongan • People of Tola
International Highway • Hazelton
• Beauval Ltd Department ) personnel
• McPherson
Brothers
International
(MBI)-

3.2 Organisation Structure

 Hazelton International
o Project Manager-Frank kennedy initially , after that John Anderson and then Dan
Simpson
o Driver- Satun
o Costing and budgeting-Harry Hamilton
o Office Administration-Paul Smith
o Administrative staff-Julip,Tawi
o Design staff-Bridge design enginerr(Jerry),Design engineer(Don Barker)
o Maintenance staff-Equipment Manager (Craig Holmes), Chief Mechanic (Joe
Golder), 2nd mechanic(Chris)
o Construction-Construction supervisor, Soils and Materials engineer, Surveyors
INDEX

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  Sorongan Highway Department (SHD)
o Project Manager
o Counterpart Staff

 People of Tola
o Local recruitment of people meant that the people of Tola will be having an
employment and will in turn boost their economy.
o It would also permit easy access to the rest of Soronga because the province was
politically sensitive area and isolated from the rest of the country.

INDEX

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