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While running a large-scale project, some escalation in costs is understandable as new projects get added and the scale of the show is expanded. What is the highest escalation that you have witnessed? Fifteen percent? Thrity, fifty or even hundred percent? At what point do you consider cost escalation-which is inherently tied to scope, schedule and resource misalignment or challenges- to become extreme?
Recent articles show that for Delhi's Commonwealth Games, official cost estimates have gone up by a whopping 525% since the city won the bid. Unofficial assessments put the escalation at a mindboggling 1575% - that is more than 15 times the original estimate. After several revisions the estimates now range from an official figure of INR 10,000 crore to independent experts at an astounding INR 30,000 crore. (Courtesy: Times of India article, dated May 14, 2010)
Before the countless, money-wasting, reputation-busting projects of the world were failed projects, they were troubled projects. ESI's Saving Trouble Projects whitepaper examines the complex, high-stress period of assessment and recovery of such projects and offers five crucial steps for their successful recovery. The steps are presented from the perspective of the Recovery Project Manager (RPM), assigned from outside to rein in a project, but they are applicable to project managers practising "self recovery" as well.
Get your whitepaper copy now and reach out to us to know how ESI can help you save your projects from failing.
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