Essay on Project Management Case Study, Millau Viaduct

1281 Words Nov 16th, 2008 6 Pages
Original Project Objectives:
After Ten years of research and four years of implementation the Millau Viaduct finally broke records and was widely regarded as an exemplary Project. Construction began on 10th October 2001 and was intended to take three years to complete construction but weather conditions put work on the bridge behind schedule. A revised schedule aimed for the bridge to be opened in January 2005. Once revised it was completed many weeks ahead of schedule and inaugurated by President Chirac on 14 December 2004. It then opened for traffic on 16 December 2004. The original contract was a 39-month contract to design in detail and build the $285 million[1] Bridge with the cost of construction being entirely funded by the
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So there is no loss to the French Tax Payer. The Eiffage group now operates the viaduct as a toll bridge, with the toll, as of November 2007, was set at €5.40 for light automobiles (€7.00 during the peak months of July and August). For this Project, the decision to go with a PFI was wise as this Bridge will not benefit the French Population enough to make it worth paying, only a proportion of French and other Europeans will benefit from it.

Other benefits this initiative has is that it is not prone to prioritization problems that are associated with other contract strategies. Fixed Price Lump Sum contracts leave the Project Manager at risk of loosing out should an unforeseen problem occur. Cost reimbursable contracts leave the sponsor at risk of spiraling costs from possible Project Manager’s liberal spending. In this case it will be in the interests of Eiffage to find an optimum solution as they will benefit from their own investment for the next 75 years. The Government misses out on revenue in that time however it also avoids impacting on Tax Payers.

Form of Organisation.
In March 2001 Eiffage, upon winning the Contract for this Project, established a subsidiary called Compagnie Eiffage du Viaduc de Millau (CEVM). CEVM headed a Consortium where The Architectural Design was left with Foster and Partners who

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