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    THE Montreal Olympics Complex: 1976 Summer Olympics - Cost Overruns Estimate - $40 M Actual - $836 M What Went Wrong ?

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    Rohit Deshpande
    - The initial estimate for the 1976 Montreal Olympics was $40 million but the actual cost ballooned to $836 million, amounting to $13,000 per seat. - Major reasons for cost overruns included complex design issues, labor disputes, use of untested construction techniques, weather delays, and poor coordination between clients, engineers, and contractors. - Suggestions include improving communication, establishing labor agreements, using experienced contractors, adding schedule buffers, and separating construction from political influence.

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    THE Montreal Olympics Complex: 1976 Summer Olympics - Cost Overruns Estimate - $40 M Actual - $836 M What Went Wrong ?

    Uploaded by

    Rohit Deshpande
    19 views5 pages
    - The initial estimate for the 1976 Montreal Olympics was $40 million but the actual cost ballooned to $836 million, amounting to $13,000 per seat. - Major reasons for cost overruns included complex design issues, labor disputes, use of untested construction techniques, weather delays, and poor coordination between clients, engineers, and contractors. - Suggestions include improving communication, establishing labor agreements, using experienced contractors, adding schedule buffers, and separating construction from political influence.

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    Presentation4 - IPM

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    - The initial estimate for the 1976 Montreal Olympics was $40 million but the actual cost ballooned to $836 million, amounting to $13,000 per seat. - Major reasons for cost overruns included complex design issues, labor disputes, use of untested construction techniques, weather delays, and poor coordination between clients, engineers, and contractors. - Suggestions include improving communication, establishing labor agreements, using experienced contractors, adding schedule buffers, and separating construction from political influence.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    19 views5 pages

    THE Montreal Olympics Complex: 1976 Summer Olympics - Cost Overruns Estimate - $40 M Actual - $836 M What Went Wrong ?

    Uploaded by

    Rohit Deshpande
    - The initial estimate for the 1976 Montreal Olympics was $40 million but the actual cost ballooned to $836 million, amounting to $13,000 per seat. - Major reasons for cost overruns included complex design issues, labor disputes, use of untested construction techniques, weather delays, and poor coordination between clients, engineers, and contractors. - Suggestions include improving communication, establishing labor agreements, using experienced contractors, adding schedule buffers, and separating construction from political influence.

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    THE

    MONTREAL
    O LY M P I C S
    COMPLEX
    1976 Summer Olympics -
    Cost overruns
    Estimate - $40 M
    Actual - $836 M
    What went wrong ?
    THE PROBLEMS
    Design 

    • The main stadium imagined to look like an elliptical seashell with a


    handle. For cost-cutting, the mast & cover over the centre opening were
    eventually deleted
    • Impossible task to assemble & align ribs perfectly
    • During winter, water got into many tubes & froze 
    • No scaffoldings could be used which were replaced by cranes
    • Complex design with supports like an inverted swivel chair chosen
    over a conventional design for the viaduct leading to 3 times the cost 

    Labor

    • Fixed deadlines with scarce labor 


    • No proper agreement between labor & management 
    • About 100 days were lost due to labor strikes & slowdowns 
    THE PROBLEMS
    New Construction Techniques - Use of completely new epoxy-glued post-
    tensioned structured members

    Resource Shortages – Exhaustion of local labor, materials led to


    imports from the US which weren't of high quality & further had premium
    prices
    Weather – Construction couldn’t be done during winters unless
    with protective gears & heating measures which cost $400K/Day 

    Scheduling – It was physically impossible to accommodate all


    the work flow at simultaneously leading to the critical path schedule
    being abandoned with daily crash actions being taken
    Fixed Deadline – Despite of pressure of national embarrassment,
    the planning started about 2 years late leading to no time for competitive
    bids etc for the contracts
    THE PROBLEMS
    Crowded Working Space

    • To cover up the delays, crews were doubled with multiple-shifts & overtimes. However,
    that didn’t convert to an increase in productivity 
    • Only 25% increase in productivity despite doubling of cranes as it was impossible for
    them to work simultaneously

    Client-Engineer-Constructor Organization & Relationship 

    • The province of Quebec took over the project from the City of Montreal in the middle of
    the project which led to difficulty in coordination between clients, engineers &
    contractors
    • Basic design, drawings & engineering was prepared in France in the metric system to
    which the North Americans were unaccustomed & had to convert them as per the English
    system 

    Inflation

    • High inflation rates due to the Arab Oil Embargo 


    • However, comparatively less impact as the project didn’t go beyond completion date
    SUMMARY
    • Initial Estimated Total Cost - $120 M
    • Final Total Cost - $1500 M, amounting to
    SUGGESTIONS $13K per seat 
    • Improving communication between local contractors
    • Main reasons – Design constructability,
    & foreign designers. Client-Labour-Engineer relations
    • Proper agreement between the contractors & the • The final complex also contained less than
    labors.
    originally envisioned with the citizens facing
    • Having experienced contractors who have dealt with higher excise & taxes in the future to cover
    epoxy-glued structures before to guide the labors well
    & ensure the complex design is implemented without
    the debt 
    major issues.
    • Having a buffer under the schedule to account for
    weather & demographic issues.
    THANK YOU :)
    • Have similar no-delay checkpoints in between also to
    ensure no delays for the overall project. GROUP 6:
    • Reforming construction methodologies according to
    the prevailing local conditions. 
    • Independence from political parties regarding Pandya Purav Bhargav       - CE18B046
    the planning and design. 
    Rishikesh Singh                - CE20M013
    Rohit Deshpande              - CE18B049

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