In 2019, a well-known mining company initiated a project to build a water processing facility aimed at recycling process water and minimizing waste. By 2022, the project had fallen two years behind schedule and incurred cost overruns of 31%. ProjectLink was contracted to perform an independent project review, focusing on identifying the root causes of these failures, providing recommendations for salvaging the project, and offering lessons for future project management practices.

ProjectLink employed two methodologies: SCRUTINY for evaluating project management documents and INSIGHT for analyzing lessons learned. The review process included site visits and workshops with project stakeholders. SCRUTINY assessed documents such as the Investment Proposal, Project Charter, and risk management plans, focusing on adherence to governance practices, project progress, and alignment with the business case. INSIGHT utilized anonymous surveys to gather candid feedback on project failures and lessons learned.

Key findings revealed several critical issues. First, unrealistic performance expectations and time pressure from operations led to inadequate planning, resulting in underdeveloped engineering deliverables that compromised contractor performance. Second, project integration management was ineffective, with misalignment between the work breakdown structure, schedule, and budget. Third, gaps in experience among design engineers and contractors unfamiliar with the complexities of mining led to flawed processes and recurring safety incidents. Finally, communication breakdowns between the project owners and contractors caused misalignment and insufficient guidance.

Lessons learned emphasized the importance of proper governance, proactive project selection, and selecting contractors with appropriate experience. The review noted that accelerating project execution to meet tight deadlines significantly increases the risk of failure. Additionally, adhering to governance frameworks is crucial for monitoring performance and compliance with project objectives. Proactively identifying projects, rather than reacting to crises, ensures better alignment between operations and project goals. Lastly, early independent assurance reviews were identified as essential for identifying risks early in the project lifecycle, allowing for timely corrective actions.

In conclusion, while the water processing facility project faced significant setbacks, ProjectLink’s review provided actionable insights to help salvage the project and prevent similar issues in the future. The findings underscored the importance of structured project management, early risk identification, and adherence to governance frameworks for successful project execution.