An Examination of Contemporary Issues Influencing Mega Construction Projects

Implementation in the 21st Century; a Case of Westconnex Motorways, Sydney

Martin Otundo: PhD Project Management-JKUAT Mombasa Kenya;

Winnie Kemunto; Masters Student in PPM, Sydney Australia
1
martinotundo@gmail.com; 2winniekemunto1996@gmail.com

Abstract
For economic development to be achieved in Australia like any other G8 countries in the world,
Australia government divisions and development agencies have been on the run on implementing
or have proposed to implement a number of projects in various time frames, including the
WestConnex motorways, Sydney. Due to the initiatives of implementing various projects, this
study was carried out. The purpose of this study therefore was to examine the Contemporary
Issues Influencing Mega Construction Projects Implementation in the 21st Century; a Case of
Westconnex Motorways, Sydney. It sought to answer the following questions: What is the extent
to which project risk management influences the implementation of infrastructural projects in the
21st century in Sydney Australia; a case of Westconnex Motorways? What is the extent to which
project planning influences the implementation of infrastructural projects in the 21st century in
Sydney Australia; a case of Westconnex Motorways? What is the extent to which financial
resources and projects financing influences the implementation of infrastructural projects in the
21st century in Sydney Australia; a case of Westconnex Motorways? What is the extent to which
project monitoring and evaluation influences the implementation of infrastructural projects in the
21st century in Sydney Australia; a case of Westconnex Motorways? This study employed a
descriptive research design. Based on the research findings, the findings from the literature
reviewed and other inputs from information documented by various experts has shown that
projects performance are undergoing serious evolutions and they are greatly influenced by a
number of factors in the modern society. Specifically, the mega construction and infrastructural
projects have undergone a number of a number of changes in terms of their relevance, their
requirement, tie taken for implementation and their perceived future relevance. This means that
critical issues have to be considered during their implementation. a number of determinant of the
infrastructural projects in the 21st century Sydney Australia are influenced by issues like: project
risk management, project planning, financial resources and projects financing, and project
monitoring and evaluation
Introduction

From the ancient times to the 21st century, economic development and growth in countries has
been pegged on a number of issues that are normally determined by the number of development
projects that are completely implemented and handed over to the end users (IMF, 2016; World
Bank, 2017; ADB, 2015; AfDB, 2017 and UNDP, 2017). A project has several definitions. For
example, PMI (1996; 2008 and 2013) define a project as a temporary endeavour undertaken to

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create a unique product or service, whereby temporary means that the project has a definite
ending point, and unique means that the product or service differs in some distinguishing way
from all similar products or services. The common themes in these definitions is that projects are
unique in their output, having a definite starting and ending point, are temporary in nature and
are carried out to manifest the organisation’s strategic objectives. These temporary structures are
playing a vital role in today’s modern organisations and a growing interest is recorded in the
significance of these temporary structures in organisations.

In its report on the state of economic development, the World Bank (2017) indicated that China
is ranked 1st country world in terms of development due to the implementation of a number of
mega projects; majority of which are infrastructural projects. The credit is attributed to a number
of determinants like: sufficient projects implementation expertise and cheap labour, availability
of sufficient funding from both the government and development partners like the Asian
Development Bank (ADB, 2017), the Chines culture of home development, perfection in
information technology for export and consumption, well-structured stakeholders’ involvement
etc.

Huther and Shah (2014) have indicated that there is a need to examine the evolution of issues
surrounding projects implementation in the 21 st century. In their study, ‘Anti-Corruption Policies
and Programs for Global Development,’ they have indicated that in developing countries in parts
of Asia and Africa development projects just fail to achieve their objectives due to a number of
reasons despite the well laid down strategies. Central among the issues is corruption and
embezzlements of projects funds by various bodies besides poor projects risks planning and
management. Otundo (2014) in his study that examined the contemporary issues influencing ICT
projects implementation in Africa’s Kenya has indicated that issues like: Risk management;
Projects planning; Goals definition; Financing and financial resources; team skills; projects cycle
communication; and monitoring and evaluation are significant in projects implementation.

In Australia, Brook (2018) has indicated that there are a number of multi-billion mega projects
that are being implemented but their feasibility and practicability is prone to a number of
challenges that need to be closely examined. According to his work, ‘Multi-billion dollars ‘mega
infrastructure’ projects that could get nod in Budget,’ Brook has shown that there are a number
of infrastructural projects in the country that are tied to a number of determinants and their

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feasibility needs to be examined. Top in the determinants include: financial resources and
budgetary allocations, expertise, technology, human resources, stakeholders’ views and support,
legislations and government policies etc. Similar sentiments are shared by a number of scholars
due to the importance of projects implementation in development in the country (Andre, 2016;
Todorov, 2014; Dagher and Kuzic, 2016 etc) and the issues facing the implementation or
completion of these projects; with the infrastructural projects like Westconnex Motorways in
Sydney being both in the political and economic arena.

Statement of the Problem

According to Brook (2018), for economic development to be achieved in Australia like any other
G8 countries in the world, Australia government divisions and development agencies have been
on the run on implementing or have proposed to implement a number of projects in various time
frames. The projects include: WestConnex motorways, Sydney: $17bn; North Connex
motorway, Sydney: $3bn; City and South East light rail, Sydney: $2-3bn; Sydney Metro
Northwest: $8.3bn; Sydney Metro City and Southwest: $12bn; Newcastle light rail: $300m;
Canberra light rail: $700m; Level crossing removal, Melbourne: $2.4bn; Metro rail tunnel,
Melbourne: $11bn; Tullamarine motorway widening: $1.3bn; Brisbane airport second runway:
$1.3bn; and Melbourne to Brisbane Inland rail: $8.4bn. A clear picture has it that these projects
need enormous amounts of budgetary allocations or financial resources. This automatically
leaves one wondering to what extent financial resources influence the performance of
development projects in Australia; thus a need for such a study.

A number of articles have indicated that there are issues facing infrastructural projects
implementation and completion in Sydney; Westconnex Motorways inclusive. However, Dagher
and Kuzic (2016) has zeroed in the factors to include contractual agreements, financial resources
role, human resources impact, M&E etc; that indeed need to be explored deeper thus this study.
Otundo (2014) has shown that financial resources, political correctness, stakeholders’’
involvement, M&E and ICT influence projects performance. However, Otundo carried his study
in Kenya that has very different socio-economic characteristics to Australia; a need for such a
study.

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The World Bank (2017) has indicated that Australia is one continent that has very ambitious
projects if well managed can steer it to one of the most super power countries in the world. In
fact, the report indicates that 70% of the projects are business development projects that are
considered value adders to any concept where infrastructural projects are inclusive. However, the
implementation of various projects that are out to steer the country to superpower levels are
influenced by a number of issues that need to be keenly explored. This keeps a basis for this
study. It worth noting that there are no studies (if any) that have examined the contemporary
issues influencing mega construction projects implementation in the 21st century; a case of
Westconnex Motorways, Sydney; thus a need for this study. The purpose of this study therefore
was to examine the Contemporary Issues Influencing Mega Construction Projects
Implementation in the 21st Century; a Case of Westconnex Motorways, Sydney

Research Questions

i. What is the extent to which project risk management influences the implementation of
infrastructural projects in the 21 st century in Sydney Australia; a case of Westconnex
Motorways?

ii. What is the extent to which project planning influences the implementation of
infrastructural projects in the 21 st century in Sydney Australia; a case of Westconnex
Motorways?

iii. What is the extent to which financial resources and projects financing influences the
implementation of infrastructural projects in the 21st century in Sydney Australia; a case
of Westconnex Motorways?

iv. What is the extent to which project monitoring and evaluation influences the
implementation of infrastructural projects in the 21st century in Sydney Australia; a case
of Westconnex Motorways?

Theoretical Framework

This study was based on the resources based theory. The resource-based theory of projects
implementation in the 21 st century is grounded in the perspective that an organization's internal
environment, in terms of its resources (tangible and intangible resources) and capabilities, is

4
more critical to the determination of projects implementation and performance than is the
external environment. Instead of focusing on the accumulation of resources necessary to
implement the projects dictated by conditions and constraints in the external environment, the
resource-based view suggests that a firm's unique resources and capabilities provide the basis for
a given project implementation. The projects chosen for implementation should allow the firms
to best exploit its core competencies relative to opportunities in the external environment (Hitt et
al., 2005).

The resource-based view (RBV) is an economic tool used to determine the strategic resources
available to a firm. The fundamental principle of the RBV is that the basis for a competitive
advantage of a firm lies primarily in the application of the bundle of valuable resources at the

firm's disposal (Hoopes et al, 2003). To transform a short-run competitive advantage over a
perceived project to be implemented by a firm into a sustained competitive advantage requires
that these resources are heterogeneous in nature and not perfectly mobile. Effectively, this
translates into valuable resources that are neither perfectly imitable nor substitutable without
great effort (Barney, 1991). The principal contribution of the resource-based view of the firm to
date has been as a theory of competitive advantage. RBV emphasizes strategic choice, charging
the firm's management with the important tasks of identifying, developing and deploying key
resources to maximize returns, (Hoopes et al, 2003). This theory was relevant to the study since
it integrated the concept of the organization’s internal environment and capabilities and linked
this with the success of implementing various projects. In fact, for mega construction projects to
be implemented effectively, the implementing parties should be able to manage their risks,
finance the projects, carry out expertise check on all the stages of projects etc.

5
Conceptual Framework

Independent Variables

 Project risk management

Dependent Variable Dependent Variable

 Project planning

Infrastructural projects implementation

 Financial resources and projects

financing

 Project monitoring and evaluation

Literature Review
There are important roles played by projects implementation units in roads construction projects
in China (ADB, 2015). Projects units are composed of projects expertise who understand the
concepts of projects financing, risk management, projects planning and management, projects
monitoring and evaluation, continuous community involvement and bring all the projects parties
on board in what is in other words called stakeholders’ involvement. There are crucial
determinants of projects implementation in the USA that include: the availability of projects
resources (financial resources, human resources and time resources), the willingness of various
development partners (politicians and funding agencies) to support the projects, the urgency of
various projects, weather and natural environment etc (OECD, 2016a; World Bank, 2017;
UNDP, 2014).

The concept of projects initiation and conceptualization, project design, project customization
have a great influence on the acceptability of the projects by various stakeholders, thus
influencing their success (Otundo, 2014). In this situation, the study by Otundo generally

6
indicates that the type of projects to be implemented must contain the component of better
conceptualization, design and proper planning. Todorov (2014) adds that there are a number of
factors that have been associated with the success of projects implemented in the 21 st century due
to the evolution from the traditional practices in projects implementation to the modern projects
implementation. Some of these factors include: the urgency and need of given projects by the
community members, the concept of accountability, rules and regulations accompanying projects
funds, monitoring and evaluation, the concept of projects planning and the whole process of
projects risk management etc.

In their work, Dagher and Kuzic (2016) have indicated that Mega Infrastructure projects in the
world are influenced by a number of factors that include: contractual agreements, financial
resources role, human resources impact, M&E etc; that indeed need to be explored deeper thus
this study. Otundo (2014) adds that financial resources, political correctness, stakeholders’’
involvement, M&E and ICT influence projects performance.

Sam, Thorpe, Kriengsak and Goh (2015) did a study that was bearing the tittle, ‘Looking Beyond
Contemporary Project Management,’ and found out that there are a number of issues surrounding
the success of mega roads construction projects in the developed countries where Australia is
mentioned. Some of the adversely mentioned contemporary issues include: continuous
innovation in projects implementation, innovation management, projects risks management,
financial resources management among other issues. In Pakistani, concepts like the project team
fitness, idea harnessing, relationship enhancement, incentivisation, project planning and
designing influence the implementation construction projects in the 21 st century (ADB, 2017;
Khawaja, 2017).

Brook (2018) argues that in the 2 decades, the government of Australia has been credited for
having come-up with a number of very ambitious development projects that have been
implemented with some being implemented. Some of the mega projects include: WestConnex
motorways, Sydney which is estimated to cost the tax payers $17bn; North Connex motorway
Sydney: that is estimated to cost the tax payers $3bn; City and South East light rail expected to
cost between $2-3bn etc. This means that projects consume huge budgets and proper financial

7
resources mobilization, management and control significantly influence their implementation.
World Bank (2017) adds that when projects involve big monies, they need to train the various
individuals on how to source for these financial resources, manage these finances and control
any risks that could be associated with projects’ finances.

OECD (2016a) has outlined a number of issues surrounding Mega projects in developed
countries. The issues can be said to be some major global controlling factors surrounding the
implementation of development projects. They include: availability of financial resources for the
projects, the component of financial resources management and accountability, the concept of
projects risk management, the issue of projects planning and designing, the idea of innovation
and use of technology, monitoring and evaluation of projects etc. Dagher and Kuzic (2016) add
that there are a number of factors influencing ERP implementation in Australia. ERP is measured
by the number of projects that are run in the country and the immediate results they give to the
end users. Some of the projects are the roads construction projects that are influenced by factors
like: projects risk management, projects monitoring and evaluation, project planning, financial
resources and projects financing. The factors influencing the completion and implementation of
development project is closely linked to ERP.
Research Methodologies
This study employed a descriptive research design, entailing issue of a questionnaire survey to
facilitate investigation as to whether there are correlations between variables such as: project risk
management, project planning, financial resources and projects financing, project monitoring and
evaluation; and infrastructural projects implementation. This research design was chosen as it is
advantageous in demonstrating general conditions as presented by respondents.

The study targeted the employees, contractors and major stakeholders involved in the
implementation of the Westconnex Motorways Sydney projects. The total target population
therefore was 100 respondents as summarized below:

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Table 1 Target Population
Category Population Percentage

Employees 40 40%
Contractors 25 25%
Development partners 35 35%
Total 100 100

Since the population sample was not big, the study carried a population census where all the 100
target population was considered for the study. Data was collected using structured
questionnaires consisting of both closed and open-ended questions. An online survey monkey
was done and the various respondents who were able to fill it online did. Those who couldn’t be
reached through the online survey monkey, a questionnaire was emailed questionnaire to them
and required to fill it without revealing their identities. Data was collected in only 2 weeks due to
the urgency of the matter. The reliability of the research instrument was tested after a pilot study
that was also designed online and the Cronbach alpha was computed to be 0.8. Content validity
was used whereby an expert was allowed to check the questionnaire. SPSS version 22 was used
for quantitative analysis. Regression analysis was used to determine the relationship between the
variables under study. The following regression model was adopted:
Y = β0+ β1X1+ β2 X2 + β3 X3+ β4 X4 + ε

Where: Y= infrastructural projects implementation

X1= project risk management

X2= project planning

X3= financial resources and projects financing

X4= projects monitoring and evaluation

β0= constant term

β1; β2; β3; β4 = coefficients ε= Error term/Stochastic term

9
Study Findings
Out of the 100 questionnaires distributed online, 60% of the questionnaires were returned and
deemed useful for the study. According to Mugenda and Mugenda (2003) when a return rate of
over 50% is achieved, a study can be said to be good.
Project risk management
Respondents were required to indicate the extent to which project risk management influenced
the implementation of infrastructural projects
Table 2. Influence of project risk management and projects performance
Statement Mean Standard deviation

Risk prediction 4.02 0.671

Risk identification 4.00 0.561
Risk assessment 4.22 0.765
Risk prioritization 4.41 0.763
Risk transfer 4.63 0.775
Risk transfer is the most prevalent component of project risk management that influences
infrastructural projects implementation in the Australian roads construction industry as indicated
by a mean of 4.63. This is followed by: Risk prioritization (4.41); Risk assessment (4.22); Risk
prediction (4.02); and risk identification (4.00).
Project planning
Respondents were required to indicate the extent to which project planning influenced the
implementation of infrastructural projects
Table 3. Influence of project planning and projects performance
Statements Mean Standard deviation

Smart project objectives 4.56 0.713

Clear deliverables and deadlines 4.21 0.656
Detailed projects schedule 4.02 0.676
Defined roles and responsibilities 4.51 0.563
Projects cost 3.63 0.675
Communication plan 3.81 0.541

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On average, majority of the respondents supported the idea that project planning influences the
performance of infrastructural projects in Australia’ Sydney. The results have indicated that
planning for smart projects objectives (mean of 4.56; std dev. 0.713) is the leading component of
project planning influencing performance of infrastructural projects. This is followed by:
Defined roles and responsibilities (4.51); Clear deliverables and deadlines (4.21); Detailed
projects schedule (4.02); Communication plan (3.81); and Projects cost (3.63).
Financial resources and Projects Financing
Respondents were required to indicate the extent to which financial resources and projects
financing influenced the implementation of infrastructural projects
Table 4. Financial resources &Projects Financing and projects performance
Statements Mean Standard deviation

Sources of projects finances 4.02 0.501

Amount of financial resources 4.55 0.631
Duration of projects funding 3.67 0.901
Conditions for projects financing 3.60 0.702
Project finances management 4.21 0.789
Accountability 4.02 0.993
Majority of the respondents supported the idea that projects financing and funding in general
have a significant influence on the performance of infrastructural projects in the country. This is
supported by indicated by: Sources of projects finances (4.02); Amount of financial resources
(4.55); Duration of projects funding (3.67); Conditions for projects financing (3.60); Project
finances management (4.21); and Accountability 4.02.
Project monitoring and evaluation
Respondents were required to indicate the extent to which project monitoring and evaluation
influenced the implementation of infrastructural projects

11
Table 5. Influence of project monitoring and evaluation on projects performance
Statements Mean Standard deviation

Project cycle monitoring 3.98 0.744

Project employees M&E 4.29 0.556
Formative projects M&E 4.34 0.984
Continuous projects M&E 4.01 0.769
Summative projects M&E 3.56 0.769
Projects financial resources M&E 4.12 0.763
Generally, projects monitoring and evaluation have a significant influence on the performance of
infrastructural projects. This is indicated by: Project cycle monitoring (3.98); Project employees
M&E (4.29); Formative projects M&E (4.34); Continuous projects M&E (4.01); Summative
projects M&E (3.56); and Projects financial resources M&E (4.12).
Multiple Regression Analysis
Multiple regression analysis was performed to assess the relationship between the dependent
variable (infrastructural projects implementation) and the independent variables (project risk
management, project planning, financial resources and projects financing, and project monitoring
and evaluation).
Standard Multiple Regression Analysis
In order to test the research hypotheses, a standard multiple regression analysis was conducted
using infrastructural projects implementation as the dependent variable, and the four
determinants of projects implementation: project risk management, project planning, financial
resources and projects financing, and project monitoring and evaluation as the predicting
variables. From the model summary in table 6, it is clear that the adjusted R2 was 0.403
indicating that a combination of project risk management, project planning, financial resources
and projects financing, and project monitoring and evaluation explained 40.3% of the
implementation of infrastructural projects in Sydney Australia.
Table 6. Model Summary
Model R R2 Adjusted R2
1 0.642 0.447 0.403

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From the ANOVA table 7 it is clear that the overall standard multiple regression model (project
risk management, project planning, financial resources and projects financing, and project
monitoring) is significant in predicting how project risk management, project planning, financial
resources and projects financing, and project monitoring determine projects implementation in
the construction industry in Australia. The regression model achieves a high degree of fit as
reflected by an R2 of 0.0.447 (F = 17.181; P = 0.001 < 0.05).
Table 7 Analysis of Variance
ANOVA
Model Sum of df Mean square F Sig.
squares
Regression 11.345 4 3.311 17.181 .000
Residual 14.123 66 .157
Total 25.468 70
In the table 8 below, the results representing the regression analysis results and the general trend
on how presents the regression results on how project risk management, project planning,
financial resources and projects financing, and project monitoring influence the
implementation/performance of infrastructural projects in Sydney Australia. The multiple
regression equation was that: Y= β0+β1X1+β2X2+ β3X3 + β4X4 + ε and the multiple regression
equation became:
Y = 0.988 + .052X1 + .441X2 + .561X3 + .443X4. As depicted in table 8, there was positive and
significant influence of project risk management on the performance of infrastructural projects (β
= 0.030; t = 0.331; p < 0.05). There was positive and significant influence of project planning on
the performance of infrastructural projects (β = 0.037; t = 0.432; p < 0.05). There was positive
and significant influence of Financial resources and projects financing on the performance of
infrastructural projects (β = 0.512; t = 1.981; p < 0.05). finally, there was positive and significant
influence of project monitoring and evaluation on the performance of infrastructural projects (β =
0.431; t = 2.196; p < 0.05).

13
Table 8. Regression Coefficients
Model Unstandardized coefficients Standardized coefficients t sig
B Std error Beta
Constant .988 .500 .324 .061
Project risk .052 .067 .030 .331 .893
management
Project planning .441 .098 .037 .432 .654
Financial .561 .076 .512 1.981 003
resources and
projects
financing
project .443 .098 .431 2.196 .098
monitoring and
evaluation
ᵅ Dependent Variable: infrastructural projects implementation
Generally, it can be confidently argued that the various contemporary issues (Project risk
management, Project planning, Financial resources and projects financing, and project
monitoring and evaluation) significantly influence the performance/implementation of
development projects.
Conclusion
Based on the research findings, the findings from the literature reviewed and other inputs from
information documented by various experts has shown that projects performance are undergoing
serious evolutions and they are greatly influenced by a number of factors in the modern society.
Specifically, the mega construction and infrastructural projects have undergone a number of a
number of changes in terms of their relevance, their requirement, tie taken for implementation
and their perceived future relevance. This means that critical issues have to be considered during
their implementation. a number of determinant of the infrastructural projects in the 21 st century
Sydney Australia are influenced by issues like: project risk management, project planning,
financial resources and projects financing, and project monitoring and evaluation.

14
Recommendation
The research recommends that the government agencies, projects management agencies,
development partners, community and other stakeholders should greatly invest in ensuring that
the various projects risks management practice is adopted as a collective responsibility for better
projects performance. Also the concepts of project planning, financial resources and projects
financing, and project monitoring and evaluation should be considered as integral parts of
projects implementation and management. Also, the various projects managers should be trained
and educated on the relevance of: project risk management, project planning, financial resources
and projects financing, and project monitoring and evaluation on projects implementation and
performance.
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