BERLIN BRANDENBURG AIRPORT

(BER)
Group 3:
Soham Chauhan
Kanika Agrawal
Yashraj Sahani
Hemanth Reddy
Dakshesh Patel

Nexus Club Activity

OVERVIEW
• Berlin Brandenburg Airport: The most surprising project failure.
• Germany, a country known for its effectiveness, efficiency, and planning capabilities Fails to
meet peoples expectations.
• After German reunification in 1991, Airport was planned with,
• 22 million passengers annually.
• Peak capacity of 6,000 passengers per hour.
• The cost of erection was not to exceed €1 billion.

• A long row of almost unfiltered change requests has led to,

• frequent delays of planned opening dates,
• massive cost overruns,
• a virtually fully rebuild of the airport’s main terminal.

• Dramatical increase in air traffic demand since 2012, as Berlin being the center of attraction for
the country.
BER BACKGROUND
• During 1949-1990, Germany was divided in two parts (East & West) with
two airports.
• After 1990s reunification, proposal was passed for BER in 1996.
• This will compete with major airports of Germany and Europe.
• The govt. decided to privatize the whole project.
• The tendering process began in 1999 but it was called off as the regional
administration court overturn the decision.
• Another attempt was also made in late years but that was terminated too.
• In 2003, it was finalized to build the project public-sponsorship.
BER BACKGROUND
• Clearance for Airport development was obtained in 2004.
• The construction began in 2006, almost a decade after the proposal was
made!
• In October 2011 the 1st problem was found regarding fire safety and the
opening was delayed.
• In the next checks, up to 66500 defects were found and delays continued.
• The last date announced for opening was 2017 with costs estimates of €7.9
billion, almost 50 percent above the approved budget of €5.4 billion!
• “It’ll open when it opens.”
REASONS FOR FAILURE
• Too many different stakeholders.
• Deficiencies in structure and expertise levels.
• Inexperienced and non-specialist management and supervision.

• Asymmetric Information, Deception & Lack of Internal Communication.

• Involvement of Politics in Board Committee & domination of political
considerations leading to corruption and malpractices.
• Discovery of new requirements, scope changes and unrealistic mitigation plans.
• Changing of the original Plan of rectangle terminal into a ‘U’ Shaped on to increase floor
space.
• Increase in floor level to accommodate activities generating non-aero revenue.
REASONS FOR FAILURE
• Poor planning and procurement.
• Un-qualified engineers appointed.
• Negligence with insufficient and inadequate quality checks.
• Impractical Fire Safety System set against the laws of physics.
• All Lights and LED Screens installed have been on since the completion of construction
process even though Airport has not been opened for use. Technology worth Millions of
dollars have came to end of service life before actual usage.
• As for the lights, they couldn’t find how to switch them off causing huge electricity bills
for years and ongoing.

• Construction Company Bankrupt in 2012.

 MITIGATION OF RISKS
• Corporate Governance : Organization Structure
• Governance structures need to be filled with expertise on all levels to be
effective.
• Experienced and skilled people on all project levels need to be supported by
effective governance to reach their potential.

• Waterfall Method : Construction Planning and Process

• Solid project definition.
• Specify requirements & business case.
• Sufficient time for planning in detail before contracts as well as during execution.
• Systematic use of project charters and identifying critical tasks.

• Deming’s Cycle : Construction Process and Quality Management

 MITIGATION OF RISKS
• Transparency for all stakeholders through out the project life.
• Having clear modes of communication.
• Systematic risk management instead of risk ignorance.
• Contingency plans should’ve been made.
• Proposals to include “next best” alternative.

• Unmask politically motivated estimates. Clear project strategy.

• Consulting Third party evaluators.
• Current plans include opening on 31st Oct 2020.
• Placed 800 fire spotters as an alternative for failed Fire Safety Tools.
THANK YOU!-Group 3