Myki Project Boundary

Topics: Contract, Project management, Breach of contract Pages: 2 (703 words) Published: October 3, 2012
Changes to the boundaries occurred during the development of MYKI project: * More than 350 changes were made to the specifications by the TTA, increasing the complexity, time and cost of the project. * Example of alteration made during development phase is the removal of city saver fare option that has been applied in Metcard system. * Change in relationship/management issues between TTA, vendor and sub-contractors. The continuous modifications of the project specifications and outcomes were mainly caused by the project’s ambiguous initial contractual precedence and specifications, such as the consideration of which necessities are within or outside the contractual boundaries, leading to disagreement on priorities and costs in later phases of the project. The impact of undefined boundaries and constant amendments to the contracts and requirements: Project Delay

* Initially, the MYKI project was scheduled to be completed in July 2007, but full operation has been behind the schedule by approximately 5 years * The optimistic 2-year deadline could not be achieved due to subsequent changes carried out by TTA to the original scope of the project, causing technical difficulties to re-surface and complexity to increase. Internal Audit was conducted in 2010 to evaluate whether MYKI project is still worth pursuing after the long overdue, indicating the government’s loss of trust to the project and vendor. As the results of the audit shows that cost of scraping MYKI will be higher than completing it, the Government decided to continue the project. Over Budgeting

* The overall cost has increased by 35% from initial estimation of $999 million to $ 1.35 million. * It is forecasted that additional cost is required for project completion and complete replacement of Metcard. * $ 50 million cost will be required annually to keep operating the MYKI system. * As the delay was prolonged, Metcard must be kept in operation for a longer period of...
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