Assignment

Topic: Why Project Finance Fails

Submitted by:
Name: Elham Mohammad Kashem
ID: 193011094
Course Code: BUS 318
Section: 1
Date: 11/04/2023

Submitted to:
Lili ping
Senior Lecturer
School of Business
Project Finance is something in which an investor raised a necessary capital to
build an infrastructure project. Although it is very challenging to start a new
project as 70% of the capital come from the banks. However, there are few
mistakes made by the project sponsor for which it can led to project failure.
There are 7 reasons for the failure of project finance which are shown below:
1. Unclear Objective: If the objectives are not clear among the team member,
then there is less chance to success in the project. Employees will be
confused of the work they will do. The plans of the projects should be
specific, clear to understand and has a specific idea of time when this
project will be finished.

2. Scope Creep: In here, when some extra tasks are added that are not part of
the original project plan. Either these tasks come from the team members
or comes from the customers. So, as a result, you end up with more works
which will take time to finish the project or there can be conflicts between
members or customers.

3. Unrealistic expectations: It is when project manager set unrealistic

expectations that led to the failure of the project. For example, if a project
manager give work to employees in which they have to work overtime to
achieve the goals faster.

4. Limited resources: When the project didn’t complete at right time because
of lack of resources. We can take resources as budget, staff, time, space or
tools etc. The sponsor cannot complete the project if any of these things
will be lacking, so they have to careful with these things.

5. Poor Communications: It is one of the major problems for project failure.

To work with the team members, they need to have a proper
communication with easy language to understand in which each other’s
thoughts will also be counted.

6. Scheduling delays: If a project delays on meetings with members, lenders

etc. then it will end up to project failure because project will start if the
 meeting didn’t occur in which goals, objectives and works will be explained
and distributed among team members. So, we should take project schedule
as a part of our project so that we don’t have to face any problems
regarding this.

7. Lack of transparency: This is the common cause of project finance because

without transparency there will be a lot of problems occur. Such as team
members need to aware of their roles and responsibilities, have the access
to information and for that they need to have proper meeting or share the
information openly.

References:
1) https://asana.com/resources/why-projects-fail

2) https://www.teamly.com/blog/reasons-for-project-failure/