1. How is the approach that BAA has taken here with this project different from the traditional...

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1. How is the approach that BAA has taken here with this project different from the traditional approach to working with suppliers?
2. Why does the company want to ‘own all of the risk all of the time?’ Surely it is better to outsource risk?
3. Review the press coverage of the opening in March 2008. How did it all go so wrong?

Construction of Heathrow’s Terminal 5 was a £4.2 billion programme comprising 16 major projects, including airport infrastructure, all service tunnels, road and rail links. The programme included the construction of the main terminal and two satellite buildings (the second of which will be completed by 2011), 60 aircraft stands (some already operational), a new air traffic control tower, a 4000-space multi-storey car park, the creation of a new spur road from the M25, a 600-bed hotel, the diversion of two rivers and over 13 km of bored tunnel, including extensions to the Heathrow Express and Piccadilly Line services.9 It was given the go-ahead in November 2001, construction started on site in September 2002 and phase one went into service on time and on budget in March 2008. The project itself involved 60 main (first-tier) contractors.

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