The Eden Project by kirstywilson12

F ig. 2: Eden Projec t Se c ti o n S ke tc h

E xecuti ve S u m m ary

This repor t aspires to critically evaluate the proper ty development process of The Eden Project, comparing it against a critical framework to analyse its successes or failures throughout the development process. The Eden Project has been used as a case study, to provide a deeper under standing of the practices within the proper ty development processes. The critical framework which the project is assessed against has been developed through an analysis of various literature sources, studying the likes of the front-end planning process, risk management and the project governance. Combining all the various factor s together, construct an overall framework , which the project can then be evaluated against, defining if it was successful or not. The front-end planning process of The Eden Project proved to be a vital component to the overall projects success, highlighting risks during this stage in order to plan, manage and mitigate these in the future of the project and taking many of the key decisions within this stage. Through the evaluation of the front-end planning process and the critical framework it was discovered that The Eden Project is a successful example in each of the various stages within the proper ty development processes.

Content s 1.0

I ntro d uc ti o n

2.0

D evel o p i n g A Cr i ti c a l Fra mework

3.0

D evel o p m e n t Ti m e l i n e

4.0

C o ntex tu a l In fo r m a ti o n

5.0

F ro nt- En d P l a n n i n g

6.0

R i s k Ma n a ge m e n t

7.0

P roj e ct Go ve r n a n c e

8.0

C r i ti cal E va l u a ti o n

33-34

9.0

C o ncl u si o n

35-36

10.0

Re fe ren c e s - Bib liogra phy - Figures

37-38 39-40

11.0

Ap p e n di x

41-42

1.1 1.2 1.3

2.1 2.2

4.1 4.2 4.3

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11

6.1 6.2 6.3

7.1 7.2

10.1 10.2

- What is A Meg a - proj e ct? - Project D escr i pt i on - Defining E d e n a s a Meg a - proj e ct

- The impor t a nce of a cr i t i ca l f r a m ewo rk - Developi ng a cr i t i ca l f r a m ewor k

- Imp or t ance of C onte x t - Policies - L ocat ion

What is F ront- E nd Pl a nni ng ? Project Tea m Key St akehol d er s Site A p pr a i sa l Secur ing t h e Si te Feas ib ilit y Hop e an d A d d e d Va l ue Demand Project Fund i ng Sus t aina bi l i t y Front-End Pl a nni ng E va l ua t i on

- What is R i sk Ma na g e ment? - Exogenous R i sks a nd t hei r Ma na g e me n t - Endogenous R i sks a nd t hei r Ma na g e m e n t

- Imp or t ance of Proj ect G ove r na nce - Project I mpa ct - T h e E d en E f f ect

F ig . 3: P hot ograph of T h e E de n P ro j e c t co mple t e

3 4

5-6

7 7-8 9-10

11 12 13-14 15 16 17-18 19 20 21-22 23 24

25-26 27-28 29-30

31 32

1 .0 Introdu ct ion 1.1 W h at i s a M e ga -pro j e ct? “During the past decade, mega-projects have had an enormous impact on the global economy and the advancement of transition of developing countries” . (Greiman, 2013, Page 13) Mega-projects consist of various different elements to achieve the title, ‘Mega-project’, these elements can be categorised by four main characteristics: technological, political, economic and aesthetical (Flyvbjerg, 2003). Projects must be innovative, complex, unique and have a relatively high cost in order to be classed as a mega-project. They are of ten assumed to be only the costliest projects, with some descriptions enforcing they must be over $1 billion such as The Federal Highway Administration (Capka, 2004). Howe ver, this is not a true reflection on what defines a mega-project, as the overall budget along with the other four titles should be relative to their surroundings. “ The cost of a mega-project is relevant only as it is contrasted with the size of the location or countr y where it is built” (Greima n, 2013, Page 13). Therefore, a more suitable description of a mega-project would be: “a temporar y endeavour under taken to create a unique product, ser vice or result” (Greiman, 2013, Page 8).

1.2 Proj e c t De s cr i pt i o n The Eden Project was an ambitious proposal aiming to transform a disused China clay pit into a place full of biodiver sity and sustainability. One of the main goals of the project was to create ‘the largest indoor rainforest in the world’. The project is located in Cornwall, Engla nd, within a former mining clay pit. Since its completion in 2001 The Eden Project has won countless awards and been named one of the UK’s Best Leisure attractions (Simpson, 2006). This was never the original aim of the project; their initial intent however was to “create a movement that builds relationships between people and the natural world to demonstrate the power of working together for the benefit of all living things” (Eden Project, 2021)

1.3 E de n as a M e ga -pro j e ct The Eden Project was the fir st of its kind in the world, with no one having built in a former China clay pit before (Smit, 2001). The innovative scheme has transformed its surroundings, creating a global garden nestled into the other wise abandoned site. Since completion, the project has injected over £1 billion into the local economy and created over 450 local jobs. It was technologically innovative, using complex and sustainable materials to achieve the overall aesthetic appearance. Therefore, the project meets the desired criteria, and qualifies as a mega-project. This repor t shall provide a critical evaluation of the planning process of The Eden Project.

F ig. 4: Bi rds Eye Per s p e c ti v e of The E d e n P ro j e c t 2

2 . 0 D evel opi n g A C ri t i c a l F r a m e w o r k 2 . 1 T h e Im po r t a n ce O f A C r i tic a l Fra mework For a value or risk management programme to be successful cer tain key principles shou ld be in place. These may be termed the critical success factor s for the programme (Dallas, 2006). A number of factor s should be in place and planned for to maximise the chances of a su ccessful mega-project. I have therefore constructed my own critical framework , which I shall use to critically access The Eden Project. Through reading and consulting various f rameworks, each intended to ensure successful projects, I have revised and combined these to compile my own overarching critical framework . This framework encompasses aspects of each of the literature resources I have studied and combines aspects from the Proper ty Development Lectures series.

The three texts I have based my critical f ramework on are as follows: Dallas states that the critical success factor s for a programme can be defined as: - The adoption of a transparent and repeatable framework of activities. (1) - Explicit pol ices which are clearly communicated to all. (2) - Clearly identified and visible senior management for the programme. (3) - The existence of a culture that suppor ts and under stands the concepts of maximising value and controlling risk . (4) - Fully embedded management processes which are consistently and rigorously applied and are clearly linked to the achievement of objectives. (5) - Implementation of effective plans and regular reviews to ensure that the benefits of the processes are realised, and lessons are learned for future programmes. (6) (Dallas, 2006).

Four necessar y conditions for Project Success are stated as: - A common view from all the stakeholder s. (7) - Collaborati on between the project team, especially between the project manager and project owner. (8) - The project manager should be empowered. (9) - Per formance reviews should regularly take place throughout all stages of the project (10) (Rodney, 2004).

Things to be considered to achieve a successful project: - Procurement (11) - Time (12) - Integration (13) - Scope (14) - Cost (15) - Stakeholder s (16) - Risk (17) - Human Resources (18) - Quality (19) - Communications (20) (Greiman, 2003). 3

2 . 2 D e ve l opi n g A C r i t i ca l F r a mework Working with these three frameworks, I identified similarities between each, and categorised each point according to their likenesses. I then defined a ‘heading’ for each categor y which shall act as the basis of my criteria. This critical framework , with respective sub-categories, will then provide a foundation to assess The Eden Project against, considering the projects strengths, weaknesses, and potential areas of improvement.

Project Ti meline

Context

Front-End Planning

Risk Management

Project Governance

The process of creating the critical framework :

F ig. 5: Di agr am dem o nstra ti ng the d e v e l o p me nt of th e c r i t i c al f r am e wor k 4

3 . 0 D evel opm e n t T i m e l i n e

F ig. 6 : Projec t Devel op me nt Ti me l i ne 5

4 . 0 C onte x tu al In form a t i o n 4. 1 Im p or ta n ce of C o n te xt To contextualise and evaluate The Eden Project it is essential to fully under stand the context in order to assess the development viability of the project. The context includes a variety of different aspects, from the local and regional planning policies, the value of the land to the risk factor associated with the chosen site. These create a significant section of the critical framework in assessing a successful project.

4. 2 Pol i c i e s The policies remain an impor tant factor as these create the framework which the scheme was required to per form too. Prior to the concept of the Eden Project, any ideas for regenerating this area of Cornwall were confined to small industrial units (Pearman, Whalley, 2003). Therefore, The Eden Project had to ensure they met all the local and regional policies in order to stand a chance at receiving planning permission, as it was out with the planned developments for the area. In the UK , in the 1990’s local and central Planning Policy Guidance-led systems were established (Mar shall, 2004). By identif ying policies within these Local Development Plan’s, it can recognise the foundations which The Eden Project was expected to work towards. The Local Plann ing Authority throughout the development of The Eden Project was Restormel Borough Council, since defunct in 2009, now known as Cornwall County Council. Some of the policies highlighted within the Regional Planning Guidance for the South-West were as follows:

F ig. 7 : Bodevl a Cl ay P i t p ri o r to the c o nstruc ti o n of T h e E d e n P roj e c t 7

Th e V i si on F o r T h e S o u t h - Wes t “Developing the region, in a sustainable way, as a national and European region of quality and diver sity, where the quality of life for residen ts, the business community and visitor s will be maintained and enhanced” (Great Britain, Government Office for the South-West, 2001, Page 13).

Loc al Pol i c ie s ( C o r n w a l l a n d Is les of S c illy) “ The regeneration of the main towns to act as employment and ser vice centres for their population and rural hinterlands.” (Great Britain, Government Office for the South-West, 2001, Page 37). “ The conser vation and enhancement of the distinctiveness of the natural and historic environment.” (Great Britain, Government Office for the South-West, 2001, Page 37).

Reg i on a l Po l i ci e s “Assisting in the economic development of the Region by increasing the accessibility of existing and proposed development, and improving conditions in the areas alongside transpor t routes and improving road safety” (Great Britain, Government Office for the South-West, 2001, Page 10).

Summ ar y of Po l i ci e s It is through these policies that The Eden Project is set in its political and societal context, providing the basis for future development. It addressed each of these policies to warrant proceeding and ultimately enhancing the surroundings by addressing and pushing the mandator y policies. As the project was more successful than expected a document entitled ‘ The Eden Effect’ was brought out to establish how to plan for the surrounding area to inherit from the success of The Eden Project.

4. 3 Loc a ti on The location of the site creates benefits and drawbacks which are associated with the class of development land the site is loca ted within, these var y from: -

Central prime zone Inner mixed zone Mid zone Outer/satellite oppor tunities

The Eden Project falls within the categor y of ‘outer/satellite oppor tunities’, due to it being a former quarr y mine and therefore it is located out-with the existing urban footprint of current high density and residential developments. This remote loca tion will have created many benefits and drawbacks to selecting to develop on the isolated site.

Benefits - The site will have been significantly cheaper to purchase due to the associated risk factor s which are attached to the site as it is out-with the standard development zones. Therefore, The Eden Project team will have been able to purchase the 15-acre Bodevla clay pit for a drastically lower price than if the same size of site had been located within the central prime zone or inner mixed zone etc. - The potential return which was possible if the project was successful will have been higher due to paying less for the site and amenities etc. as a result of the isolated location.

Drawbacks - The risk associated with developing on an ‘outer/satellite oppor tunity’ site are heightened and exaggerated as there is no ‘safety net’, there may not be the necessar y demand that the project requires to create an income. If The Eden Project was developed on a site within the centre of an established city, it would be easy to get people to visit due to ease of transpor t, existing footfall etc., therefore creating demand. However, by developing on the rural s ite, The Eden Project faced a risk of not having the demand of people visiting due to various factors. - There can be a high cost in ‘cleaning up’ the site to a usable state. Many of these pros and cons of the remote site are based around cost, risk , and return, this is true with each of the classes of development sites.

F i g. 8 : C on c e p t s k e t c h of Th e E d en Pro ject 9

5 . 0 F r ont - En d Pl an n i n g

5 . 1 W h a t i s F ro n t- En d P l a n n i n g? Front-end planning is crucial to securing the success of a project, it is sometimes referred to as the ‘explorator y phase’ or the ‘formulation phase’ (Greiman, 2013). It revolves around the early stages of a project, from the initial feasibility throughout the design process. It is during the front-end planning process that problems or risks can be identified and solutions or acti ons to prevent these can be set in place. The front-end planning process revolves around over-coming resistances which have been identified and being prepared for any ‘turbulence’ which may arise. Front-end planning is usually a lengthy and cost ly process, taking an average of 7 year s in mega-projects and costing up to 33% of the total budget (Miller and Hobbs, 2005). Therefore, the management of the front-end planning phase is essential to the overall outcome of the project, as so much of the time, budget and key decisions and used and taken within this stage. Within The Eden Project the front-end planning process began in 1994, when the initial idea of the project was conceived. This will have been ongoing until the end of 1997, when the outline planning permission was approved and the funding from the Millennium Commission granted. This translates to almost 50% of the project timescale as seen in the development timeline (fig 6). Throughout this period any risks or complications surrounding the design, construction or funding etc. should have been detected, in order to resolve or prevent complications fur ther along the project process.

F i g . 9: D i a gr a m de m on s t r a t i n g t h e t i m e s pe n t on f ron t- e n d pl an n i n g 11

5 . 2 Proj e c t Te a m Just as it is essential that the stakeholder s have a common viewpoint, it is just as crucial for the project team, as without good communication and a mutual under standing the project may take on a different path than what is intended. The Eden Project team regularly held team meetings to ensure the team all shared an under standing for project progress and any issues could be quickly resolved. (Smit, 2001).

Table 1 : Projec t Team 12

F ro nt-End Pl an n i n g 5 . 3 Ke y Sta ke h o l de r s Stakeholder s can be described as: individuals or groups that benefit from an organisation (Moloney, 2006). They have the ability to influence decisions which are taken throughout a project, of ten in order to benefit from the outcome. “Fundamentally, stakeholder s can affect and are affected by an organisation and its ac tivities. Stakeholder s can affect an organisation’s functioning, goals, development and even sur vival”. (Chinyio, Olomolaie, 2009, Page 1). Frequently, they are invested within a scheme, through funding or potential results of a project. Within construction projects, it is common for there to be multiple different stakeholder s, all which var y on a wide number of factor s. The common stakeholder s that can be found in most construction projects are as follows:

The Client Local Government Authorities Architects Engineer s Main Contractor s Subcontractor s

Project Employees Project Sponsor s / Funder s Supplier s Local Residents Local Business Owner s End User s

Within The Eden Project the stakeholder s could be divided into categories, those which were the most invested in the project and had the most to gain or lose, down to those who may have been indirectly affected by the eventual success or failure of the project. These were:

The Eden Trust Restormel Borough Council Millennium Commission Nicholas Grimshaw and Par tner s

Anthony Hunt Associates McAlpines Joint Venture Subcontractor s

“Large number s of stakeholder s create management challenges that don’t exist in smaller projects. Public and private interests of ten diverge in projects where the public interest can be compromised by the private-sector stakeholder ’s profit motivations” . (Greiman, 2013, Page 21) Therefore, at the earliest point of convenience, it is essential to the project to attempt to gauge all the stakeholder s are ‘working from the same page’ as this will hopefully prevent issues arising between various par ties fur ther into the project. For The Eden Project, this took place within the early stages of the front-end planning process, when all the professional team (and stakeholder s they had at the time) met for the fir st time in 1995. This is critical as they would have been able to make sure ever yone had a common viewpoint regarding the future and direction of the project.

F ig. 10: Di agr am dem o ns tra ti ng the d i f f e re nt l e v e l s of s t a k e h ol de r s wi t h i n t h e p roj e c t 14

F ro nt-End Pl an n i n g 5 . 4 S i te Appr a i s a l Cornwall was the chosen location for The Eden Project for various reasons, from its temperate climate which was suitable for the vision of tropical plants to the reality that the West Countr y was already an established holiday destination, with 9 million tourists visiting annually (Smit, 2001). Af ter it was decided Cornwall was the suitable location for the project, countless sites were visited around the area between 1994 and 1996, with several having design proposals applied before they finally found the per fect site, the Bodevla clay pit; “ The instant my eyes fell on Bodevla, I knew it was the one” (Smit, 2001, Page 40). Bodevla was a former working quarr y, in use for over 160 year s mining China clay, and prevented the challenge of conver ting a brownfield site into useable economic condition. Although the loca tion of the site proposed a number of issues from its distance to the nearest road, to the feasibility of constructing in a 90-metre-deep pit, the concept of transforming what was destroyed by humans into a celebration of nature a nd biodiver sity outweighed the impracticalities. The initial seed funding of £25,000 from the local council was spent on a feasibility study and environmental assessment of the site. If this hadn’t gone as expected, it would have increased the deliver y timescale, creating a knock-on effect,W heightening the costs and potentially causing the project to become ‘unworkable’ (Smit, 2001). This exogenous risk and the potential consequences shall be explored fur ther within the ‘risk management’ chapter.

F ig. 11 : Bodevl a Cl ay P i t p ri o r to the c o nstruc ti o n of T h e E de n P roj e c t 15

5 . 5 S e c ur i ng t h e L a n d The 15-acre brownfield site was owned by Goonvean, a local mining company based in Cornwall. The China clay pit was nearing the end of its economic life when Smit was viewing potential sites for The Eden Project. Due to the difficulties in ‘cleaning up’ former mining sites, they are rarely declared as derelict and up for development. “It has to be recognised too that the clay industr y is heavily constrained by planning conditions which require the restoration of worked-out pits. The cost of restoration if such conditions were enforced would probably bankrupt the industr y, so for any site actually to be classified as derelict is almost unheard of ” (Smit, 2001, Page 46). To propose re-purposing the site full of biodiver sity would have then been one of ver y few potential uses for the site. Therefore, due to a combination of factor s, such as: such few potential uses for the site, the fact the land was no longer fit for its original purpose of mining, and its location within the ‘outer/ satellite oppor tunities’ zone meant the site should have been relatively low in cost to purchase. The site was bought for £7 million, with the intention to transform the other wise abandoned clay pit into a source of income for Cornwall. This amounts to 5% of the overall budget for The Eden Project.

F ro nt-End Pl an n i n g 5 . 6 F e a si bi li t y “ The problem with innovation is that if something has never been done before there isn’t a precedent” . (Smit, 2001, Page 78). Due to the originality of The Eden Project, there was no precedent studies that the project could learn from. Smit had previously successfully led the project to restore ‘ The Lost Gardens of Heligan’ and was therefore able to draw from experience, however this was not a mega-project, and therefore the feasibility of the two projects were not comparable. “We had no idea how much it might cost, whether it was in fact buildable, manageable or fundable, or indeed whether we could even obtain the land we would need and suppor t from the coun cil and government that would be essential” (Smit, 2001, Page 34). In order to gauge the feasibility or the project Smit and his team met with professionals who ran relatable projects which Eden inspired to resemble. They visited the Ebbw Vale Garden Festival and Plantasia in Swansea which showcased at the time the ‘most modern glasshouse in the world’. During the teams visits to both par ties, they were given the chance to discuss procurement methods, project management, costs, and funding, giving valuable insights as to what it would take for The Eden Project to become a reality. This was a significant stage within the front-end planning process and ultimately contributed towards the project’s success, by learning from the experience of other projects and applying this within The Eden Project. An alternative impor tant factor within this section of the process is many of the risks will have been identified throughout the feasibility stage, without these being identified in the early stages the overall success of the project could have been at threat.

Fi g . 12: 3 d p ri nte d c o nc e p t mo d e l of t h e bi om e s , t e s t i n g t h e s t r u c t u re 17

F i g . 1 3: In i t i al c on c e p t s k e t c h

Fig. 14: The Eden Project under construction

F i g. 1 5 : O n e of t h e c om p l e t e d b i om e s

F ro nt-End Pl an n i n g

5 . 7 Hope an d A d de d Va l u e Hope and added value consist of the potential value which can be added to land through proper ty development, centred around ambition and prospect for the future. Hope value: Is the value attached to the land when there is capacity for development. Added value: Is the value which is added to the land with each stage of development. The Bodevla Clay Pit was nearing the end of its economic life, with little financial benefits to keep mining. This resulted in the value of the land being extremely low, due to the lack of oppor tunity or alternative uses which the site had. However, once the concepts of The Eden Project re-inhabiting the land were established, the hope value for the Bodevla Clay Pit increased. Hope value is most common in brownfield sites, such as the Bodevla Clay Pit, where there are few alternative oppor tunities associated with the site. The added value then fur ther increases the value of the site with each milestone within the project’s development. This reaches its maximum value when planning permission is granted in full, as long as there is the necessar y demand. Therefore, within The Eden Project the value of the land will have increased 4 times until it reached its peak value when planning permission was granted in 1998. However, in order to benefit from added value, the necessar y demand must also be present to ensure the value of the land increases, as with no demand the land has little or no value.

F i g. 1 6 : D i ag r am d e m on s t r at i n g t h e val u e of l a n d i n c re as i n g a s t h e p roj e c t prog re s s e s t h rou gh the f ron t- e n d pl an n i n g proc e s s

5 . 8 D e m an d Demand and val ue can be paired together when determining the success of a project. A project will not be successful if it doesn’t have demand, as there will be no income created. The demand for The Eden Project was unknown, however feasibility studies took place to estimate the number of visitor s that were expected. Based on a number of factor s, it was thought that The Eden Project should attract as many visitor s as Edinburgh Castle, however when the fir st phase opened in 2000, they quickly exceeded this target, confirming they had more demand than they thought, which was key to their eventual success. Today, The Eden Project is developing project’s all across the world, as seen on the diagram below, the project has surpassed its desired demand and played to the success of demand by developing these new projects, which all share the same goals as The Eden Project. This demand which has been created is known as ‘ The Eden Effect’.

F ig. 1 7: Areas aroun d the w o rl d w he re E d e n i s d e v e l op i n g n e w p roj e c t s 20

F ro nt-End Pl an n i n g 5 . 9 Proj e c t F u n di n g A key component in identif ying a mega-project is its intricate financial structure. An impor tant factor in assessing whether the project has been successful or not revolves around breaking down and evaluating how the project has been funded. This can of ten be a complex arrangement due to the large scale of investments which they require. The ability to secure stable funding for a mega-project is a key component to its success. Megaprojects of ten gather a lot of public scrutiny and concern as they are known for their cost overruns (Greiman, 2013). Therefore, it is essential for the project to have the funding in place prior to the commencement of the project to gain public suppor t. Mega-projects are of ten solely public or private investment projects, but a method which is becoming much more common is collaborative public/private par tner ships. The Eden Project was unusually, jointly funded between the public and private sector through a series of government grants, loans, and institutions. However, this was not a standard practice prior to the 1990’s when The Eden Project was under development and was therefore seen as a unique approach to f unding/ managing the project. The majority of the funding for The Eden Project came from Millennium Commission, which was the highest from a single investor at £37.5 million. However, it was a long battle to secure the funding from the Millennium Commission with three separate applications being submitted (Smit, 2001). It would not have been possible to con struct Eden and, critically, maintain its educational and regeneration ethos today without the huge injection of public funds. Smit acknowledged, that the eventual key to The Eden Projects success “was always going to be the management of our finances” (Smit, 2001). Without specialised professionals on the team to manage the unique finances of the project, it would not have been capable of accomplishing its potential success.

Whe re T h e F u n di n g C a m e F rom

Table 2: Where t he pro j e c t f u nd i ng c a me f ro m

Bre a k- down of profe s s i o n a l f ees Collaboration between additional professionals within mega-projects is a key to their success, by consulting specialists it minimises the technical risks of a project. Due to its innovation, it was necessar y for The Eden Project to consult external professionals. With £12 million (8.5%) of the total budget being spent on their exper tise. The break-down of professional fees h as been estimated below :

Table 3: Breakdown of p rof e s s i o na l f e e s

How th e f un d i n g w a s s pe n t

Table 4: How t he fund i ng w a s sp e nt

F ro nt-End Pl an n i n g 5 . 10 S u stai n a bi l i t y Prior to 2001 when The Eden Project was completed, sustainability was not as impor tant a factor as it is within proper ty development today. However, The Eden Project was unique at this time and incorporated sustainability within the design and the front-end planning process. They set out a number of goals within this stage that they strove to achieve throughout the design, construction, and completion of the project. This was therefore an added extra to the projects front-end planning process at this time, however, should be a default within current proper ty development front-end planning processes.

Fi g 18: H o w The E d e n P ro j e c t a c hi e v e d t h e de s i re d l e ve l of s u s t a i n ab i l i t y 23

5 . 11 Eval u a t i o n of F ro n t- En d P la n n in g

Table 5: Eval uat i on of the f ro nt-e nd p l a nni ng p ro c e s s 24

6 . 0 Ri sk M an age m e n t 6 . 1 W h a t i s R i s k M a n a ge m e nt? “No constructio n project is risk free. Risk can be managed, minimised, shared, transferred, or accepted. It cannot be ignored” (Dallas, 2006, Page 5). Assessing the possible risks within a mega-project is key to their success, they must be identified prior to planning and construction (before the point of ‘no-return’) in order to address them and be prepared for possible outcomes. There will always be more risks attached to mega-projects than standard development projects due to their scale and more complex nature. “Risk management is not about eliminating risk altogether but controlling the risks which the organisation is exposed to… No construction project is risk free. Risk can be managed, minimised, shared, transferred, or accepted. It cannot be ignored” (Dallas, 2006, Page 37). It must therefore be assessed whether the potential outcome of a project outweighs the risks it faces and is therefore wor th taking the risk to proceed with the project. The types of risks can be split into two main classes: those which occur within the projects control and those which occur out with the project control. These are known as endogenous and exogenous risks, respectively. An endogenous risk can be controlled internally by the project management team. An exogenous risk cannot be controlled by the project management team. As a mega-project, The Eden Project under standably faced many risks associated by each categor y. “In the early days of design, almost ever y thing had to be done on the basis of great expectations. Upfront development funding was not available. Work had to be done at risk” (Pea rman, Whalley, 2003, Pgae 14). The lead architect, Andrew Whalley states that until they had secured funding for the project, all the work they were doing was at risk , due to not knowing if or when they would be paid for their work . When studying these risks, it is impor tant to analyse the steps which they followed throughout the proper ty development process to prevent them from affecting the projects final outcome.

Ris k s T h at Th e Ede n P ro j e ct Fa c ed

Table 6: Ri sks t hat The E d e n P ro j e c t f a c e d 25

Exoge n o u s

[ e k- soj- u h - n u h s ]

a djec tive 1. o r i gi na t i n g fro m o u t s i d e ; d er ived extern ally. These risks are of ten unseen and unexpected, making them more difficult to steer through if they have not been sufficiently planned for. These risks of ten stem from political, macro-economic and social forces. Even though exogenous risks are uncer tain, contingency plans can still be put in place which can ‘sof ten’ or minimise these risks if they occurred.

En doge n o u s

[ e n - do j - u h - n u h s ]

a djec tive 1. p roc e e d i n g f ro m wi t h i n ; d er ived in tern ally. As these risks involve internal control, they of ten arise from breakdowns between par tner ships or contractual disagreements. They are however easier to plan for, with the ability to take fur ther procedures to aver t the risks from taking place at all.

R isk Man age m e n t 6 . 2 Exoge n o u s Ri s k s : S i te C o n dit ion Risk : As the site was a former working quarr y, the ground condition was unknown. This could have resulted in significant delays to the timescale of the project, effecting the length of construction time (a new risk itself as the time spen t on a project generates multiple unknown factor s and uncer tainty which do not exist in projects with a shor ter timescale. (Merrow 1988)). Management: In order to anticipate this being a risk , professional guidance or a ground sur vey could have taken place, fur ther to the initial feasibility study, to assess the ground condition and a judgement made on whether it was sensible to proceed with the project.

D e ma n d Risk : As this project was the fir st of its kind in the world, building the world’s largest indoor rainforest, (Smit, 2001) the potential market of the project had no precedent to compare against. Therefore, the expected revenue from visitor s was unknown. The location of the site also effected the demand, as it within the class of ‘outer satellite oppor tunities’, the grade which the most risk is attached to due to the lack of surrounding demand. Management: To reduce this risk , the location of the site was of key significance. Cornwall was already an established pop ular destination for tourists and British holidaymaker s (Smit, 2001), therefore they hoped to attract the existing holiday footfall while also striving to be ground-breaking and ambitious, to create an innovative experience which they hoped people would also travel specifically to see, but they couldn’t guarantee this outcome.

Ti m e s c a le Risk : Timescale is a risk within all projects, not just mega-projects, however they have the potential to be affected the wor st, due to the number of resources they entail. The Eden Project f aced an additional risk regarding its programme. The plants that Eden planned to showcase needed to be planted at a specific time in the year, therefore if they hadn’t reached this goal, they would’ve had to delay opening, minimising their income. Management: The team worked around this issue by planning the star t of the construction time and ultimately the expected completion date to coincide with the time of year that the plants were required to be planted in, to assure they had a full display to showcase. 27

F un din g Risk : The funding of a mega-project is of ten the largest risk associated with the project, “Most risks are likely to have a direct or indirect impact on cost. Even if the direct consequence of the risk leads to a delay, its effect can of ten be translated into costs” (Dallas, 2006). This is due to a nu mber of factor s, such as the timescale from planning to completion is normally substantially longer than standard developments, creating more chances of financial crashes or ‘bust’ times. Where the funding is sourced from is also an added risk , as there is the potential for the investor s to also go bankrupt. The initial bid to secure funding for The Eden Project from the Millennium Commission was rejected, as “it was deemed a ver y uncer tain project with too high risks and costs” (Falmouth Anchor, 2017). However, af ter subsequent design changes and the creation of an achievable business plan the Millennium Commission invested in the scheme. Management: Managing the risks associated with funding can be a challenge in mega-projects, one of the ways The Eden Project diminished the risks of their funding being cut or stopped due to bankruptcy is they shared their funding across a number of different investor s. This allowed greater financial security in the for sake an investor go bust. Even though there were a significant number of risks within the project, it is known that “It is necessar y to take risks to maximise value” (Dallas, 2006), therefore it is only by taking these risks that The Eden Project can benefit from the outcomes.

Ta b l e 7 : Me tho d of m e as u r i n g r i s k 28

R isk Man age m e n t 6 . 3 En d og e n o u s Ri s k s : S e cu r in g t h e s ite Risk : As the overall success of this project was initially unknown, one of the preliminar y risks the project faced was how much they invested and paid for the land. If they purchased the land f or a far greater cost than the projects eventual value, then they would already be behind on the output and profits of th e project. Management: Therefore, to prevent this from happening, the project team negotiated to get the lowest possible price for the site to ensure they would have the greatest returns. This was relatively easy, as the site was an abandoned quarr y mine, so would have not been suitable for many other developments and would have other wise remained derelict and unused.

Te c h n ic a l C o n s t ruc t io n Risk : There were a number of risks involved in the construction of The Eden Project, par ticularly creating the steel frame of the biomes, this combined with the ground-breaking use of E TFE. This could have led to unfor tunate circumstances, such as a much longer construction time or even failure to complete the project in its desired form. Management: This was avoided by consulting the right specialists throughout the project’s development, working closely with engineer s to avoid those events from becoming a reality. By per forming countless tests of the materials and building prototypes throughout the design development allowed the construction of the project to be carried out with confidence that the technical details were resolved, therefore bypassing this risk .

Ta b l e 8: Me t h od of m e as u r i n g r i s k 29

Summ ar y There are countless risks a project could potentially face throughout its lifetime; therefore, it is vital that the stakeholder s, funder s, and project sponsor s share the risks, allowing them to be better equipped for any turbulence which may arise, as they have an established suppor t network . To be secure, it is necessar y for the projects to endure the unavoidable turbulence that they will confront (Miller and Lessard,). Flexibility within the project team is essential as the ability to reschedule or restructure could be what is needed to fix the turbulence. Therefore, it is essential to have an identified flexible suppor t network who can cope with the turbulence. These risks however don’t end af ter the project is completed, they may still confront risks (mainly exogenous risks), such as financial crashes or pandemics etc. However, the hope is that they are well established enough and have robust sponsor s by this point to withstand any sor t of turbulence that may occur.

F ig. 19: Phot ogr aph of a n e mp l o y e e a s s e s s i ng the b i om e 30

7 . 0 Pr oj ec t G o ve rn an c e 7. 1 W h a t i s P ro j e ct Go ve r n a n c e? Project governance provides a decision-making framework that is logical and robust. It “is the infrastructure dealing with responsibility and accountability that surrounds your project… It gives the structure of over sight to the entire project” . (Wrike, 2021). (https://www.wrike.com/ project-management-guide/faq/what-is-governance-in-project-management/) It is a critical element of any project, and essential you have project team member s or sponsor s who have experience in working on or managing other successful projects. This acts as an insurance, to safeguard that you (as the project) are best equipped to deal with potential problems, as you have existing knowledge and under standing into what potential ‘turbulence’ may arise. The project governance within The Eden Project was unique for a mega-project, as the sponsor of the project, The Eden Trust, was also the client. Throughout the majority of the project, it was largely led by its founder, Tim Smit. Smit had previously managed the project ‘ The Lost Gardens of Heligan’, which has since been described as ‘the pilot study’ for The Eden Project (Pearman, Whalley, 2003). Although much smaller in scale than The Eden Project, Smit was able to utilise experience and contacts he had made throughout this project to contribute towards the success of The Eden Project. The other members within the trust, all had various experiences within different sectors of proper ty development, through learning and managing other projects the success of The Eden Project demonstrated their ability to safely guide the project through any potential turbulence.

F ig. 20: Vi si on of The E d e n P ro j e c t i n Dund e e 31

7. 2 Proj e c t Im pa ct - Th e Eden Ef f ec t The Eden Project proved to be a successful project, not only for creating a profit, but for becoming a sy mbol of sustainability and biodiver sity. “Eden the movement is much larger : our growing range of projects, from local to global, aim to transform places and lives” (Eden Project, 2021). Due to their outstanding success, the team at Eden have decided to expand to other locations across the UK and internationally, on ever y inhabited continent (as seen in fig__). Creating a hope to generate a positive impact on the planet, promoting the climate crisis, biodiver sity loss and pollution, aiming to stimulate and educate showing “what people can do when they come together to protect the planet” (Eden Project, 2021). The Eden Project has therefore not just created an impact within Cornwall but worldwide, this has been called ‘ The Eden Effect’. From the initial ‘big fat idea’ Eden has established a community revolving round promoting sustainability and creating positive change. “Eden has grown into a living, breathing model of positive change. The stor y is going global” (Eden Project, 2021).

8 . 0 C r i ti c al Ev al u ati o n

Table 9: Eval uat i on of c ri ti c a l f ra me w o rk

9 . 0 C oncl u si on When compared and evaluated against a critical framework , The Eden Project proved to be a successful example of the proper ty development process. Through careful analysis and detailed studies, the critical framework which referenced key literature sources was developed in order to evaluate and assess The Eden Project. Weighted evaluation scores were given to each chapter within the framework in order to critically mea sure the rate of The Eden Projects success. A combination of various elements contributed towards the successful completion of The Eden Project, from the risk manageme nt to the project governance. However, a specific emphasise is required on the front-end planning process and the strategies which were developed within these vital early year s of the project. Many of the key decisions taken within this front-end planning process shaped the development of The Eden Project, steering it through potential turbulence and providing a solid foundation to succeed from. The frontend planning process was ultimately the core behind the success of The Eden Project. Therefore, the evident high ratings of success in regard to both the front-end planning process and the critical evaluation conclude that The Eden Project is considered a ver y successful model of the proper ty development process. Description of The Eden Project within ‘Value and Risk Management, A Guide to Best Practice’: “ The Eden Project is probably the most successful of al l the Millennium projects in the United Kingdom. It used value an d risk management to great effect in overcoming seemingly impossible obstacles in fund raising, design and construction, to open ahead of schedule within the budget and exceeding expectations”. (Dallas, 2006, Page 2)

F i g . 2 1 : S c al e d m od F i ge .l 1of9: TPhheotEogr d e na P ph rojof e can t em p lo yee a ssessin g 35

g t he b iome 36

1 0 .0 Refe re n c e s 10.1 Bi bl i ogr a ph y 2001. Regional planning guidance for the South West, The Stationer y Office. CAPKA , J. R. 200 4. Megaprojects - They are a different breed. 68, 2-9. CHINYIO, E. & OLOMOL AIYE, P. 2009. Construction Stakeholder Management, Wiley. DALL AS, M. 2006. Value and risk managem ent : a guide to best practice, Oxford, Blackwell Publishing. DAVID WILSON HOMES. 2018. Average UK house sizes: The 5 main proper ty types. Accessed 2021. [online] available at: < https://www.dwh.co.uk/advice-and-inspiration/average-house-size s-uk/> FALMOUTH ANCHOR. (2017). The Eden Project: A business anomaly or a model for a profitable and sustainable future? [online] Available at: <https://www.falmouth-anchor.co.uk/2017/11/20/theeden-project-a-business-anomaly-or-a-model-for-a-profitable-and-sustainable-future/> FIRLEY, E. & GRÖN, K. 2013. The urban masterplanning handbook , Chichester, UK , Wiley. FLYVBJERG, B., BRUZELIUS, N. & ROTHENGAT TER, W. 2003. Megaprojects and Risk : An Anatomy of Ambition, Cambridge Univer sity Press. GREIMAN, V. A. 2013. Megaproject management: lessons on risk and project management from the Big Dig, Somer set, Wiley. GRIMSHAW ARCHITECTS. The Eden Project. Accessed 2021. [online] available at: <https://gr imshaw. global/projects/the-eden-project-the-biomes/> MARSHALL, T. 2004. Regional Planning in England: Progress and Pressures since 1997. The Town Plan ning Review, 75, 447-472. MERROW, E. W., MCDONNELL, L. M. & ARGUDEN, R. Y. 1988. Under standing the Outcomes of Mega-Projects: A Quantitative Analysis of Ver y Large Civilian Projects, Santa Monica, CA , RAND Corporation. MILLER, R. & HOBBS, B. 2005. Governance Regimes for Large Complex Projects. Project management journal, 36, 42-50. MOLONEY, K. 2006. Rethinking public relations : PR propaganda and democracy, New York , Routledge.

MY BUILDER LIMITED. How much does it cost to build a house? Accessed 2021. [online] available at: <https://www.mybuilder.com/pricing-guides/architect-costs/new-build-house-costs> PE ARMAN, H. & WHALLEY, A. 2003. The architecture of Eden, London, Eden Project Books, in association with Grimshaw. RATCLIFFE, J., STUBBS, M. & KEEPING, M. 2009. Urban planning and real estate development: Third edition. REED, R. 2021. Proper ty development, New York , Routledge. RODNEY TURNER, J. 2004. Five necessar y conditions for project success. International journal of project management, 22, 349-350. SIMPSON, D. 2006. Eden Project boosts Cornish Economy. Accessed 2021. [online] available at: <Eden Project boosts Cornish economy (cabi.org)> SMIT, T. 2001. Eden, London, Bantam Press. SYMS, P. M. 2010. Land, development and design, Oxford, Wiley-Blackwell. THE EDEN PROJECT. Architecture. Accessed 2021. [online] available at: <https://www.edenproject. com/mission/about-our-mission/architecture> THE EDEN PROJECT. Eden Project Dundee, UK. Accessed 2021. [online] available at: <https://www. edenproject.com/new-edens/eden-project-dundee-uk> THE EDEN PROJECT. Our Origins. Accessed 2021. [online] available at: <https://www.edenproject. com/mission/our-origins> THE EDEN PROJECT. Visit Eden. Accessed 2021. [online] available at: <https://www.edenproject. com/visit WILKINSON, S. & REED, R. 2008. Proper ty development, London, Routledge.

1 0 .0 Refe re n c e s 10.2 F i g u re s Im a ge s : Fig. 1: (Front Cover) The Eden Project Sketch. Sketch: Grimshaw Architects – Adapted By Author. Accessed 2021. [online] available at: <https://grimshaw.global/projects/the-eden-project-thebiomes/> Fig. 2: Eden Project Sketch. Sketch: Grimshaw Architects – Adapted By Author. Accessed 2021. [online] available at: <https://grimshaw.global/projects/the-eden-project-the-biomes/> Fig. 3: Photograph of The Eden Project completed. Photograph: Eden Project. Accessed 2021. [online] available at: <https://www.edenproject.com/visit> Fig. 4: Birds eye per spective of The Eden Project. Photograph: Grimshaw Architects. Accessed 2021. [online] available at: <https://grimshaw.global/projects/the-eden-project-the-biomes/> Fig. 5: Diagram demonstrating the development of the critical framework . Author s Own Fig. 6: Project Development Timeline. Author s Own Fig. 7: Bodevla Clay Pit prior to the construction of The Eden Project. Photograph: Eden Project. Accessed 2021. [online] available at: <https://www.edenproject.com/mission/our-origins> Fig. 8: Concept sketch of The Eden Project. Sketch: Eden Project. Accessed 2021. [online] available at: <https://www.edenproject.com/mission/about-our-mission/architecture> Fig. 9: Diagram demonstrating the time spent on front-end planning. Author s Own Fig 10: Diagram demonstrating the different levels of stakeholder s within the project. Author s Own Fig. 11: Bodevla Clay Pit prior to the construction of The Eden Project. Photograph: Eden Project. Accessed 2021. [online] available at: <https://www.edenproject.com/mission/our-origins> Fig. 12: 3d printed concept model of the biomes, testing the structure. Photograph: Grimshaw Architects. Adapted By Author. Accessed 2021. [online] available at: <https://grimshaw.global/ projects/the-eden-project-the-biomes/> Fig. 13: Initial concept sketch. Sketch: Eden Project – Adapted By Author. Accessed 2021. [online] available at: <https://www.edenproject.com/mission/our-origins> Fig. 14: The Eden Project under construction. Photograph: Eden Project – Adapted By Author. Accessed 2021. [online] available at: <https://www.edenproject.com/mission/our-origins> Fig. 15: One of the completed biomes. Photograph: Grimshaw Architects. Adapted By Author. Accessed 2021. [online] available at: <https://grimshaw.global/projects/the-eden-project-the-biomes/>

Fig. 16: Diagram demonstrating the value of land increasing as the project progresses through the front-end planning process. Author s Own Fig. 17: Areas around the world where Eden is developing new projects. Author s Own Fig. 18: How The Eden Project achieved the desired level of sustainability. Author s Own Fig. 19: Photograph of an employee assessing the biome. Photograph: Grimshaw Architects. Accessed 2021. [online] available at: <https://grimshaw.global/projects/the-eden-project-the-biomes/> Fig. 20: Vision of The Eden Project in Dundee. Photograph: Eden Project. Accessed 2021. [online] available at: <https://www.edenproject.com/new-edens/eden-project-dundee-uk> Fig. 21: Scaled model of The Eden Project. Photograph Grimshaw Architects. Accessed 2021. [online] available at: <https://grimshaw.global/projects/the-eden-project-the-biomes/>

Tab le s : Table 1: Project Team. Author s Own Table 2: Where the project funding came from. Author s Own Table 3. Breakdown of professional fees. Author s Own Table 4: How the funding was spent. Author s Own Table 5: Evaluation of the front-end planning process. Author s Own Table 6: Risks that The Eden Project faced. Author s Own Table 7: Method of measuring risk . Author s Own. Based on ‘Risk Analysis and Management for Projects’ (RAMP). DALL AS, M. 2006. Value and risk management : a guide to best practice, Oxford, Blackwell Publishing. Table 8: Method of measuring risk . Author s Own. Based on ‘Risk Analysis and Management for Projects’ (RAMP). DALL AS, M. 2006. Value and risk management : a guide to best practice, Oxford, Blackwell Publishing. Table 9: Evaluation of critical framework . Author s Own

1 1 .0 Appe n di x 11. 1 Re si d ua l Va l u a t i o n As The Eden Project was so innovative, with few other possible options for the site, a site close by the Bodevla clay pit has been selected to under take the residual valuation. The following residual valuation is proposed for housing on a site in close proximity, to The Eden Project, which is roughly the same scale of site, approximately 15 acres. The data gathered has been estimated and referenced based on proper ty prices in the surrounding area and up to date square footage pricing. Calculations were under taken to calculate the maximum possible price to pay for the land in order for the developer s to achieve a 20% profit.

Proposal: 110 new build 2 bedroom homes @ 62sq m (DWH, 2018) 110 new build 3 bedroom homes @ 74 sq m (DWH, 2018) Anticipated sale of house type: Average sale of 2 bedroom house: £210,000 (Rightmove, 2021) Average sale of 3 bedroom house: £260,000 (Rightmove, 2021) Build cost £1800/sq m for new build (My Builder, 2021)

Sale Proceeds 110 x 2 bed @ £210,000 110 x 3 bed @ £260,000 Sale Proceeds Total

£51,700,000

Costs Selling costs (4%) of sale proceeds

£2,068,000

Build costs 110 x 62/sq m @ £1800 110 x 74/sq m @ £1800

£12,276,000 £14,652,000

Professi onal Fees (8% of build cost)

£2,154,240

Other fixed fees (landscaping, drainage etc).

£4,000,000

Total Costs Finance Purchase Costs (10% of total costs)

£23,100,000 £28,600,000

£33,082,240 £3,308,224

Finance of Land (10% of land pu rchase)

£451,779

Required Profit (20% of sales proceeds)

£10,340,000

Residual Land Purchase

£4,517,760