Simplified Business Case for the Golden Gate Bridge
This weekly upload is going to be a study blog, written to help me revise my course, Project Management BSc. Hopefully, it will also create a good overview for anyone else looking to study the same thing.
In response to my last post, I wanted to share a rough draft of a simple business case. Using my University’s description of a business case, I have tried to come up with something similar, referring to the Golden Gate Bridge. I haven’t addressed all the key elements of a business case here, because I either struggled to find any research on that specific part or I wasn’t confident enough with my answer. If anyone does have any good feedback, that would be helpful. However, this is just my take on a quick task, nothing serious, perhaps as my course matures, I will be able to return to it and extend it a bit further.
Strategic Case: A solution is needed to connect the almost 2-mile gap between Marin County to San Francisco as there was no way round at the time.
Options Appraisal:
| Option | Cost | |
| 1. | Do nothing | Minimum |
| 2. | Build a Bridge (recommended) | Maximum |
| 3. | Invest in Boats | Average |
Expected Benefits and Disbenefits:
| Option | Benefits | Disbenefits |
| Do nothing | Saves cost, saves resources | No direct link between Marin County and San Francisco Bay |
| Build a Bridge | Direct link between Marin County and San Francisco Bay, opens up employment (on construction and between the 2 areas), more roads leading to less congestion. | High cost, high risk construction, disapproval from business owners and civic leaders, ruin the view of the bay, obstruct ships, requires maintenance |
| Invest in Boats | Increased access across the bay, increased revenue and employment for the shipping business | Requires maintenance, will not allow car access between the 2 areas |
Financial Case:
Engineers estimate of $25-30 million to construct.
$35 million in bank bonds granted
Bank of America President Amadeo Giannini, who provided a crucial boost by agreeing to buy $6 million in bonds in 1932. https://www.history.com/topics/landmarks/golden-gate-bridge
Photo by Alexander Mils on Pexels.com
Risks of Building the Bridge:
- Hazardous working conditions – impacts the workers and their family’s health and wellbeing
- There was risk of insufficient funding after the Great Depression – may cause the bridge to remain uncompleted, or could lead to a delay in the project
- Earthquake – after the 1906 San Francisco earthquake there would be worries of insufficient measures to avoid bridge collapse, which would incur additional costs and endanger lives.
Time Scale:
Drawings for the bridge were submitted in 1921 and were passed in 1933. Building work was completed in 1937.
Benefits realised after one year “June 30, 1938: During the first full fiscal year, the Golden Gate Bridge serves 3,892,063 motor vehicles, carries more than 8,000,000 passengers, and in excess of 400,000 pedestrians walked the sidewalks (GGBHD Annual Report FY37/38).”
According to http://goldengatebridge.org/research/GGBTraffToll.php, the toll for the bridge was 50 cents each way in 1937, so according to above study, in the first year the bridge would have roughly earned $1,946,031.50 in it’s first year.
If you have any tips on how to improve this, please let me know!
OTHER SOURCES
http://goldengatebridge.org/research/dates.php
