Burj Khlaifa Management analysis PDF

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Provisionofsuggestionsorrecommendationsintheeventthattheprojectshouldbere-runinthefuture....

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“Burj Khalifa” is the project that we have considered for this assignment, which is a construction project that has set a new benchmark on the construction industry. Burj Khalifa or Burj Dubai is the largest skyscraper that is located in Dubai. It is the tallest structure in the world and its construction began in 2004.

1. Introduction Burj Khalifa is the largest skyscraper in the world with a height of 2722 feet. Construction of the project began in 2004 and the exterior of the building was completed in 2009.It is a reinforced concrete structure. The building was opened for the general public in 2010.The country’s aim with this project was to gain international popularity and diversify their economy. The name of the building is after the president of United Arab Emirates, Khalifa Bin Zayed Al Nahyun. The completion cost of the project was about $1.5 billion. The building is accompanied by a fountain which is also the world’s largest fountain costing $800 million. The massive construction of the project involved a lot of challenges. Though the building received many awards and popularity, issues related to labor, timely completion of project, designing of the project, costs involved were the major challenges faced. Designing building to with stand the wind pressure, funding of the project, designing the effective sewerage system were the major issues related to this project. This was a huge iconic project that required to face massive challenges. Hence this project was chosen foe our case study. The report presented here will discuss the challenges and how the challenges were resolved. The report presents the objectives and analysis of the project.

2. Project Objective, Stakeholder and Expected Value United Arab is one of the countries that primarily depends on an oil for its economy. The construction projects in Dubai rapidly raised because of the revenue generated from the oil industry. Dubai became a tourist destination around the world.

Dubai’s decision to construct the Burj khalifa according to the government officials was to diversify its economy from oil based industry to tourism based. They wanted to have International recognition. The other main motive was to bring urban engineering into the construction sector. One of the unique feature of this building is its architectural work that adopted the Y shape. The reason behind the Y shape building was to prevent it from the massive wind pressure and to increase the factor of safety against other load. The project was constructed in order to serve commercial, hotel, residential, fun environment, water fountain along with shopping mall. Hence, it can be concluded that the overall objective was not only to construct the world’s tallest building but to become a symbol of inspiration. The Burj Khalifa tower resembles the shape of flower located on a desert. It resembles the sense of nationality. On a conclusion this building was constructed not only to present the world with highest skyscraper but to achieve the objective of inspiration and sense of originality. 3. Stakeholder Construction of Burj Khalifa was carried out by Samsung C and T from South Korea. As per definition, “Stakeholders are the people who have an interest or concern in something, especially in business”. By definition if we try to include all the interested groups, there will be more stakeholders related to Burj. The most concerned stakeholders are listed below: Government of Dubai Architecture group – SOM, Chicago Consultant Group – Hyder Consulting Construction and foundation designer – Baier and middle east foundation  Main Contractor – Samsung Engineering, Besix and Arbatec (The contract cost of the project was 876 million dollar.  Brookfield multiplex – Responsible for constructing of foundation  Others-Otis as a lift contractor, Al Ghurair Group as a cladding contractor, Dorma as a door contractor etc.    

General Overview of Stakeholders:  78 Companies  16 Consultants

     

14 Contractors 3 financial institutions 2 Owners 2 Real estate companies 3 Sub-Contractors 38 Supplier

4. Construction of Burj Khalifa Construction of Burj Khalifa in Dubai shifted the thought of the people toward Dubai. It made Dubai famous for tourist spot and recognizes Dubai as a place for luxurious living and leisure. Many job opportunities were treated and ultimately it contributed to the economy of Dubai. Several companies, especially real state advertised annual rental of Burj Khalifa studious at AUD 49000. Many offices that are established in Burj Khalifa have to pay a service fee of AUD 21.9975 (community service fee) per square feet. Besides this tourist pay the money for tickets in order to visit the sky scrapers. It can be concluded that it is a business of attraction, fun etc. Burj Khalifa contributes almost 3% of the country economy.

5. Scope, time and cost of the project The main scope of the project was to develop the world tallest sky scrapper along with the shift of country economy to tourism. Not only this, Dubai government planned to create the business hub for world. 6. Cost of the project The initial plan cost of the project was 879 million dollars. In the end the final total cost of the project was $1.5 billion dollar. The main reasons behind the increase in the cost were inflation (downturn of global economy in 2008). The inflation in 2008 causes the increase of

iron by 75%. Prices of cements and other commodities were the main factor behind the increased cost of construction. The other factor that lead to cost increase was change in the design. The height of the project was increased to 100m than the original design.

7. Time The project was started in 2004 A.D and was supposed to be completed in 2008 A.D. The project took 9 month of extra time to complete and was finished in 2009 A.D. Burj Khalifa was officially opened to general public in 2010 A.D.

The cost of the project was

increased with the inflation and change in design. The delay of time can be linked with “Dubai shock” which was caused by massive change in real estate investments. The construction was stopped for 4 month in 2008 A.D. 8. Critique on Management Construction of such a massive structure was not an easy task and management faced many problem during the project phase. At first the project was supposed to finish on 2008 but got delayed almost by 1 year. Some of the aspect of the project was outstanding as it was managed well .whereas some of the aspect were very poorly managed. The problem faced by the management during the project cycle are discussed below: a. Poor labor condition Safety of the worker involved in the project is always an important issue. Around eight to twelve thousand workers were involved

directly in this project risking their life. Workers in this project were paid very low wages compare to the overall cost of the project. Since there was no law stating the minimum wages to the worker, workers involved in the project were exploited. According to the report from Human Rights Watch Study some workers were reported earning less than 10 US dollar a day. b. Wise use of Resources: Since the building is 828 m tall it was very difficult for the Engineers to lay down the concrete on the site. Not only was this but the poor weather condition challenged the construction of the project. Weather reached 50 degree Celsius during the day time and the concreting had to be done during the night time. Researching was done so that concreting could be done at such a height. Engineers were able to use the concrete pump with 80 MPA pressure that braked the record of laying the concrete on such a height. c. Strike This was one of the aspect of the project that cause the delay of the project .Management of the project was not able to handle strike. Worker carried out strike in between 2006 and 2007 A.D. d. Risk Management From this point of view project was well managed. Structure was designed very safely to withstand the effect of wind and gravity load. There were numerous camera installed that could detect the unsafety condition and number of people inside the building.

9. Project Analysis

If the time and cost are taken as a parameter for the success of the project, then the project can be regarded as a failure. Since the estimated cost of the project was exceeded beyond the first cost and secondly the

increased time period

signify the

failure of the

management. The overall height of the project was increased by 100 m which was the reason for the unexpected loss of the money. The project was out of budget because the numerous changes. It can be said that project management did not perform well. However, we will be

using

the

terms

quality,

resource

management,

and

goal

achievement to analyze the project. Similarly benefits achieved by the stakeholder after the construction of the project can be used as a performance indicator to evaluate the success of the project. The main contractor Samsung Engineering made use of the new technology that was based on their past experience of similar work. BurjKhalifa was made to with stand huge wind pressure. Reinforced concrete structure was used to withstand such pressure. Company carried out various tests in order to evaluate the strength of concrete before construction. These planning and tests enabled the building to withstand such a pressure.

Company made effective use of their

resources. The tower met the service requirement and was able to meet the expectation of stakeholders. The quality requirement of the project was delayed by economic shock faced in 2008 and cost was increased due to rise in material cost. So from the quality point of view project can be regarded as success. If we consider the service point of view project it can be called a successful as it was able to meet the need of stakeholders and other interested parties. Three percent of the GDP is alone raised by this structure for Dubai.

Though the project was not able to meet the time and budget requirements but if we take the social view, Dubai did a lot of struggle with its debts and have seen lot of development because of its urban development planning. Though the construction of Burj Khalifa was delayed almost by 1 year but in the end it was completed. Many of the construction project that started in Dubai at that time had to be closed because of the economy condition. However this project was delivered by Dubai. This can also be considered as a parameter of successful project. In many aspect the project was successful to meet the requirement so it can be concluded that project was a success.

10.

Conclusion

Burj Khalifa is the tallest structure ever built by human. This project can be considered as successful project as it was able to meet the requirement of stakeholders group such as businessman and other interested parties. Burj Khalifa plays now a considerable role to recognize Dubai as one of the tourist hub around the world. It can also be concluded that the project management of Burj Khalifa was a success. The project was delayed by one year because of the economic shock that Dubai faced. Despite the economic shock and sudden change in prices of the products, the management was able to cope with it and finish the project within a year. There are numerous construction projects in Dubai that had to be stopped because of the sudden change in economy. This building is a symbol of group work and reflects human work can achieve anything

through their continuous effort. This building stand as an initiative for other construction to withstand the challenge....