UiTM ECM566 KLIA2 Project PDF

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IBACHELOR OF ENGINEERING (HONS.) CIVILFACULTY OF CIVIL ENGINEERINGTITLE : THE KLIA2 PROJECTPREPARED BY:NUR AISYAH BINTI MOHD ASRI 2018226842MUHAMMAD ZULHILMI BIN MUHAMMAD ZULHAZLI 2019528147MUHAMMAD HAZIQ BIN AZIZ 2017741777WAN MUHAMMAD ALIF BIN WAN ROSMAN 2019193167CLASS:EC2206CPREPARED FOR:DR. NUR...

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BACHELOR OF ENGINEERING (HONS.) CIVIL FACULTY OF CIVIL ENGINEERING

TITLE : THE KLIA2 PROJECT

PREPARED BY: NUR AISYAH BINTI MOHD ASRI

2018226842

MUHAMMAD ZULHILMI BIN MUHAMMAD ZULHAZLI

2019528147

MUHAMMAD HAZIQ BIN AZIZ

2017741777

WAN MUHAMMAD ALIF BIN WAN ROSMAN

2019193167

CLASS: EC2206C3

PREPARED FOR: DR. NUR IZZATI BINTI AB RANI

I

TABLE OF CONTENT

CONTENTS

PAGE

TABLE OF CONTENTS

II

LIST OF TABLES

III

LIST OF FIGURES

III

ABSTRACT

IV

INTRODUCTION

1

REVIEW OF KLIA 2 CONSTRUCTION PROJECT

3

PROPOSED PROJECT GOAL FOR THE KLIA 2 PROJECT

6

PROPOSED PROJECT PRIORITY MATRIX FOR THE KLIA 2 PROJECT INCIDENT / SITUATION /DECISION OCCURRING IN THE KLIA 2 PROJECT

7

8

SOLUTIONS FOR THE PROBLEMS CAUSED BY THE INCIDENT/ SITUATION /DECISION OCCURRING IN THE KLIA 2

10

PROJECT CONCLUSIONS AND LIMITATIONS

12

REFERENCES

13

II

LIST OF TABLE Table 1

The proposed priority matrix table

6

LIST OF FIGURE Figure 1

Controversy of delayed KLIA2 project

1

Figure 2

The action priority matrix

4

Figure 3

The Five Most Important Effects of Delay based on clients’

4

point of view

III

ABSTRACT

The construction industry is an important sector that contributes greatly in the economic growth of a nation as this also supported by the government by showing high interest investing in this sector especially to develop infrastructure related to health, transport and education sector. Each sector has its own merits with a varied and rewarding range of work projects. Thus, every project should engage with these triple constraints which is time, cost and quality to have a successful construction project. Based on the project assignment given, the study of Kuala Lumpur International Airport 2 (KLIA2) need to be review by students as the future project manager (PM) on how to manage a project by applying what they have learnt in Construction Project Management (ECM566) subject. The main objectives of this study are to review the completed construction of KLIA2, the possible original project goal and project priority matrix for the given completed construction project. The purpose of this report also was to undertake a thorough investigation into the various causative factors which may have contributed to the failure of delayed KLIA2 project by Malaysia Airports Holdings Berhad (MAHB). Lastly, the construction of KLIA2 project need to be cross-examined thoroughly before make any assumptions or proposal in term the triple constraint of the project construction completion based on the relevant evidence or references.

IV

INTRODUCTION

The aim of this project assignment is to identify the functions of project management in constructing and building the Kuala Lumpur International Airport 2 (KLIA2) or initially known as the new Low Cost Carrier Terminal (LCCT). This project assignment will define the application of the project definition, project planning and project control into KLIA2 project. To achieve a successful project management, it is solely depends on how good the project manager define the project goal based upon a clear understanding of the project stakeholder’s needs and requirements. It also takes a careful planning, attention to detail and an effective communication among the teams to consistently reach project success. Therefore, a powerful time and project management tool known as Priority Matrix is used in order to keep critical projects on track and prioritize time wisely.

Generally, Kuala Lumpur International Airport 2 (KLIA2) is a new purpose-built mega terminal, which was designed to replace the older, low-cost terminal at the Kuala Lumpur International Airport and holds the world’s tallest air traffic control (ATC) standing at a height of 133.8m (438ft). The KLIA2 terminal extends over an area of 360,000m² and comprises a main terminal building with a gross floor area of 257,000m². In addition, KLIA2 is the first airport in Asia that linked the main building and the satellite building by a Skybridge. It is also features a 4km runway which is located 2.2km from Runway 2. Therefore, allowing aircraft take-off and landing operations at the same time.

Figure 1 : Controversy of delayed KLIA2 project ( Heza, 2014)

1

Figure 1 shows the controversy of delayed KLIA2 project. In this study, the construction project of KLIA 2 is reviewed and retrieved from the online sources such as articles and news that have been published. Then, the project is review to propose the probability of project goal and project priority matrix. In addition, the probable controversy occurring and the solutions is also discussed in this study. This controversy may be related due to the incident, situation, or decision occurring during the construction of KLIA2 project. Therefore, a comprehensive study of KLIA2 project will be discussed.

2

REVIEW OF KLIA 2 CONSTRUCTION PROJECT

Kuala Lumpur International Airport 2 (Klia2) was build to replace the Low-Cost Carrier Terminal (LCCT) due to increasing of passenger every year occupied LCCT. T he new Malaysia’s airport known as KLIA2 is officially opened on May 2, 2014 to handle at least 45 million passengers per year. This airport also built to be Malaysia’s future Generation International Airport Hub that allows seamless connectivity for both local and international lowcost & full-service carriers. The new terminal is designed with extra care and meticulously to assist future variance of low-cost carrier models to sustain and cater with an increasing capacity growth and serve for the future better than before.

The design of airport terminal has been challenging to consultant and architects to produce the outcomes beyond the purely functional and aesthetics spectacular to create a memorable experience and connect with passengers. In addition, the terminal is design to meets the requirements of LEED (Leadership in Energy and Environmental Design) Green Building Certification and Environmentally Responsible Interior Design (ERID) in order to attain MAHB’s objective to create a green and eco-friendly airport for the user and environment. The design of the airport is incorporated with the latest principles of environmental and high-tech environmental technology. There are a few features developed to incorporate with the green design where reflective material and light colour will be used at the roof surface to reflect solar heat. The building structure will also install light walls to channel natural daylight from the roof to the first floor and energy-efficient displacement ventilation system to be used in the high occupancy areas. Apart from that, accessibility to essential element especially for disabilities person is also considered in design stage to enhance customer satisfaction, safety, communication and experience (Mohd Isa et al., 2016). . The initial budget for the overall project is estimated at RM1.6 billion and was scheduled to open on June 28, 2013. However, the new klia2 terminal is officially opened on May 2014 due to construction delay. Moreover, the cost are inflated due to increases in construction scope of work. The construction cost of the much-delayed has ballooned further from its tightly-controlled RM4 billion ceiling. In addition, Transport Minister at that time whom is Ong Tee Keat announced it would cost RM1.7 billion, higher than what it is estimated before starting the construction. According to Malaysia Airports Holdings Bhd (MAHB), KLIA2 cost more at nearly RM3.9 billion due to the runway need to be extended from its original length of 2.5 km and size changes of the floor space of the terminal. Then, the cost has exceed RM 4 billion due to the increase in construction work scopes. The final total cost for building the

3

mega-hybrid Malaysia’s airport, which began operations on May 2 is RM4.5 billion which ballooned from the last capped budget of RM4 billion. According to PMBOK (2017), the purpose of stakeholder management apart from the project team is to ensure that the project requirements addressed the overall stakeholders’ needs and expectations. As success and failure of a project are linked to interactions between project stakeholders, it should be done continuously throughout the whole project lifecycle. In addition, a good acknowledgement of project success can contributes to stakeholders' perspectives to believe our competency in managing and deliver the project very well. Besides, airport stakeholders come from a different backgrounds and nature of businesses. According to Johansen et al. (2014), it is impossible to gather all stakeholders to involve and consulted at one times since all of them have different situations. During an airport terminal development project, the project team will consult majority of the airport stakeholders and will capture their requirements for the project. The project team members may or may not necessary be the same team who eventually becomes the end users of the airport terminal. Airport terminal design requires the consideration of passenger experience. Recent research state that formal and direct feedback from passengers is rarely taken into consideration when designing or developing an airport terminal as passengers is also considered as an important stakeholder group of an airport terminal (Mohd Isa et al., 2016).

A priority matrix is a tool used to categorically prioritize types of work in order to keep critical projects on track and prioritize time wisely. A priority matrix is easy to understand and simple to use because calculations are not required. Figure 2 show the action priority matrix which is considered as a powerful time and project management tool.

Figure 2 : The action priority matrix (Expert Program Management, 2018)

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Based on the KLIA2 project study by NOVITASARI (2013), the additional works by client or excessive working time incur due to increase of work during construction is shown in Figure 3 to be the major cause of delay in a construction of international airport. When the client decides to change the schedule, it will cause the contractors to reschedule from which they has been budgeted for and included in the scope of work. Thus, impact to the overall work progress which may lead to the delay during the construction. Typically, the KLIA2 project prioritize time following with performance and cost incur.

Figure 3 : The Five Most Important Effects of Delay based on clients’ point of view (NOVITASARI, 2013)

Other than that, the factors lead to project’s delay is discusses in this section. Study by Aziz and Hafez (2013) state that time is one of the important parameters that need to consider for the entire project management life cycle and act as booster of project’s success as time delay can lead to bigger problems. In addition, the study also show that majority causes of delay are due to project owner change order, an incompetent contractor which leads to poor performance, improper planning and slow decision making from project owner. Therefore, by identifying the causes, the project owner or the contractor could take some action and efficient solution to tackle the delay and to quicken the project process.

5

PROPOSED PROJECT GOAL FOR THE KLIA 2 PROJECT

Every construction project has goals to achieve. Goals are referred to high level statements that provide overall context for what the project is trying to achieve and should align to business goals. In other words, project goals are the target business results delivered by a project. Goals motivate people to keep going even if things get hard.

In the case study, one probable goals of Kuala Lumpur International Airport 2 (KLIA2) is to accommodate the high growth of passenger movements for the long term. By 2008, the Low-Cost Carrier Terminal (LCCT) was congested and so the terminal was expanded to have a capacity of 15 million. However, because the demand continued to increase and due to poor location of the terminal, it was decided to replace LCCT with a terminal with larger capacity, superior facilities and greater passenger comfort. This new terminal has a capacity of 45 million passenger and is located next to main terminal building to allow connectivity between LCCs and other airliners.

Astro Awani reported that the Malaysia Airports Holdings Bhd (MAHB) senior general manager (operation services), Datuk Azmi Murad said “KLIA2 is capable of accommodating to all the needs of its visitors and passengers. The airport is able to accommodate almost 45,000 passengers per day and 45 million passengers in a year.” From other sources The Malaysian Reserve reported “At an estimated RM4 billion cost, KLIA2 was officially opened in May 2014 after two years of construction with a capacity to accommodate 45 million passengers per year. It was built primarily to cater to the exponential growth in demand for low-cost travel.” High quality of service is crucial for the tourism industry and its sub sectors in terms of ensuring competitiveness and sustainability. Meanwhile The Borneo Post Online reported “The KLIA2 is designed to handle 45 million passengers a year, replacing the LCCT which had a capacity for only 15 million passengers a year.”

KLIA2 is also designed to be a retail airport. The large terminal is due to large space for retail. Airport operator now comprehend that more revenue must come from this source. The reason is many middle incomes from Southeast Asia choose to fly with low-cost carrier and they expect much more amenities once they land. KLIA2 is billed as the world's largest purpose-built terminal dedicated to low-cost carriers, is designed to cater for 45 million passengers a year with future capacity expansion capability. We can see the goals that they create at the beginning of the project is realistic regarding what they achieve so far. Setting the goal is often the first step towards developing a proposal as it lays the foundation for the project. 6

PROPOSED PROJECT PRIORITY MATRIX FOR THE KLIA 2 PROJECT

TIME CONSTRAINT

COST

PERFORMANCE

X

ENHANCE

X

ACCEPT

X Table 1 : The proposed priority matrix table

a) Time – Based on research, the constraint for priority matrix on the KLIA 2 project is time. The demand in Malaysia for air transportation increasing tremendously, this also became a challenging issue as a result to accommodate the traffic levels without having to expand the airport infrastructure. Hence, the project needed to complete within the estimated time. From the Star on Feb 6, they reported that the Jan 31 deadline was not met because the infrastructure has yet to get the green light from the Fire and Rescue Department, the Sepang Municipal Council and Indah Water Konsortium. From the report it shows that this project failed to accommodate changes to keep the project on schedule. b) Cost – Cost also known as the project budget. Cost for the KLIA 2 project is enhance as the frequent design changes. The cost is exceeded from RM 2 billion to RM 4 billion. The total cost of this project is exceeded from cost estimation due to the changes in the design. Based on the Ms Angeline Chin and her team member, this project also was expected to face some cost overruns about RM 500 million due to the higher consultancy and labour fees. The cost overrun as there were 71% had been changed from original capacity in handle a passenger volume. Initially, it was meant to handle 30 million volume of passengers, but it changed to 45 million passenger passengers. Therefore, the KLIA 2 project is enhanced in cost.

c) Performance – The KLIA 2 project was revise to increase its maximum capacity. Hence, this leads to increase on the overall cost. The revision of the project is done to increase efficiency while also improving the comfortability of passenger by reducing the possibility of crowding due to mixture of passenger to depart and arrived. However, from our research this also cause the project to delay of more than 2 years due to lack of management skills and proper mindset to handle the changes agreed.

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INCIDENT / SITUATION / DECISION OCCURRING IN THE KLIA 2 PROJECT

1. Time - Construction delay

On Wednesday, 11 March 2009, Transport Minister Datuk Seri Ong Tee Keat said, the passenger load at the KL International Airport will exceed 20 million by 2011 and the new Low-Cost Carrier Terminal (LCCT) will cater to this increasing capacity. He said the design capacity for the new LCCT would be around 30 million but the entire project would consist of various phases, which would allow room for further development. MAHB said that it would not be able to open klia2 in time as the contractors, UEM Construction and Bina Puri Holdings Bhd, had fallen behind in the construction schedule. But the contractors disputed the claim, saying the delay was caused by the indecisiveness of MAHB and AirAsia on the terminal design. Malaysia’s first hybrid terminal, KLIA2 built to accommodate 45 million passengers annually was initially set to open in September 2011 but the date has been delayed five times with the latest deadline to be operational by 2 May 2014. This delay was due to increase in construction work scopes in the process of airport building. The delay in securing the certificate of fitness is feared to result in the sixth delay of the airport’s opening deadline. However, MAHB and the Transport Ministry had on many occasions dismissed possibilities of a sixth delay, while repeating that KLIA2 will be open on 2 May 2014, as set by Prime Minister Datuk Seri Mohd Najib Razak .

2. Cost - Cost overrun Malaysian Anti-Corruption Commission (MACC) consultation and prevention panel chairman Tan Sri Johan Jaaffar proposed a probe into KLIA2 in the light of its final cost being almost double the original amount. The latest figures would only be revealed after the completion of the project, according to Acting Transport Minister Datuk Seri Hishamuddin Hussein. It was first designed to cater 30 million passengers a year, measured about 150,000 𝑚2 , and was scheduled to complete in April 2012 for 2 billion Malaysia Ringgit. During its construction phase, the KLIA2 terminal was revised to 257,000 𝑚2 , a 71% increase, with the capacity to cater up to 45 million passengers a year. The cost was increased to 3.6 billion Malaysia Ringgit, and it was rescheduled to open in May 2013. Further revised to be built at a cost around 4 billion Malaysia Ringgit, KLIA2 was scheduled to be opened in 28 June, 2013. But due to construction delay, KLIA2 airport finally was opened on 2 May 2014 for full operations. Its initial budget of RM 2 billion has since ballooned to RM4 billion. The contractors of the main terminal building, a UEM-Bina Puri joint venture, had failed to secure the certificate of completion and compliance by end-February. The final 8

cost is slightly above RM4 billion, with the cost details set to be included in a report by airport operator Malaysia Airports Holdings Bhd (MAHB) to be presented to the Ministry of Transport. Deputy Transport Minister Datuk Abdul Aziz Kaprawi told The Malaysian Reserve that the cost-overrun would be borne by MAHB.

3. Scope – Poor management and inability to adapt to the changes

The changes, upgrades and new addition are not a stranger in the event of a project management, thus the problem...