Risk Management for Different Cases - Case Study Example

? RISKS IN PALM ISLANDS In Dubai, a combination of three islands (Palm Jumeirah, palm Deira as well as Palm Jebel Ali) forms the palms island (Khan, nd). Palm Deira is the newest among the three and work is in progress in developing the island and is estimated to be the largest among the three with an approximate area covering eighty square kilometers. Although the islands differ in hectare-age, common features in the three are that they carry the shape of palm and construction as well as engineering in all takes similar state of art procedures. Therefore, the study of risks and challenges experienced in constructing one such island would serve representatively for all others. Discussion Distinctive feature with Dubai’s palm islands is that unlike the development and construction of such other islands in the world where metal as well as concrete are applied, this island’s construction wholly adopts natural materials (Butler, 2005). This therefore represented the main challenge while designing the artificial island and collaborative efforts by ‘’construction contractors and engineering scientists’ were involved for the exercise. Major risk was however the way to sustain the sand island after reclamation taking into consideration the exposure to tides as well as waves and rising sea level as influenced by global warming (“Palm Islands, Dubai - Compression of the Soil” 2013). Nevertheless, the construction of a crescent water-break structure has the capacity of protecting the island from the adverse effects of such waves and tidal rises. Precaution is however taken by the scientists who constructed the breakwater crescent because the destruction of the crescent has a direct implication of destruction of the island. This therefore presents the main challenge. Among other lessons learnt from this construction is that the islands are artificial and made of natural materials without such materials as concrete and metal. Besides, the island’s construction suffered time constraint and was scheduled to last only three years, a challenge that the contractors were to succeed in. the construction of the crescent faced a major challenge of poor water circulation which they sought to address through two openings through which tidal water would replenish the fronds water supply and control stagnation. Another challenge is that the sand used is loose and uncompacted which presents the main threat to the welfare of the island. Liquefaction is therefore seen to have a high potential of occurring in the event that an earthquake occurs, which would have adverse outcomes to the islands (‘MESSINA project’, 2005). The precautions in this construction process were inevitable as the design was intended to support over a million people upon completion (‘Island life’, nd). Erosion along the beach posed another major problem with the palm island where unlike with natural beaches, the artificial beach would fail to replenish sand washed always by water, as would be a natural course with the natural beaches (Choomchaiyo, 2009). The analysis of this project presents some basic risks, which pose a threat to the successful completion of the project as designed. Financial resources were paramount with the project requiring continued adjustment longitudinal researches. The controversy around the matching of the financial as well as resultant social benefits from the project and the costs incurred poses a major challenge to determine. Besides, misrepresentations and miscalculations while planning for the project has adverse effects in costs incurred by the public over the project. Other risks associated with the project are costs risks (such as maintenance, construction as well as operation of the island), demand risks (forecasting revenue returns to be earned), future financial market performance as well as political risks. Moreover, such a mega project has the capacity of fragmenting social as well as physical coherence in the island (Darmaki, 2008). The palm project has an enormous environmental risk as shown from interference with marine life in construction and even after (Cressey, 2011). Live corals were the most affected during the construction of the mega projects as the location of the island is a main stay to millions of such sea life. This has absolute risk implications to the balance of ecosystems represented there (Salahuddin, 2006). In sum therefore, the costs identified in Palm island project are as follows 1. Financial costs risks (poor cost estimation and relevant sources of funding) 2. Failure to keep within the level of estimated costs 3. Changes in scope as well as requirements 4. Design changes 5. Inaccurate contract time estimate 6. Inadequacy in defining and delegating roles 7. Political risks Qualitative risk analysis Risk 1. Financial costs risks Probability 3 Impact 3 Risk importance High 2. Failure to keep within the level of estimated costs 3 4 Critical 3. Changes in scope as well as requirements 1 3 High 4. Design changes 2 2 Low 5. Inaccurate contract time estimate 3 4 Critical 6. Inadequacy in defining and delegating roles 1 4 High 7. Political risks 4 2 Medium Risk control Risk 1. Poor Cost Estimate Control The client, which is the Dudai government and contractors, has the role of ensuring proper costing for the purpose of effective cost estimation and overcoming the problem of financial crisis (Salah, 2010). 2. Failure to keep within the cost estimate The client, which is the Dudai government and contractors, has the role of ensuring proper recording and accurate budgeting in order to have the project managed with the planed financial resources. 3. Changes in project scope and requirements The client is often blamed on having the scope and requirements of the palm island project adjusted to fit prevailing circumstances such as financial environment. This is a risk that can only be handled by the client (the government) through proper policies and regulatory framework. 4. Design changes As a risk, deliberate changes in designs of such a project has potential to causing adverse effects on proper timing and resource allocation and both the client and contractor has the capacity to control it. 5. Inaccurate contract time estimate Architectural Engineers while designing such a mega project should have proper time estimation in order to guide the client as well as the contractor to deliver within the stipulated period and avoid risks of extra costs. 6. Inadequately defined roles and responsibilities It is often the contractor failure of the contractor to define roles to the sub contractors working in such a project hence resulting to failure to deliver as expected 7. Political risks Such a mega project attracts political attention where the forces of politics present a potential risk. Control of such a risk would be by the government as well as the contractor through proper policy frameworks. References Butler T., (2005). Dubai's artificial islands have high environmental cost The Price of "The World": Dubai's Artificial Future. Retrieved from http://news.mongabay.com/2005/0823-tina_butler_dubai.html Choomchaiyo T., (2009). The impacts of palm islands. Construction of the Islands. Retrieved from https://sites.google.com/site/palmislandsimpact/general-information/construction-of-the-islands Cressey D., (2011). Gulf ecology hit by coastal development: Dubai's artificial islands are affecting marine ecosystems. Retrieved from http://www.nature.com/news/gulf-ecology-hit-by-coastal-development-1.9374 Darmaki I. A. R., (2008). Globalization and urban development: A case study of Dubai’s Jumeirah palm island mega project. Retrieved from http://eprints.soton.ac.uk/67552/1.hasCoversheetVersion/Dubai%27s_Jumeirah_Palm_Island_MP.pdf ‘Island life’, (nd). “Infrastructure projects developed on some man-made islands need to be sufficient to cope with several thousand residents” Retrieved from http://www.atkinsglobal.co.uk/~/media/Files/A/Atkins-UK/Attachments/sectors/tourism-and-leisure/angles/Angles-island-life.pdf Khan M. A., (nd). Economic Crisis in the Gulf - Lessons learnt. Retrieved from http://www.icap.org.pk/wp-content/uploads/cpd/ppt/MAK_Gulf_%20Economic_Crisis_ICAP.pdf ‘MESSINA project’, (2005). A CaseStudy Documenting the Dubai Coastal Zone Monitoring Programme – An International Example. Retrieved from http://www.interreg-messina.org/documents/Component%202/MESSINA%20-%20Component%202%20-%20Case-Study%20-%20Dubai.pdf “Palm Islands, Dubai - Compression of the Soil” (2013), Ground Improvement for Man-Made Island. Retrieved from http://cdmsmith.com/en-EU/Solutions/Facilities/Palm-Island-Dubai.aspx Salah O., (2010). Dubai Debt Crisis: A Legal Analysis of the Nakheel Sukuk. Retrieved from http://bjil.typepad.com/Dubai%20Debt%20Crisis.pdf Salahuddin B., (2006). The Marine Environmental Impacts of Artificial Island Construction Dubai, UAE. Retrieved from http://dukespace.lib.duke.edu/dspace/bitstream/handle/10161/104/Salahuddin%20MP%202006.pdf;jsessionid=2D6E3BDC295ECDB07E11BC3922427F9F?sequence=1 Read More