An Effective Management of Capital Projects in the UAE - Research Paper Example

Name: Institution: Tutor: Topic: Date of Submission: An effective management of capital projects in UAE Background of the study It has become a critical issue to effectively manage capital projects in the United Arab Emirates due to their complexity especially in the modern day. According to Fewings in; the construction project management, despite the decrease in the global economic conditions as well as the revenues for corporate, there is an increased call by the stakeholders for more returns on their investment, more transparency and also minimal risk and exposure Unlike in the past, planning as well as executing of capital projects has now been more focused on the complete life cycle of a project due to the ever changing market environments. Paying more focus to the whole lifecycle of a capital project enhances good planning, good management of assets and maintenance in the sites of operations. This research looks into how effectively capital projects are managed in the UAE. It also looks into the lifespan of a capital project that starts from the basic idea of a project even before its initiation and goes on until the completion and closure of the project. The study brings out the approach that must be followed to effectively manage a capital project while also maintaining the required flexibility of the project. Problem statement Most capital projects in the UAE still face a whole lot of the same intricate concerns. These include budgetary concerns and issues in scheduling and execution of the projects. Failure to deal with such concerns can possibly lead to prolonged disputes with stakeholders as well as loss in value of the project. There is therefore the need to manage these concerns in an appropriate manner. Failure to plan effectively during the planning phase of a capital project according to Nwagbogwu in the Correlation between Project Management Effectiveness and Project Success, is one main reason that most companies find themselves experiencing prolonged schedules, extended budgets and even difficulties in running their operations. To effectively and positively contribute to the performance and value of a capital project, there is the need to consider the design, construction, commissioning and operational issues as early as during the planning phase of the project so as to come up with the best and the most appropriate approach to deal with any concerns. Literature Review It is important to employ an approach than enhances progress evaluation of the project so as to enable the project team to make informed and important decisions with regard to the other steps. It is noted by Nwagbogwu in the Correlation between Project Management Effectiveness and Project Success that, the best chance to make a positive contribution on the lifecycle of a capital project is in the early planning phase even prior to the capital outlay. On the other hand, appropriate assessment of the risk involved with capital projects helps to ensure that the resources involved are managed in a responsible and careful manner. Assessment of the risk involved also ensures that less time is spent on managing crisis rather more effort and energy is directed towards risk prevention (Looser more et al risk management in projects). Nevertheless, not all risks are avoidable hence it is of utmost essence to plan early during a project by identifying and quantifying the risks that the project faces so as to develop and come up with the appropriate strategies to minimize or avoid the risk. This in return enhances a good working environment for the project team. (Nwagbogwu the Correlation between Project Management Effectiveness and Project Success) However, it is noted by Fewings in the construction project management, that good understanding and management of a capital project right from its initiation is essential to the lasting success of an upstream capital project. This is because there is a lot of energy time, effort and resources invested in such projects. This calls for good decisions and management so as to enhance long term value of the project. Project Questions How effective is the management of capital projects in the UAE? What can be done to improve the management of capital projects in the UAE? Research objectives The study intends to uncover how effectively capital projects are managed in the UAE. Considering the ever changing market environments and the continuing change in economic structures, there is the need to employ proper management of capital projects so as to ensure there is long term value in the projects. To ascertain the effectiveness of the capital projects management, the study will look at the approach taken from the initiation phase throughout the lifecycle of the project until its closure. The study also intends to bring out the most appropriate approach in management of capital projects. For a capital project to be successful and have long term value there needs to be a strategic approach from the planning phase so as to ensure the project is well planned and appropriate scheduling is in place. This study looks into the Aspects that should be put in consideration so as to enhance effective management of capital projects from the initiation phase until the closure of the projects. This sees to it that tasks are well scheduled and also in a position to be completed within the allocated or the available resources.  Philosophy of Methodology It is noted by Midgley in Systemic Intervention: Philosophy, Methodology, and Practice, that philosophy is a vital procedure in designing the methodology of study in that it helps in identifying the system to be adopted in the methodology of a research that has no dependence on other systems. Among the aspects identified by philosophy, includes; the process, the content, language, and knowledge of the methodology needed for a given research. On the other hand, philosophy also comes in hand in making judgments that outline the boundaries of the research methodology process (Chiara, the Tenth International Congress of Logic, Methodology and Philosophy of Science). For the purpose of this research, the methodology assumed will involve both quantitative and qualitative research methodologies. Qualitative method entails subjective research approach, which is characterized by identification of new knowledge (Appleton et al, Pieces Of Eight: The Rites, Roles, and Style of the Dean by Eight Who Have Been There), actively taking part in field work, having the researcher as an important source of primary data. While undertaking the research, the personnel carrying out the research intends to get the meaning of existence of an observable fact and nature of reality. Moreover, the researchers have inadequate alarm on the outcomes and have more concerns of the research process. Qualitative method finds use as a descriptive study approached in an inductive manner. However, the analysis of qualitative data may use statistical tools that aid in making accurate inferences concerning the collected data. Justification of the method Qualitative research is a subjective data collection method that assists in gathering new knowledge whereas quantitative research hinders the possibility of acquiring new knowledge. Qualitative research enhances the prospect of discovering the meaning and understanding of the matters relating to social life or behaviour of human beings. This occurs since qualitative research has an element of descriptive and the respondents offer data considered to reflect their individual perceptions. Moreover, rapport and trust play a significant role in the data collection process in any kind of research. Qualitative research benefits in establishing the two elements in data collection process. As such, the data gathered can be relied upon. The questionnaires use scales to assist in accomplishing the preferred response from the respondents. Respondents’ reflections come out clearly, when questionnaires find use in the research work. That way, the respondents give their personal perception on the research topic. This is a significant technique of collecting information that has a connection to the social aspect of human beings. The incorporation of interviews in the research work helps in bringing about an environment of trust between the interviewee and interviewer. Thus, the information collected is accurate and reliable. Mixed method for research work assists in bringing together a number of methods to assemble the same kind of data. The method ensures that data is not biased and that research errors occur rarely. The method produces room for use of both primary and secondary data collection methods for the research. The use of numerous methods in collection of data of the same kind helps to see to it that the data collected is credible. Hence, mixed method provides for checking of any uncertainty in the gathered data. How to collect the data In collecting the data, the study will rely on quistionnaires produced for the purpose of the research. These questionnaires will have a list of questions that the respondents will be expected to answer. These questions comprises questions based on facts, questions based on the desired information, questions aimed at establishing the personal perception of the respondent, questions aimed at ascertaining the attitude and opinion of the respondent as well as projective questions (Powell, Basic Research Methods for Librarians). The questionnaires that will be distributed will then be weighed so as to obtain the expected response from the respondents. These questionnaires will have the same framework so as to make it easy to analyze the trends of the respondents within the sample population. Again, these questionnaires will have questions for cross checking so as to help in effective data analysis. It will also important to cross examine the sample population or the respondents before administering the questionnaires so as to establish any barriers that might limit the effectiveness of the questionnaire. The data collection procedure starts with the founding of a pre-test for the questionnaire. This is an important step as it assists in recognizing the difficulty of the questionnaires to be administered. Pre-tests also helps in the generation of measures to overcome research limitations. This occurs since, in the process of pre-test, potential challenges for the research work are successfully identified. Secondary data for the research work is obtained from written materials or word. Sources of such data include; database of a company, articles with relevant information with regard to the study, journal articles, the internet as well as reading from academic publications. For this reason, the researcher must read extensively from various sources so as to acquire the relevant information and data for the study. However, there is the need to carefully select respondents to the questionnaires so as to enhance the collection of information that is of high quality and that can be relied on. The data collected is based on the information acquired from the respondents. For that reason, the approach and what the respondent perceive with respect to the research and their willingness to participate in the study dictates the credibility of the data collected. Questionnaires and interviews  In collecting or gathering the necessary data, questionnaires will be administered. The respondents will be issued with the questionnaires and they will be required to have filled within six hours. This enables the respondents to have ample time to fill the questionnaire and return, and also time to collect the filled questionnaires. Similarly, the time prevents the occurrence of circumstances whereby the respondents may discuss the questions in the questionnaire. Interviews will also be done as part of the data collection process. The interviews will comprise of predetermined questions that will be used to ask or collect the relevant or the required data with regard to the study. (Weller and Romney Systematic Data Collection). The interviews to be conducted will comprise personal interviews. Each session of an interview will be restricted to a period of thirty minutes so as to see to it that the time afforded for the study is utilized effectively. The place in which to conduct the interview will depend on the location or the company in which the research will be conducted. Sample Size The research focuses on the effective management of capital projects in the UAE. The population of interest for the research includes the key stakeholders in capital projects. These include companies, the government, individual investors and industrial leaders. For each category, 100 people will be selected randomly for research. 70 people from each category will fill questionnaires while the other 30 people will take part in interviews. Method of Analyzing Data To analyze and present the data collected, the study will use graphs and pie charts. The study will then ensure that the respondents are categorized into two different categories that is; the positive and negative respondents. Editing of the graphs for accuracy reasons, will be made possible through application of computer software called SPSS. Project Management Details The study will require printing papers for preparing questionnaires, a printer and a personal computer for analyzing the data using software like SPSS. The risks involved in completing this study include loss of data out of attack by computer virus and uncertainty of the likelihood of the need for more resources. However, the study will have a back up disk to preserve a copy of the project as the study continues. There will also be a need for a research assistant who will help in typing and printing of the study and the findings. The study will require the use of the internet to surf and gather information from websites and academic journals with information related to the effectiveness of management of capital projects in the UAE. The primary data collection techniques to be applied will include questionnaires and interviews. In addition to this there will be application and use of mathematical and statistical tools to analyze and present data and information with respect to the study. Works Cited Appleton, J, Briggs, C, & Rattigan, J. Pieces Of Eight: The Rites, Roles, and Style of the Dean by Eight Who Have Been There. Portland, OR: National Association of Student Personnel Administrators, 1978. Chiara, M, The Tenth International Congress of Logic, Methodology and Philosophy of Science, Florence, August 1995. Netherlands: Kluwer Academic. 1997. Fewings, P. Construction Project Management: An Integrated Approach. Abingdon: Taylor And Francis 2005. Loosemore, M., Raftery, J., Reilly, C. & Higgon, D. Risk Management in Projects. 2nd Ed. Abengdon, Oxon: Taylor & Francis. 2006. Midgley, G. Systemic Intervention: Philosophy, Methodology, and Practice. 233 Spring Street New York: Kluwer Academic/Plenum Publishers, 2000. Nwagbogwu D. The Correlation Between Project Management Effectiveness And Project Success. Ph.D Thesis, Walden University, 2011. Powell, R. Basic Research Methods for Librarians. The Third Edition. Greenwich: Ablex Publishing Corporation. 2004. Weller, S. &Romney, A. Systematic Data Collection. Newbury Park: Sage Publications, 1988. Read More