Burj Khalifa Project Management - Case Study Example

Burj Khalifa Project Management Burj Khalifa Burj Khalifa is the tallest skyscraper in the world. This building, which was originally called the Burj Dubai, is located in Dubai, United Arab Emirates. Its construction took six years from 2004 to 2009 and was inaugurated on 4 January 2010 (Bianchi & Critchlow, 2010). This 828-metre tall, reinforced concrete tower structure has 280,000m2 of area. The primary contractor of the building was Samsung C&T of South Korea. The project management of the tower was handled by Emaar Company based in the United Arab Emirates. The architectural and structural design of the tower was performed by Adrian Smith and his team based at Chicago office of Skidmore, Owings and Merrill. The management of the venture was given to the Turner Construction Company, which is one of the largest construction companies in United States with subsidiaries in Germany (Turner Construction Company, 2010). The total cost of completion of the building amounted to $1.5 billion and it took 22 million man-hours (Springer, 2010). According to Bianchi and Critchlow (2010), the construction of this tower was based on Emaar’s corporate vision of offering a high-value luxury multi-use living space. The building was meant for multiple uses and it contains business, residential and entertainment facilities. Burj Khalifa has a Y” shaped floor which provides high performance and maximizes the view of the Persian Gulf. It has an observation point on the 124th floor which is open for the public view for an interval of 30 minutes. Further, it has a four story fitness club, a fine dining restaurant, 160 guest rooms and suites, 37 office floors and 144 private residences. In addition, it has 6 water features, four pools, an 11-hectare park and a 3000-car garage. The tower has an access to the carefully planned downtown, Dubai, that provides more amenities and value to people investing in Burj Khalifa (The Burj Khalifa, 2010). Burj Khalifa is undoubtedly a symbol of success. Its factors of success reside within the value that was created by its completion as well as the value added by stakeholders with an interest in the project (Burj Khalifa, 2010). To start with, the success of this project rests on the fame of the tower as the tallest building in the world. After its inauguration, people from all over the world flocked to Dubai to take a glimpse of this record-breaking structure. This raised the popularity of Dubai to new heights, which led to an influx of dollars through investments and tourism. Further, value is given to the visitors and occupants of the building through its supreme luxurious dining, entertainment and parks. Also, visitors and occupants have an access to amazing service amenities and a thriving and desirable downtown Dubai destination (Burj Khalifa, 2010). Thus, Emaar enjoys success in the completion of the project, achievement of the set objectives in line with its corporate vision and most significantly, realisation of financial profits from the venture. Though there were unfavourable issues with regard to the construction and completion of the project, this did not adversely affect the set goals. Burj Khalifa was constructed at a time when the world was suffering from financial crisis and Dubai was heavily indebted. Consequently, Emaar was adversely affected and hence, missed the deadline for completion of the project. In addition, cases of abuse of workers were reported, with allegations about low pay, poor housing conditions for workers and lack of support for workers with essential human needs such as means of transport (Migrant Rights, 2011). Burj Khalifa and Project Management Planning is essential in all undertakings of all sizes. For undertakings involving largescale and complex operations, planning through the rubric of project management is necessary. Bianchi and Critchlow (2010) define project management as “the framework within which the processes of planning, organizing and managing resources occurs for the ultimate goal of a timely completion of a task.” Thus, projects are limited by size, time and cost issues. The purpose of project management is to utilize all available methods and facilities to overcome those limitations and hence, realise a successful outcome. Project management involves various tasks such as budgeting, allocating resources, setting of deadlines, tracking expenditure and assessing progress. The construction of Burj Khalifa demonstrates effective planning process of a large scale and complex project through project management. To start with, the project manager, Emaar, had put in place an organisational structure that effectively supported its venture (Emaar Properties, 2010). The company adopted a “heavy-weighted matrix project organizational model” that fits the nature of its projects. Usually, Emaar employs project management as the foundation of all operations in its project process. During the construction of Burj Khalifa it utilised its usual organisational structure models of management in both flat and hierarchical structure. The construction of this tower demonstrated successful cooperative ventures of architecture, engineering and construction and an effective follow-through that a project of this scope requires (Emaar Properties, 2010). From implementation to finalisation of the project, Emaar utilised a five-stage project management process as represented in the following diagram below. Source: Building Design Construction (2010) According to Emaar Properties (2010), the breakdown of the work started with formulation of the idea of the Burj Khalifa project. This was followed by the selection of site on which to build the structure and the running the assessment on all variables including human resources, finances, building materials, codes, risks and politicians. Then, contractors for the design, engineering, and construction were chosen and workers for the project were hired. Planning of purchase and delivery of materials for construction was done. The selection of sub-contractors for inner construction work of aesthetics and pools then followed. Throughout the construction of the project, Emaar used the Eraned Value Management (EVM) method in tracking and assessing project management. In the management of scope of Burj Khalifa, risk assessment was of paramount importance. As Haugan (2002) explains, risk in project management implies the possibility of harm arising from an activity or on the possibility that a project might not progress in future. Risk can have either positive or negative impacts. In project management, focus is usually given to the potential negative effects of risk, so as to mitigate bad outcomes (Edwards & Bowen, 2005). To achieve this end, various project management strategies can be used such as avoiding the risk, mitigating the risk factor, transferring the risk to another party and accepting some of the effects of the risk as a cost of the project. In the construction of Burj Khalifa, Emaar transferred risk to the Turner Construction Company (Turner Construction Company, 2010). According to Haugan (2002), a project manager usually utilises a project management log in controlling risk in regard to a project. One of the risks associated with the Burj Khalifa project was in doing something that had not been done before. This was a risk in and for itself. Also, there was a risk of working at very high altitudes. The other risk was about the impact of the wind at the very high altitudes. The higher the attitude the building is, the stronger the winds. In addition, there were risks associated with depression among the workers. According to Emaar Properties (2010), there were many more risks associated with this project but which fall under the aforementioned four categories. In the case of the Burj Khalifa project, Emaar came up with a risk management log to ascribe the various risks associated with the activities of the project. As noted earlier, projects have a lifecycle and are time-limited. A project can be terminated at any of the stages mentioned earlier, but termination at the closing stage is preferable since it is presumed that the objectives of the project are achieved. The Burj Khalifa project experienced a delay from the expected date of completion on June 2008 to October 2009. This was mainly caused by the financial crisis that shook the world in 2008. In this regard and also considering that this was the first project of the kind, the time taken to complete the project can be termed as an accomplishment. Conclusion In conclusion, the primary purpose of project management principles is to guide organisations in realizing their project goals. In some cases, organisations deal with simple projects which require simple planning. For others, they deal with large and complex undertakings requiring a complex project management matrix. For a complex project involving largescale operations, an organisation will need to adopt a project management structure such as the one that was adopted by Emaar Company with its property management building model during the construction of Burj Khalifa. As noted, Emaar utilized a five-stage project management process from implementation to completion of the project. These stages are the initiation stage, the planning and design stage, the executing stage, the monitoring and controlling stage, and the closing stage. Burj Khalifa was a large scale project, hence requiring outsourcing of risk. Though this project experienced a delay in the time taken to complete it, it can be termed a success given that it was the first project of its kind and because it was affected by the financial crisis that hit the world in 2008. The Burj Khaslifa project is complete and the expected goals are being realised. The management of the tower and its facilities still fall under Emaar Company. In order to further keep pace with the Emaar’s model of growth engines, it will be essential to outsource the project management as suggested by Bianchi and Critchlow (2010). References Bianchi, S. & Critchlow, A. (2010, January 1). “Worlds Tallest Skyscraper Opens in Dubai.” Wall Street Journal. Retrieved 21 October 2011, from http://online.wsj.com/article/SB10001424052748703580904574638111667658806.html Building Design Construction (2010) “Project Management.” Retrieved 21 October 2011, from http://building-design-construction.com/manage-projects Burj Khalifa (2010), “Burj Khalifa construction.” Retrieved 21 October 2011, from http://www.burjkhalifa-dubai.net/construction.html Edwards, P. & Bowen, P. (2005). Risk Management in Project Organisations. Burlington: Butterworth Heinemann. Emaar Properties (2010). Mission, Vision, Strategy, and Goals. Retrieved 20 October 2011, from http://www.emaar.com/index.aspx?page=about-mission Migrant Rights (2011). “Behind the Glamorous Facade of the Burj Khalifa.” Retrieved 20 October 2011, from http://www.migrant-rights.org/2010/01/04/behind-the-glamorous-facade-of-the-burj-khalifa/ The Burj Khalifa (2010). “The Burj Khalifa.” Retrieved 21 October 2011 from, http://www.burjkhalifa.ae/language/en-us/the-tower/fact-figures.aspx Turner Construction Company (2010). “Burj Dubai.” Retrieved 21 October 2011, from http://www.turnerconstruction.com/international/content.asp?d=3457 Webb, A. (2003). Using earned value: A project manager's guide. Burlington: Gower. Read More