Looking for Innovative ways to Manage Projects During the

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Looking for Innovative ways to Manage Projects
During the Global Financial Crisis

• Dr. Abdulaziz A Bubshait
• Dean, College of Environmental Design
• Chairman, Department of Construction Engineering
  
• Management (A)
• King Fahd University of Petroleum Minerals
• Dhahran, Saudi Arabia

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Presentation outlines

• Definitions
• Financial Status the Present Conditions
• Innovative Ways to Manage Projects
• VICTORY Model
• Closing Remarks

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Values of Capital Projects in Arabian Gulf
countries 2008-2013
October 20, 2008
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Changes
What is the effect of Global financial crisis on
construction industry?
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Economical ImpactsJan 2005- Dec 2008
Oil prices 40- 147-60 Many Mega Projects High
development rate

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Economical Impacts Jan 2005- Dec 2008
World Economical Recession Reduction of 58 in
the value of Dollars Inflation rate 10.4 (April
2008 SA), 13.8 Qatar Inflation control?
Recession control High cost of Construction
Materials (prices 250 up) Scarcity of
Engineers/Skilled Labor ? Glut of workers
Escalation of lands Prices (200-300)?decline
in prices
What is the Effect of Rapid Changes on
construction Industry
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October 6, 2008
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Where are we heading to?

• Projects cancellation?
• Projects Delay?
• Difficulties in Project Financing?
• Cost/Budget overrun?
• Quality?
• Bankrupts/ Projects failure?

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9 Core areas for improvement
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Innovative Methods to manage Projects

• Effective utilization of Technologies
• Contract Types/Risk Allocation
• Quality Improvement
• Victory Model

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Effective Utilization of Technology
e-project Management
. . .
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Project ManagementsValue Practices

• Project Execution Planning Workshop (PEPW) CII
• Project Definition Rating Index (PDRI) CII
• Schedule Optimization CII
• Scope Control Change Management CII
• Constructability CII
• Planning for Startup CII
• Lessons Learned CII
• Value Engineering SAVE (Society of American
  Value Engineers)
• Benchmarking IPA (Independent Project Analysis)

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CII Benchmarking System
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Optimum Time For Best Practices
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Types of Contracts
Min
Min
Lump Sum
Lump Sum Variation
Bill of Quantities
Admeasurement
Schedule of Rates
Owner's Flexibility
Owners Control
(Contract Type)
Cost Fixed Fee
Cost Fee
Max
Max
Clients Risk
Max
Min
Contractor's Incentive to Perform
Max
Max
Min
Clients Project Definition
Changeable
Firm
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Project Schedule Duration vs.Type of Contract
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Engineering Required to Start Construction
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Construction
Contract Type
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Start of Construction
Project Completion
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Project Duration
1. Cost Reimbursable w / Fee 2. Cost
Reimbursable w / Fixed Fee 3. Cost Reimbursable w
/ Incentive 4. Guaranteed Maximum Price 5.
Lump-Sum Fixed Price
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Management Process Model
Continual improvement of the management system
Management responsibility
Customer
Customer
Satisfaction
Measurement, analysis and improvement
Resource Management
output
Requirements
Product realization
Product
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• Continual Improvement
• Continual improvement is a permanent objective of
  the organization.

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Regional Building/Construction Research Center

• Labor/craft productivity using third word
  manpower
• Safety pitfalls in a multi-language workforce
• Benchmarking of Region projects
• Attracting and maintaining an international
  workforce
• Gulf Region standards (affected by weather,
  governments, etc.)
• Heavy Equipment (and Transportation) Availability
  in the Global Market.

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Example of Innovative Project Management System
CDPM

• ?

Project Management

Total Quality Management

Customer Driven Project Management
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CDPM Requires a T Q M Environment

• openness,
• honesty,
• trust,
• communication,
• involvement,
• Ownerships
• innovation

• pride of workmanship
• accomplishment
• individuality
• Creativity
• strategic thinking, and
• personal commitment to be the "best.

It must include the entire organization and be
shared by everyone in the organization.
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VICTORY Environment focused on total customer
satisfaction

• Vision and the leadership to make it happen.
• Involvement of everyone and everything.
• Continuous improvement system.
• Training and education.
• Ownership.
• Rewards and recognition.
• Years of support and commitment.

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• V I C T O R Y
• V I C T O R Y
• V I C T O R Y
• V I C T O R Y

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In ClosingCHANGE IS IMMINENT

• ENGINEER IT
• PREPARE FOR IT
• RESPOND TO IT

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BE PREPARED TOPAY FOR IT
OTHERWISE