Assignment for the subject

Project
Relationship
Management
 Arabtec Holding PJSC, Dubai's largest construction group in
Middle East, together with its subsidiaries, provides construction
services for residential, commercial, oil and gas, infrastructure,
power, facilities management, and property development sectors in
the United Arab Emirates and internationally.

On realising that the projects will experience deadline slippage,

the go-to action is a deadline extension or increasing the pace of the works execution. The delays
can not be minimised unless their causes are known, and in order to have an accurate estimate of
costs and deadlines, reliable methods and commonly agreed practices must be applied.

Arabtec has executed a number of high-profile construction projects, including the Burj
Khalifa, the fit out of Burj Al Arab, Terminal 1 of Dubai International Airport and passenger
terminal of Dubai World Central International Airport. It has seen considerable slippages during
these projects, notable cases being the Burj Khalifa and Louvre Abu Dhabi.

Burj Khalifa
With a total height of 829.8 m (2,722 ft), Burj Khalifa
has been the tallest structure and building in the world since
its topping out in 2009. Its construction began on 6 January
2004, and officially opened on 4 January 2010. But during its
construction phase it had fallen behind schedule a few times:

۩ In March of 2008, it was declared that the tower

would likely be delayed by four months, said to be
related to the interior design of the tower and the
pumping of concrete.

۩ In two separate instances during the whole span of

the construction, the workers went on a strike over
the pay and conditions.

۩ In 2009, Dubai saw a downturn in its economy;

many of the real estate projects were either canceled or put on hold. It affected not only
the developers and investors, but also the many foreign workers who were let go and
had to return to their home country.
Louvre Abu Dhabi

Louvre Abu Dhabi is the jewel in the crown of Saadiyat Island, the city’s new cultural
district. Designed as a ‘museum city’, the new 58,000m2 art and exhibition centre boasts a
myriad of gallery spaces clustered beneath a shallow domed canopy, creating an expansive yet
intimate space in which visitors can mingle at their leisure.

It was open to the public in 2011, but only after years of delays:

۩ In October 2011, it was announced that there would be a delay in opening the museum.
Local media claimed the delay was due to a review of the emirate's economic strategy.

۩ In December 2013, a three-month investigation from the Observer newspaper uncovered

evidence of intimidation, strike-breaking and mass riots on Saadiyat Island. Working
conditions amounted to "modern day slavery", it added. The UAE subsequently
reformed its labor laws, only for human rights groups to claim systemic problems
persist.
 ۩ In June 2015, Abu Dhabi confirmed that the opening of the Louvre museum will be
delayed, claiming regional turmoil and lower oil prices are reshaping priorities in the
Gulf. A new opening date is slated for 2016.

Causes for project slippages and its solutions

In the cases presented above, the causes for the delay varied with factors like economic
stability, labor rights, etc. Discussed below are primary causes for slippages and its
recommended solutions:

۩ Handling of materials on project site:

One of the most common causes of delays, it happens when the required materials
are not delivered at the right time and place. Many projects underestimate the number of
cranes required to carry the materials, and of the uneven off-loading and lifting activities
happening throughout a day. Moving materials from point A to B might not be as simple
as seen on paper.

Time performance is one of the key measures of the project’s success. Seemingly
simple steps like packaging materials differently, focused supervision, planning on the
required material handling equipment and optimal working shifts can help unblock this
bottleneck.

۩ Poor productivity:

If the labour and equipment are not producing the expected output, the usual
response is throwing in additional resources; costly and not always yielding the desired
result. A more effective approach is uncovering the reason behind the poor productivity,
which may include:

 The employees not working their full shift. Frequent breaks in the middle of
shifts or longer breaks cause idle time variances, and has to be monitored.

 The employees having low morale due to underlying problems like conflict
with management, unsatisfied pay and conditions, etc. This could escalate to
strikes and less cooperation.

 The employees not having the right skills. This usually happens when nepotism
and poor HR performance comes into play.

Majority of these issues can be resolved with a proper understanding between the
 employees and the management. A stress-filled, uncomfortable workplace does not
positively correlate to productivity.

۩ Availability of quality materials and equipment:

Sometimes the materials ordered are inadequate or of poor quality. It significantly

affects the project if the workmanship is not good enough, as it would have to be
redone. The equipment using these materials also has to be adequate to complete the
project. Breakdowns of key items of equipment such as cranes, concrete mixing plant or
excavators can cause severe disruption to a project.

These obstacles can be surpassed with better communication and management;

without inaccurate specifications or missing information. If the problem is with a
specific supplier, another manufacturer can be approached.

Conclusion
Delays in the construction sector is a common phenomenon worldwide. It happens not only
due to the contractor’s failings, but also from the customer or their team. The slippage cannot be
overcome unless the root cause has been resolved. Arabtec has faced many slippages in the midst
of their largest projects, yet were able to complete it with proper planning and management of
resources. Organisations have to invest enough time and money, which will benefit the long run.
Longer the problem persists, worse the slippage becomes and the less time remains to catch-up.
References:

 https://en.wikipedia.org/wiki/Arabtec_Holding_PJSC

 https://en.wikipedia.org/wiki/Burj_Khalifa

 https://www.arabianbusiness.com/burj-dubai-facing-9-month-delay-48582.html

 https://www.ukessays.com/essays/economics/project-time-management-of-burj-
khalifa-economics-essay.php

 https://www.constructionweekonline.com/article-47060-louvre-abu-dhabi-to-
open-after-years-of-delays

 https://www.telegraph.co.uk/travel/destinations/middle-east/united-arab-
emirates/abu-dhabi/articles/louvre-abu-dhabi-to-finally-open-in-november/

 https://www.pn-projectmanagement.com/construction-management-blog/10-
reasons-your-project-is-behind-schedule-programme