Kuwait has issued a global tender to seek international experts for a major project to help diversify the economy.
Kuwait has issued a global tender looking to companies to help develop a new Entertainment City in the country.
The mega-scale tender seeks to locate the right partners to undertake planning, development, execution, operation, maintenance and investment in the project which forms part of Kuwait Vision 2035.
Al-Diwan Al-Amiri said in a statement that it aims to sign up partners “at the nearest possible opportunity”.
Considered to be one of the largest projects of its kind in the region, the mega project will actively support the ongoing efforts by the government to diversify sources of income and will contribute to the revitalisation of the cultural, leisure and tourism sectors in Kuwait, the statement added.
As part of the project, a global entertainment and tourism city will be established, featuring an amusement park and a world-class integrated entertainment complex.
Project components primarily include a ride based outdoor theme park, an indoor theme park, an aqua park, a kids’ activity and entertainment centre, in addition to gaming arcade, a snow/ski park and a multiplex and open air theatre.
Other components comprise a sports centre, a museum, public parks and social entertainment areas with landscaped areas and trails. The project also comprises 4 and 5 star villas, apartments, a retail mall, commercial areas and restaurants. It also includes an observatory, an amphitheatre, indoor water channels.
The current location for Al-Diwan Al-Amiri’s Entertainment City in the Doha region in the north of Kuwait will be expanded and developed to cover 2,750 million square metres.
The deadline for the global tendering and bidding process is set for February 27.
Al-Diwan Al-Amiri’s other projects include the Jahra Medical City, Sheikh Jaber Al-Ahmad Cultural Centre, Sheikh Abdullah Al-Salem Cultural Centre, Kuwait Motor Town and Shaheed Park.
It’s highly likely that you recognise the building in the picture at the top of this page. The Sydney Opera House is, after all, one of the most famous structures in the world. Designed by Danish architect Jørn Utzon, it attracts over 8m visitors a year and provides a massive boost to the Australian economy. Opened 45 years ago in October 1973 by Queen Elizabeth II, its iconic design of enormous precast concrete shells has won numerous prizes and UNESCO World Heritage site status.
Why marvels of engineering require miracles of project management
Another example of world famous design is Concorde, the turbo jet-powered supersonic passenger airliner that roared over the Atlantic Ocean from 1976 to 2003. Jointly developed and manufactured under an Anglo-French treaty, only two airlines (Air France and British Airways) operated the 14 aircraft which were built to offer speed and luxury.
A trip from London to New York took less than three hours, and cost around £8,000 for a return ticket. In 2006, Concorde won the Great British Design Quest, beating other iconic designs such as the Mini and the London Tube map.
The lesser known element of these two design success stories, however, is that from a project management perspective, they could both be considered as massive failures.
The Opera House was finished ten years late, at a cost that came in a huge 1,357% over budget at AUS$102m. The project also had a huge impact on the career of the architect, who, after disputes with the Australian government over design, schedule and costs, left the country before the building was completed, and never returned.
And while Concorde was an engineering marvel, travelling over twice the speed of sound, it had cost overruns of over 1,100%, coming in at around £1.3 billion. This meant far fewer aircraft were produced than originally planned. It also meant French and British taxpayers were left to pick up much of the tab.
More recent projects have faced similar problems. In Edinburgh, the Scottish Parliament Building came in at more than 1,000% over budget, with an estimated final cost of over £400m. The Millennium Bridge in London faced serious safety concerns due to the swaying motion of the structure, which needed to be fixed. Further along the River Thames, the Millennium Dome exceeded predicted maintenance costs and attracted fewer visitors than had been expected.
So why do so many projects end up painfully over budget, frustratingly late or not meeting expectations?
Part of the answer lies in the enormous expectations placed upon the [shoulders of the project manager]. In the case of the Sydney Opera House, some have argued that in fact nobody really took on that vital role. Utzon was focused almost entirely on design, while the government committee had no technical expertise.
Yet large scale projects come with great uncertainty and myriad stakeholders who must to be managed. Often a number of public and private organisations have to work closely together in order to deliver.
The role of a project manager is crucial – and often underestimated – in these situations. Project managers are (and should be) sometimes compared to superheroes due to the vast range of socio-cultural and technical powers they possess.
They need to be able to lead and motivate teams of different professions (such as engineers and managers). They need to be keen problem solvers. They need to have supreme negotiation skills to deal with a wide variety of interest groups and their often conflicting demands and expectations. They need to be adept at manoeuvring through the politics of such projects with a clear understanding of what the customer wants.
On top of all of this, project managers need technical understanding to manage schedules, organise and coordinate the various work packages, allocate resources and control budgets. Managing massive projects is a truly Herculean task.
Even the most diligent of project managers cannot account for all uncertainties. And the spotlight of media publicity means issues that do arise are often amplified, affecting public and government perception – and potentially restricting future investment.
Long term thinking
For example, a recent report revealed that delays in the UK’s Crossrail project are overshadowing its other notable successes – such as the lack of legal disputes and minimal supply chain disruption, which are not common in projects of this scale. This could potentially harm future investment in transportation – unless a project manager promises to deliver on better timescales. These promises in turn can lead to overly optimistic timescales, with any future delays overly scrutinised.
This vicious circle of over-promising and the inevitable under-delivery would lead to such projects being perceived negatively. Project managers, therefore, often need to maintain a stoic stance in face of short-term “failure” – and not give in to the lure of suggesting optimistic timescales.
Similarly, stakeholders need to appreciate that short-term setbacks are not indicative of the actual value delivered by these large scale projects.
While massive cost overruns and project delays need to be avoided, we should not forget that these kind of project management challenges do not necessarily add up to failure. A number of projects, including the Sydney Opera House, have become iconic symbols for their cities and countries and over time, attracted revenues far exceeding expectations (and costs).
They remind us that beauty does not come easy. Large scale projects can create economic and social value, even though the process of accomplishing them is not always pleasant. Human endeavours that are painful in the short term can lead to long term and sustained benefits for all.
AMEInfo published this Expert opinion on how, on August 28, 2018, the Middle East construction looks bad on paper as narrated by Stephan Degenhart, Managing Director at Drees & Sommer Middle East, a leading European consulting, planning and project management enterprise .
“One of the main causes of poor efficiency in the construction industry is a majority of industry players still depend upon paper documentation, such as supply-chain orders, design drawings and daily progress reports to keep track of current processes and deliverables.”
Without digitization, significant delays can be incurred when sharing information.
Relying on paper trails to share documents increases the risk of data being exposed to human error when being captured and analyzed. It is important this is properly managed as detailed performance analytics can help avoid future issues.
Due to the vast amount of information that is processed throughout the duration of a project and the time it takes for a document to change hands, paper trails are notorious for slowing down and hindering the efficiency of processes. This leads to disagreements between clients, developers, and contractors, highlighting an impending need for digitized project-management and solutions to aid collaboration and mobility. A greater uptake of digitization will lead to project management in the construction industry having increased access to mobile-enabled field supervision, digital project planning, digital budgeting and the efficient management of documents across the entire scope of a project.
Digitisation in project management allows for smoother and more efficient processes on site, resulting in significant time and financial savings. For example, a recent study by the consulting firm, Roland Berger, found construction workers only devote 30% of the time to their principal activity. The remaining 70% is consumed by other errands such as looking for materials, transporting materials to complete a job and cleaning up on-site. Introducing digital tools can help streamline these processes and mitigate the loss of both time and financial resources onsite and throughout the construction process. Materials and equipment can be tracked at the click of a button and manpower allocated where and when they are needed.
Software has been developed to ease processes such as the delivery of building materials to the site, ensuring they arrive precisely when they are needed. Storage needs can be significantly reduced as a result. Smart, connected construction machinery can help optimize the utilization of workers and construction vehicles, ensuring certain jobs are not over-allocated with human or technical resource – another common issue digitization has helped many developers overcome.
To support digitization as a growing trend in modern construction, certain technology has already been developed to help locate products and materials. This enables construction workers to devote more time to their principal activity rather than engaging in time-wasting activities that can cause delays to the entire project. Products fitted with RFID2 technology can be identified using magnetic fields. These products can also be registered and scanned, which creates transparency regarding the whereabouts of machinery and human resources on site.
Recent research by McKinsey & Company found construction is currently one of the Middle East’s least digitized industries. The sector stands to achieve significant benefits by adopting technologies that increase productivity as digital collaboration tools, which could raise productivity by as much as 15% and reduce project costs by up to 45%.
Of course, an important tool being used by many in the digitization of the construction industry is Building Information Modeling (BIM). The main benefits presented by using BIM include: minimized planning errors, timely calculation, quantified extra costs and alternative strategies. BIM also provides a digital simulation of the entire project before the first brick is even laid. Due to rapid technological advances and the rate at which the global construction industry is becoming digitally orientated, the absence of digitization is very likely to result in companies falling far behind their more digitally-inclined competitors. Tools such as BIM include all parties involved in the project, from the initial planning phase of the construction process through to completion. This makes processes and responsibilities transparent and comprehensible for everyone, contributing to the efficient implementation of the entire construction process.
The McKinsey & Company study also found 75% of those companies adopting BIM reported a positive return on their investment. The same report found companies who had adopted BIM reported shorter project life cycles and savings on paperwork and material costs. Given these benefits, a number of governments, including those in Britain, Finland, and Singapore mandate the use of BIM for public infrastructure projects.
As the UAE transitions towards a knowledge-based economy, the construction industry is also evolving, so projects can be executed smarter and more efficiently than ever before. By implementing digital methods in project management, construction companies will be able to gain an edge, boosting productivity and efficiency. Conversely, companies that prefer to stick to older more traditional methods are likely to be overtaken due to lower quality of projects they are able to deliver, as well as the inevitable delays to match the standards set by their competition.
UAE companies that choose to adopt and implement these approaches will have to initiate a major shift in their internal planning, design, procurement and construction processes. Investments will need to be made into automation and an effective supply-chain system to ensure streamlined and on-time transportation of materials to the construction site. Companies that decide to integrate their supply chains will also have to plan for other manufacturing-related investments to stay ahead of the curve.
BIM is already much more than a software: as it changes the way people collaborate and the coordination processes, the digital revolution encompasses so much more than software and programmes. Digitisation means digitally enhancing everything that can be improved or optimized. It is easy to use digital tools to manage people and track customer relationships, but the real challenge is changing the way people work. In order for the Middle East’s construction industry to keep pace with international markets, digitization needs to start from the inside, processes need to be revolutionized step-by-step, people need to be trained and there needs to be a shift in thinking towards a more digitized future. This will pave the way for a more productive, cost-efficient, profitable and technologically-driven regional construction industry.
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