Category: Building

The Preservation Green Lab report makes a strong argument for the reuse of buildings over new construction. What would your approach be (material selection, buildings to target first, etc.) if Boston were to focus on retrofitting existing buildings over new constructions?

Nowadays, many organizations and different community representatives prefer to focus on the advantages of retrofitting and reusing existing buildings instead of replacing any or all of them. The main reason for such a decision may be explained by the inability to predict climate change and prevent all possible problems.

Therefore, to minimize damage, reduce costs, and provide safety for the citizens of Boston, it is suggested to focus on retrofitting such buildings as those with a high level of energy performance, considering characteristics such as design, typology, and survivability, as well as those with a long history that is repairable although their condition may be questionable (Preservation Green Lab 18). Though it may appear to be easier to remove a building and create a new one in order to meet all necessary standards and requirements, retrofitting has its own value.

Therefore, in Boston, one of the main approaches in support of retrofitting existing buildings can be the identification of the first targets and soliciting the opinions of the population about the importance of the chosen buildings. Sometimes, people are prepared to remove a building and accept a new one instead of preservation and retrofitting. At other times, people do not want to lose a building because the building is a part of their history and the past. In such a case, new materials, reports, and research are required to clarify the strategy that can be more effective for a region.

In The Greenest Building reading, one of the studys findings was that it takes 10 to 80 years for a new building that is 30% more efficient than an average-performing existing building to overcome, through operations, the negative climate change impacts related to the construction process. How can this finding be used to update building codes and regulations, building owner decision-making, and design and construction practices and processes?

The impact of climate change cannot be ignored in the building industry because almost every decision must be made in the light of the environmental outcomes of the chosen construction, as well as consideration of the factors that may influence the durability of this construction. The developers of the Greenest Building report underline that special care and steps have to be taken by the government to minimize environmental impacts and select appropriate projects (Preservation Green Lab 84). This finding can be used to improve the existing codes and regulations by keeping designs simple, controlling energy, and reducing carbon products.

Improved regulations can make people use material with appropriate durability to prolong the existence of a building. A life cycle assessment (LCA) serves to measure and understand the connection between the environment, products, and services (Preservation Green Lab 14). The recycling factor must be taken into account because it has a direct impact on the environment. Finally, designers and architects can improve their cooperation and communication to discuss all important aspects along with the most effective solutions for their regions.

How can energy audits be used as a tool for determining the potential benefits of building reuse?

Energy audits can be used in several ways to determine the benefits of building reuse. Baechler and Strecker describe an energy audit as an effective assessment tool with the help of which it is possible to determine where and why energy is used and how its use can be improved (2). With the help of such audits, designers are able to clarify whether their building decisions can achieve positive results and reduce energy efficiency levels relevant to numerous discussions about environmental impacts.

Energy costs must be reduced, and if audits can help this goal to be achieved, they cannot be neglected. Information about energy use is gathered from different sources to reach the best solution and make a justified choice. Energy audits have several levels (I, II, and III), and each facilitates obtaining the required portion of information (Baechler and Strecker 2). At each level, designers can investigate the potential benefits and shortfalls of their buildings in terms of the current climate situation and the environmental awareness of the population.

Works Cited

Baechler, Michael, and Cindy Strecker. A Guide to Energy Audits. 2011. Web.

Preservation Green Lab. The Greenest Building: Quantifying the Environmental Value of Building Reuse. 2011. Web.

The building of Salk Institute in La Jolla is unknown for many people who admire the beauty of buildings; however, it remains one of the masterpieces of the modern architect. It appeared as a result of the cooperation between Louis Kahn, an outstanding contemporary architect, and Jonas Salk, MD, a developer of a safe and effective polio vaccine (About Salk Architecture). The scientist wanted to create a new research center that would be a place for further advances in research and invited Kahn to design a would-be temple of science. This decision preconditioned the future of the whole project and contributed to the appearance of the unique view of the Salk Institute that is now recognized as an outstanding example of modern art.

Among architects of the 20th century, Louis Kahn is known as a creator with his unusual vision of the role of design in the life of people. He was sure that social changes could be fostered by architecture to inspire people and make them happier (Louis Kahn). For this reason, the majority of his structures possess numerous features that differentiate them from other works. He created buildings for factory workers during the world war and wanted them to have some positive emotions at those hard times (Louis Kahn).

His unusual vision and combination of approaches preconditioned his recognition and becoming one of the prominent architectures of the 20th century. He designed the Indian Institute of Management, the National Assembly in Bangladesh, Yale University Art Gallery in Connecticut, which reflected his unusual style and vision of architecture (Louis Kahn). In this regard, his cooperation with Jonas Salk to create a unique building of the Institution was also exceptional and contributed to the creation of an outstanding masterpiece.

The unusual design emerged because of the specific clients demands that were supported by Kahns extraordinary vision of the facility. Salk wanted the Institution to be spacious, light, and attractive to inspire individuals and be able to adapt to the continuously changing needs of science (About Salk Architecture). Moreover, it had to be simple, strong, and solid to resist the pressure of time and provide shelter for many generations of researches.

The facility also had to be open and adaptable to new conditions demands that could emerge because of the appearance of new ideas and research paradigms. This unusual request was fulfilled by Kahn, who created to mirrored structures, high and slim, and a spacious plaza between them (About Salk Architecture). This approach helped to form an unusual and recognizable image of the Institution and consider all the needs of a client.

The laboratories of the Salk Institute are placed in an original way. There are two oblong structures that oppose each other and are separated by a plaza (About Salk Architecture). There is a series of towers with diagonal positioning and windows that look onto the ocean and beautiful landscapes surrounding the building (About Salk Architecture). They are an essential element of the composition as they linked with laboratories by dainty bridges that help people to move across the building and, at the same time, allow sunlight to enter the area and make it spacious, attractive, and airy (About Salk Architecture).

Looking at these facilities, a viewer acquires the idea of some inspirational area that is appropriate for meditative thinking, cogitating, and looking for answers or new solutions, and it was the main Kahns idea. Following his vision of architecture as a power that can foster social change and help people, he managed to design a true temple of science that looks similar to monasteries and innovative buildings. The employment of this design also helped to meet Salks requirements and provide him with a place for the realization of his scientific plans and ideas.

The use of wooden panels, flexible materials, and concrete helps to create a solid and, at the same time, an aerial building that looks attractive and inspirational. Moreover, it helped to save costs by avoiding unnecessary spending on expensive materials or useless structures (Miranda). Kahn wanted to restore the sense of monumentality that can rarely be seen in modern architecture and show that it could be attractive (Ching et al. 774).

For this reason, the symmetrical and geometrical forms are used to create this very feeling. Moreover, the structural system that also follows symmetrical patterns is introduced to emphasize the solidity of designs and associate them with ancient Greek or Roman temples (Ching et al. 774). This approach helps to transform the Salk Institution into one of the modern temples of science, which was one of the primary goals of Salk.

As it has been stated previously, the practical utility was another essential request of the client. For this reason, Kahn introduced multiple solutions to follow this goal and make the building easily upgradable. Windows of laboratories are installed by using screws, which means that they can be removed to use big-size equipment without destroying walls or other parts of the construction (Miranda).

Moreover, support beams of the Institution are restricted to the laboratories edges, and it is another innovative and usual solution of the architect. Using this approach, he managed to achieve increased flexibility and introduce multiple opportunities for restructuring the area and configuring the space needed for researchers (About Salk Architecture). All systems critical for introducing new elements are not covered by concrete, they are easily accessible and can be improved during the next renovations or reconsiderations. That is why the Salk Institute combines both unique beauty and practical utility appreciated by investigators and the client.

The environment also plays a vital role in the creation of image and impression. The waterway in the middle of the courtyard emphasizes the surrounding, its peaceful character, and helps to find the balance with nature. Kahn managed to correctly realize the peculiarities of the local environment and make them a part of the building. Moreover, the weather and climate help to avoid the gradual deterioration of the quality of materials and the construction (Miranda). For this reason, nature becomes an essential aspect of the building.

Altogether, the Salk Institute remains a unique building and a masterpiece of modern architecture. The cooperation of Kahn and Salk helped to create the unique style of the construction, which is now considered a monument to unusual thinking and creativity. It also affected the stylistics as some of the solutions and approaches used by the creator were discussed and used by other designers in their projects. The combination of symmetrical forms, unusual shapes, materials, and elements of nature help to inspire people who work there and who see it. Monumental and beautiful, it can be associated both with ancient roman temples and with modern buildings, which reflects the creators idea.

Works Cited

About Salk Architecture. Salk. Web.

Ching, Francis, et al. A Global History of Architecture. 2nd. ed., John Wiley & Sons Inc., 2010.

Louis Kahn. Famous Architects. Web.

Miranda, Carolina. Louis Kahns Salk Institute, the Building that Guesses Tomorrow, is Aging  Very, Very Gracefully. Los Angeles Times. 2016. Web.

Introduction

Managing rental property is not an easy task. One requires a combination of management and organizational skills to manage a property in a profitable and effective manner. The propertys profitability is highly dependent on the professionalism of the manager, as well as a realistic and well designed plan. It reveals the role of management in any business.

As Deakin (2004) explains, property management indicates a need to be cared for, monitored and accountability given for its usable life and condition. It is also the management of the physical assets, maintain the buildings deliverables and tooling.

Being able to calculating cash flow is of paramount importance for a profitable management of a rental property. However, Deakin (2004) explains that being able to manage tenants is the most important part of rental property management.

Other factors that need to be addressed include advertising vacant space, interviewing prospective tenants, obtaining fire, liability and other insurance on the property, arranging for regular repairs and maintenance activities, conducting regular inspection and having an organized rental payment system.

The global economic crisis in 2008 proved just vulnerable the real estate can be. Many buildings had their rates affected because of valuation. According to Estates Dubai (2011), the real estate owners of both private and corporate properties are awaiting for the property valuation results of firms to match pre-crash valuations. The situation is slowly expected to improve and investors in Dubai are hoping to get better valuations.

Property owners are hopeful that things will slowly stabilize and go back to normal not long from now. As explained further by Estates Dubai (2011), owners of properties are of the belief that the real estate market has recovered considerably and so, it is time to see whether the value of their holdings have gone back to what they were worth before onset of the economic crisis in 2008.

These kinds of challenges prove the need for a well designed property management plan, capable of addressing such uncertainties when they arise. The process involves, systems and manpower required to manage the life cycle of all acquired property including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition (Deakin, 2004).

Background of the case study

X Company bought a building in the Dubai Health Care City from Dubai Properties via Dubai Holding. The building was bought in a shell and core condition meaning that it was sold without the finishing part that is carried out in most constructed buildings. Therefore, X Company had to spend extra money on the building finishes and fit out.

X Company has been able to transform its office building into a very luxurious building with the most expensive fit out and furniture that has ever been used by any of the government entities whether in Dubai or in any of the other Emirates.

The building fit out and finishes were chosen carefully to match those found at Googles headquarter. Not to mention the custom-made designer furniture that was especially ordered for the building from Italy.

The building was primarily bought to be X Companys Headquarter and to embrace all sister entities of the Office. It was handed over to TEO on June 2010 during the period of the global economic crisis. After which a sudden decision has been made by the top management to convert the building to a commercial building instead and to start renting it to other entities whether government or private.

The problem faced by X Company (the Landlord) was that the way the building was built which was mainly intended for the occupancy of a single entity. For instance, some of the floors were divided into 3 to 4 separate office units that share the same reception area, the same pantry and washrooms.

In addition to that, there are a few meeting rooms on the floor that are also designed to be shared between the office units. Within a short period after the handover of the building, X Company managed to bring in two entities to occupy a space within the building. One of the entities leased an office unit on the 3^rd floor and the other one leased a unit on the 4^th floor.

The reason why I chose this case study is that I have been mainly involved in the process and in almost most of the decisions that were made in relation to the building. Im the Head of Operations at X Company and I handle all business support related tasks one of which is the management of X Company properties.

It has been a great challenge for us to handle the building after its handover and the decisions we had to make to have the building running. Not to mention the challenge we faced after the decision to convert it into a commercial building where it was mainly designed for the occupancy of a single entity in the first place.

As mentioned earlier the building cost X Company a fortune to make it the way it is now, therefore, it was necessary for the team managing it to maintain the quality of the building and to market the building as one of the unique buildings available for rent for commercial tenants.

In addition, Property Management is a headache. Given the aforementioned reasons, it is for X Companys betterment to hire a specialized company to manage and run the building on its behalf.

With such an arrangement in place, X Company can be relieved from the headaches that come with managing the building by itself. Not to mention that it is imperative for X Company to find a way to have the building occupied by leasing most of its floors in an effort to recover its operational costs at lease.

As the Head of Operations at X Company and being the one responsible to handle all building related issues, its been a great opportunity for me as a manager to explore other fields of management such as the field of Property Management. I gained the experience and the skill required to run future buildings not to mention the challenge we faced acting as a landlord for the first time.

The building is operational and is properly managed by the Property Management Company. However, only around 30% of occupancy has been achieved until now due to the economic crisis that affected the property market in Dubai and some management changes that I will further elaborate in the case study report.

However, the buildings rent committee meetings are held on regular basis to discuss the building leasing status and the market situation. Much more needs to be done to ensure that the building is not only filled up, but that it remains so. To fill up the remaining 70% of the space, advertising, incentives and quality addition measures need to be addressed and implemented effectively and urgently.

Goals

• To facilitate all decisions and execute all contracts in relation to managing the building and keeping it operational.
• Provide extra services to the tenants on split floors (currently 3^rd and 4^th floors) such as pantry services and receptionists.
• To Achieve 60% occupancy of the building by the year 2011 and 100% occupancy by the end of year 2012 and sequentially reaching a breakeven point in respect of the buildings total operational expenses against its rental income which is expected to be achieved in year 2015.
• To resolve all issues in relation to the defects and snags in the building in order to maintain the building quality. It is worth noting that these snags and defects initially existed when X Company bought the building in its shell and core condition and these were not discovered during the time when the building was sold to X Company as the team who worked on the buildings fit out after the purchasing process eventually discovered these defects and snags.

Initial steps

Achieving a profitable management plan for a property may be a challenging task for most investors. For company X to achieve this, there needs to be various steps which must be set up as a foundation. These steps include;

Specification of investment objective

To ensure maximum benefits from a product in the housing business, there needs to be clearly set objectives. A successful business model and its management are guided by defined goals and timescale. Each objective has a determined importance and a plan as to how it will be achieved.

While some investors will take risks and some will do their best to minimize or avoid them, in both instances it is paramount that risks be identified in the earliest stages of the plan. The process of risk identification should also involve identifying constrains that could arise from special situations such as time horizons, increase in cost of raw materials, liquidity and legal policies, just to mention a few (Monden, 2000).

Choosing the product mix

According to Monden (2000) in any investment management, the most important decision is with respect to the cost and product mix decision. This step involves proper proportion of costs involved in designing and marketing the product.

The proportion is determined by several factors such as risk tolerance of a product and the market an investor is in, current prices of inputs and period allocated for different goals, among other parameters.

It is in this step that the cost management leader of a company has to decide in which class a cost will be placed, as well as which areas of spending will be cut. Company X can decide to focus on a product that is pocket friendly, or one that is luxurious hence costly. This would be dependent on the target tenants and the nature of the regions market.

Formulation of strategy

Depending with the risks a manager is willing to take, the level of diversification required, and risks involved, the most suitable business model management strategy can be decided on.

Formulating a strategy further involves selection of designs after a fundamental and comprehensive analysis of parameters a product developer is interested in focusing on. In company X, a product developer could focus on the reliability, durability, ease of the products usage and uniqueness just to mention a few.

Plan execution

This step is one of the most significant determinants of how successful and effective a business model will be. It involves the implementation of formulated strategy, which may include investing in different sectors of the market at different times.

It could also involve implementation of measures designed to minimize risks or ensure stability in the companys cash flow. In this case, a stable cash flow will be ensured by attracting and retaining reliable and consistent tenants.

Strategy revision and evaluation

Just like any other investment management, a business model management requires constant revision and evaluation. Changes in the price of inputs automatically change the value of a product in the market. Changes in Dubais regulations and policies will affect how processes are implemented in company X. Any possible changes in a market will affect a business and must be put into consideration.

This calls for regular changes on the investment plan to take care of fluctuations. Change of the business model or implementation may be necessary. Evaluation should be done from time to time to determine what is working and what is not. Like Bragg (2010) explains, it helps the investor to realize if the strategys returns are in proportion with its risk exposure.

Property and facilities management

Property management

Property management roles are often concentrated on two sides: landlords (or owners) and tenants (or renters) (Deakin,2004). The main aim of property management is to meet the needs of both parties. Roles and responsibilities of a property management company can vary depending with what they are trying to accomplish. A reputable property management company that pays attention to the adds. Nevertheless, the advertisements should be realistic and achievable, and not be comprised of empty words and promises.

A good property management company must find the right clients, give them the best services and then let word of mouth work for you. When a building has a few tenants already in, the rest is surely easy as long as services provided to are satisfactory. When they are about what is being offered to them, they are more likely than not to tell someone about their experience.

To ensure professional property management, Property Management Company, named Asteco has been hired by X Company to deal with all matters in relation to leasing the building. It is also expected to look after all the accounting and to coordinate all maintenance and repair work with a Facility Management Company hired by X Company.

Out-sourcing these services is aimed at helping X focus on the main tasks and minimize the need to develop a team to do the job, since the company has never done property management before.

Asteco Company is expected to take care of all the major things required to manage a rental property. These include;

Increase occupancy percentage

The first task that Asteco is expected to accomplish is increase the buildings occupancy. Currently, the building is operational but is most of the space is unoccupied. Only around 30% of occupancy has been achieved until now due to the economic crisis that affected the property market in Dubai and some management changes that I will further elaborate in the case study report.

However, the buildings rent committee meetings are held on regular basis to discuss the building leasing status and the market situation. Much more needs to be done to ensure that the building is not only filled up, but that it remains so. To fill up the remaining 70% of the space, several measures will have to be in place.

One of the most significant measures that Asteco is expected to undertake is advertising. Since the building was initially constructed for government functions, the property was not advertised as open to the building while under construction, as is the case with many buildings, Asteco is expected to advertising the building using word of mouth, brochures and the internet, among other available platforms.

Word of mouth will only be possible if the current tenants are fully satisfied. It is therefore paramount that services offered in the building stand out from common services offered in other buildings. The building will also be advertised through brochures and listing the building in websites where tenants can g and search for houses.

The other measure that will be undertaken to increase the number of tenants will be use of incentives. Through Asteco, company X will invest in offering services such as free mail delivery to the postal corporation of Dubai, and collection of mails by offering the buildings postal address to be used by tenants that do not a personal address.

Incentives also a well designed and furnished reception office to welcome and give directions to the tenants visitors and clients. Incentives also include free cleaning services for clients. This can be offered as part of the lease agreement or as a discount for the first one year to attract tenants.

Rental policies and procedures

Asteco will be assigned a responsibility of ensuring that policies and procedures governing the building are designed professionally. Lease agreements must put into consideration the needs of the landlord and well as those of the tenants.

While the landlord will be expected to hand over a space to a tenant in its highest quality, the tenant has a responsibility of keeping it that way and paying for all the damages that occur during their period as a tenants. Policies and regulations should also address the legal responsibilities of each party involved in the contract.

Supervise repairs and maintenance

The company is expected to work with Deyaar Company which has been hired to manage facilities management. Asteco will monitor and supervise their work, as well ensure accountability during and repair and maintenance tasks that need to be performed.

It is Astecos duty to ensure that all costs incurred in maintenance are competitive and fit into the companys budget. It is also their duty to conduct inspection regularly and ensure that quality is assured in and outside the property.

Payment collection methods

As a property management company, Asteco has been assigned the duty of collection payment on behalf of the business. Lease agreements will state clearly the amount of rent due for the amount for space occupied by a tenant, as well as when it is due.

It will also be the duty of Asteco to ensure that tenants pay their rent on time. When it is time leave, an appropriate notice should be given and Asteco has a responsibility of ensuring that the vacant space is advertised.

Facilities management

Facilities management plays a crucial role in ensuring success, managing resources and minimizing risks. Lack of a proper facilities management strategy may result in risks from different uncertainties such as natural calamities, legal liabilities, deliberate attacks from an enemy and economic uncertainties, environmental bodies among many other causes.

For most part, facilities management methods consist of several elements, performed in a specifically defined order. They include assessment or identification of threats in a business facilities, assessment of the business vulnerability, consequences and identifying ways to eliminate or reduce the threats that ma y arise from poor facilities management.

A strategy must be set up to prioritize facilities management and minimize risks. Principals of facilities management include creation of value, addressing uncertainties, creating a systematic and structured strategy and creation of a dynamic and responsive facilities management procedure.

Deyaar Facilities Management is national facilities management company with a reputation for helping business improve their efficiency. The company has been hired to company X to look after the repair and work of the building and provide 24 hour emergency service.

The company was hired since company X was looking for a business whose primary objective would be to offer the business with solutions that help them operate their businesses more efficiently, as well as helping them implement the solutions.

Deyaar is expected to be primarily devoted to the maintenance of the business building and structures through fire protection and safety, risk assessment, control of substances hazardous to health, occupational safety and health, industrial hygiene and indoor air quality. The company is expected to accomplish this by managing some of these activities;

Fire protection as safety

We in company X believe fire safety and protection is important for a business for the following reasons;

1. It allows continuity of operations by preventing the interruption of key services offered by the business
2. Property protection is ensured by preventing conflagrations and having insurance considerations
3. Life is protected by ensuring fire safety standards and codes are in place

Deyaar Facilities Management Company will ensure fire protection and safety for company X by installing smoke and heat detectors, sprinkler systems, dry risers, fire alarm systems and other gadgets that will enable the business manage any fire risks before they occur.

Before all this is done, the company will perform a fire risk assessment to establish the level of risk the business and clients are exposed to, as well as what needs to be improved.

Health and safety

Company X expects that the business will have a lot of in and out traffic as it has most of the space leased as offices. As a result, if safety is not taken care of, a big number of people and their lives are threatened. It is for this reason that health and safety must be a paramount part of the building. Considering this, Deyaar Facilities Management must have in place a plan and strategy to ensure this is well addressed in the business.

The plan must help company X take the necessary steps towards ensuring compliance with the state and local laws regarding safety. Among such regulations are the Occupational Safety and Health Administration (OSHA).

To manage health and safety, Deyaar must also help company X achieve industrial hygiene standards in their kitchens, stores and warehouses. Indoor and outdoor air quality for a building that serves so many people in a day is important to keep those who need services in the building keep coming back and ensure their health is not threatened.

Another area that will need attention to ensure health and safety is control of substances hazardous to health. This will include ensuring proper handling of any food preparation places in the building, cleaning chemicals, proper management of first aid kits and cabinets, and any other substance that could pose as a threat if not handled well.

Security

Like any other building that has a drive-in-through and park-up setting, company X must ensure that their building is a favorite for many for services offered in the building. One factor that clients and visitors to a building consider before making a choice on where to stop and access services and products is their safety.

Occupants and visitors need to be assured of their personal security, their cars security, and the security of their property. Deyaar Facilities Management Company must identify elements that are crucial in ensuring security for such a building. These elements are designed and implemented in different layers.

These layers include environmental designs, personal authentication, electronic access controls and intrusion detectors to ensure appropriate response measures are in place.

Deyaar Facilities Management is expected to assure security to the business, its property and its customers by installing obstacles that delay serious security threats and attackers, and frustrate the trivial ones. They are also expected to ensure security by installing explosion protection measures such as bomb detectors, security lighting, surveillance cameras and alarms.

When managing security, a proper response strategy is crucial in stopping and minimizing damage. A security response strategy will therefore have priority when managing company X facilities.

Putting in mind that no specific solution will satisfy the business broad class of security situations, Deyaar Facilities Management Company is expected to perform an analysis to establish the business needs and come up with customized solutions to each of the security problems and needs. Among the solutions that company X has already established include manned guarding, intruder alert, Access Control and CCTV technology.

Operational management

Operational procedures in a business deal with designing and overseeing business operations that address the management of goods and services. It is responsible for ensuring that business operations are running efficiently and effectively.

Deyaar Facilities Management Company is expected to help company X to handle its operations effectively by designing procedures that help save time, produce results and monitor progress. Among these operations include running the help desk that allows visitors access the place easily, inquire about parking regulations and to maneuver through the building.

Managing people and traffic play a key role on operational management by ensuring people have easy access to the inlet and the exit. Deyaar Company is expected to see to it that the parking and the ordering counters are designed in a way that they can accommodate disabled people.

Different groups of people such as expectant mothers and those with small children will have their needs taken care of. The toilets for example have to be clean and ensure comfort by having separate toilets for people of different sexes and those with disabilities.

Cleanliness is paramount for a business such as company X. Visitors need to feel comfortable enough and have a reason to come back. Tenants need their hygiene taken care of to ensure they dont use it as a reason to leave. Deyaar Company is expected to ensure that cleaning procedures and programs meet the needs of the business.

A key area in cleanliness is waste management, which should take into consideration the cost, environmental consequences and other factors. Company X will have all the cleaning procedures and chemicals researched on to ensure that they dont pose any threat to tenants and visitors safety.

Managing large volumes of supplies will be a big consideration when putting up a strategy to manage stores, freezers and the kitchens. It is important that storage compartments, especially those designed for foods and other perishable products do not expose anyone to food poisoning or damage its quality.

Every business today is faced with the challenge of managing environmental issues. Deyaar is expected to use its experience and help company X meet the national and local environmental regulations such as the Environmental Protection Agency (EPA). Buildings planning, layout and placement of structures all count in environmental management.

The company is expected to have procedures that ensure a daily inspection of waste management, water treatment and level of traffic managed in the building. Issues such as pest control, vending and car parking are also expected to be addressed.

Maintenance systems

Maintenance systems ensure that all the investments a business has put in place are well maintained and give back the value. For company X, such a big building is expected to have tenants that will use big, heating, refrigeration and cooling systems. Managing them is part of Deyaar Company and is expected to be a big part of their task operations.

Furthermore, Deyaar Facilities Management offers services such as researching and installing the best heating and cooling mechanisms for such a building. These are services that the tenants can use for different purposes in their offices. Deyaar is further expected to address air conditioning to ensure appropriate conditions for tenants and visitors.

Part of Deyaars work will include installing predictive and preventive maintenance measures to help manage damages before they escalate to unmanageable levels. For example, rooms with cracked walls will need to be fixed early enough before its too late, and before they offer an opportunity to people who are a threat to security. Corrective maintenance also ensures early repairs when they are still cost effective to perform.

The parking lot and drive ways must be constantly checked to ensure the comfort of customers. The surrounding such as the grass and gardens must also be well manicured and managed to keep the place appealing to tenants as well as their clients and visitors. Deyaar Facilities Management is expected to ensure this by building automation systems that help the business detect defaults early enough.

Fabric and decorations used in the buildings reception area have to match with the buildings class and quality. Other important factors in maintenance systems will include reactive repairs, control measures and horticulture.

Periodic statutory inspections and testing

Statutory inspection and testing deals with work equipment, managing pressure systems, fixing wiring and electrical appliances and other emergency applications such as lighting. Deyaar Facilities Management will ensure that man-safe systems such as access to the roofs and cleaning windows in done in a way that doesnt expose anyone to danger.

There will be laid down procedures for fixing wiring, handling portable appliances and handling emergency electrical operations such as lighting. In order for fire protection and other safety measures to bear fruits, regular inspection and testing will be used to keep everything working and correcting what is not working on time.

Deyaar Facilities Management is expected to use its experience to put in place measures that enable the business to reap the benefits of all its investments in safety.

Risk management

Deyaar Facilities Management will address and help company X deal with technical risks related to professionalism of the project and issues that affect it directly. These risks include incomplete or wrong designs and uncertainties over availability or delivery of materials when the business is doing any constructions such as expanding its parking space and stores.

Managing technical risks will also cover handling inadequate or inaccurate site assessment and wrong specifications and estimations. Other types of risks that a good facilities management plan will help manage include logistical risks, which are mainly caused by lack of proper transportation infrastructure in the vicinity where the building is located. They include availability of resources and a timely delivery of materials.

Another significant risk that company X needs to manage in its facilities management program is construction risks. Construction risks include safety and natural uncertainties. Tenants safety and well being, stability of the finished project and protection against natural risks such as strong winds are the major concerns in construction risks.

Company X must have structures that ensure its protected from extreme temperatures, winds and other natural and man-made disasters such as floods. If there are new projects to be developed in future such as extensions, project developers have to ensure fire safety measures even before projects commence.

Other examples of construction risks are poor industrial relations, weather implications and uncertain productivity of materials. All these are areas that a good facilities management plan could help by saving the business save a lot of money.

Expected results

Diversification

Investing in property is considered a less volatile investment, making it a better investment when other markets are going through a struggle. Having a portfolio that allows diversification further protects an investor when the real estate markets are going through a hard time. A good example of the industry can be affected by unstable economies is the recent 2008 global economic crisis.

Diversification in property management can be assured by ensuring an aggressive and up-to-date consideration and understanding of various parameters such as interest rates, profit margins and rental market rates among other things. It can also be achieved through comparable returns of the property in different seasons and trends in the market.

Stability

The purpose of making a portfolio and a management plan is to prepare for the future. A good management plan must allow company X to place their investment in a position that will have good returns. It should have a solid plan of what ought to be done should the markets change to an unexpected direction.

Because a big percentage of the return on property comes from rent, fluctuations in most economic parameters will have little impact on the value of the investment. However, other parameters in the markets have an inverse effect on the return of a building. For example, increased insurance and utility rates will mean that company X will incur more expenses.

The relationship between the two poses a significant challenge to investors, especially those who want to have the same business model for a long time. Therefore, a good management plan should take these factors into consideration before a decision to design what they want to offer to the markets. This will in turn create a sense of security in knowing there is a plan.

Consistent income

A good management plan is expected to increase the buildings returns. If all the remaining space was leased, the building is expected to be profitable and fully cater for its expenses every year. The plan must ensure that payments at different intervals are utilized and invested well.

Furthermore, it should have well laid plan on how different market trends will be managed. Even though rental houses are constantly referred to as fixed income investments, they pose risks to an investor. They can earn big losses especially when they lose value or when tenants are forced to close down due to different market challenges.

Manage risks

While rental houses are generally considered as a safe investment, there are various risks associated with them. He most significant as already seen company X is when there are not enough tenants. If a building was build using borrowed money, interest rates could go up leading to fewer returns. Reduced income risks arise as a result of the relationship between income and expenditure.

Other risks that need to be managed in a plan include the occurrence of natural or man-made disasters. A good plan must address this through insurance and other protection policies. Furthermore, capital depreciation could occur if a buildings ratings go down.

Legal considerations and taxes

A good property management plan must not consist of any fraudulent or illegal transaction in the plan. It should also be able to take advantage of tax free payments for investments where that is applicable. This is especially beneficial for those investors in the high tax bracket.

Just like other countries, Dubais laws and policies have provisions and incentives for different classes of investors (Central Intelligence Agency, 2011). Company X expects that a good plan will help it take advantage of the different provisions and develop a more stable business model for managing the building.

Succeeding in property management

Proactive approach to cost management

Understanding costs and profitability allows businesses to take a proactive approach to cost management. Traditionally, businesses manage costs when a product is already finished. Direct costs which make up more than half the cost of a product remain a challenge to many investors. Target costing as has been evident in many Japanese businesses can help a business manage costs by cutting on it at the design level.

By having a set cost of production, a business is able to have control of their profitability. A proactive approach will reduce speculation and yet makes it possible to approximate profits in company X. Cost management can be done at the design level by deciding what services the building will offer and what the tenants will provide for themselves.

Orienting a business towards clients

In such a competitive field, it is important for a business to orient itself towards its clients. The size of the offices designed in company Xs building are big and one client takes up a lot of space. This means that losing one clients could means significant losses for the business. Furthermore, more property developers continue to register a presence in the country, leading to a high level of competition.

Orienting company X towards client will ensures that a business knows what to expect from the customers, as well as what is expected of them. Since the housing industry is very much dependent on survival zones, the company will be forced to understand its clients comprehensively. This includes their needs, expectations and spending trends, among others.

The company will further be forced to understand its competitors, strengths and weaknesses. This kind of knowledge and market understanding will empower the company to design and offer services that are needed in the market. Chances of being in the low survival zones will be reduced and profitability will soar.

Breaks down barriers between investors and locals

For a business to succeed in any country, it is important that it established a healthy relationship with the locals. Understanding the markets can only be done through feedback. A good relationship with employees, clients, financial institutions and even the government ensures that a business has access to genuine feedback from different stakeholders.

The government of Dubai plays a significant role in ensuring that investors are accorded all the support that they need. Furthermore, it is only through improved relationships that company X will be able to access the best labor in the market.

Having synchronized departments

The design and production of a product in the housing industry is very dependent on the logistics, purchasing, human resource, production and quality department. These departments will be responsible for ensuring availability of supplies, how they are managed, designed and how the final product looks like as well as how much it costs.

Working together in the initial stages of a product keeps the department and their activities synchronized. When the product is already out in the market, managing it will be an easier task since every department is well conversant with its strengths and weaknesses.

It is therefore important for company X to ensure that every member of the team in this project is well conversant with what is expected from the product, as well as how it is going to be achieved.

Research implications

This research is aimed at shedding light on the situation of the real estate market in Dubai. The regions real estate market is considered among the most vibrant in the world today. As a result, new rental buildings are coming up every day, a situation that could make it hard for property managers to fill up a rental property.

Furthermore, the state and quality of properties has to be outstanding for a landlord to attract and retain enough tenants. The research will also be used to analyze rental property management techniques and their influence on the success of a building. The role of quality management will be analyzed.

The information is relevant to all landlords as well as property managers. Landlords can use the information to understand the importance of ensuring that they have well experienced managers in the field of quality management as well organizational skills.

Property managers can use the papers findings to understand the different techniques that can be used to attract and retain tenants. By analyzing policies and regulations in the industry, the information will also reflect on the role of the government in ensuring that investors are well rewarded when their buildings are complete.

Research limitations

Dubai is still considered a developing nation. This raises several challenges common in developing countries. Information availability is a significant challenge for this research paper. There lacks a well organized and updated warehouse where one can access information about rental properties in country, trends and challenges.

Time allocated for the research was limited making it hard to comprehensively cover some of the topics. Language barrier was also a significant challenge. A majority of people in Dubai speak Arabic. Collecting information and translating it into English for the report is time consuming and the process could lead to loss of specific details.

Conclusion

Quoted in Estates Dubai (2011), the managing director of Chesterton International said clients are emphasizing valuers to match their older pre-cash valuations carried out on their assets, as they feel that the market has made sufficient recovery this year.

Dubais economy has been among the best performing in the gulf region. It is also among economies that have registered full recovery from the recent economic crisis. The crisis which negatively affected profitability in the real estate industry has however presented significant lessons to property managers.

Several larger companies possessing properties had earlier decided not to value their portfolios, as they were aware about the decline in rates since 2008. However, these companies are currently beginning to again compare values as markets improve (Estates Dubai, 2011).

The future of the real estate industry is bright in Dubai and property owners such as company X are expected to gain. However, significant gains are only possible through a well researched on designed property management plan.

From this report, it is evident that there are many facilities management processes applicable to company X. The first step is to put in place specific procedures and in-house regulations that deal with facilities safety measures. The business should also adopt standardization of facilities management processes, to ensure minimized risks and consistency.

It is important that the business puts its developers into task, to ensure that their teams are well trained on facility management, risk management and safety. Training should involve intensive consultations from experts such as Deyaar Facilities Management Company and from business that have managed to achieve excellence in facilities management.

Traditionally, financial paradigms have been characterized by very little activity as far as property management is concerned. Buildings are considered a predictable and safe investment. As the market becomes more and more diverse, investors realize the need to manage their property management plans with more aggressiveness.

Activity and interest have increased in the property markets as more people gather confidence to invest in the industry. Initially, more people felt safe to invest in properties that attract big clients such as hotels and banks.

Today, more investors are coming in to the regular market, making it very competitive (Oxford Business Group, 2008). As a result, managing a property is not a guaranteed profitable affair. There is need for a business to address different challenges such as market trends, preferences and challenges.

The process involves several stages such as specification of investment objectives, choosing the product mix, formulation of strategy, portfolio execution, revision and evaluation. To ensure maximum benefits from the investment, there needs to be clearly set objectives. Successful property management is guided by defined goals and timescale.

The process of product mix is determined by several factors such as risk tolerance and period allocated for different goals, among other parameters. It is in this step that the property management company will be expected to decide in which class different products will be placed.

After choosing a product combination, there will be need to formulate a suitable strategy, done in consideration to risks company X is willing to take and the level of diversification required. The execution will be significant and will determine how successful and effective.

To make the plan successful and profitable, a better strategy, diversification, stability, risks management and income management will be part of the long-term plan. A good plan like explained in the report must also allow an investor to place their investment in a market that will have good returns. Choosing a target market will therefore be a critical part of the plan.

Company X will also have a solid plan of what ought to be done should the markets change to an unexpected direction. Furthermore, the company will take advantage of the available rating system to know the amount of risk they are facing as an investor.

Addressing legal challenges and policies will be paramount to ensure consistent and a smooth flow of operations for the company. Understanding legal requirements and policies could also help the business save money through taxation classes and benefits.

Reference List

Bragg, S. (2010). Business ratios and formulas: A comprehensive guide. Hoboken, N.J.: Wiley.

Central Intelligence Agency. (2011). United Arab Emirates. Web.

Deakin, M. (2004). Property management: Corporate strategies, financial instruments and the urban environment. Aldershot: Ashgate.

Estates Dubai (2011). Property valuators being pressurized to value properties at pre- crisis levels. Web.

Monden, Y. (2000). Japanese cost management. London: Imperial College Press.

Oxford Business Group. (2008). Report: Dubai 2008. Oxford Business Group.

Covington Building Supply is a company that deals with building repairing and re-modeling. The company deals with people that want to remodel or repair their houses or with other businesses, public or private, buildings that need repairing. The main market for this company is the housing market along with the private business centers market, resorts, etc. but Covington Building does not only assist you in repairing your building after damage, but it can also offer you a remodeling option for your house, for example.

As mentioned above, its clients can range from individual homeowners to big companies wanting to repair or remodel their property buildings. Since from the income statement we find that most of the revenues, sales, of the company are done in the second and third quarters, we can imagine that its clients see the services offered by this company as something they can use during the vacation season. For example, people tend to remodel their homes during summer when they can take a period off from their jobs. The same can be said for business companies wanting to repair their buildings. During spring and summer, it is better to do that.

The very nature of the business explains to us that the main suppliers for Covington Building Supply are companies that provide raw materials needed for the repair works. Covington Building Supply is in a comfortable position for the moment because the correctness of Mr. Covington in doing business with them has formed a positive image. This has helped build confidence and now Covington Building can rely on high-quality suppliers. This situation will ultimately benefit the Covington company itself.

The main concern of a bank when it credits a company is the ability that this last has to repay the debt. Banks primarily want to know if you are capable of generating enough income to repay their debt on time. The second thing they look for is if you will be so successful as to require more credit to expand your business so that they can finance you again. Thus it is imperative in our case to see some key parameters of Covington Building Supply. The first is their debt-to-equity ratio. That is the contrasting of their total liabilities with their total assets. But what is important is the value of the long-term debt that a company has.

This is because long-term debts can harm companies in the future. A high debt-to-equity ratio means that the company is being aggressive in investing through borrowed liquidity. if income is going to remain at a level above that required to repay the cost of debt (its interest), then the company will benefit from it. Thus we have to go to the financial data of the company and see its revenues for the past years, its operational costs, and its net profit after taxation. If the costs of Covington Building Supply are decreasing over time, or the company manages to keep them as low as possible, this is a good start.

If also, the revenues, the sales, of the company are increasing year after year, that is also very positive. The decreasing value of the companys expenses, operational costs, combined with the increasing value of its sales, revenues, will give as a result an increasing value of gross profit before taxes. Of course, this will result in an increase in profit after taxes, the net profit.

It is this net profit that should be contrasted then with the interest rate value the company has to pay to the bank. If this profit value is greater than that of the interest to be paid, and with a growth tendency, then the company is in excellent health and it is worth crediting it. In this case, Covington Building Supply has been gradually increasing its revenues over the last three fiscal years. In Section 3 we will deal with it in detail demonstrating the data backing this claim.

A final consideration could be made about the fact that MR. Covington is not taking advantage of the 2% discount offered by its suppliers if the invoices are paid within 10 days. This is due to the fact that he wants to have some liquidity in the company. He has to pay the loan already part of the companys expenses and the fee of the purchase of the shares from his brother-in-law. If he pays the invoices immediately he will leave the company almost dry of liquidity. To be more precise, the number of days he is taking to pay is determined by the ratio: accounts payable/average purchases per day.

By looking at the financial data (in thousand $) we see that for 2004 this was: 575 / (5964/365) = 35.2 days. For 2005 we have: 918 / (7368/365) = 45.4 days. For 2006: 1015 / (9663/365) = 38.3 days.

The business strategy of MR. Covington is to gradually expand his business from a local level to a state level. The first factor demonstrating this is the fact that he builds his building facilities near an interstate highway. This will help the company reduce significantly transportation costs. By forming a very good relationship with its suppliers, MR. Covington has assured his company of fast and high-quality supply materials. This will have a positive impact on creating a brand image among consumers. The backing of his business by well-known and established banks is a further positive factor for Covington Building Supply. All of the above-mentioned factors do help the company gain a sustainable competitive advantage.

Also, we must mention specifically that Mr. Covington is relying on bank credit investments, loans, for a few reasons. First of all, this way he guarantees his company a considerable cash flow, liquidity. This makes him not use the cash gained from the net profit to invest for the company and thus can use that cash to pay the purchase of the shares of his brother-in-law. That is a second reason. Also, another reason is that by relying on banks he increases his positive perception of the market. Since banks have confidence in their company then consumers and other investors will view this as a reliable company. This helps build consumer and investor confidence.

Regarding the profitability of Covington let us see the net profit value year after year. From 2004 to 2006 it has gone from 162 to 207.9 (thousand $). So, in 2005 the company had a 13,33% increase compared to 2004 and in 2006 a 13,23% increase compared to 2005. Similarly, the net sales have been growing these three fiscal years. In 2005 the company increased the sale by: (9337.9-7886.7) / 7886.7 x 100% = 19,03%. In 2006 the increase was: (12201.3-9337.9) / 9337.9 x 100% = 30,66%.

These two factors combined demonstrate that Covington Building is a profitable company. The increase in sales is a positive factor which shows that the companys profit will remain high and thus it will be able to repay the loan. The stance of the net profit of the company above the level required to repay the loan, and its constant growth, demonstrate that Covington will be able to repay the bank for its loan.

As one of its suppliers wrote, Mr. Covington has been very conservative regarding cost control. So, we have to provide some financial data to back up the decision of the giving of the loan. From the financial data provided we see that the increase in gross profit is higher than that of the operating expenses. For 2005 the gross profit increase was: (2276-1941) / 1941 x 100% = 17,25%. Instead the operational cost was: (1936-1679) / 1679 x 100% = 15,30%.

For 2006 the gross profit was: (2957-2276) / 2276 x 100% = 30,09%

The operational costs instead were: (2538-1936) / 1936 x 100% = 31%.

Even if in 2006 compared to 2005 the gross profit has increased less than the operational costs, anyway the gap is relatively close. In order to have a clearer picture, we must see the data regarding the total assets and the long-term debt. In 2005 total assets were increased by 3124  2481 = 643 or 25,91%. In 2006 they increased by: 4420  3124 = 1296 or 41,5%.

The debt-to-equity ratio were:

For 2004: 1121 / 2481 x 100% = 45,18%

For 2005: 2120 / 3124 x 100% = 67, 86%

For 2006: 3208 / 4420 x 100% = 72,57%

But we can have a clearer picture if we see the values of long-term debt. Instead of increasing, long-term debt was reduced from 378 in 2004, to 324 in 2005 and 270 in 2006. Respectively, in 2005 we had a 14,28% decrease from 2004 and in 2006 a 16,66% decrease in comparison to 2005. Thus, as mentioned above, the stance of the net profit of the company above the level required to repay the loan makes it an attractive customer for the bank.

The major risk factor for the company would be the increase in the cost of supply materials and the decrease in demand in the market. Since the services offered by the company tend to be viewed as luxury expenses, as is the remodeling of the homes for example, in difficult times many people tend not to remodel their homes due to financial difficulties. This would have a negative impact on the companys revenues, sales, and thus decrease its profits. And if the profits are decreased it will be less able to repay the loan to the bank.

This project will design and construct a residential house for an independent customer. The customer has identified the needs and has purchased a suitable location in a residential area for the house.

Based on customer requirements a project scope has been prepared and presented to the customer for approval. A work breakdown structure (WBS) has been developed, resource requirements have been identified, costs have been estimated, and risks have been identified. At this stage of the project there are several uncertainties and so the risks tend to be higher.

So far in the project lifecycle 20 risks have been identified and scored, several of which are medium risks. As detailed later in the document qualitative risk analysis has been used for this project which identifies risks based on their probability of occurrence and severity of impact on the project.

This document addresses five critical risks and details how these risks will be effectively managed. Critical risks are those risks that have the potential to bring the project to a halt or cause the project to be terminated due to associated costs.

This document, called the risk management plan is intended to be used on an ongoing basis for managing risks throughout the lifecycle of the project. The main objective of this document is to carefully identify all major impact causing risks and will be updated on a regular basis as the project progresses and more information is available.

Project Description

The project is to build a detached house with 4 bedrooms, 3 bathrooms, and an unfinished basement approximately 1800 square feet on a 4356 sq feet plot. The customer has already purchased the plot in a residential area and has secured it with a temporary fence around the perimeter. Based on customer requirements identified earlier, three tentative house plans have been developed and submitted to the customer. For the time being, landscaping is not part of the scope of work.

A work breakdown structure (WBS) has been developed and major activities and sub activities have been identified. As the project progresses and more information is available, the WBS will be further refined. WBS is the fundamental building block of the project and will be used for all future planning purposes.

WBS was used to identify risks associated with specific elements of the project and each element is assessed for risk (Dinsmore, 1993). Based on this, as mentioned above, so far 20 risks have been identified. These risks have been identified during the risk matrix and assessed for impact and probability of occurrence during risk assessment.

Based on information available at the time, suitable contingency plans have been prepared to contain the negative impact of all risks. Importance has been placed on high risk items especially those that have the potential to bring the project to a halt.

Procurement of raw materials is an important activity of building a residential house. Procurement also involves not only buying raw materials but also identifying qualified suppliers and developing criteria for selection of these suppliers. Historical information and current market research have been used to prepare procurement plans.

Several raw material suppliers have been identified and have been qualified based on the criteria specified in the procurement plan. These suppliers have been sent Requests for Quotations (RFQ). A high level risk has been identified in this category and is detailed below.

Based on the WBS, activity list, roles and responsibilities chart, and historical information resource requirements have been identified. Major parts of the project will be out sourced to contractors. Three contractors have been identified based on the experience and past performance. The intent is to have a single prime contractor who will be responsible for ensure safety regulations are consistently met. Contract documents are being prepared and will be submitted to the prime contractor.

A good quality residential house is designed and built to last for several years. The construction industry is a fairly advanced industry and has developed several best practices. To meet our quality standards as well and meet industry rules and regulations, we have prepared a quality assurance document.

This document servers as our guidelines during design and construction and includes industry standard quality standards, processes and metrics. The customer has been provided this document and will be used to ensure the house design and construction meets the approved guidelines. This document can also be used for third party audit purposes to help reduce risk.

Work Breakdown Structure (WBS)

WBS is the basis on which a project is built. For management purposes, the project is broken down into five major phases. They are:

1. Planning Phase.
2. Design Phase.
3. Tendering Phase.
4. Construction phase.
5. Monitoring.

Each of these phases is further sub divided into smaller and interrelated tasks. Each of these tasks is further divided into unique, manageable time limited activities to which is assigned a cost and resource. During the brainstorming and interviewing sessions conducted, each of these tasks was assessed for risk. It was identified that most of the high risks occurs in the planning phase of the project which is mainly due to uncertainties.

WBS Critical Risk High Five

While developing the risk matrix along with subject matter experts and other involved in similar projects, several risks were identified and their impact on schedule, cost, quality and technical aspects of the project were identified. Risk assessment was conducted using qualitative risk analysis which identified the probability of them occurring along with the impact on the project. Table 1 gives the definition of probability in terms of its likelihood of occurrence.

Table 1: Probability definition.

Table 2, summarizes these 5 critical risks and sections below details how these risks are effectively managed.

Table 2: Five Critical Risks.

WBS 1: Estimation of costs

During the initial part of the planning phase, customer requirements were not entirely known as a result of which detailed plans could not be developed. After much discussion and information gathering, 3 plans were provided to the customer, which still have to be approved. To date, the customer has yet to finalize on interior fixtures, heating and cooling systems, and exterior finish.

Brainstorming sessions conducted while developing the risk matrix revealed that accurate construction cost estimation would be a major risk factor, especially having a technical impact on the project. During the risk assessment the probability of occurrence for this risk was 4 and the actual impact of inaccurate construction cost estimation to project was 9.

The risk score of 36 gave it a high risk rating. This has not changed due to the fact that the customer has yet not approved many aspects of the project. To mitigate this risk the PM will have a meeting with the customer and other stakeholders and use the newly acquired 3D imaging softwares to give the customer a feel of what the new house will look like.

It will allow the customer to add various attributes or features to the home and see the effects in real time. This should help the customer make up their mind and help is getting an approval. To add to this, we will provide the customer with multiple quotations, which will give the customer a realistic idea of expected construction costs.

WBS 3: Assessment of different offers

During brainstorming sessions conducted while developing the risk matrix, a major risk identified in the tendering phase was the assessment of different offers.

It was identified that this high risk factor would directly impact the cost and quality of the project outcome. During the risk assessment the probability of occurrence for this risk was 3 and the actual impact of not being able to find qualified contractors to project was 9. The risk score of 27 gave it a high risk rating.

The reason this risk was considered high risk was because it was uncertain if good contractors and tradesmen were easily available to complete the project. To mitigate this risk our contingency plan was to evaluate the offers made by different contractors and also search for contractors located in other cities or states. This would be a tedious and time consuming plan especially because we have no presence in other cities.

Moreover even if we were able to find qualified contractors in other cities, the cost of bringing them into the city would affect the cost of the project. This however has now changed from high risk to medium risk, mostly due to the change in economic situation. The current recession has caused many builders, plumbers, electricians, and other tradesmen and to be laid off by big developers. These are now freely available to work on residential housing projects.

WBS 1.2: The establishment of safety standards at the work site

It was during interviews with subject matter experts and brainstorming with others who were involved in similar projects that this risk was identified. It is true that construction is one of the most types of land based work (Tilley, 2007, p.1).

Protecting workers is important because this could not only cause delays in the project but also cause substantial financial impact of the project. Moreover, Governments are striving for stronger safety standards for construction workers (Stronger safety standards).

Using the qualitative risk analysis approach, during the risk assessment the probability of occurrence for this risk was determined to be as high as 6 and the actual impact to project was 7. The risk score of 42 gave it a very high risk rating. It must be understood that in the end, safety, productivity and quality are not mutually exclusive (Tilley, 2007, p.1).

Considering the importance of this risk, it remains an ongoing activity. To mitigate this risk we developed contingency plan as part of the risk matrix, which includes regular site visits to monitor construction process, ensure safety standards are always adhered to, in the event of an accident investigate and identify the cause of the tragedy and finally ensure suitable compensation is in place.

It is also important to ensure the workers are properly insured and that the responsibility of this risk remains with the prime contractor. Care to should be taken to ensure safety standard codes are communicated to subcontractors and others involved in the project.

WBS 5: The Establishment of supply chain

Once the project starts it is important to ensure raw materials are freely available. Failure to find reliable suppliers of raw materials will not only impact the schedule, but will also have an impact on the cost and quality of the construction. Using the Delphi technique, while gathering information from subject matter aspects, anonymously, it was identified that several suppliers had gone out of business due to the economic recession.

Due to this, during the risk assessment although the probability of occurrence for this risk was determined to be 3 the actual impact to project was as high as 8. The risk score of 24 gave it a high risk rating. The contingency plan developed was to look for reliable suppliers operating in other cities. This again would greatly impact the scheduling requirements of the project, not to mention the impact on the associated transportation costs.

Also if the parts for some reason were defective, the additional costs of shipping them back would again add to the costs and make the project prohibitively expensive. What originally was thought to be a high risk item is now considered a medium risk. Recent articles and independent research has identified that most builders are hesitant to start new projects and so many reliable suppliers have a ready supply of raw materials.

WBS 3.1: The analysis of possible solutions

As mentioned previously, three plans were prepared for the customer with the intention of giving the customer options to choose from. Although all three solutions are expected to meet customer requirements some emphasis has been placed on cost.

This may have had some effect not only on the quality of the over all house but also the interior designs. During the brainstorming session with various stakeholders one of the risks identified was the analysis of these various solutions. During risk assessment the probability of occurrence of this risk is 4 and the actual impact to project is as high as 8.

The risk score of 32 gave it a high risk rating. It is quite possible that in an attempt to meet customer requirements within estimated costs, some corners have been cut. While cost of construction is an important criterion, it should not come at the expense of quality. To mitigate risks, contingency plans have developed, to ensure that safety and quality standards are not compromised in an effort to meet customer requirements within cost.

Two independent architectural firms with experience in audit have been identified which will allow these designs be independently reviewed and analyzed. They will be provided with quality assurance documents which will help them determine if the design is in conformity with defined quality standards, process, and metrics.

Risk Management and Monitoring Plan

As mentioned in the sections above, risks during the early part of the project are the highest, mainly due to uncertainties. Scope creep due to changes in customer requirements, changes in schedules or technical factors will require a reevaluation of cost estimates and contingency plans.

By proactively monitoring and managing risks, every effort will be made to avoid risks from occurring. Even if the risk occurs, the contingency plan is designed to mitigate the risks and limit its negative effects. This Risk Management Plan document will be reviewed and updated on a regular basis and the severity or probability of risk changes during the life cycle of the project.

Conclusion

Depending on the complexity of the project, risks may be difficult to identify during the early phases of the project. Therefore having a good WBS is most important as it breaks down the project to the smallest manageable task, against which risk can be assessed.

Risks are further classified based on their severity and probability of occurrence. Risks are one of the most important aspects of the project that need to be effectively managed. While all risks need to be effectively managed special important should be paid to careful identification of high risk items, those that would bring the project to a halt or make the project prohibitively expensive.

By carefully identifying risks early in the project, preparing contingency plans, and proactively managing them, these risks can be eliminated. There are times when risk cannot be eliminated, especially when it is due to external factors. In such cases contingency plans should be in place to mitigate their negative impact on the project.

There are several things I have learnt from this exercise. The importance of a strong WBS cannot be understated because it is used not only as the basis risk identification, but the whole project itself. By carefully planning WBS, a PM is able to better estimate costs of the project.

As mentioned previously, WBS can also aid the PM in estimating resource requirements, allocate time and develop scheduling and understand subtle interdependencies that exist in a project. Therefore getting it right early on in the project is the key to success. In reality, risk management plans are prepared but seldom updated.

It is important to review risk plans from time to time and update it as and when the probability or severity of risk changes. Once the risk plan is prepared, it should be made freely available to all stakeholders. This is important because it may require updated expert advice from subject matter experts.

References

Dinsmore, P. C. (1993). AMA Handbook of Project Management, The. AMACOM Books. Web.

Tilley, R. F. (2007). Implement Construction Safety Standards to Protect Workers. Web.

Stronger Safety Standards For Construction Workers. Web.

Anarchy: Understanding transformations in Human and Natural Systems is a book which has been edited by Lance H.Gunderson and C.H.Holling. The book went into press in 2002 and has a collection of articles on various topics related to sustainability by leading and exalted thinkers on the subject.

The Island Press, which happens to be the trademark of the Center for Resource Economics in the United States, has printed and distributed this book in Washington, Covelo and London. 3 chapters of this book have been selected for critical reviewing: The Chapter One, In quest of a theory of adaptive change, by C.S. Holling, Lance H. Gunderson and D.Ludwig, Chapter 2, Resilience and adaptive cycles, by Holling and Gunderson and Chapter 14, Planning for resilience: scenarios, surprises and branch points by Gilberto C.Gallopin.

What is Panarchy?

Before starting on the real review, understanding the term panarchy seems relevant. Panarchy consists of natures rules and was taken from the Greek God of nature, Pan, who has the image of unpredictable change (Bunnell, The Resilience Alliance site). The adaptive cycle and the presence of multiple connections in panarchies distinguish them from hierarchies. Panarchies have systems of humans (business, capitalism) and nature (forests) and combined human-nature systems (systems of humans for dealing with natural resources eg. Forest service).

These systems are inter-related in continual adaptive cycles of growth, accumulation, restructuring, and renewal. Panarchies have integrative theories which help us to understand rapidly unfolding processes and slow changes in economic, social and ecological systems (Bunnell, The Resilience Alliance Site).

By understanding the cycles and their scales, researchers can identify the points at which a system is capable of accepting positive change, and can use those reference points to foster resilience and sustainability within the system. Holling, Gunderson and Ludwig examine panarchy and how it can be applied to humans, nature and the human-nature combination systems. They also try to identify adaptive approaches to management, fully recognizing uncertainty and encouraging innovation while remembering to foster resilience in large and small systems.

Adaptive changes are discussed in the chapter In quest of a theory of adaptive change. Policies and investments for sustainable construction are really an integration of the evolutionary theory with ecological, political and institutional ideas. Unsustainable practices abound due to the inadequacies of each field. People have world views which are not totally practical and thereby expose inadequacy due to being caricatures of reality.

The caricatures of reality or myths are five according to the authors in the Quest for a Theory of Adaptive Change. These myths are the nature flat, nature balanced, nature anarchic, nature resilient and nature evolving.

Nature Evolving Theory of Adaptive Change

This complex adaptive system theory is the most promising of theories and developed by John Holland. Developmental biologists, geneticists, evolutionary biologists, physicists, economists, ecologists and computer specialists are coming together to form integrative theories of adaptive changes. Mathematical, economical and social systems are now employing this new nature evolving theory to investigate, generate and select novelty. Marco Jannsen is exploring the perspectives of future behaviour using the theory.

Chapter 2 expands on the nature evolving theory of adaptive change. The organisation and dynamics of complex adaptive systems with regard to ecosystem management are discussed. Natural, disturbed and managed ecosystems have been identified here. It has been observed that change is not continuous and gradual or chaotic always. Episodes of change are accompanied by the gradual accumulation of biomass, physical structures and nutrients. Disturbances are in the form of internal or external causes and could be natural catastrophes or human imposed ones. The changes resulting could be irreversible or slowly reversible through proper management. Sometimes even with positive management, the required change may not occur. Critical processes would function at different rates. Episodic behaviour occurs due to interactions between the fast and slow variables. It is not just a matter of accumulation& Stochastic forces mediate the movement between the fast and slow variables.

Obviously the nature evolving theory is the most reliable among the five theories. We must think in terms of adaptability and flexibility to change. Uncertainty and surprises must be foreseen and shrewdly negotiated to buffer disturbances and create novelty for opening up opportunities for development. The system cannot exist if adaptive continuity is lost. A productive system must acquire and accumulate resources with an eye on their future potential. Stabilising and destabilizing factors must be balanced so that the internal controls and external variability are similarly balanced. The system resilience maintains a changing balance between vulnerability and persistence and so it has to be a changing quantity.

Stabilising and destabilising forces decide the change that would occur. The former maintain productivity and biogeochemical cycles while the latter are responsible for maintaining diversity, resilience and opportunity. Fixed rules are not the solution. Ecosystems are moving targets and require a flexible management system which is adaptive and experimental. The features of nature resilient and nature evolving come into play.

Engineering resilience and Ecosystem resilience

Engineering resilience is reached in a situation where stability focusses on efficiency, control, constancy and predictability, all of which are attributes to a fail-safe design and apt performance and works in systems where uncertainty is low. However the same is not the picture seen in systems where variability and novelty provide a high degree of uncertainty, causing a counterproductive outcome.

Ecosystem resilience is achieved when the disturbances are absorbed by the system without any obvious change at first and when the disturbance is of high magnitude, changes in the system occurs and could even change variables or processes which affect behavior. It is interesting to note that issues in the environment for global change, biodiversity, ecosystem restoration and sustainable development all depend on the interplay between the stabilizing and destabilizing forces.

Engineering resilience speaks of the efficiency of the system while ecosystem resilience speaks of the existence of function. The traditional deductive mathematical theory of simplified, untouched ecosystems has made way for the engineering resilience theory. The stability domain definition of resilience or ecosystem resilience comes from applied mathematics and applied resource ecology. The dynamics and management of freshwater systems, forests, fisheries and lakes use the ecosystem resilience. The studies conducted in these ecosystems used the inductive theory rather than the deductive one. The example of the spruce-fir forests and insect outbreaks is an eye opener to the adaptive cycle.

Eco-system resilience is the capacity of a system to absorb disturbance and reorganize while undergoing change so as to still retain essentially the same function, structure, identity, and feedbacks. It is the capacity of a system to experience disturbance and still maintain ongoing functions and controls. Potential determines how far the system can go. The connectedness decides the extent to which the system controls its own destiny. Resilience decides how vulnerable the system is to unexpected disturbances and surprises that exceed or break the control.

Adaptive Cycle

The adaptive cycle therefore has 3 properties. There must be a potential for change, a degree of connectedness (which measures the flexibility) and resilience. Ecosystems are controlled by exploitation which is fast and conservation which is slow. Rapid growth occurs in the former and slow growth in the latter. In a business enterprise, the entrepreneurial market would be the exploitation and the conservation would be the bureaucratic hierarchy. To understand the ecosystem better, the functions of release and reorganization have to be considered. The release could occur due to forest fires, drought, insect pests or intense grazing. Reorganization occurs through innovation and restructuring. In a socio-economic system, the accumulating potential could be the skills of humans, the networks of relationships and mutual trust.

The adaptive cycle show 2 loops: the front one is the slow incremental phase and predictable with higher degrees of certainty while the back loop represents the rapid phase of reorganization and renewal which is highly unpredictable and uncertain. The first increases production and accumulation to the maximum and the second maximizes

invention and reassortment. A theoretical relationship between the two is not understood, however, the two may be sequentially related.

Alternative Stable States

Alternative stable states are also known. Meta-dynamic populations, shallow lakes, reefs, forest fires, sea otters and urchins in the kelp forests are all independent factors which produce alternative stable states. Loss of an important component could eliminate a stable state which was within the system of multiple states. This explains the problem of species extinction and the evolution of new species. Advent of humans in Australia has caused the extinction of more than fifty marsupials and birds and turtles. At the same time, the grazing ground of these herbivores also showed a decreased fragmentation in the vegetation which increased the possibility of bush fires. Frequent fires could allow the evolution of fire tolerant plants.

High resilience

When connectedness is low, novelty and creative experimentation are possible. This situation produces high resilience. A reorganization occurs to allow potential for subsequent growth, accumulation of resources and storage. This high resilience is also associated with internal regulation. However this is a leaky phase whereby other unexpected changes can occur. In a forest where partial deforestation was done, nutrient loss was discovered in the water flowing in the area. This recovered within a few weeks and the co-system was back to normal.

Adaptive change

Adaptive change produces better species along the way through competitiveness between entrepreneurs. This refers to business and nature. The ones fastest off the start and the most aggressive ones survive. The greatest variety of species is seen during the intermediate phases. As further adaptation occurs, the weaker ones let go. Ecological resilience also changes alongside. Surprises and disturbances are dealt with efficiently.

The potential for growth can suffer if resilience is not steady. If the process is prolonged, chaotic behaviour can result. Periodic experimentation causes diversity till resilience results. Unexpected associations and recombinations in this phase make it difficult to predict which events would finally survive to control further renewal. The skills and expertise remain for future utilization.

Is ecosystem management possible?

A successful eco-system model is not available now for ecosystem management. Mathematical models and analytical tractable models have been described for various eco-systems. The limits of the adaptive cycle metaphor are tested using the 3 properties of the potential for change, connectivity and resilience. Social or cultural potential is measured using the network of relationships between people and institutions of governance. This is the culture capital. Foresight potential which depends on the unique self-awareness and cognitive abilities is the one ability which separates human systems from eco-systems. An eco-system with high connectedness is not influenced by external variability. Internal regulatory processes mediate the variability or by direct human activity. Warm blooded animals show strong connectedness.

An adaptive cycle has 4 key features. The potential marked by ecosystem structure, productivity, network of relationships, inventions and mutations; increases in steps along with increased efficiency and rigidity. As the potential enhances, slow changes expose increasing vulnerability to fire, insect outbreak, competition, opposing groups and stockholder problems. When uncertainty is great and controls are weak, innovations occur at intervals so that new combinations result. Some of the tested innovations fail and some persist leading to successful growth. The adaptive cycle has waxing and waning periods accompanied by differing predictability.

External variability

The manipulation of eternal variability involves 3 strategies. One can live passively with external variability and adapting through evolution. The next involves the active control of external variability minimizing the internal influences. The third is to anticipate, create and manipulate variability. The pelagic open water communities and the savannas represent the passively living systems while the second concept of active control is representative of large enterprises and bureaucracies.

The invention and progress of the telephone system has been described in detail to show the effects of the adaptive cycle. The various aspects of the cycle with its changes caused by repeated threats and competition, potential, connectedness and resilience have been elaborate and are a fitting example of a system.

Maladaptive consequences due to loss of resilience can cause a shift to an irreversible state or slowly recovering state. Of the resilience, even if ecological resilience subsides, engineering resilience could have matters handled. Short term success can topple matters in the long run.

Gunderson described a pathology that arose out of the inept handling of management agencies, industries and the society. Management agencies in the attempt to become efficient may end up rigid, the industries become dependent and inflexible and the society loses trust.

Some systems do not conform to the adaptive cycle: tectonic plate dynamics, arid land (where the ecosystem is influenced by unexpected external forces with little internal regulation accompanied by highly adaptive responses to opportunity), productive temperate forests (with predictable outputs, some internal regulation and some external variability), warm blooded organisms and some human systems (entrepreneurial business and some future markets).

Planning for resilience (Gilberto C.Gallopin)

Sustainable development is defined as the development that seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future (World Commission of Environment and Development [WCED], 1987). The same goal has been adopted by the Earth Summit of 1992 and the Climate negotiations that started in Kyoto, 1997.

The question arises as to whether we are on a sustainable or an unsustainable path. A high level of uncertainty and unpredictability accompany the magnitude of rapid global change, the enhancing connectedness of the social and natural systems, rising complexities of society and their increasing influence upon the biosphere. Current trends seem to be of the unsustainable path and a decision was taken at the Earth Summit to change these.

Classical approaches of compartmentalization only worsen environmental and developmental issues. Willingness, understanding and capacity happen to be the main hurdles. The unwillingness or lack of political will to implement changes that are extremely necessary is one obstacle. Powerful lobbies, vested interests and human competition loom large over solidarity and cooperation. Even if willingness is present in political circles, there is a lack of understanding behaviour of complex systems. Insufficient capacity to execute the actions and changes is the third hurdle. So three pillars of decisions have to be made to make way for sustainable development.

Complexity of human interactions the world over is increasing due to ontological factors (the rate at which changes are occurring affects far away nations too), epidemiological changes (the modern scientific awareness of complex systems) and changes in decision making. The scenario approach helps to obtain a view of the uncertain future. Fifteen international and multi-disciplined professionals developed the Global Scenario. Possibilities and threats are envisioned by them.

A transition to sustainability is possible as new policies and values are designed keeping the threats in mind. Economic growth, social progress, environmental quality and conflicts of the future are defined and the forces influencing these like key factors, trends, focal issues, decisions which determine outcomes are considered. Some of these forces cause uncertainties.

The scenarios describe the current position, the driving forces, strategic invariants and uncertainties. The changes from time to time are then determined. Population growth, economic growth, technological change, changes in governance,

Equity trends, resource depletion and environmental change have been described by Gallopin as basic drivers of change. Increasing life expectancies and child bearing age in developing countries are expected to cause a rapid population growth in the next 30 years. Developing countries show a higher economic growth rate than industrial countries even though the per capita income is less. Per capita consumption of raw materials and energy has reached a plateau in industrial countries while it is still rising in developing countries. Rising consumption causes more environmental degradation.

Gallopins Global Scenarios

The scenarios were grouped into three; the conventional worlds which are not different from the present situation, the Barbarisation worlds which showed complete deterioration and the Great Transition Worlds which incorporated solutions for sustainability. The Great Transition worlds describe 2 positive worlds, ecocommunalism and a new sustainability paradigm.

Gallopin compares his Global scenarios with the adaptive cycles of Holling, Gunderson and Ludwig. The assumptions in the adaptive cycles are as follows. Kinetic capital is the active free form for doing work and construction of buildings. The potential capital is the stored form which is not available for use till released. Total capital is finite.

Connectedness between the various parts of a system can be made strong through the negative feedback couplings. The kinetic capital can be transformed into potential capital. A few elements and relations can be increased. Efficiency can be increased by dealing with expected problems. The autonomy regarding environment or external forces can be increased. Connectedness is directly related to rigidity and fragility. Vulnerability and unexpected conditions result. The system can collapse due to overconnectedness.

Collapse is accompanied by the release of capital which is then utilized by the forces that stimulated the collapse. Strong negative feedback interactions between elements are replaced by transient strong positive feedback interactions. When kinetic capital is used up, the destructive process stops. The collapse is followed by a rapid decline in total connectedness. The couplings get untangled. Some capital remains entangled within the remains of the old structure. Time would elapse before this potential capital is released into kinetic capital. The phase of low connectedness and capital becoming kinetic are associated with reorganisation of the system. Seeds of new organization appear. When kinetic capital is sufficient, the exploitation phase sets the system into a repeating adaptive cycle or a new one with a different adaptive cycle.

Gallopins scenarios are discussed with reference to the adaptive cycles. The progression from the exploitation phase to the conservation phase is similar to the Reference scenario. Overall resilience is being lost. Resources are being depleted and connectedness is increasing. The total size of the human component is increasing. Additional vulnerability is also found. The increasing inner tensions due to the inequities are probably associated with the dominant elements and relationships in the global system. It is not a matter of connectedness that exists in the scenario but a disharmony or conflict between subsystems.

The Policy Reform scenario can be considered an attempt to keep the global system at the peak of the conservation phase if interpreted according to the adaptive cycle. This is done by moderating and regulating resource consumption and utilization and reducing internal tensions caused by inequities. In a successful global system, the capital would mostly be in the potential form, efficiency of resource use would be high and connectedness would also be high. In the adaptive cycle, this scenario would be interpreted as an accident waiting to happen. The policy reforms defining the scenario, when interpreted by the adaptive cycle just postpones the risk of collapse, instead of eliminating it. Efficiency, connectedness, resource throughput are increased even if the tensions of inequities are diminished.

The barbarization scenario implies a reduction in connectedness and severe discontinuities. When the level of civilization decreases, the bounded capital becomes available to revolters in the form of vacated buildings and debris.

The Breakdown scenario is assimilated to the complete breakdown of systems. The couplings are unraveled and new ones occur. Civilisation collapses totally. Capital would be all kinetic. After the reorganization, either a new exploitation phase begins or the system goes into resilient degradation.

The Fortress world scenario is interpreted as an attempt to prevent the global system from receding into the omega phase. Capital is released and connectedness is also diminished. Internal tensions are high due to inequities. This scenario is unstable. A collapse could turn the scenario into the Breakdown type. The fortress world could arise from the reorganization of the Barbarisation scenario. It would be consistent with a repetition of the same adaptive cycle.

Ecocommunalism could arise in two ways. The present world should be completely dismantled with reduction in population and its growth. It could also arise from reorganization from a collapse seen at the end of the Barbarization scenario. Seen from the angle of the adaptive cycle paradigm, ecocommunalism could be understood to be between the exploitation and conservation phases. Overconnectedness, total use and sequestering of capital are avoided. Diversity and slack are seen.

The New Sustainability Paradigm

The most interesting scenario interpreted by the assimilation to the adaptive cycle is the New Sustainability Paradigm. This emerges out of a new understanding of sustainability challenge or as a reaction to a catastrophe or threat. It cannot occur due to a release or reorganization but can evolve from a drastic institutional reorganization and a recouping of basic human values. Lifestyle changes, growth stabilization of the population and dematerialisation of economy are found. Capital would be in the potential form. What is liberated would be the cultural and spiritual capital. Societal reorganization is seen here. The high connectedness would be reduced through decentralization and establishing self organizing units. The New Sustainability Paradigm starts a cycle from exploitation to conservation using cultural, spiritual, material and technological capital.

This scenario also uses a different kind of capital which is not material or exhaustible: human capital. The connectedness changes from rigid to flexible. Governance is decentralized and uses cooperative techniques. Large inequities disturb the functioning.

Conclusion

Meeting the challenge of sustainability appears to the most complex task in society. Despite efforts by many researchers, success is yet to materialize in the integration of several disciplines to a system of transformational, continual, adaptive cycles. The authors of the first two chapters have tried to develop and test a theory of regional sustainability which would explain transformational change in the human and natural systems.

They speak about ecological, economic and social dynamics. Holling et al (2002) used the term panarchy to distinguish systems in hierarchy which are different from each other in two aspects. Panarchy explains the adaptive and evolutionary nature of systems expressed as interactive adaptive cycles. Four phases are evident: exploitation, conservation, release or destruction and reorganisation. The phases become evident due to the double-loop connections between three properties of systems namely accumulation of potential, degree of connectedness of the elements and resilience. Planning for resilience is the main requirement.

The adaptive cycles provide ample openings for frequent reorganization. Ecosystems function at different levels as multiple equilibria like predation, reproduction, competition and nutrient dynamics are involved. A successful eco-system model is not yet available for sustaining ecosystem resilience.

Gallopin has highlighted the challenges of resource management and the experiences of managers of this world in the subject of sustainability and equity. He further elaborates the scenarios that have been experienced by ecosystem managers and which have given us ideas of what the future could hold. He compares the scenarios to the adaptive cycle of Holling et al. The most promising scenario seems to be the New Sutainability Paradigm.

I am overwhelmed by the wealth of information that I received in the process of reading the chapters. Management of ecosystems has much to fall back on. The abundance of ideas and information would make way for newer theories and more feasible managements of ecosystems and better techniques for engineering resilience and eco-resilience. Resources, raw and otherwise, need to be managed well. The full impact of the information technology revolution, the biotechnology revolution

and the materials revolution is uncertain though all are still growing. Rights of individuals are being highlighted and global capital markets which could hold even strong currencies to ransom are the present trends. Inequity is the trend possible in the coming decades. Another problem is the depletion of renewable resources like fresh water, fisheries, arable land and forests. Resources are harvested faster than they can be replenished. Rising pollution and environmental changes are posing a global health problem. Increased emission of greenhouse gas is creating a change in the climate.

Literacy, income and health are improving while violence, infertility and cognitive disabilities are seen increasing. Mere theory will not help the future generations. Rapid action must be taken with a practical concept, with the scientific backing of multiple disciplines, to save the Earth and its future generations from the harmful consequences of our present inadequacies.

References

Bunnell, Paul; (2002), Panarchy. Web.

The following activities (see Table 0) have been scheduled for constructing a new building for AXBC PLC. All task durations have been given in days.

Table 0.

Detailing appropriate predecessor-successor relationships for the activities

Table 1.

This table is derived from a careful sketchy drawing of the flow of the activities. The information contained can be verified from the AON network constructed in part (d) of this particular question.

The expected time and variance for the tasks

Table 2.

Formulae

The Early Start, Early Finish, Late Start, Late Finish and Slack for the tasks

Table 3.

Formulae

The Earliest Finish = Earliest Start + Duration

The Latest Start = Latest Finish  Duration

The Float = Latest Start  Earliest Start

Slack = Late finish Early finish

An AON network reflecting the project of constructing a new building

The critical path and duration of the project

The critical path of the project is: A, E, H, L, M, and N

The duration of completing this project is 28.34 days which is approximate 28 days.

The probability of completing this project in 22 days

The variances of the critical path are shown in the table below.

Table 4.

The standard deviation of these critical path activities is, therefore,

The Z- Score is computed as below

= (22-28)/2.025= -2.9629

Assuming that the data follows a normal distribution criterion, the probability of completing this project in 22 days as in Z- table for normally distributed data is,

(1-0.99841) =0.00159

It is nearly impossible that the project will be completed in 22 days.

The probability of completing the project in 23 days

Computation of Z-score value

Z-value= (T(s)-T (e))/Sd

= (23-28)/2.025=-2.4691

As earlier assumed in the answer for (f) above, the probability of completing the project in 23 days as in the Z-score table for normally distributed data is,

(1-.99305)=0.00695

There is, therefore, a very slim chance of completing the above tasks within this time (22 days).

A brief summary on the implications of the analysis

The management needs to allot more time as the analysis has clearly shown that the management may be overly optimistic, especially as depicted in the probabilistic analysis in the last part of the analysis.

The technique is important in regards to scheduling and project control; this is necessitated by the need to use scarce diverse resources to accomplish tasks within the given time, cost and quality requirements. The project management team is required to ensure it does not exceed the budget cost. Since it uses probability, the technique is effective in helping meet deadlines through the use of alternative plans. Meeting the contract date is useful in maintaining good relations with the clients. When used in an integrated project environment, it gives experience to the project team. In addition, it is necessary for complex tasks and activities. Through breaking these tasks into smaller sub-units, it aids in the controlling function of management (Wiest et al., 1974).

In addition, the analysis facilitates understanding dependencies and improving overlapping tasks. Therefore dependencies of different activities can clearly be visualized and addressed in good time. This is very vital in the construction industry since the percentage completion is difficult to estimate, especially in the early stages. Despite its usefulness, the analysis is an estimate and based on a persons opinion; hence it is subjective and can be biased. Its degree of accuracy is thus questionable, and the time estimates have no proven origin or source. Moreover, the project evaluation review technique does not consider cost factors and requires to be used alongside other techniques (Render et al., 1982).

It is important that the management addresses the need for experienced project managers to supervise the project in order to minimize subjectivity and the need to clearly define the scope of the project in regard to changes that need to be made in future. Finally, the management should consider incorporating other stakeholders other than the project management team in view of encouraging accountability (Render et al., 1982).

List of References

Render, Barry and Stair Jr., Ralph M. (1982). Quantitative Analysis for Management, Massachusetts: Allyn & Bacon Inc., pp. 525-563.

Wiest, Jerome D., and Levy, Ferdinand K., (1974). A Management Guide to PERT/CPM, New Delhi: Prentice-Hall of India Private Limited.

Summary

The Lagos state could be seen to be one of the most densely populated states in the country of Nigeria. According to the National census of 2006, it is seen that out of the total population of 140,003,542 in Nigeria, there is a population of around 9013,534 people in Lagos; it is the urbanized part of Nigeria with a Population density of 2594 persons per sq. km. The urban areas of Lagos Island are densely and thickly populated with around 8000 persons /sq km.

According to the United Nations study conducted in 1999, the population of Lagos would be around 24.5 M by the year 2015 and it would be on the list of the 10 most populated countries of the world.

It is seen that construction projects in Nigeria especially in Lagos State are plagued with delays and operational slowdowns in construction projects. This is a prevalent and widespread aspect of building construction in the state of Lagos and is often the cause of time and cost overruns in the meeting of projects. It is often seen that most of these overruns are caused not only by the contractors or engineers who are responsible for the building constructions but could also be caused by the employers or owners/promoters of the project who make regular changes and improvements which cause the delays. These delays could also be caused by frequent changes in designing and construction activities associated with building projects. The construction projects in governmental contracts are often more delay-causing than private constructions since the aspects of testing, approval, inspections are also involved and could impact the regular scheduling of the work according to plans and procedures. It is seen that Variations Orders (VO) could impact the cost and time elements of contracts, which may, or may not be due to the fault of the contractors. It is seen that the aspect of time of completion is quite critical since it is necessary that the time of project completion would have implications on costs. When there are time delays due to the fault of contractors, which are within acceptable parameters, which result in higher costs that could be justifiable and could be acceptable and delineated in the agreement, it is okay. The time lags should also be justifiable and could be due to delays in seeking governmental approvals and sanctions for projects. In the context of Lagos State, it is seen that often a lot of delays occur in the completion of projects that result in an increase in time and cost delays. Again, it could be seen that where the delays occur due to non-availability of materials, labor or other intrinsic factors, it is needed that the VO should be passed on to contractors after seeking permission from Engineers who could certify the work. However, it also needs to be seen that where delays are caused by neglect on part of contractors, the cost overruns need to be borne by the contractors and not by the promoters or owners.

This study seeks to consider the impact of VO in contractual claims on building projects In Lagos state. It is seen that the methodology that could be used for this study could be Through Questionnaire surveys seeking to find out the potential effects of variation orders in building contracts.

The main people who would be the respondents in this survey would be the Developer Agencies. Further, the methodology that could be used could also be in terms of face-to-face interviews with project participants who could be able to provide invaluable information regarding this study.

Background of the study

This study has been undertaken to assess the costs and the time impacts of variation orders on construction projects in Lagos, one of the main urbanized areas in the country of Nigeria. It is believed through the United Nations Report on urbanization that by 2015, the population of Lagos would touch 24.5 million

It is seen that housing has been a major area of weakness in Lagos due to unplanned and haphazard growth in this country. It has been a major challenge due to demand-supply mismatch and it is believed that except in well-known areas like Marina and Racecourse, there has been early unplanned growth of housing to cater to the needs of a burgeoning population, mainly slums and tenements areas. It was left to the Lagos Executive Board for Development (LEBD) to clear the slum areas and rehabilitate the population from the island to the mainland of Lagos. It has been seen that in 1972, Ikeja Area Planning Authority (IAPA) merged with LEDB and Epe Town Planning Authority, Lagos to form Lagos State Development & Property Corporation (LSDPC) which is the forerunner of building projects in Lagos today. (Infrastructure, Services, and Housing).

A study of the background of Lagos seems to suggest that the early 1970s were a boom period for construction and it was not uncommon even for ordinary middle-class people to own houses. However, after that, the economy witnessed high rates of inflation, which affected the cost of building accessories and inputs; because of this reason, people began to prefer rented houses and living standards became so high that for an average Lagos citizen, subsistence became a key factor and there was no scope for further investment opportunities

Lagoss land laws were not robust enough to deal with unscrupulous dealers. Although the land use Decree 1978 passed on all unused land to the State, this was hardly being implemented and private parties used to manipulate transactions in order to make it appear as existing before the Decree and thus circumventing the land acquisition laws.

In the present context, it is seen that there is no allocable land available within the Lagos metropolis through the Land Use and Allocation Committee (LSDPC, 1983). Today, land for development is purchased from private parties. Wealthy landlords sometimes rent land for the building of temporary housing while they wait for its land values to appreciate in the near future when they could sell it off at handsome profits.

All said and done, Lagos is still the major manufacturing city not only in Nigeria but also on the western coast of Africa. It is a strategic seaport, both in Nigeria and on the west coast of Africa, with sizeable import and export trade both domestic and foreign. The city of Lagos is the most significant point for the telecommunications industry, and the most reachable city in Nigeria by land, air, and sea. It has thus endeared itself to a large cross-section of multinational companies in Nigeria.

The background of this study needs to consider the fact the impoverishment of the middle class is now endemic and more and more people are caught in this dragnet and finding it difficult to make both end meet. This is especially true in Metropolitan Lagos, where people find it extremely difficult to live with just one source of income. Even basic amenities like electricity, water and housing are premium available in the country with a burgeoning urban population and reducing income levels for the people of this region. Even the growth of modern methods has not been enough to increase the quality of life of people in this region of Africa which has tried to pull away from heartland Africa but has had only limited success in its attempts.

Statement of Problem

The main problem with housing in Lagos has been a widespread concentration of urbanized population needing more and more housing projects in order to provide houses for the population. This assumes greater significance since nearly 2/3 of the estimated 12 million (8 M) population of Lagos live in slums. (Environmental & Social Impact Assessment).

Due to the paucity of housing accommodation, it is seen that in the context of Lagos, massive bidding contracts have been undertaken by both the Government, the public and private sector in order to improve the situation and ensure housing facilities for all citizens.

The normal procedure for bidding for contracts is through the submission of tenders against Bidding proposals which also need to comply with the terms and conditions of bidding. The bidder has to prepare and submit the Designs, Drawings, Technical and Commercial Bids as per the requirements of the clients. In addition to the original design and drawings provided by the bidder, he shall also provide, if need be, an alternative set of designs, drawings Technical and commercial bids. However, it is clear that the company shall, or shall not have to accept the variation bid, at its discretion. It is further seen, in this study, that, at the option of the employer, he may reject any variation, deviation, or alternative bid, in the event he finds that it is in excess of the requirements of the bidding which may result in unsolicited benefits for the company. In case, the employer does not wish, the variation bid may not be considered, and only the original bid would hold well during the bid acceptances.

However, it has been during the course of this study that the contractor needs to inform the project manager within the earliest available opportunity of the species likely future events, or situations that may adversely affect the quality of work, increase the time needed to complete the work. On his part, the project manager may require that the contractor furnish an estimate of forecasted effects of future events or situations that may impinge upon the completion date. According to the survey undertaken, it was seen that this estimate to be provided by the Contractor needs to be furnished as soon as could be possible.

In the case of variation by the contractor, the Project Manager shall provide a fresh quotation within a reasonable time, in most cases within a week to the Project manager, giving the new cost estimates for the work. However, if there are no quantitative changes in the Bill of Quantities, the same rates could be used for the fresh quotation, however, if the quantities are such that they do not match with the BOM, then it becomes necessary for the contractor to provide fresh rates taking the variations into account.

However, in some cases, it is seen that, considering the urgency of the work requirements and the fact that quotations cannot be given without delay, the project manager, at his discretion, may deem it to be a competitive event.

This study also considers the aspect of compensation work not being able to receive additional payments if, the fact that variations would be necessary is known to the contractor through an early warning system.

Research Question

How do costs and time factors and overruns of variation order (VO) impact construction projects in Lagos?

This Research Question assumes importance because, it has been seen through empirical studies, that there are inordinate delays in the completion of housing projects in Lagos country which results in large cost and time overruns. Whether these overruns are avoidable or not, or could have been better managed through early warning systems (EWS) is a major area of debate, given the fact that most of these projects are funded through outside sources, including International Aid Agencies and Financial Institutions.

This study has also made forays into aspects of whether additional payments could be justifiable by the contractor due to more work done by him.

The situations in which additional payments could be justified could be:

1. When modifications are carried out by the other contractors, which affect the concerned contractor also, resulting in cost and time delays, which results in additional costs for the contractor, for which he needs to be repaid.
2. The project manager may have made unreasonable changes which necessitated changes in work scheduling and consequent cost overruns.
3. The delay has been caused due to the fault of the employer.
4. It is sometimes seen that sub-contractors (appointed by the employer) are not able to execute the sub-contract which results in setbacks for the main contractor.

Aims and Objectives

This study has a number of objectives. In the first place, it seeks to find out the benefits accruing due to the use of VO in construction contracts. As with all facets, the VO also has merits and demerits. It is seen that the main benefits of VO could be:

• Changes could be institutionalized that could effect necessary alterations, rectifications and modifications in the construct without having to make conspicuous or large changes in the contract; it also circumvents the need for seeking a fresh contract in place of the old one, instituting the VO. Therefore, the main aspects of changes that VO could make are with respect to the blueprints, drawings and design at the initial stages. When work has already commenced, certain portions may be kept aside to be taken up at later stages, or after VO has been affected. What is important is that through VOs it is tried as far as possible to adhere to the deadlines of completion of building on time and within allocated budgets. Thus VO serves the primary function of making the structure in line with both legal and aesthetic requirements in that building construct need to conform to state laws regarding technical specifications, quality of products and raw materials used in the construct and other rules and regulations binding it. It could also be seen that often architects do not draft their designs at the preliminary stages, since they are well aware that there would be major alterations at later stages, which may even negate the need for any preliminary design or structure representations. It is often seen that clients are sometimes reasonable about their needs as a result of which redundant, time-consuming and expensive reworking and VO need to be carried on, in order to make the construct according to the clients requirements and modifications.
• Another benefit of VOs in this context would be in terms of a long-term and robust construction, which is necessary to withstand the effects of time for long.

Therefore, it becomes necessary to make necessary alterations and modifications sometimes even without the need for VOs in order to seek conformity with predetermined standards and practices.

The other benefits of VO in the context of building constructions could be seen in terms of:

• Improve quality standards of the construction by following Guidelines and Norms
• Effect reduction in terms of costs and overruns by maintaining delivery guidelines
• It is seen that VO often intercepted work scheduling and final delivery since time spent for VO would add up to delay in the final buildup of the constructs and their delivery. While justifiable VO could be maintained it often happens that a lack of coordination and understanding between the architect, promoter, development agency and client needs to be achieved and unanimity of decisions needs to be affected. Variation Orders could be expensive and time-consuming and may even create more problems than solutions in certain instances.
• It is necessary that value analysis seeks to realize harmonious balances between costs, functionalities and durability aspects between a project and the satisfaction of its constructs.
• Another aspect of VO impacts on construction could be seen in terms of optimizing client value addition and making constructive improvements to the structure. (Ndihokubwayo and Haupt).

Research Methodology

The research methodology that would be used for this study would comprise of two segments; in the first segment, it would be necessary to conduct a questionnaire survey with the directors and board members of 50 development companies in Lagos, with equal representation from both public and private sectors, in order to assess the aspect of VO in construction contracts in Lagos.

It is believed that nowadays most of the construction projects in Lagos are conducted by private sectors in consortium with international funding agencies, like World Bank, IMF, UNDP, and other quasi- international bodies who are engaged in developmental projects in the world, especially in Third World Countries. This is mainly because the economic situation of African countries, especially Nigeria including Lagos, is alarming, with a burgeoning population and not enough infrastructure, in terms of sanitation, housing, clean drinking water and other essential aids for human survival.

The methodology would also consider the use of face-to-face interviews with officials of government departments, in order to ascertain how the aspects of this issue would impact cost and time overruns in construction projects in this country.

It has been seen from the interactions with the respondents that most costs overruns due to non-performance of contractual construction obligations and also time-lapses, due to delay in executing work according to the planned schedule forms a major deterrent in effective project management.

Significance

Port city of Lagos has from a fishing and agricultural settlement to become a late 21^st Century metropolis. This growth has included the appearance of a plethora of ports, manufacturing estates, business houses, small-scale industrial activities, and the achievement of the multiple statuses of the administrative, commercial, cultural and economic capital for both Nigeria and Lagos State.

The changes have also involved both massive population changes that have led to the urban concentration of people and higher density in these areas. (Baker, P.194).

Thus it is seen that greater population pressures could give to need for a greater need for providing housing to the people, especially those who live in low-cost tenements. The study has shown that often a large number of families are forced to stay in a single house, share kitchen and sanitary facilities, and are thus susceptible to a multitude of health hazards and diseases, not only for themselves but also for their immediate families. Lack of proper employment opportunities and incomes due to inflationary and regional imbalances are also contributory factors to the appalling conditions prevalent in the city of Lagos, especially in the low-income areas, where there are needs for the betterment and a greater need to improve the quality of lives of the Nigerian people residing in these areas.

Scope

The scale of this study has taken into account the factors that impact how VO could impact upon building contract finalization.

For one aspect it is seen delay may occur in final delivery due to the intervention of VO in building construction work and this may also enhance project costs. There are two types of costs which are necessary and which are superfluous. Necessary modifications become necessary because of inherent defects in workmanship and need to be resolved to get the Work Certified from the Inspector, or Project Engineer. Sometimes lack of certification could stop or abort the project and all funds could be wasted. However, assuming that WC has been obtained, it is necessary to maintain the pace and regularity of building construction work, since it would affect the future growth of the construction. It needs to be understood that a stoppage or delay at one stage could trigger off a set of events that could cause losses and cost escalation due to VO interventions. However, if modifications are superfluous and could be avoided, it is in the best interests of the construct that this is done since VO have the effect of bringing inordinate delays in projects delivery and greatly enhances costs and commitments on the part of the owner.

Again, in a rich-poor state like Lagos, where successive military governments since 1983, have milked the countrys resources dry for self-aggrandizement, the prospects of Economic growth is a misnomer. Lagos exists in a world of affluent and hyper-developed cities that have lesser populations. And the developed cities are appropriating talents using well developed infrastructural facilities, unlike Lagos that has the decaying urban infrastructure and a people with talent that are trapped in a dehumanizing cycle of poverty and misery. (Packer).

Limitations of the study

There have been major limitations in this study in that the scope of the study has been restricted to apartment dwellings for face-to-face interviews of respondents besides the discussions with private and public officials which has not been very forthcoming. In a sense, the information gained from respondents has not been complete since only 65% of respondents were available for discussions, and most of them feigned ignorance or lack of knowledge on many aspects governing housing constructions in Lagos.

Moreover, it has remained contestable whether VO is the cause of delays in housing projects in the State or the result of it. Many respondents have viewed VO as necessary adjuncts for building construction in order to ensure standards and professional conformity with Building Codes and legal constraints surrounding building construction in Lagos.

Since the scope of this study needs to be broadened, it is necessary that a larger study encompassing the various ramifications surrounding VO and its overall impact on the construction industry in Laos needs to be made. The study needs to concentrate on the empirical studies rendered in this context and how the present study would reinforce beliefs and notions, including validating tested ones and negating others.

Definition of terms

(Procurement: Smaller Works  Section IV: Conditions of Contract: Conditions of Contract: Definitions).

• Completion date: The date of completion of the works as certified by the Project Manager, in accordance with sub-clause.
• Contract: The agreement between the employers and the contractors to fulfill, finalize and maintain the work
• Contractor: Person, institution or body whose proposal for carrying out the work has been accepted by the employer.
• Drawing: Technical calculations and other data furnished to or approved by Project Manager
• Employer: Party who employs the contractor to fulfill the work.
• Intended Completion Date: The Project Manager shall postpone the Intended Completion Date if a compensation event occurs or a Variation is issued which makes it not possible for Completion to be achieved by the Intended Completion Date without the Contractor taking steps to speed up the remaining work, which would cause the Contractor to incur additional cost.

Conclusion

According to the subject of Variation Orders (VO) in the context of building contracts in Lagos has both positive and negative aspects. The positive aspects could be seen in the study as creating a good quality house that fulfills the needs of the owner and is also deemed to be a sound investment in the event of a future sale. It could also be seen in terms of the fact that the builders could be able to offer a better house to the owners in accordance with their needs and budget. When VO is necessary it needs to be carried out, even without the need for formal instructions from the Project Manager.

However, the main aspects would be in terms of planning, organizing, forecasting and scheduling a housing project by use of the best project management principles and practices that could draw out the best from the concerned people- the promoters, architects, engineers, developers and builders.

While the cost of projects may tend to rise with occurrences of VO, and the question of fines for the developers cannot be ruled out, in the final analysis, it would be seen that the housing project would justify the extra cost and benefits that would accrue if the due implementation of necessary VO were undertaken and effected.

But the aspect that needs to be seen in the case of Lagos is that there is a crying need for low-cost and multipurpose dwelling houses and condominiums in this country that could, at least, provide succor and shelter to its teeming millions who do not have adequate shelter. It is necessary not only for the private entrepreneurs to come forward, but it is the responsibility of the Lagos Government and also the Nigerian country government to ensure that housing is given a high priority in the economic schemes of the country and is mandatorily made available to the common people of the country

The inhabitants of the country have long suffered the indignity and suffering arising out of inadequate housing and other infrastructural facilities in this country and it is high time that the Government and relevant agencies take immediate action to solve this long-standing issue.

Appendix 1

Works Cited

Infrastructure, Services, and Housing. 1997.

Environmental & Social Impact Assessment. (2005). LOGOS State Government.

Baker, Jonathan. Small Town Africa: Studies Rural-Urban Interaction: Urbanisation and the land question in Lagos. Seminar Proceedings No. Web.

Packer, George. The Megacity: Decoding the chaos of Lagos. The Nigerian Village Square. 2006. Web.

Procurement: Smaller Works  Section IV: Conditions of Contract: Conditions of Contract: Definitions. The World Bank. 2008. Web.

Ndihokubwayo R., and Haupt T. C. Uncovering the Origins of Variations Orders. Web.

Waste management and treatment is a local issue with global implications. As the worlds population grows, the amount of waste it creates also increases. In particular, in 2015, 2 billion tons of waste was generated worldwide, while this number is expected to ascend every year (United States Environmental Protection Agency, 2020). Therefore, building a waste-treatment plant in the City of Ottawa is urgently needed to prevent serious risks to public health and the environment. In the process of creation of such exogenous projects, decision-making is a difficult task due to the necessary compromise between socio-political, ecological, and economic factors.

The first step is to identify and engage stakeholders, who can be city officials, along with Mayor Jim Watson, waste treatment experts, and local citizens. This phase is essential to ensure implementation and long-term support for the project (United States Environmental Protection Agency, 2020). Apart from it, stakeholder participation should follow several principles, including inclusiveness and open discussion, reinforced by accurate and timely information (United States Environmental Protection Agency, 2020). As a result, different alternative perspectives on aspects of building a waste-treatment plant in the region will help Mayor Jim Watson to shape solutions. It will improve the quality of the final result and consider the views of all stakeholders.

The next step is to define specific goals and possible aspects of building a waste-treatment plant in the region. It involves, in particular, the type of treatment, which can be physical  grinding, chemical  incineration, or biological, for instance, US EPA 2017f, AD (United States Environmental Protection Agency, 2020). In addition, economic aspects need to be identified, including construction, equipment, and labor costs (United States Environmental Protection Agency, 2020). Finally, demographic data and other issues affecting the effectiveness of the project are evaluated at this stage.

Further, in order to maximize the effectiveness of the technological, socio-economic, and environmental aspects identified at the previous stage, it is necessary to involve the groups of stakeholders attracted in the first step. Within their competence, they will engage in reasoning, analysis, and expressing their opinions (United States Environmental Protection Agency, 2020). At the same time, in case of the emergence of opposing points of view, the search for the optimal solution includes meeting most goals without violating others.

The suggested recommendation in the designed process for Mayor Jim Watson is an example of a rational decision-making model. It includes defining the problem, which is building a waste-treatment plant in the region, criteria, in particular technological, socio-economic, and environmental aspects, the development of alternatives by groups of stakeholders. Finally, the last step is the determination of the best solutions. The cons of the design comprise of the need for a considerable amount of time. Simultaneously, the pros contain minimizing the possibility of erroneous assumptions, which can lead to wrong decisions and uncertainties, and considering the views of all stakeholders with diverse interests.

Reference

United States Environmental Protection Agency. (2020). Best practices for solid waste management: A guide for decision-makers in developing countries [PDF document]. Web.

Introduction

Sustainable building is referred to as development in the environment that meets the present needs without compromising future generations ability to meet their potential needs. The gulf countries are known for petroleum products exportation to the whole world. However, there are several challenges that get associated with this petroleum fuels as they contribute to a high percentage of the carbon emissions in the world today (Hartley, Medlock and Eller, 2007, p.88).

What is Sustainable Building?

Sustainable building is referred to as development in the environment that meets the present needs without compromising future generations ability to meet their potential needs. This means that sustainable building is one where builders consider factors necessary for conserving the environment bearing in mind that there will be a generation in the future (Al- Ibrahim, 2009, p.98). This can be achieved by using materials that do not require harming the environment during their acquisition. For example, constructors should make skillful use of timber in order to protect the environment by cutting down few trees. This is because, cutting down of trees for timber leads to deforestation which has a lot of negative effects on the environment.

Deforestation can lead to draughts that affect the future generation hence causing a lot of trouble (Herb, 2008, p.73). Construction must be in such a way that its economic viability and comfort of its occupants is achieved and at the same time reducing its impact on the environment over its lifetime. The main areas that sustainable building focuses at are the reduction of energy requirements whereby the structure being built is set up in use of power is reduced. For example, a building where natural light is enough do not require extra lighting from electricity hence saving on energy. Insulating structures to conserve natural energy is another crucial consideration in sustainable building whereby houses get insulated to keep them warm during winter. This reduces the amount of power consumed in keeping houses warm for the comfort of their occupants (McKinsey, 2008, p 23). Reduction in the amount of water consumed is another factor that is looked into in sustainable building because water is a crucial commodity that requires to be conserved at all times. Rain water can be re used by homesteads hence helping in conserving water sources. Rain water can be tapped and stored in tanks for future use for domestic or agricultural purposes (Croston, 2009, p. 65). Instead of using piped water from rivers and seas which affect living creatures that depend on river water, people can adapt the use of rain water from their roof tops hence conserving the natural environment. In addition, sustainable building should ensure easy transport for the occupants. This means that access to public transport is enhanced, and proximity to amenities is enhanced, as well. For example, nearness to work places or shopping malls is crucial in sustainable building (Marcel, 2006, p.54).

Energy Challenges at Gulf countries (Saudi Arabian, United Arab Emirates and Qatar)

The gulf countries are known for petroleum products exportation to the whole world. However, there are several challenges that get associated with this petroleum fuels as they contribute to a high percentage of the carbon emissions in the world today. Since this is the most used energy in gulf countries, climate is faced with formidable danger as emissions are not effectively controlled (McKinsey, 2008, p 23). These countries do not have enough water for creating hydroelectricity which would reduce the amount of carbon emitted to the atmosphere. If the countries have large water bodies, carbon sinks would be created to absorb some of the emissions from industries. On the other hand if there was plenty of water in the gulf countries, planting of trees would be easy hence helping turn the place green (Al- Ibrahim, 2009, p.98). Green forests help in conservation of energy and environment by absorbing some of the gases emitted by machines and auto mobiles in the Gulf States. Gulf countries are faced by challenges in choosing alternative energy to rely on instead of fossil fuels. It is expensive for these countries to import electricity from neighboring countries that produce hydro power (Hertog, 2008, p 646). This narrows down options for these countries leaving them with the sole alternative of using their own produced fossil fuels. Pricing is another challenge facing these countries as petroleum oil is underprice hence making it hard for producers to handle costs associated with preventing climate change. These countries are forced to pay a lot of money by the international neighbors since they produce fossil gases, which affect the climate and environment in general. Low cost of fossil fuels as a source of energy in gulf countries has discouraged people from exploring other sources of energy (JICA, 2008, p.234). For example, solar energy can help reduce energy challenges but people are hesitant to venture into solar energy systems. In fact, these low prices have resulted to wasteful consumption of energy in the gulf (Geddes, 1990, p.245).

Commonly building rating system used in the gulf countries. (LEED, BREEAM and Estidama)

Rating tools or assessment tools are measures that help in ensuring buildings are to the standards required. These buildings must have the sustainability effects and facilities also must have involved the right experts in their construction process (Croston, 2009, p. 65). The purpose of using this assessment or rating tools in any construction is to ensure that designs and construction of buildings are far above the minimum standards set by the regulating agencies. In the gulf countries, several rating systems are used when assessing buildings. These include estidama also known as pearl rating, which was developed by Abu Dhabi Urban Planning Council. Upon its development, pearl rating was launched on April in the year 2010 (Cooperation, 2009. P.87). this method of assessing buildings includes prerequisites and voluntary credits. It has several elements of credit namely the credit available which is the element that gives numerical scoring available for particular actions. It also describes the intention of credit available. For example, it explains the importance of certain actions to the structure of the building. The second element is the credit requirement which describes projects that have met the required criteria hence receiving credit for meeting the expected intent. There is also the credit submission which describes what need to be prepared and submitted; finally there is the calculation and methodology (Depledge, 2008, p. 65). This provides vital information on the basis and references required in preparing calculations to be submitted in the report (EPU-NTUA, 2009, p.54).

Another rating system used in the gulf countries is the leadership in energy and environmental design which measures the performance of a building against its established parameters and third party verification. LEED concentrates on specific areas in buildings, for example, it concentrates on the sustainable sites whereby it looks on nearness to social amenities and public transport. Water efficiency, whereby the system check how water can be provided to the building to assure its occupants of their intended comfort. (Kubba, 2010, p 102) Energy and the atmosphere are not left behind in this type of rating system. It has to look into how the building can conserve energy by ensuring adequate lighting to utilize natural light. Material resources are another aspect of the LEED and finally the indoor and environmental quality whereby the rating system ensures that the condition of indoor and the surrounding environment are conducive for the occupants of the building (Al- Ibrahim, 2009, p.98).

Finally, another rating system used in gulf countries is the BREEAM which is also known as BRE Environmental Assessment Method. This method is believed to set the best acts in sustainable designing of buildings. It addresses a wide range of sustainable and environmental issues (Kubba, 2010, p.34). It aims at the management, health wellbeing, energy, transport pollution etc. environmental weights in this system are tailored to suit the conditions on site. Evaluations of various aspects are summed up to get the overall rating of the building (Renewable Energy Scenarios for the Kingdom of Saudi Arabia)

The Cost & Benefit of going Green

Going green comes with several costs due to facilities incorporated in green buildings. For example, insulating materials required in order to conserve energy are not cheap hence raising the cost of constructing an eco-friendly building (Depledge, 2008, p. 65). The floors are covered with wood from green forests in order to keep the house warm all times hence reducing the amount of energy that could be used in keeping the house warm. The walls are painted with non-toxic paints, which provide the occupants of the house with a conducive and safe environment to stay. All these elements add up to a lot of costs hence making many people fear incurring them and instead going for other alternatives, which are cheap but eco- unfriendly (Croston, 2009, p. 65).

On the other hand, there are benefits that come with the green building and they include, saving money and energy by not incurring many expenses in creating comfort in the house. For example, eco-friendly houses tend to have adequate lighting hence giving its occupant the advantage of utilizing natural light. If a building does not allow adequate natural light, its occupants may be required to light the house using electricity during day time hence incurring extra expenses. Another benefit is saving ones lungs whereby paints used in green building are non-toxic hence friendly to the lungs (Hertog, 2010, p.63). The environment is also pollution free hence saving occupants lungs of diseases associated with air pollution.

Conclusion

It is important for everyone in the world to play their part in ensuring that the environment is protected. This will promote practice of sustainable development hence increasing the art of green building.

References

Al-Ibrahim, A., 2009. Energy Efficiency Activities in the Kingdom of Saudi Arabia, Presentation to the GRC/EPU-NTUA/CEPS workshop on Enhancing the EU-GCC Relations within a New Climate Regime: Prospects and Opportunities for Cooperation, Brussels, February 26, 2009 Al-Saleh, Y., P. Upham and K. Malik, 2008. Renewable Energy Scenarios for the Kingdom of Saudi Arabia. Tyndall Centre for Climate Change Research Working Paper 125.

Croston, G.2009. Starting green: an ecopreneurs toolkit for starting a green business from business plan to profits. Entrepreneur Press, Sydney.

Depledge, J., 2008. Striving for No: Saudi Arabia in the Climate Change Regime. Global Environmental Politics 8 (4), pp. 935.

EPU-NTUA, 2009. Background Paper to the Workshop on Enhancing the EU-GCC Relations within a New Climate Regime: Prospects and Opportunities for Cooperation, Brussels, unpublished report 43

Geddes, B., 1990. Building State Autonomy in Brazil, 19301964. Comparative Politics 22 (2), pp. 21735.

Hartley, P., K. Medlock and S. Eller, 2007. Empirical Evidence on the Operational Efficiency of National Oil Companies. Baker Institute, Rice University, Houston. Web.

Herb, M., 2008. Parliaments, Economic Diversification and Labor Markets in Kuwait and the UAE, manuscript.

Hertog, S., 2008. Petromin: The Slow Death of Statist Oil Development in Saudi Arabia. Business History 50 (5), pp. 64567.

Hertog, S. 2010. Princes, Brokers, Bureaucrats: Oil and State in Saudi Arabia, Cornell University Press, Ithaca, NY

JICA, 2008. The Master Plan Study for Energy Conservation in the Power Sector in the Kingdom of Saudi Arabia, draft final report.

Kubba, S. 2010.Green Construction Project Management and Cost Oversight. Taylor & Francis, New Jersey.

Marcel, V., 2006. Oil Titans: National Oil Companies in the Middle East. Washington, DC: Chatham House and Brookings Institution.

McKinsey and Company, 2008. Carbon Capture and Storage: Assessing the Economics, McKinsey Climate Change Initiative.