Category: Construction

Executive Summary

Since time immemorial, people have been exposed to several catastrophes such as flooding of rivers, lakes and other water bodies. Besides damage to their property, several people have lost their lives and loved ones in such occurrences. Governments have also incurred losses every year in efforts to save and relocate flood victims. In response to this, engineers developed ways of controlling floods to avoid losses incurred during the flooding seasons (Duchemin, 2009). This led to the creation of dams that would help to store and control the flow of water along existing water bodies. Later on, the discovery of hydroelectric power increased the need for developing larger dams that would control floods, generate power, as well as provide water for irrigation purposes.

As such, the objective of this study is to increase knowledge on the several techniques used in the construction of dams and their associated benefits. In this report, three dams namely; Hoover Dam, Three Gorges Dam, and the Snowy Mountains Scheme have been analyzed. In the first section, the construction techniques used in the construction of the dams and their hydropower stations are given in detail. The second section gives a brief discussion on the comparison of techniques used in the dams’ construction. Lastly, the third section gives a conclusive report of the key findings of the research.

Hoover Dam Construction

Hoover Dam is a concrete arch-gravity dam constructed in the Black Canyon of the Colorado River (Stevenes, 1988). Construction of the dam started in 1931 on the US and Nevada border and was completed four years later. President Franklin Roosevelt commissioned the opening of the dam in September 30, 1935, during the Great Depression. According to the Bureau of Reclamation (2006) the facility was put up to provide power, farm water and regulate river flow. The dam was built by Six Companies, Inc. which completed the works 24 months ahead of schedule. Hoover Dam is comprised of several features as indicated in figure 1 below (Barber, 2010).

River Diversion – Diversion Tunnels

For the construction of the dam to commence, Colorado River had to be redirected from the building site (Dunar & McBride, 2001). As shown in figure 2, diversion tunnels were constructed within the river banks towards the lower end of the site. Each tunnel was 17 meters in diameter, two on the Nevada and the other two on the Arizona side. All the tunnels combined, added up to an approximate length of 5 kilometers (Hiltzik, 2010). Tunneling was conducted through digging, blasting and removal of accumulated debris over a period of 13 months.

As tunneling progressed, the tunnel walls were covered in concrete linings with tunnel bases being poured first. Concreting the bases was done through the aid of gantry cranes, where after, mobile steel members assisted in concreting the sides (Barber, 2010). Lastly, pneumatic guns were employed in finishing the tops (Barber, 2010). On completion, the linings were thick enough to reduce the total diameter of the excavation by 2 meters. By blasting the protective cofferdam to the Arizona tunnels and blocking the natural course of the river using rubble, the water was diverted into the Arizona tunnels. However, Nevada tunnels were put in reservation for high water. After completion of the dam, massive concrete blocks were used to block the tunnels; therefore, leaving the lower parts to serve as the main bodies of the spill ways.

Construction of Cofferdams

To speed up the diversion process, 2 cofferdams were built across the river channel. The cofferdams (figure 4) prevented river flooding into the dam site where several men were at work. The cofferdams were 29 meters high and 230 meters thick at the bases and comprised of 500,000 cubic meters of material (Allen, 1983). Workers used several trucks to create the cofferdams by depositing earth, debris and rocks into the river at the rate of four trucks per minute.

Excavations started after the immediate completion of the cofferdams. River clay and other accumulated deposits were dug out to reach a stable foundation rock (Allen, 1983). Since the canyon’s side-walls would bear the force exerted by the created dam (arch-gravity), construction workers [suspended on ropes] excavated the sidewalls too. These workers were referred to as high-scalers, and they removed loose rock using jackhammers and dynamite. Several holes were dug through the established foundation rock and refilled to increase its stability (True & Kirby, 2009). This helped to reinforce the dam’s underlying rock foundation. As such, grouting was done to allow for rock stabilization, and limit upward (uplift) pressure resulting from water seepage beneath the dam itself (Dunar & McBride, 2001).

Spillway Construction

Spillways were built to eliminate the problems associated with dam overflow. According to Dunar and McBride (2001) the spillways exist behind the dam but lie parallel to the river edges. Each of the two spillways is comprised of 30 meters long and 4.9 meters high fabricated steel gates. These gates are either remotely or manually operated depending on the volume of water present. The excess water falls several meters into the spillway tunnels where it is redirected into the main river channel.

After the spillway lining was damaged (1941), a retouch with special concrete was done and surfaces were made mirror smooth (Hiltzik, 2010). However, the same damage occurred during the 1983 floods, necessitating the use of aerators.

Concrete Works

Concreting works started in 1933 when the first batch was used in the dam’s columns (Dunar & McBride, 2001). Uneven cooling of concrete may result in serious structural problems such as development of cracks and even structural failure. This is a possible scenario where large concrete works are undertaken, for example, in the construction of Hoover dam. In such a case, the resultant forces would lead to the formation of cracks within the dam’s body. As such, engineers at Hoover Dam avoided that possibility of uneven cooling by using interlocking blocks that were cooled by cold water through several steel pipes (figure 6). On cooling of the blocks, the steel pipes were filled with grout, as well as, the grooved spaces between columns (Allen, 1983).

To facilitate the pouring of concrete, a network of cables and pulleys was designed to help in the movement of building materials within the dam site. Huge steel buckets, with dimensions roughly 21 meters all around, we’re used to delivering concrete to the dam site. The buckets were controlled through a series of suspended cables that helped to move them towards the required location. In the construction, a total of 2,480,000 cubic meters of concrete and 937 kilometers of cooling pipes were used.

Hydro Station Construction

Location

The powerhouse excavation was done concurrently with the excavation for the dam’s foundation. The structure was located strategically towards the lower end of Hoover Dam (Dunar & McBride, 2001).

Construction

Concrete, steel, and rock material were used to make the 1,100 mm thick fully secure powerhouse roofing. Furthermore, layers of sand and tar were added to the roof (True & Kirby, 2009). Power generation started in 1936 when the reservoir had gathered enough water to sustain the generation of electricity. The power plant houses a total of 15 large generators and 2 small generators.

Construction Problems

Deaths, Extreme temperatures

In total, 112 deaths occurred during the construction period of Hoover Dam. Most deceased workers met their death from falling objects coming from loose rock and debris off the canyon’s wall. The temperatures were also extreme reaching levels of up to 49 degrees Celsius, and up to 60 degrees Celsius within diversion tunnels. These extreme working conditions resulted in difficulties and reduced the efficiency of the workers. Also, carbon monoxide poisoning led to approximately 42 deaths and was caused by the use of gasoline powered vehicles within the diversion tunnels.

Hoovers Heat of Hydration

Generation of heat during setting of concrete posed a considerable risk as the uneven cooling and contraction of mass concrete would lead to development of cracks and crumbling. To counteract these effects, engineers on the site established a technique of using several interlocking blocks rather than using mass concrete (Dunar & McBride, 2001). The blocks were massive and required cooling to facilitate the setting process. Therefore, the problem was subdued by forcing ice-cold water into the interlocking blocks via a series of steel pipes.

Accessibility Challenges

Accessibility to the canyon (dam site) posed a serious challenge to the workforce as no roads were leading to the site (Stevenes, 1988). As a result, both men and equipment had to come to the site on boats.

Three Gorges Dam Construction

The Three Gorges Dam was constructed on the Yangtze River, under the project called ‘Yangtze River Three Gorges Project (TGP)’ (Veeck, Ponnell, Smith, & Huang, 2007). It is located at the Sandouping of Yichang city (Figure 7) and is the largest hydropower complex in the world (Power Technology, 2011). The main purpose of its construction was to enable flood control, generate power and provide navigation capabilities (McGill University, 2001). The Three Gorges Dam is constructed as a concrete gravity dam with its crest at 185 meters and highest height of 181 meters (Power Technology, 2011). The maximum annual power generation is 84,700,000,000KW/h. The detailed construction of the dam, its power plant and the problems encountered during construction are discussed in the following pages.

• Stage 1: (1993-1997): As described by River Closure, this stage took five years to be completed. It involved the preparation for commencement of the construction works (Veeck et. al., 2007).
• Stage 2: (1998-2003): As shown by the initial storage of water and power generation, the stage took a total of six years to complete (Veeck et. al., 2007).
• Stage 3: (2004-2009): This stage was completed in 2010, when power generation started in all the installed generating units (Figure 8).

Construction Technology Employed

River Closure Technology

During construction of the dam, CGGC successfully implemented the river closure of Yangtze River (Deyong, 2006). Three river closures were used to allow the conduction of hydraulic model tests, intensive calculations and research analysis on river closure. Finally, the technical difficulties in river closure and deep water cofferdam construction were overcome. New construction techniques and machinery such as the high pressure screw were used in erecting the cofferdam. Stage 2 cofferdams protected the main body works so effectively that the company was awarded the first prize of National Scientific and Technical Improvement.

Construction Technique of RCC Cofferdam of large size

The third phase cofferdam was a vast, temporary, but crucial structure in the construction of the Three Gorges Dam. Thin layer monolithic concrete pouring, interlayer pouring, continuous lift, and whole lift of formwork strengthened the concrete works (Deyong, 2006). During the construction of the 580 meters long cofferdam, these construction techniques increased productivity, and a concrete rise of up to 27.8 meters per month was attained.

High Intensity Concrete Placement Technology

Since the concrete used for construction of the TGP dam was massive (16,000,000 cubic meters), new technologies, workmanship and construction materials had to be used to have successful concreting. As such, the concrete pouring for the spillway section, left and right bank power plant section, and non-overflow dam section was contracted and constructed (Deyong, 2006). Examples of new technologies used in the construction include; high efficiency dehydrating agents; reinforcement steel cutting technique; and the use of computer monitoring system. These modernized techniques enabled the achievement of massive concreting at the site. During 1999-2001, the successive annual concreting level reached 4,000,000 cubic meters surpassing the rates achieved in the Itaipu (Brazil) hydropower project.

Technology for Temperature Control and Crack Prevention of Mass Concrete

During the construction of the Dam, temperature control was crucial to prevent the development of cracks in the cooling concrete. The temperature in the region reaches unusually high levels in summer, while the structure was gigantic requiring intensive pouring of mass concrete. Several temperature control measures were used, for example, selection of materials, and optimization of the concrete mix. Furthermore, triple pre-alarming systems for temperature control were used to monitor temperature control of concrete, intermittent period of concrete formed area, and for construction in special temperature (Deyong, 2006).

Blasting Technique

During the main construction works, smooth-blasting technique was used to cut reserved layers from rock mass (Deyong, 2006). This was made possible by creating blast holes poured on the outline of the excavation. During the temporary ship lock construction, the application of smooth-blasting technique helped to maintain stability in the vertical slope of the ship lock. Furthermore, new blasting technique such as production of immense power emulsion explosive at site, mixing carriage for explosive transportation, and network of the I-kon were used. These alone had an explosive load of 191.3 ton and effectively dismantled the concrete cofferdam averaging 186,700 cubic meters.

Heavy equipment represented by Tower Cranes

Tower Cranes are gigantic equipments employed in the construction of dams. They are used for pouring concrete, vertical transportation and concrete feed of raw mix. Tower Cranes were heavily used during construction of Three Gorges Dam, to enable the creation of a continuous supply and high intensity (Deyong, 2006). For instance, six sets of Tower Cranes were used in phase 2 of the dam’s construction.

Fabrication and Installation Technology of large-Sized Metal Work

In the Three Gorges Project, completed metal fabrications for the spillway and other dam’s sections amounted to a total of 9,100 tons. Automatic welding in full position technology was used in the fabrication of the metal parts (Deyong, 2006). The “flipchip” construction method was adopted during the installation of high pressure gate and gate groove. Additionally, welding challenges experienced during the installation of gigantic steel liners were reduced by the adoption of steel-bonded metal welding technique. As such, the application of these techniques enabled the successful realization in the mass application of stainless steel bonded metal in domestic hydroelectric area.

Construction Problems

Technological Challenges

Construction of the Three Gorges Dam was characterized by the use of concrete in large quantities with high construction intensity that resulted in construction challenges (Williams, 2009). For instance, 28,000,000 cubic meters of concrete had to be laid, and various techniques devised. As mentioned earlier, various techniques and technologies were used to counteract these technological challenges.

Snowy Mountains Scheme Construction

The Snowy Mountains Scheme was constructed to collect, regulate and use the waters for generating power to serve the southern parts of Australia (Commonwealth of Australia, 1950). Furthermore, it was established to supplement the Murray and Murrumbidgee Rivers that serve the fertile irrigation zone (Gale, 1999). This was possible because of sufficient water from snow and rainfall in the catchment area of the scheme. It took 25 years to complete the construction of the dam that comprises of 16 dams, 7 power stations, a pumping station, 145 kilometers of tunnels, and 80 kilometers of aqueducts (Snowy Mountains Hydro-Electric Authority, n.d.). The descriptions of the main dam construction, the hydroelectric power plant, and the problems encountered during construction are given in the following paragraphs.

The overall design was completed in 25 years and comprises of the following features (Commonwealth of Australia, 1950):

• 16 dams.
• 7 power stations.
• 145 kilometers of tunnels.
• 80 kilometers of aqueducts and access roads were cut through the mountainous region.

At the scheme, there are five principal types of dams depending on the materials used in constructing their walls (Commonwealth of Australia, 1950). These are listed below.

• Rock-fill Dams.
• Earth-fill Dams.
• Concrete Gravity Dams.
• Concrete Arch Dams.
• Slab and Buttress Dams.

Eucumbene Dam Construction

Diversion Works

Before construction activities for the dam commenced, Eucumbene River course was diverted to drain water from the site (Commonwealth of Australia, 1950). As such, it was necessary to build the diversion tunnel for foundation works to begin. As shown in figure 13, the river flows through the end of the diversion tunnel.

Surrounding trees were cleared to create room for the reservoir while construction of the wall and intake tower proceeded (Snowy Hydro Limited, 2011). The intake tower was constructed at the beginning of the diversion tunnel as shown in figure 14.

In the grouting process, rock drilling vehicles (figure 15) were used to make holes that were later filled with concrete. This technique helped to reduce leakage, as well as, increase the strength and stability of the dam.

Heavy compaction machines referred to as sheep’s foot rollers (figure 16) were used to stabilize the clay (Snowy Hydro Limited, 2011). The compaction process was conducted in an extremely slow process to maximize the overall outcome.

Tunnels and Tunneling

The dam’s construction features are mostly below ground and account for 98 percent of the structural features (Snowy Hydro Limited, 2011). The profile and cross-sections of the Eucumbene-Tumut tunnels are as shown in figure 17 and 18 respectively.

In the scheme, the Eucumbene-Snowy is the longest tunnel spanning 23.5 kilometers in length. Its purpose is to divert Snowy waters from Bend Island for storage in Lake Eucumbene. The tunnel was constructed within four years and has a maximum diameter of 6.3 meters.

Technologies such as rockbolting and the sliding tunnel floor enabled quick and effective tunneling to be realized (Snowy Hydro Limited, 2011). As shown in figure 19, the sliding tunnel floor was a large steel structure used as a task surface, as well as, an equipment carrier.

On the other hand, rock bolts were used to reinforce the tops and sides of principal structures like power stations and tunnels (Snowy Hydro Limited, 2011). As shown in figure 20, steel bolts were used to induce an excellent anchor to the parent rock (Mills, 2009). This technique provided a cheaper and safer alternative to concrete lining in tunnel walls. In addition, it reduced the thickness of concrete lining that would be required for pure concrete lining; hence, reducing the overall cost of concrete. In the whole process, the design team discovered that a structural arch was created by placing rock-bolts in a pattern across the tunnel’s roof (Mills, 2009).

Furthermore, special digging tools referred to as pelicans (figure 21) were used to dig the loose material within tunnel walls and roofs.

The “Snowcom” computer (1960) was designed by the University of Sydney and was used for engineering design and calculations for the project. By the application of advanced computer-based techniques, the Snowy Mountains Scheme was completed on time and within budget.

During the entire construction period, industrial safety was a vital concern by the Building Authority. In terms of safety practices, the Scheme was doing better than all existing projects at the time. In 1960, for instance, William Hudson introduced and made compulsory the wearing of safety belts in all Snowy Mountains vehicles. All members in the workforce were required to sign an agreement for the acceptance of wearing a safety belt before engaging in site works.

Hydropower Station

Location

Two of the seven power stations that make up the Snowy Hydropower station are located underground (Snowy Hydro Limited, 2011). These power stations house large generators and turbines which produce the electricity that serves the cities. The water used in hydropower generation is stored in ponds and reservoirs within the scheme (Snowy Mountains Hydro-Electric Authority, n.d.). Figure 22 shows the final stages of construction of Lower Tumut Switching Station that is located at Talbingo.

Problems Encountered

Housing and Amenities

During the initial stages, gathering of technical data was challenging considering that the investigation started after the world war. Besides that, the construction of protected working zones and other important facilities for the workforce proved to be challenging (Gale, 1999). In addition, communication network, road systems, camps, and townships needed to be developed to allow easier flow of construction materials to the site. As a result, several camps, roads and other communication facilities were developed within the region. Furthermore, community services and amenities were a necessity for the construction workforce at the site. Living in camps was extremely difficult, as several people spent the harsh winters in canvas tents with the provision of only basic amenities (Gale, 1999).

Deaths and Safety

During the construction of Snowy Mountains Dam, 121 reported deaths occurred as a result of industrial accidents (Dixon, 1999). Out of these, 26 workers died in accidents involving plant operations such as bulldozers, haul trucks, cranes and tournapulls (Dixon, 1999). Deaths resulting from rockfall averaged 14 workers and occurred were caused by falling objects, explosives, machine accidents and several other cases.

Discussions

As described in the previous section, Hoover Dam, Snowy Dam and Three Gorges Dam employed various techniques during the construction process. Some of the techniques used present some commonality while others are different. In this section, these differences and similarities in the construction techniques and practices are discussed.

Ground Stabilization, Compaction and Grouting Techniques

In all the projects mentioned above, ground stabilization, compaction and grouting techniques were used to ensure the Dams are built on sound foundations. For example, rollers were used to stabilize the clay ground to receive the foundation of the Eucumbent dam. This was done by compacting layers of clay using earthmovers and rollers, as mentioned earlier. Grouting the bases and walls of the river canyon helped to minimize seepage under the dams, as well as, improve their stability. The technique was achieved by drilling several holes into the parent rock and filling them with grout. As such, the desired stability was realized in all the dams and seepage was significantly reduced. Therefore, grouting technique was successfully implemented in all the three dams.

River Diversion techniques

In both the Snowy and Hoover Dam project, main river diversion works were done by the construction of diversion tunnels. As described above, tunnels were driven through the river banks to divert the river from the construction area (Duchemin, 2009). On the other hand, the TGP used highly advanced river diversion technique referred to as river closure method. As such, the associated company successfully conducted three river closures on river Yangtze so that excavation and construction works could begin. Such technological advantages allowed the TGP to be completed successfully within time and budget.

Tunneling Methods

In all the three dams, different tunneling techniques were used to cut through hard rock and other materials. For instance, in the construction of diversion tunnels in Hoover Dam, Six Companies implemented the use of drilling tools and dynamite to drive through the canyon walls. By the aid of gantry cranes, concreting was then done for the tunnel floor areas. Gantry cranes increased productivity and effectiveness of the workforce as materials could be easily moved along the tunnels. To reinforce the walls and roofs of the Hoover Tunnels, 1 meter thick concrete lining was applied to the surfaces. The application was done using movable sections of steel forms and pneumatic guns for the sidewalls and roofs respectively. As such, the tunnels were constructed to allow the diversion of river water from the site without causing damage to the walls.

On the other hand, the tunneling techniques used in the construction of Snowy Tunnels were slightly different as compared to the technique used in Hoover tunnels. For instance, more advanced techniques such as rockbolting and sliding tunnel floor allowed for a faster and effective construction process (Mills, 2009). In rockbolting, steel bolts of different lengths and spacing were helped to create a structural arch; hence, it provided a cheaper and safer alternative than the use of thick concrete lining (Mills, 2009). The sliding tunnel floor was used to carry rail tracks, drilling gantry and other tunneling equipment; thus, making work easier. Combined with the use of the advanced computer based systems, the Snowy Scheme was completed successfully within time and budget.

The more modern Three Gorges Project employed the use of complex techniques in the construction (Veeck et. al., 2007). For instance, tunneling was done using sophisticated Tunnel Boring Machines (TBM) that provides faster, effective and more economical alternatives. Furthermore, modern blasting techniques such as the smooth blasting technique were used. Unlike the Snowy and Hoover blasting techniques, smooth blasting allowed accurate cutting of a reserved layer from the existing rock mass. Smooth blasting reduced excessive shaking that could lead to weakening of the parent rock material.

Concrete Cooling Techniques

As a result of the projects intensity, the quantity of concrete required was enormous and required efficient technologies for successful setting. At Hoover Dam, engineers decided to use interlocking concrete blocks to allow for faster cooling and effective control of heat generated during setting of concrete. As a result, cooling water from a refrigeration plant was forced through a series of pipes running through the interlocking blocks. This helped to dissipate heat from the blocks; thus, effectively preventing crumbling of the structure.

On the contrary, massive concreting was easily done at the TGP due to the availability of intensive temperature control techniques. Several temperature control techniques such as triple pre-alarming systems enabled effective control of temperature in the TGP project. These techniques allowed concrete temperature to be monitored in various ways such as during placement, setting and at different working temperatures. Through this method, the concrete successfully cooled without developing cracks and other flaws.

Conclusions

More than a century ago, various construction techniques had already been developed and were already being put to practice. Dam construction happened to be among the most fascinating constructions that were created in those early times. Dams were constructed for key purposes such as floods control, power generation, and irrigation purposes. These were massive projects considered as state projects. In the modern world, however, more extensive projects such as the Itaipu Dam Project (Brazil) and the 600 kilometers Three Gorges Dam (China) are being constructed. These projects utilize the waters for hydropower generation, irrigation and control of river flooding (Veeck et. al., 2007).

The construction of dams consumes a lot of resources like concrete, steel, rocks, earth, labor and time. An excellent example is the Snowy Mountains Scheme that used more than 100,000 people to construct and complete the dam in 25 years. During the construction, various developments came up such as creation of townships, communication lines, and a network of roads. However, early dam construction engineers faced several difficulties such as technological limitations, accessibility problems and other associated problems.

The modernization of construction management equipment has provided a better, faster, and cheaper way of addressing construction difficulties. For instance, technological advancement has enabled the development of advanced computer based programs that assist in making complex calculations for strength tests, costing, and scheduling purposes. In comparison to the “Snowy Computer” that contained 2048 bytes of memory, modern computers possess an immeasurable capacity to solve complex problems in short durations. In the TGP project, computers were used for several functions such as in the river closure technology, alarm systems for concrete cooling, and in Tunnel Boring Machines. These technologies enable easier management of construction problems and keeping of construction activities within the scope of operation. In the long run, successful results are realized by the team.

Other technological advances have also initiated the possibility of safely undertaking rather dangerous activities. For instance, in the earlier construction of the Snowy Mountains Dam and Hoover Dam, several lives were lost due to falling objects, explosives and extreme temperatures. In modern times, more safety precautions and activities are used to ensure that fatalities are minimized if not exist at all. During the construction of the Bullocks-Ski Tube Tunnel, for example, Kumangai Transfield used a tunnel boring machine to construct a 6.3 kilometers tunnel (1984-1988) and no single death occurred (Dixon, 1999). Furthermore, techniques such as smooth blasting prevented excessive vibrations; thereby, enabling precision blasting.

Despite the numerous benefits linked to the construction of Dams, there are still several issues to be addressed. Examples of such problems include; relocation of people, ecological insignificance, and health hazard among others (Steil & Duan, 2010). As a result of the massive nature of the projects, people living in the identified areas are relocated to allow commencement of construction activities. In the TGP project, for example, more than 1.3 million people had to be relocated to allow construction activities to commence (Steil & Duan, 2010). Furthermore, the enormous structure of the dam posed as an ecological threat and caused the loss of historical sites in China (McGill University, 2001). However, the overall benefits of the scheme should be put to picture for people to realize the attached value. In conclusion, it is inevitable to mention that continuous advancement in technology will allow most of the construction related challenges and associated problems to be fully addressed.

References

Allen, M. (1983) Hoover Dam & Boulder City. CP Printing & Publishing. Redding: CA.

Barber, P. (2010) Hoover Dam Construction.

Bureau of Reclamation. (2006) Reclamation: Managing Water in the West: Hoover Dam. US Department of the Interior.

Commonwealth of Australia. (1950) Diversion and Utilization of the Waters of the Snowy River: A final Report of Commonwealth and States Snowy River Committee. Commonwealth of Australia.

Deyong, X. (2006) Construction Technology and Management Experiences on Yangtze River Three Gorges Project. Assistant of General Manager: China Gezhouba (Group) Corporation.

Dixon, E. (1999) Death in the Snowy.

Duchemin, M. (2009) “Water, Power, and Tourism: Hoover Dam and the Making of the New West”. California History 86 (4): 62–74.

Dunar, J., & McBride, D. (2001) Building Hoover Dam: An Oral History of the Great Depression. Reno, Nev.: University of Nevada Press.

Gale, S. (1999) The Snowy Water Inquiry: Food, Power, Politics and the Environment. Australian Geographical Studies, 37(3), 300-304.

Hiltzik, A. (2010) Colossus: Hoover Dam and the Making of the American Century. New York: Free Press.

McGill University. (2001) Three Gorges Case Study. McGill University. Web.

Mills, W. (2009) The Snowy men Behind Tunnel Rock Bolting. Cooma, N.S.W. Australia.

Power Technology. (2011) Three Gorges Dam Hydroelectric Power Plant.

Snowy Hydro Limited. (2011) Snowy Mountains Scheme. Web.

Snowy Mountains Hydro-Electric Authority. (n.d.) Engineering Features of the Snowy Mountains Scheme. Granville, N.S.W. Australia: Ambassador Press Pty. Ltd.

Steil, S., & Duan, Y. (2010) Policies and Practice in Three Gorges Resettlement. Web.

Stevens, E. (1988) Hoover Dam: An American Adventure. Norman, OK: University of Oklahoma Press.

True, J., & Kirby, T. (2009) Allen Tupper True: An American Artist. San Francisco: Canyon Leap.

Veeck, G., Ponnell, C., Smith, C., & Huang, Y. (2007) China’s Geography Globalization and the Dynamics of Political, Economic, and Social Change. New York: Rowan and Littlefield Publishers Inc.

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Executive Summary

Project planning is a painstaking process of ensuring that resource allocation and planning are in accordance with the desired outcomes. The use of various planning tools aids in ensuring that managers are in control of projects. This paper outlines how a villa will be constructed and furnished to be ready for use within ninety days. The activities carried out during the construction process are outlined. Each activity has been allocated a specific duration. Additionally, each activity takes a different time and plays a role in the entire project. Therefore, all activities are of great consequence to the success of the project. The critical path is determined as well as the slack variables to determine the most crucial activities. The critical path is for the project is A-B-C-D-E-I-L-Finish. The total time the project takes on the critical path is 65 days.

Project Idea

The project I have chosen is the construction of a villa. Villas are common in the countryside and coastal regions. Such houses are suitable for retreats, holidays or as residential houses for individuals with large families.

Project Idea and its Objective

The aim of the project is to construct a villa and have it ready for use within three months. The villa will have four bedrooms, three bathrooms, a swimming pool, a garage, and a garden. The villa will be friendly to children and will be situated in an area that experiences frequent snowing.

A villa should have an intricate design to make it appealing. It is also important to plan the entire process of construction in order to have excellent output. It is normal to have high expectations before the actual construction work begins. However, challenges such as time constraints may arise during the project implementation stage thereby hindering the timely completion of the project. Therefore, a project plan is a monitoring tool used to ensure that the project maintains its course without much deviation.

The design of the four-bedroom villa will be such that two of the rooms will have their own bathrooms, whereas the other two will share a bathroom. The swimming pool will be expected to occupy the side of the construction plot, which will enable it receive sunshine from mid-mornings to late afternoons. The garage will be adjacent to the villa, and the garden will be expected to surround the whole compound. The project will be implemented by a competent and experienced contractor from a reputable construction firm.

Construction Activities of the Project

The various phases of the project require diverse materials, professionals and adherence to set construction guidelines. The project encompasses several activities such as:

1. Site preparation (levelling and digging of the swimming pool).
2. Consulting construction companies and selecting the most suitable one in terms of expertise and cost.
3. Construction of the foundation.
4. Construction of wood floor framing.
5. Construction of walls.
6. Construction of the roof.
7. Plumbing.
8. Electrical fittings and installation.
9. Air conditioning and control.
10. Interior fittings, for instance, doors, stairs, cabinets, and countertops.
11. Floor finishing.
12. Additional amenities such as decks, driveways and walkways.
13. Landscaping.

These activities are interdependent and need to progress systematically from one activity to the next.

Consulting Construction Companies and Selecting the Most Suitable Company

Construction work requires professional labour, which includes engineers, landscaping individuals, interior designers, carpenters, plumbers, and electricians. The cost of paying all these professionals can be expensive and inefficient if they are outsourced independently. However, obtaining all these professionals from a construction company reduces the cost significantly. It is important to compare the cost of the available construction companies against their performance based on previous works. Such a move will help in selecting the best company that will yield quality results at a reasonable cost. Therefore, the selection process needs to come before all other activities.

Site Preparation (Levelling and Digging of the Swimming Pool)

Levelling the ground needs to take place due to the existence of uneven surfaces that would render construction and landscaping difficult. The removal of tree stumps, obstructing trees and demolishing of unnecessary structures are some of the activities that take place during site preparation. Digging of drains, pits and swimming pool occurs at this stage so that the soil removed from the pits is used to fill up spaces as the ground is being levelled. The ability to create a good site and landscape depends on this stage because these activities cannot be carried out efficiently once the actual construction starts.

Construction of the Foundation

The foundation of a house determines the number of floors that can be hoisted. The construction of the foundation involves the digging of trenches and arranging of layers of concrete and stones in the trenches. Factors such as soil type and prevalent weather conditions influence the depth and structure of the foundation. Certified construction companies help in ensuring that the foundation adheres to set building standards.

Construction of Wood Floor Framing and Walls

The walls and the roof partly depend on the wood floor framing. This framing also offers support to the walls and interior fittings. The framing design and make should be strong enough to support the structures attached to it. This process is time-consuming depending on the labour input and the complexity of the framing and walls. Frames and walls with numerous shapes and designs take more time than simple ones. In this project, this phase will take approximately 15 days. The walls will be made using bricks, boards and timber.

Construction of the Roof

The roof is important because it displays the structure of the building and the intricate design used in construction. The construction of the roof largely depends on the walls for support. Therefore, the walls have to be in place before roofing starts. The roof has various uses besides sheltering the house from rain and snow. Some of these uses include the regulation of temperature and air flow. The villa will be situated in an area that experiences frequent snowing. Consequently, the roofing will follow the guidelines set for houses in snow-prone areas. Some of these regulations include double insulation of the roof, use of specified angles of the rafters and the interior airflow design.

Plumbing

This step involves the construction of the sewerage and domestic water supply systems in the house (kitchen, bathrooms and toilets) as well as the garden. This activity runs parallel with other activities such as fitting of pipes, which takes place at different stages of construction.

Electrical Fittings and Installation

This stage involves the fitting of sockets and developing of the wiring system. The energy requirements of the villa will be determined at this stage. The installation of electricity will be done to allow the use of gadgets that require electricity to operate during the construction process.

Air Conditioning and Control

These fittings will be included to cater for different needs such as heating during cold seasons and cooling during hot seasons. The fitting of the air conditioning equipment will take place when the construction nears completion.

Interior Fittings such as Doors, Stairs, Cabinets, and Countertops

The fixing of cupboards and cabinets will be done after the completion of major construction work to avoid breakages because some of these fittings are fragile and require delicate handling.

Floor Finishing

Floor finishing varies with the desired floor. The finishing comes last because the polishing of floors and the fitting of particular floor types require clean surfaces. The floor finish displays a sense of style and determines the ease of cleaning.

Additional Amenities such as Decks, Driveways and Walkways

Additional amenities include children play areas, walkways, driveways, garage, and decks. These amenities add value to the villa and are part of the construction work. The play area should be safe and ought to be located in a place that is easily visible. Children require attention when playing. Therefore, their play area should allow the monitoring of their activities.

Landscaping

A good landscape is attractive and creates a favourable atmosphere for relaxation. The garden around the villa will have various flowers, herbs and vegetables that will serve ornamental, medicinal and food purposes. The landscaping will take place concurrently with site clearing at the end of the construction process.

Dependency between Project Activities and Duration of Each Activity

The letters preceding each activity are used to identify the activity.

The Villa Construction Project Network Diagram (A-O-N Method)

Network diagrams help in determining the critical path in projects. The critical path is important to project managers as it enables them to determine the longest time that the project can take and the most crucial activities. According to Weber, the activity-on-node networking (A-O-N) method of determining the critical path helps in identifying the activities that run parallel to each other.¹ Project scheduling is important in planning and time allocation because it helps in:

• Availing of resources at the construction site at the right time
• Determining the timing of activities and the project finish time
• Corrective measures if the schedule indicates a time lag
• Determining the monetary value of penalties if the project is not completed on time
• Assessing the effects of change of orders on project conclusion.

According to Cascio, drawing the activity-on-node network to determine the critical path aid in this process² in the following ways:

• Late finish time determination using a backward path
• Early start time determination using forward path.
• Calculating the float
• Identification of critical activities.

Early Start Times Determination Using a Forward Path

Early start time is the earliest time an activity can commence during the project implementation stage. Back and Moreau assert that the forward path follows an order of left nodes before the right nodes with arrows pointing from to the left nodes to the right nodes.³ The calculation of the early start time uses the equation ES=ES+x where ES is the early start time and x is the duration of the activity of the preceding node.⁴ To determine the earliest time an activity can take, Raz, Barnes and Divir put forward the equation EF=ES+x where EF is the early finish, ES is an early start and x is the duration of an activity.⁵

Late Finish Time Determination Using a Backward Path

The backward path determines the late finish time of activities by proceeding from backwards to the starting nodes as noted by Buska and Tobiasson.⁶ The late finish time is calculated by adding the late start time and the durations of the preceding activities. The delayed start time is found by getting the difference between the extent of the activity and late completion time. Fodahl asserts that the construction of the roof in snow-prone areas should be in accordance with the set load standards for the roof to bear the weight of snow.⁷ Therefore, the roofing activity should be adhered to because it is critical for the strength of the building.

Slack or Float in a Project

Slack is defined as the time that a project can delay without affecting the progress of the project. Chris and Tung suggest that the slack time is determined by getting the difference between the late finish time and the early finish time or early start time and the late start time.⁸

Critical Path for the Project

The critical path is for the project is A-B-C-D-E-I-L-Finish. It is determined by a backward path. The total time taken by the project on the critical path is 65 days. In addition, the critical path determines the longest time that a project can take. According to Duran and Rivera, any activity that stalls in the critical path delays the entire project.⁹

Slack Time

Slack time helps determine the activities that can delay without affecting the critical path. It also assists in finding the effect of the delays in the project implementation. Activities such as landscaping and swimming pool construction that are not in the main villa plan but appear as miscellaneous have a slack time and can be delayed without affecting the completion of the project. The slack time for each activity is computed using the equation slack= late finish- early finish.

In the above table, critical activities have a slack value of zero.

Conclusion

The use of project scheduling tools is important as it enables the manager of a project to allocate time and resources accordingly. It also helps in ensuring that activities with zero slack variables stay within the predetermined programme to ensure timely project completion. Critical path evaluation is thus essential for the successful completion of projects devoid of time holdups.

Bibliography

Anbari, F. T., ‘Earned value project management method, and extensions,’ Project Management Journal, vol. 34, no. 41, 2003, pp. 12-23.

Back, W. E. & Moreau, K. A., ‘Information management strategies for project management,’ Project Management Journal, vol. 32, no.1, 2001, pp. 10-20.

Buska, J. & Tobiasson, W., Minimizing the adverse effects of snow and ice on roofs, International Conference on Building Envelope Systems and Technologies, Ottawa, Canada, 2001. Web.

Cascio, W., ‘Managing a virtual workplace,’ Academy of Management Executive, vol. 14, no. 3, 2000, pp. 81-90.

Fondahl, J. W., ‘The history of modern project management –precedence diagramming methods: origins and early development,’ Project Management Journal, vol. 18, no.2, 1987, pp. 33-36.

Hendrickson, C. & Au, T., Project management for construction, Prentice Hall, Upper Saddle River, NJ, 1989.

Raz, T., Barnes, R. & Dvir, D., ‘A critical look at critical chain project management,’ Project Management Journal, vol. 34, no. 4, 2003, pp. 24-32.

Rivera, F. A. & Duran, A., ‘Critical clouds and critical sets in resource-constrained projects,’ International Journal of Project Management, vol. 22, no. 489, 2004, pp. 23-37.

Weber, S. C., Scheduling construction projects: principles and practices, Prentice Hall, Upper Saddle River, NJ, 2005, pp. 233-289.

Footnotes

1. S. C., Weber, Scheduling construction projects: principles and practices, Prentice Hall, Upper Saddle River, NJ, 2005, p. 233.
2. W. Cascio, ‘Managing a virtual workplace,’ Academy of Management Executive, vol. 14, no. 3, 2000, p.83.
3. W. E. Back & K. A. Moreau, ‘Information management strategies for project management,’ Project Management Journal, vol. 32, no.1, 2001, p. 12.
4. F. T. Anbari, ‘Earned value project management method, and extensions,’ Project Management Journal, vol. 34, no. 41, 2003, p.12.
5. T. Raz, R. Barnes & D. Dvir, ‘A critical look at critical chain project management,’ Project Management Journal, vol. 34, no. 4, 2003, p. 24.
6. J. Buska & W. Tobiasson, Minimizing the adverse effects of snow and ice on roofs, International Conference on Building Envelope Systems and Technologies, Ottawa, Canada, 2001.
7. 7 J. W. Fondahl, ‘The history of modern project management –precedence diagramming methods: origins and early development,’ Project Management Journal, vol. 18, no.2, 1987, p. 33.
8. 8 C. Hendrickson & T, Au, Project management for construction, Prentice Hall, Upper Saddle River, NJ, 1989.
9. 9 F. A. Rivera & A. Duran, ‘Critical clouds and critical sets in resource-constrained projects,’ International Journal of Project Management, vol. 22, no. 489, 2004, p. 24.

Abstract

A new nuclear plant is currently being constructed in Georgia under the name of plant Vogtle 3 and 4. This follows the successful approval of an application filed by the Southern Company to the Georgia Public Service Commission. The units under construction are the third and the fourth phases of the Vogtle plant. This is in line with the company’s desire to expand the initial size of Units 1 and 2. There have, however, been various challenges facing the construction of the plant-like increased costs, besides other challenges like opposition from the environmental groups. The purpose of this essay is to investigate the various processes that have led to the development of the Vogtle 3 and 4. This will cover the process right from the issuance of the construction permits, the construction process, the size of the output, the type of reactors to be used and the safety measures installed.

Date permits were submitted

On 15^th August 2006, the Southern nuclear plant made a formal application for two additional nuclear plant units. This application was referred to as the early site Permit (ESP). In March 2008, the company further filed for a license application for the same nuclear plan units. On 31^st March 2008, the Southern nuclear plant made a formal announcement that it had filed for a combined construction and operating license. The company further stated that the license for the two additional nuclear plants would take approximately 3 to 4 years before the final approval. In addition, the company undertook another certification application for Vogtle 3 and Vogtle 4 units on 1^st August 2008 (Beattie, 2012).

Date of final approval

The Southern Company was granted approval for the construction of the nuclear plant by the Georgia Public Service Commission on 17^th March 2009. This was the first of its kind in the United States, following the three-mile Island accident that took place in 1979. The Nuclear Regulatory Commission further issued an Early Site permit along with a Limited Work Authorization to the plant on 26^th August 2009. On 26th February 2010. President Obama further guaranteed the company a loan of $8.33 Billion to cater for the construction costs (Vogtle 3 And 4: Preparing To Make Nuclear Revival A Concrete Reality, 2011). This was followed by the final approval of the two nuclear plants by the Nuclear Regulatory Commission in February 2012 (Bradford, 2009).

Date of construction

Immediately after the construction license was issued by the Georgia Public Service Commission, Limited Construction started to take place at the sites, with unit 3 expected to start operating in 2016, and unit 4 in 2017. The official construction of the sites finally took place on 12^th March 2013, following the final license by the Nuclear Regulatory Commission. Construction of the first concrete placement was completed on 15^th March (Vandermey, 2012). The containment of the vessel further took place on 1^st June 2013.

The latest estimate for bringing online

The two nuclear reactors that the company hopes to use are estimated to cost 14 billion dollars, making them cheaper than the other alternatives for the generation of electricity like natural gas. The design of the plants as certified by the NRC is to be brought online by 2016 and 2017, respectively (Vandermey, 2012).

The output size

The size of the plant is expected to cover 22 million cubic yards, with a capacity of 1,215 MW for each of the new units under construction. Both Vogtle 3 and 4 are expected to have a combined output of 2,430 MW. The two natural draft cooling towers are 548 ft long, have an estimated height of 167m, and are able to provide a cooling effect to the condensers at the plant. The plant has an addition of four smaller mechanical towers that are used for cooling the plant’s service waters. This is for purposes of auxiliary safety. One of the ways in which this is done is by removal of the decayed heat from the reactor when the plant is offline (Vandermey, 2012).

Type of reactors used

The nuclear plant is going to integrate the use of two Westinghouse AP1000 reactors in the management of the nuclear energy of the plants (Russell, 2013). The positive attribute associated with the use of these reactors is that they are the third generation in nature, with a higher level of safety improvement as compared to the other older reactors. However, these reactors are no longer associated with the renaissance they were thought to have.

Source of fuel

The source of fuel for the Vogtle 3 and 4 units is nuclear energy. One of the assumptions that underlie the use of nuclear energy is its ability to generate mass electricity. It is also highly efficient in nature as it is less associated with the emission of greenhouse gases. The costs associated with its use are also minimal in comparison with e use of either coal or gas. Additionally, the price of a nuclear plant as a source of fuel is more certain compared to the other two counterparts whose prices keep on fluctuating from time to time (Fertel, 2013).

Life expectancy before refueling

The nuclear power plants operating the AP 1000 reactors were initially supposed to last for a period of 40 years before the licenses would be renewed. However, the nuclear regulatory Commission has since extended the operating license to over 60 years and it is likely that their period of use will be further extended.

How will spent fuel be disposed?

The plant is regulated by the nuclear waste policy Act of 1982; thus, the federal agency under the US department of energy is responsible for the disposal of used nuclear fuel. However, because a repository has not yet been constructed by the United States Congress, most of the nuclear plants, including this one, have to store the nuclear fuel that has already been used (Russell, 2013). The storage of nuclear fuel at the plant can be done in one of two ways. The first method is referred to as the dry storage method while the second involves the storage of the fuel in steel lined concrete pools filled with water. The latter method is also referred to as the spent pool method of storage. The southern nuclear plant in Georgia uses this form of storage and it is likely that the same mode will also be applied at the newly constructed plant Vogtle in 2014.This is done through the construction of above the ground dry storage facilities (Russell, 2013).

What special safeguards (If any) were installed?

The nuclear plant has been designed to ensure that proper containment of the plant. A very strong basement forms the basement of the plant. This ensures that other components that needs to be installed at the plant have a firm and secure base. It should be noted that not just any type of concrete can be used in the construction of this kind of structure; rather nuclear grade concrete is necessary (Marsh, 2012). This means that before its placement, various quality checks need to be undertaken. This calls for the realization of rigorous manufacturing and qualification methods. This type of concrete is specifically designed and mixed for this kind of work. Most of the reinforcement and construction procedures tend to follow very strict guidelines and procedures. Also, majority of the procedures can only be performed by a trained workforce that has specifically been certified to perform these duties.

Special safeguards

To ensure utmost planning, the process went through a mock exercise through the construction of a mock site. This is aimed at stimulating the placement of the concrete before the actual process. The plant has largely been a success due to months of detailed planning. Through these vigorous processes, the Southern Company has demonstrate its commitment to safety (New Reactor Design Improves Safety, 2012). in order to ensure the safety of the nuclear plant under constructions, the Southern Company has conducted various feasibility and safety plans for several months now. Moreover, the Southern Company has also ensured that other vital services like lifts are working properly and safely, and that there is equal distribution of weights to avoid placing undue stress on certain structures.

Reference List

Beattie, J. (2012). Southern Reveals Hefty Cost Increase For New Georgia Nukes. Energy Daily, (93), 1.

Bradford, P. A. (2009). The Nuclear Renaissance Meets Economic Reality. Bulletin Of The Atomic Scientists, 65(6), 60-64.

Fertel, M. S. (2013). State Of The Nuclear Energy Industry. Electric Perspectives, 38(3), 86-95.

Marsh, D. (2012). Twin Batch Plants Fuel Construction Of Just-Approved Nuclear Power Site. Concrete Products, 115(3), 10-11.

New Reactor Design Improves Safety. (2012). Business North Carolina, 32(10), 14.

Russell, P. (2013). Georgia Power’s Vogtle Plant Under New Round Of Criticism. Enr: Engineering News-Record, 270(4), 11.

Vandermey, A. (2012). New Nukes. Fortune, 165(2), 8-9.

Vogtle 3 And 4: Preparing To Make Nuclear Revival A Concrete Reality. (2011). Modern Power Systems, 31(12), 35-36.

Company Background

ABC America is a renowned construction firm in the North American market. Established in 1995, the company has extensive experience in various construction projects in the US and across the region. The company has a current workforce of 8,000 workers situated in its various offices countrywide. Among the most popular products include tire swings, flagpoles, and fences that beautify American homes. ABC has cultivated a strong brand image through provision of quality, reliable, and efficient solutions to construction problems, thereby enriching the lives of its customers, staff and other stakeholders throughout its markets.

ABC also develops birdhouses for residential applications. These houses host decorative birds and pets that ensure a wholesome life for families. The birdhouses are built not only to protect the birds but also to beautify the living spaces. These birdhouses are customized to the needs of the client, the number and type of birds, and the weather conditions of the customer’s region.

Mission Statement

ABC America’s mission is to help families to beautify their places of living by developing innovative, cost-effective, and sustainable building and construction solutions that suit their tastes.

Project Specifications

The project specifications are based on the request for expression of interest document published on your website. The document specifies that your desired birdhouse should have an internal volume of 216 in³. In addition, the birdhouse should have a hole in the center of one of the four sides. The roof should also have a 45 degree slope and a 0.5 inch overhang. The asset must withstand winds of 50 mph when supported using a string on the center top. Moreover, it must withstand fireworks explosions and an internal pressure of 45psi. Lastly, the unit cost must not exceed $25.

The selected design should not have waterproof paint, rust-resistant metal, and resistant wood to minimize the cost. In addition, the design prototype must be tested using computer modelling to verify its structural integrity after being subjected to varying pressure and stress conditions. After acceptance of this proposal, a design concept is required within 60 days, and a prototype in 100 days. After successful verification, the first batch of 1,000 units should be delivered within 140 days.

A summary of the project specifications is presented below:

1. The internal volume of 216 in³.
2. The birdhouse must have a hole in the center of one of the four sides to facilitate entry of the birds
3. Roof should have a 45 degree slope and a 0.5 inch overhang.
4. Must be able to withstand winds of 50 mph, fireworks explosions, and an internal pressure of 45psi.
5. The unit cost must not exceed $25.
6. No need for waterproof paint, rust-resistant metal, and resistant wood
7. The design prototype must be tested using computer modelling to verify its structural integrity
8. A design concept is required within 60 days of proposal’s acceptance and a prototype in 100 days.
9. The first batch of 1,000 units should be delivered within 140 days.

Procedure

ABC will send the initial design concept for evaluation and suggestions on any required modifications within the first 30 days to allow for revisions. Any feedback obtained on the initial submission will be used to revise the design to match the desired concept. Once the design concept is approved, a prototype will be developed and delivered within the first 60 days. Any suggestions made on the prototype design will be incorporated into the final design before the 100 days. The company will move into full-scale production after the approval of the prototype design.

Rejection of any submission at any phase will result in a thorough rework at the company’s cost. The revisions will carefully incorporate Eagle America’s design recommendations to avoid extensive reworks and delays in developing the final product. The designs will be tested in the company’s state of the art wind tunnel and blast-resistant chamber to ensure complete compliance with the desired pressure- and stress-resistance standards.

The design phase will use Computer-Assisted Design software to develop a detailed design concept in three dimensions. The AutoCAD software will ensure that the design is drawn to scale, which will allow the designer to determine the actual size of the birdhouse. It will also allow the designer to adjust the scale to see how changing the various dimensions would affect the cost and aesthetics. In addition, the software will allow zooming in and out to view the birdhouse from different orientations. Any recommended changes will be made easy and a record of successive improvements before the final model is developed. These improvements will be preserved for future reference. These successive designs will be availed to the customer should the market require additional models in future. The AutoCad model will enable the designers to calculate the material quantities needed for production as well as the potential alternatives that could reduce cost, enhance the quality, aesthetic value, and the structural integrity of the designed units.

The in house design and development team has extensive experience in birdhouse design. Among the company’s notable clients include the leading corporate and prominent people in leadership. The team is able to handle any contingency and can accelerate the delivery timelines should the need arise. Furthermore, the experienced team delights in making continuous improvements on both the design and production phases of the project and would be delighted to change the projects specifications on short notice. These capabilities will ensure that the final product matches the needs of the market as closely as possible.

The company has an automated production process that ensures that the design prototype is replicated in its exact form in the final product. The in house quality assurance team tests a large sample of the manufactured units to ensure that deviations remain insignificant at 99% confidence level. This high level of quality assurance enables the client to minimize the cost of returns, and enhance the delays involved in production. The exact prototype match will also ensure maximum customer satisfaction.

Deliverables

The company commits to provide the following deliverables to Eagle America Company after successful completion of the contract.

1. A preapproved birdhouse design based on specifications listed in the requirements section
2. A comprehensive analysis of the design including cost, appropriate materials, price range, and potential areas of differentiation to appeal to attract more customers
3. A complete bill of materials and approximate cost at the prevailing market rate
4. The recommended methods of installing the birdhouses to ensure maximum comfort for the birds and highest aesthetic beauty for the homesteads. These will be provided in a booklet.
5. All initial designs, revisions, prototypes and final designs developed for Eagle Africa. These will be provided in a digital file in a password protected environment
6. A professional project report detailing the design development process, justification for the selected design, and the associated costs of production
7. A commitment to deliver the final design concept in 30 days
8. A commitment to deliver a final prototype within the first 60 days
9. A commitment to deliver a batch of 1,000 birdhouses within the first 140 days

The company will be in constant touch with Eagle America to ensure these delivery times remain as specified in the proposal document. For this reason, the company will have a dedicated contact person to manage all interactions with the customer. The manager will provide weekly progress reports on the developments and document resolutions arrived at in the course of the construction process.

Budget

The project will take the design department at least 150 hours to complete the final prototype. In addition, it will take the production half an hour to produce each birdhouse. The design department is paid $43.33 per hour. Therefore, the total design cost is $6,500. The production department workers receive $18 per hour. The cost of design will be allocated proportionally to each birdhouse for the initial batch. Therefore, the total design cost for the first batch will be $7.5 per unit. Table 1 shows a breakdown of the initial cost of production for the first batch.

Table 1. Projected production cost

The allocated overheads and other expenses include a 3% cost of warranty. Other indirect expenses include factory utilities such as lighting and supervision expenses.

Schedule

The project will start after the receipt of an acceptance document in reply to this proposal. A copy of signed contract must be received by the head of operations before the design process can start. Once the contract is signed, the initial design phase will start. This process will be done in phases of 3 hours each with each interval being submitted to the client for approval. The company expects to complete the development within the first five phases before proceeding to the prototype development phase. The process is anticipated to take 30 days to provide for any unforeseen contingencies. The prototype development phase will take an additional 30 days. The prototype will be developed and revised within the first month to cater for any unforeseen changes to the initial design that might arise in the course of the project. After the final approval, the prototype will proceed to the final phase of production within 140 days. The company expects to deliver all the 1000 units within the stated timeline. Table 2 shows the proposed timeline for the project.

Table 2. Proposed timeline

The client can communicate any changes to the provided schedule by communicating in advance. Such communication should be provided in a signed document and delivered to the main office. However, the client should bear responsibility for any delays occasioned by changed production or design schedules and the company bears no liability for the same. Nevertheless, the company does not anticipate any contingency that could result in unnecessary delays to the project based on experience.

As a sign of consent, please append your signature in the space below. The contract will proceed to execution phase after you append your signature and deliver the document to any of our administrative offices in the region. The document will be considered binding only if signed and stamped with the company’s seal.

Signatures

Eagle America, LLC Representative

Print__________________________ Sign_______________________________

Date________ Phone____________________ Email____________________________

Real Engineer Representative

Print__________________________ Sign_______________________________

Date________ Phone____________________ Email____________________________

Introduction

The growth of the Saudi Arabian economy can largely be attributed to the oil industry of this country, especially petrochemical production and petroleum refining. In 2007, oil products constituted 88, 1 percent of the total export ( 1 The United Nations, 2010, p. 322). At the given moment, Saudi Arabia is among the fastest-growing economies in the Middle East. This is as a result of the rapid growth in population and large scale projects that have been emerging over the last few decades.

Domestic consumption has been affected by the rise in oil prices. Currently, this country is the largest oil producer in the world. In 2007 Saudi Arabia produced 12,8 percent of the world’s oil output ( 2 Olah, Goeppert, & Prakash 2009, p. 38).

The country produces so much oil that is capable of meeting its domestic needs. The surplus is normally exported to overseas markets. Saudi Arabia has become is currently the biggest producer of oil and as a result, it plays a critical role in determining the demand and supply of the product. Due to the high level of dominance that Saudi has in the oil industry, the country plays a critical role in the determination of the world oil prices.

On the whole, oil production is the main sector of the country’s economy. These products play a critical role in the growth, development, and control of Saudis economy. However, the industry is highly mechanized and as a result, it does not require high human labor. This, therefore, states that it does not provide enough employment to the local people. It should be noted that Saudi oil-producing companies occupy leading positions in the world. This argument can be illustrated with the help of this chart.

The production of crude oil reached a peak of 9.9 million barrels per day in 1980 and began to decrease (4 Federal Research Division 2004, p. 183). The production was later hindered by the war between Iran and Iraq in 1985 (5 Federal Research Division 2004, p. 183). Since that time the country’s oil output began to increase. The country was able to increase its share in the global oil industry after the international embargo on Kuwaiti and Iraqi oil; in 1991 average daily output was 8.5 million barrels per day (6 Research Division 2004, p. 183). Since that time, Saudi Arabia has turned into the most important oil producer in the world.

The government of this country aims to other oil reserves located in this country such as Shaybah Field which is near the border with the United Arab Emirates (7 Cordesman 2003, p. 81). Additionally, one can mention such reserves as the Abu Hadriya or Khurais Fields. Each of them can significantly contribute to the production of oil in this country. Moreover, it was announced that the country will attempt to raise its production level to a record-breaking height, namely 12, 5 barrels per day (8 Weisenbacher 2009 p. 642). Although many analysts are skeptical about these plans, they indicate that the government of Saudi Arabia intends to become the main leader in the production of crude oil.

Although production levels decreased slightly at the end of 2008, the government officials are still convinced that the country’s oil-producing facilities will be able to achieve the expected results; moreover, they even claimed that the country can reach a new oil production level, namely 15 million barrel per day after 2011 (9 The Kingdom of Saudi Arabia, 2011). Thus, one can say that oil exploration and production is one of the top priorities for Saudi Arabia.

In order to achieve these very ambitious production objectives and meet the increasing demand for energy throughout the world, the government will invest billions of dollars in the development of new fields. Moreover, they intend to invest in infrastructure in an effort to expand the capacity of their oil-producing facilities (10 Weissenbacher 2009 p. 642). The global economic crisis which manifested itself throughout the world presented the country with new challenges. This recession resulted in the decreasing demand for oil throughout the world (11 Oxford Business Group 2010, p 30). However, this decline was only temporary, and currently, the global demand for oil is on the increase (12 Oxford Business Group 2010, p 30).

Saudi Arabia is willing to pursue the development of the oil and gas sector of the economy. These projects are important for the local as well as the global economy. For instance, the Saudi Arabian Oil Company intends to open new export refineries at Yanbu and Jubail.

The increasing competition in the construction industry and decreasing pricing will help the government of Saudi Arabia to reduce expenses ( 13 The Kingdom of Saudi Arabia 2011, unpaged). In March 2009, the government of this country expressed intentions to invest about $60 billion in oil infrastructure (14 The Kingdom of Saudi Arabia 2011, unpaged). These plans indicate that in the future the role of the oil industry may become even more important for this country.

The economy of Saudi Arabia has grown together with the establishment and development of its state. The building of the state has been equipped by oil sources in the modern institutions of the system of government and has worked to empower the economic status of the country. This has also led to new project ventures which bring revenue to the country and its citizens. Today, Saudi Arabia is known for its enormous reserves of oil and gas.

However, an export-led economic diversification effort will soon help the Kingdom become a significant global producer of value-added industrial components and manufacturing inputs from aluminum and fertilizer to high-tech fiber-optic cables ( 15 The Kingdom of Saudi Arabia 2011, unpaged).

Major Projects Opportunities

As has been said there are a great number of projects which are of great importance to the oil industry of this country. Examples of these projects include Herath, Khursaniyah Hawiyah, and Shaybah Expansions that were done by ARAMCO, the largest oil and gas company in the world. Furthermore, one should not forget about those project which are going to be implemented in petrochemical sector, for instance, Sharq, Yansab, Saudi Kayan, or Ar-Razi Expansions (16 Seznec & Mirk 2010, p. 35). They are of great significance to such petrochemical company as SABIC (17 Seznec & Mirk 2010, p. 35).

Several projects are going to be executed, for instance, oil refinery will be constructed in Jubail, Jazan, and Yambu (18 Oxford Business Group 2007, p 116). In addition, each of the new refineries will be designed keeping petrochemical products such as benzene, xylene and paraxylene. The effective functioning of these facilities will depend on the choice of contractors. This issue will be discussed in the next section.

Engineering Procurement and Construction (EPC) contracts

An EPC contract deals with engineering services. The contractor acquires everything for the project on behalf of the owner. They also take the building work. Due to its nature, this project is run and managed by the contractor. The cost, risk and control are borne by the contractor away from the owner. EPC contractors take direct agreements with other parties to necessitate the construction process (19 Loots and Nick, 2007, p 15).

In an EPC contract organization, the contractor has responsibility to design and construct a building. This gives a single point means of accountability. In case a problem results, the project company will deal with one party for accountability (20 Loots and Nick, 2007, p 14).

Proper comprehension of EPC contract conditions and clauses usually helps the project to be achieved and be monitored through the right management with regards to the requirements of the project. This will help the project to run smoothly and meet the standard requirement. This usually avoids disputes and conflicts that may happen in the process of the contract. The customer should have good understanding of the contract terms and articles before starting the project.

EPC is a common type of contracting style where the contractor makes a plan for the project and purchase the materials for construction. There are some instances whereby the contractor will assume the risks of the project. According to this type of agreement, the contractor is completely responsible for design and development of a project (21 Huse, 2002, p. 17). In turn, the customer is obliged to provide accurate functional specifications and requirements which the contractor has to meet. As a rule, EPC project are called turnkey because the client does not have to do any work on the project. In this case, both the customer and contractor must ensure that every requirement is clarified; otherwise, they may have many legal disputes.

EPCM Contracts

According to an EPCM (Engineering, Procurement and Construction Management) contract, there is agreement with the company to give engineering, purchase materials and equipments necessary for the project and have management in the construction site. The project owner makes agreement with other companies and other subcontractors so that they can render their services in the construction process but they work under the supervision of the EPCM contractor.

The whole project is usually directed and supervised by the owner who in turn takes all the risk that is incurred in the process of construction (21 Loots and Nick, 2007, p. 5). Both EPC and EPCM contracting are the common types of contracts in the construction industry. The project owner has to come up with a decision depending on the state of risk he is willing to acknowledge, the expenditure, limitations and his own skills and experiences will help to choose the best method for a project.

There are several differences between EPC and EPCM contracts. In this case, special attention should be paid to the obligation of both partners. According to EPC agreement, the contractor performs the following tasks:

1. The design of the project;
2. Management and administration of the project and provision of strategic and programming services;
3. Moreover, this side of the agreement has the responsibility to monitor procurement and construction work, management of tender. These are the main responsibilities that this party has (22 Loots and Nick, 2007, p. 5).

In comparison with EPC agreements, EPCM contracts are normally more expensive. The owner is supposed to pay the subcontractors directly for equipments, materials and on-site works. This side has the responsibility to reimburse the EPCM contractor for the expenditures that this company had to make. In this case, we can speak about labor costs, supervisory services, as well as the bonuses specified in the contract. The amount that the EPCM contractors charge will depend on the risk that will be assumed in the process of the contract.

An EPCM contract is particularly suitable in those cases when it is necessary to redesign the project or when the customer did not fully specify functional requirements. Such agreements are particularly suitable under those circumstances when the construction company want to insure itself against possible legal disputes. In those cases, when the client is able to determine the functional characteristics of the construction facility, this side will normally prefer an EPC agreement (23 Gloria 2011, p 50). In this case, the main responsibilities are shifted on the contractor.

An EPCM contract can be preferred by parties for several reasons. Very often they do so because they cannot to obtain an efficient contractor that would accept the terms of EPC contract. Moreover, in many cases, the owners may not be able to define the main capabilities and features of construction facilities. So, this side of the agreement may be forced to accept the terms of EPCM agreement.

EPCM contracts are used when expanding large engineering facilities, construction projects. For instance, among them one can single out petrochemical facilities or oil refineries. The main peculiarities of these projects that they are likely to be redesigned even in the course of construction. These changes may not be very significant but they are very costly. EPCM contracts are not used in public and social projects. The only exceptions are those cases when the project can be completed by multiple contractors. These are the main differences these models. This chart illustrates the main components of EPC model.

EPC Model

An EPC contract is a form of a contract whereby the contractor is responsible for all the elements of the project. The contractor is responsible for designing, procuring, engineering and construction. In case of EPC contract, the contractor accepts to give the keys of the specially made project to the owner at an accepted amount like it happens in contracts where a builder gives keys of a building to the buyer.

In Saudi Arabia EPC contracts are becoming the commonly used ways to conduct projects but both parties need to know the constituents of the contract in order to have the best project (25 Schramm, Maibner, and Waidiger 2010, p 33).

While conducting EPC contracts, people need to be very keen on management so that the company that is taking the project makes conditions and outlines the design and framework like expenditures and expenses so that they can have the necessary standard.This demands specifications of performance according to the productivity of the project, planning and maintenance of the project. The interactions between various sides of an EPCM contract can be described with the help of this chart.

EPCM contract deals with specialized services which have totally specific risk sharing and different formal costs.The key difference is that under an EPCM contract, other parties construct the project and the EPCM contractor is not the builder or constructor. The EPCM contractor acts as a mediator on behalf of the owner of the project and he has to necessitate close connection and have positive reactions between the owner and the other contractor so that the works can meet the required specifications. Each step in the project is a connection and agreement between the owner, the contractor and the vendors or expatriates (27 Schramm, Maibner and Waidiger 2010, p 35). The following table shows the differences between EPC and EPCM, and the main principles which govern these approaches.

Risk Allocation in EPC and EPCM

In EPC, the contractor provides the owner with a single point of responsibility, communication and coordination related to the major activities involved in the project. All the risk is allocated to the contractor because he is the overall in the project (Quick MBA, 2011). This usually leads to a likelihood of high contract prices that comprise contingencies and mark-up to hedge against risks like performance, time extension, cost increase and potential loss (29 Loots and Nick, 2007, p. 15).

The EPC contractor deals with the owner and a large number of sub-entities during the execution of the contract and he has to make sure that those entities comply with the conditions outlined and adhere to delivery requirements. The contractor assumes full responsibility for realization of the project incurring all risks involved (30 Clifford 2009, p 30).

In EPCM, the contractor assists the owner to manage the whole project. Under this contract, the project is owner managed and the cost risk is borne by the owner and not the contractor (31 Clifford 2009, p 11). The owner has to approve the EPCM contractors managing complex contracts and the cost risks of the project are taken by the owner, any cost over runs and savings are taken to the account of the owner.

Determining Which Model to Use in the Oil and Gas Industry Major Projects

The decision taken while selecting contractor has a significant role in the delivery of any construction project. The criteria for selecting either EPC or EPCM contractors will be based on the idea of risk sharing. EPC projects are usually more expensive than EPCM ones because the risks are borne to the contractor and not the owner (31 Clifford, 2009, p 6).

The EPC contract is normally priced based on the fixed price method whereas the EPCM makes use of the cost reimbursable method. In the cost reimbursable contract, the risk is the same during the project process irrespective of the project stage. On the other hand, in the fixed price contract a change in the project at the design stage leads to changes in the construction stages.

Nonetheless, they are normally more expensive than EPCM agreements. Thus, the owner will have to consider the advantages and disadvantages of these models. In contrast, according EPCM model, the owner has to take responsibilities because this party will approve and monitor the procurement, engineering and contraction processes. In this case, the owner guides almost every aspect of the project. In the process, the owner has many contracts with construction contractors, subcontractors and suppliers. The owner usually transfers the risk to the contactors. In EPCM contract, the owner has to emphasize the idea of reducing the high cost.

The idea of risk sharing has strong implication for the development of schedule and cost planning. EPC contracts normally increase the cost of construction, especially in comparison with EPCM agreements but the time taken to finish the project is shorter. The company has to weigh between the two and come up with the best choice.EPC companies have both technical and managerial knowledge because they make use of different expatriates with quality skills and knowledge.

When to use EPC

This can be used when the owner does not want to be involved in case of risks in a project (Clifford, 2009).

Limitations of EPC as outlined by Clifford (32 2009, p 8) include:

1. It is costly because contractors will have to charge more for their services due to increased risks that they take.
2. The contractor assumes full control of design, engineering and construction
3. The contractor will prefer minimum standards of compliance.
4. Unwillingness of many contractors to enter EPC agreements. Thus, tender process becomes more time-consuming.
5. As a rule, construction process may take a large amount of time. The owners should pay attention to FEED Stage which the project is designed at a conceptual level.
6. Capacity is low because few contractors have financial capacity to assume the risks related to the project. Some of them may not afford these expenses; this is why they do prefer EPCM agreements.
7. There may be many disputes before the beginning of the project because the contractors will want to eliminate every possibility of financial risks.
8. The transfer of EPC risks can be limited by financial constraints such as bonding limitations.

When to Use EPCM

EPCM is used when the owner wants to have a greater role in purchase of equipments and selecting the contractors. Here the owner takes more control of the project.

Limitations of EPCM as discussed by Clifford (33 2009, p. 11) include:

1. The majority of risks are taken by the owner:
2. Lack of coordination among suppliers;
3. The necessity to prove the fault of contractors.
4. Owner’s legal remedies are diluted: By need to allocate fault, By reduced value of remedies and by limited rights against the EPCM contractor.
5. EPCM model implies that the owner’s choices are significantly limited by earlier decisions of this company.
6. This approach is applicable only to those owners who have significant expertise in construction management and design. Otherwise, this side of the agreement will find it very difficult to protect its interests, especially if any legal disputes occur.
7. EPCM works best within established relationships between experienced parties.

The Use of EPCM and EPC in Saudi Arabia

Due to the taxation legislation adopted in Saudi Arabia, the EPC or EPCM contracts are split into two broad categories, namely Out of Kingdom and In Kingdom contracts (34 Al Amri, p 23). These two agreements are transferred to two different legal entities. They are normally linked with the so-called ‘bridging agreement letter’ that obligates the Out of Kingdom contractor to complete the In Kingdom contract. In many cases, the In Kingdom contractor is a part of a foreign company but it is registered as a separate organization in Saudi Arabia for various legal reasons. Design, engineering, or supply activities are regulated by OOK agreement, while major construction activates are the domain of the IK contract.

In order to reduce the risks of working with separated contractors the oil and gas companies normally prefers to give and sign an EPC contract with the EPC contractor. Although, such a solution is more costly but it ensures that the project will correspond to their requirements and will be completed on time. This is because it is more efficient even though the project delivery method is more time-consuming because it is necessary to make comprehensive design clarifications and discuss every provision of the contract. Still, this framework can be very suitable for oil or petrochemical companies.

The methods of construction contracts can be modified to suit the needs and demands of the owner. The companies usually make choose contracts with the help of financial advisors before launching a particular project.

Reasons for Using EPCM or EPC for Major Projects in Saudi Arabia

According to Damian, Jim, and Marsh (2004) and Kees, (2007) major projects in Saudi Arabia use EPC. The following are the benefits of using EPC as discussed by Clifford (35 2009, p 8):

1. The contractor takes all supply chain risks that are incurred in the project.
2. The transfer of other construction risks is maximized relative to other procurement methods
3. A high degree of certainty is attained as to cost time and quality of work done
4. Remedies like liability caps or bond amounts are determined on the basis of the total construction costs. Therefore, they are more likely to compensate a significant part of the owner’s expenditures or losses.
5. Administrative burdens on the owner are minimized since everything is done by the contractors. The owner saves time because he does not take his time to supervise the project. Everything is left to the contractors.
6. The documentation is relatively simple and standardized and hence it is clear to the owner to see the proceedings of the contract and make accounts of the budget.
7. EPC model is very widespread and it is viewed as the most efficient approach to procurement.
8. This approach to project management sets minimal staffing requirements, and entails minimal legal risk. Overall, it is best for well defined projects that have detailed engineering complete before EPC contract chosen

Other organizations use EPCM contractor because of the following benefits (36 Clifford, 2009, p 10)

1. EPCM works well because it is the most cost-effective method, especially when there is no need to utilize the risk contingency.
2. One can also say that EPCM model is probably the fastest procurement method. By adopting this model, the owners will find the contractors much sooner.
3. The large number of small packages enables the owner to choose from a large pool of contractors.
4. The owner can manage the process of design and smaller changes can be made without running the risk of significant losses.
5. Insolvency and performance failure risks are spread
6. There is staff’s Sense of Ownership
7. Lower overall cost, there is more Control over Process.
8. It is better for the projects which are less defined. Under such circumstances, there is great possibility to design changes.
9. This framework enables both owners and contractors to identify and resolve potential conflicts at early stages. It can prevent expensive and time-consuming lawsuits.
10. It allows owner’s financing flexibility
11. The contractor is responsible for the coordinating the work of other package contractors, including designers.

The Development of EPC Contractors in Saudi Arabia to Shift from EPCM to EPC

There is a trend in construction contracting according to which EPCM agreements are becoming more popular. In turn, EPC contracts are not particularly widespread; still both of these approaches are used by Saudi Arabian companies. Contractors in Saudi Arabia can take both of these approaches. There has been an improvement in cost contract which help in sharing losses and EPCM has gained popularity for international projects and major construction projects (37 Loots and Nick 2007, p 1).

The main difference between EPCM and EPC contracts is that in EPCM contract, the contractor gives qualified and skilled services like designing to the owner of the project. There are so many benefits of using EPC over EPCM. The EPCM has some limitations such as:

1. More risks retained by the owner like risks of interface claims from contractors and risk of burden proving fault in the contract.
2. Owner’s legal remedies are diluted because of the need to allocate a fault in the projects, reduce value of remedies to be taken in the contract and there are limited rights against the EPCM contractor.
3. The later package choices of the owner may be restrained by earlier decisions of this organization.
4. This model sets very high demands the owner’s skills, resources and ability to manage such construction projects. The main problem is that EPCM contractors can have the problems of interest and it will be difficult to reconcile them.
5. This model is more complex from legal point of view.
6. Financing options are limited.
7. EPCM works best within established relationships between experienced parties.

Large EPC contractors are uniquely situated in terms of their close connection with the local society and because of their international expertise. These competencies can increase the social value of a project. One obstacle to realizing this proposition is the owners often forget that such contractors can add extra value to the project and make it more appealing to the community (38 Sawant 2010, p. 235).

For instance, they often create job opportunities for local people and this contributes to the positive reputation of the entire project. More attention should be paid to early involvement of contractor, award discussions as well as project collaborating. This will make an EPC contract much more specific and clear to both sides. In EPC companies the contractor takes full responsibility of everything in the project in respect to cost of the project, the time for completion is short and also the quality of the work and achievement is guaranteed.

Conclusion

EPC (Engineering Procurement and Construction) and EPCM (Engineering, Procurement, Construction and Management) contracts are the most used in the oil and gas projects in Saudi Arabia. The paper has discussed the differences between the two contracts and how risks are taken in the contracts and how they are used in oil and gas industry in Saudi Arabia. An EPC contract is a plan and construction contract in which one contractor has responsibility for the project as a whole while an EPCM contract is where skilled services are given and risk allocation is different. In EPCM contract other subcontractors build the project while in EPCM the contractor does not construct the house.

Before making the choice of the contractors, the owner has to know the risks that are incurred in the projects and have idea about the contractor’s limitations in dealing with risks and cost. An EPC agreement offers a convenient framework for those projects that require significant expertise in design. The initiator of the project does not have to take full control over design and construction. These agreements are more suitable for large-scale constructions projects such as oil refineries or petrochemical facilities.

EPC contracts are usually complicated in terms of legal issues and therefore it is advisable for the owners and contractors must have in-depth knowledge of about the construction that they are going to undertake. Otherwise, one of the parties runs the risk of enormous losses. Moreover, there is great likelihood of various legal disputes. There are several indispensible conditions for good social performance during the construction of manufacturing facilities. One of them is high qualification standards that prompt various bidders to rely on international experience and those projects which were completed in similar political, social, and economic environments.

References List

Al Amri (2011). Doing in Saudi Arabia. Web.

Clifford, C. (2009). EPC and EPCM Procurement Issues for Owners. 10 Upper Bank Street, London. Web.

Cordesman A. (2003). Saudi Arabia enters the 21st century. London: Greenwood Publishing Group.

Federal Research Division. (2004). Saudi Arabia A Country Study. Washington: Kessinger Publishing.

Gloria, J. (2011). Project Contracting Strategies: Evaluating Costs, Risks and Staffing Requirements. Power Engineering, 115(3), 50-57.

Huse, J. (2002). Understanding and negotiating turnkey and EPC contracts. NY: Sweet & Maxwell.

Loots, P. and Nick, H. (2007) Worlds Apart: EPC and EPCM Contracts: Risk issues and ‘allocation. Web.

Olah, G., Goeppert, A. & Prakash S. (2008). Beyond Oil and Gas: The Methanol Economy. NY: Wiley-VCH.

Oxford Business Group (2007). Emerging Saudi Arabia. Oxford. Oxford Business Group.

Oxford Business Group. (2010). The Report: Saudi Arabia 2010. Oxford: Oxford Business Group.

PetroStrategies Inc. (2011). Leading Oil and Gas Companies Around the World. Web.

Prodigy Engineers Group. (2011). EPC / EPCM Definition & Comparison. Web.

Sawant R. (2010). Infrastructure investing: managing risks & rewards for pensions, insurance companies & endowments. NY: John Wiley and Sons.

Seznec J. & Mirk M. (2010). Industrialization in the Gulf: a socioeconomic revolution. London: Taylor & Francis.

Schramm, C., Maibner, A., and Waidiger, G. ( 2010 ) Contracting Strategies in the Oil and Gas Industry. Web.

The Kingdom of Saudi Arabia. (2011). Energy in the Kingdom. Web.

United Nations. (2010). International Trade Statistics Yearbook 2008: Trade by Country. New York. United Nations Publications.

Weisenbacher M. (2009). Sources of Power: How Energy Forges Human History. London: ABC-CLIO.

Introduction

Vernier Caliper is a tool is used to taking precise linear measurements. Pierre Vernier invented the instrument in 1631. It has two calibrated scales namely the main and auxiliary (vernier) scales. The auxiliary scale slides alongside the main scale when reading measurements in form of decimals and fractions. Vernier Calipers are mostly used in science laboratories to take accurate measurements. The equipment helps in measuring both external and internal distances that require extreme accuracy. There are manual and digital vernier calipers. The Manual caliper is widely used since it is cheaper and has both metric and imperial scales. This essay offers a technical description of various parts of a vernier caliper namely the main scale, outside jaw, inside jaw and depth stem.

Discussion

Vernier caliper is a scientific instrument used by navigators, scientists, and surveyors to measurement length on objects. In most cases, it is regarded as an advanced ruler due to its ability to give wide and fine units of measurements. However, it is important to note that this instrument specifically gauges the distance between two points on objects that are circular in nature.

When measuring an object’s width or diameter, the user first reads the fixed scale (that is finely marked with small graduations) and thereafter takes the measurements on the finer vernier scale. It is worth to note that a vernier caliper has two pairs of jaws on the top and bottom sides as shown in the diagram below. The figure also clearly indicates the two major scales of a vernier. These include the vernier and main scales. Each part of a vernier caliper has a specific role it plays as discussed in the following sections.

Outside jaws

They are also referred to as the lower jaws and usually used to measure external diameters. Besides, they can be used to obtain the breadth between two points. These jaws are slightly larger in size than the inside jaws as shown in the diagram below.

Inside jaws

These are the internal or upper Jaws of a vernier caliper. They are slightly smaller and therefore used to quantify the internal diameters or widths of objects. The inside jaws are on the top side of a vernier caliper.

Main scale

The main scales may be marked in inches, centimeters, millimeters, or fractions. It is built with both an imperial and metric scales. The imperial scale is marked in inches whereas the metric scale is calibrated in both centimeters and millimeters. The main scale is often longer than the vernier scale even though they are parallel to each other. Moreover, the main scale is not movable like the vernier scale.

Depth stem

This part is usually a small piece of metal. Its main use is to accurately obtain the distance within deep gaps or hollow spaces. It is also known as a depth rod or depth probe and protrudes only when the thumbscrew is turned.

Conclusion

In summary, vernier caliper provides precise and accurate measurements of both widths and diameters of objects. The tool is used by navigators, surveyors and scientists to increase precision in their measurements. This instrument has two pairs of jaws namely the upper and lower jaws. Other parts of a vernier caliper include the main scale, vernier scale, depth rod and screw clamp.

JP Phentar case presents a complex construction initiative that presupposes a plethora of various nuances. Due to the unique nature of the project, there is a need for the establishment of an effective managerial framework. In this paper, the most effective information-gathering and analytic tools will be chosen and discussed in relation to JP Phentar’s case.

Project Activities for Monitoring

The complexity of the project is based on several factors that dictate the choice of tools for their management and monitoring. One of the most crucial aspects of the construction project is the quality of work. In this case, it could be logical to assume that Peter is an expert in construction projects and saw a multitude of similar works being done. Therefore, with a high degree of certainty, he possesses the required knowledge to define quality. However, the technical details that might be elusive to all but highly specialized professionals would likely require a tailored managerial approach.

Another issue that requires control is the timing. As mentioned before, the project is rather complex, and delays that might arise due to construction issues could offset the deadlines. Another problem could concern the rising costs of construction. The project could take many months to complete, and the prices for materials may change. Therefore, the estimation needs to be managed with the utmost care.

In addition to that, the Phentar’s house project presents a combination of different jobs ranging from design to construction and furnishing, which presupposes a range of different contractor firms whose schedules and the task might overlap and offset one another (Wilson, 2014). Thus, this complex house project requires effective information-gathering and analytical tools.

Information-Gathering Tools

Team meetings are one of the most widespread and popular managerial tools for gathering information about the project. The essence of this method is in assigning specific dates on which teams that are responsible for assigned tasks gather and present information about the results of their activities (Marchewka, 2014).

The tool is rather versatile and can be fine-tuned for every project that involves teamwork. Weekly team meetings are a two-way process that helps managers receive relevant information but also allows them to correct the work of the team. The internal meeting presupposes that only the individuals and groups that are actively involved in construction attend them, although the client may also appear and participate.

Customer meetings are another tool that could be used in this project. They are designed to inform the client of the project’s key deliverables, while the contractor company or any party responsible for the task may organize their workflow as they see fit (Marchewka, 2014). The third information-gathering approach involves using written forms of communication such as templated reports. It surmises the absence of frequent meetings while all information is created, gathered, and distributed either manually on paper or digitally. Such an approach allows greater time saving and minimizes information losses.

In the framework of this project, it would be possible to hypothesize that the use of all three methods could be valid. Each of the methods has its strong sides and disadvantages, and it could be wise to combine them in order to tackle the variety of tasks for which they could be suitable (Marchewka, 2014). More abstract issues such as budget and schedule, it might be reasonable to utilize team meetings followed by customer meetings. As these issues presuppose discussion, these managerial approaches could be most useful. In relation to more concrete and quantifiable issues such as the construction of different parts of the house, the reports can be more effective.

Analytical Tools

In terms of analytics, one of the most popular tools for project management is a multi-criteria decision-making tool called PROMETHEE. This method, according to Dziadosz, and Rejment (2015), allows managers to assess multiple parameters of a construction project and assign and calculate numeric coefficient values to them. This paradigm appears to be a near-perfect solution for projects that assume a variety of works and associated risks.

This method is rather flexible and provides an opportunity to implement it in combination with other tools. Among other tools, there is a project in controlled environments (PRINCE2) management method. It incorporates assigning qualitative and quantitative values to different risks in order to deductively measure and assess them (Dziadosz & Rejment, 2015). Its strengths imply highly understandable structure and visual attractiveness.

For the benefit of Peter’s current project, it could be reasonable to employ these two approaches in combination. The PROMETHEE tool is grounded in statistics and calculation, which allows precision in planning and acting. In complex projects with a plethora of nuances, an application of such an approach could become invaluable in order to economize on corrections. However, the usage of this tool alone could be detrimental as the client may not be as proficient in understanding complex analytic formulas. Therefore, for client meetings where managers and contractors will accept his wishes and corrections, it could be better to use a more understandable and straightforward model such as PRINCE2.

Corrective Actions

Should there arise a necessity in making corrections as the construction of the house progresses, the above-mentioned models could accommodate any number of them. The management and monitoring system built on the basis of team meetings, client meetings, reports, and the two analytical tools is rather flexible and welcomes adjustments. In the framework of this project, there appear to be two levels of management: inner and outer.

On the inner level, managers gather information and deliver it to the workers through reports and team meetings. Here the corrective actions are possible at a larger frequency due to the weekly design. Analytical actions are based on the received data and can be formed into trends compared with project deliverables. This information is communicated to the customer at regular intervals, and he may make adjustments. By varying the frequency of meetings, the customer and managers may determine the scale of corrections possible (Marchewka, 2014). More numerous meetings allow for a larger number of small corrections, while rare ones may produce large-scale adjustments.

Conclusion

The project of the JP Phentar is an exceptional endeavor that requires finesse in management and monitoring. Even the slightest errors in designing and choosing the tools for these tasks could undermine the success of the whole project. Therefore, there is a need for multi-aspect and interprofessional collaboration. The combination of team, customer meetings, and reports would tackle the objective of gathering information.

The benefit here would be in versatility and time economy due to controlling each construction nuance with a suitable tool. Analytical tasks could be divided into inner and outer ones, with the former serviced by PROMETHEE and the latter – by PRINCE2. In this manner, professional information could be better assessed and delivered to the client for him to make weighted decisions and corrections if necessary.

References

Dziadosz, A., & Rejment, M. (2015). Risk analysis in a construction project – Chosen methods. Procedia Engineering, 122, 258-265.

Marchewka, J. T. (2014). Information technology project management (5th ed.). New York, NY: John Wiley & Sons.

Wilson, R. (2014). A comprehensive guide to project management schedule and cost control: Methods and models for managing the project lifecycle. Upper Saddle River, NJ: Pearson FT Press.

As the operation management concepts are inextricably connected with real-life situations, they are applicable to the construction of buildings and structures. This essay describes the operation cycle of Burj Khalifa’s erection to prove the validity of these concepts for this process.

Background Information

Background About the Designer

The construction of the world’s highest building required collaboration between the members of a highly professional team with an impeccable reputation. That is why the honor of Burj Khalifa’s design was awarded to a respectful Skidmore, Owings & Merrill LLP (SOM) with Adrian Smith, an outstanding architect, and specialist of international renown, as consulting design partner (“Building a Global Icon,” n.d.). COM is currently one of the most influential and engineering, architecture, urban planning, and interior design firms worldwide. It was founded in 1936, and, as of this date, SOM has completed 10,000 projects in more than 50 countries across the globe (COM, n.d.). The firm is distinguished for its commitment to innovations, solid background, design excellence, and sustainability.

SOM focuses on cooperation with all stakeholders and a unique approach to every project. The architecture firm’s portfolio contains modern learning centers, research facilities, urban districts, skyscrapers, and high buildings (COM, n.d.). The partnership has already earned 2,000 awards in the field of design and architecture (COM, n.d.). It continues to use innovative techniques in construction in order to create sustainable buildings that contribute to the prevention of climate change.

Background About the Building

Burj Khalifa, located near the downtown of Dubai, is the highest man-made construction in the world. With its height of 828 m, the tower currently holds world records in all categories introduced by the Council on Tall Buildings and Urban Habitat (Baker & Pawlikowski, 2015). It is the tallest building to its architectural top and tip and has the highest occupied floor at the 585 m elevations (Baker & Pawlikowski, 2015). The Burj Khalifa’s excavation works started in January 2004, and the construction totally took 1,325 days until the structure’s luxurious official launch ceremony in 2010 (“Building a Global Icon,” n.d.). This building presents a combination of the most innovative technologies in engineering, architecture, and design with local Middle Eastern culture. It became the global icon of development, human progress, advances in technologies, wealth, and success.

Background About the Location

Dubai is an emirate that composes the United Arab Emirates. The discretion of this region from other parts of the country is highly disputable. Although Dubai claims its unique history, this emirate is politically and geographically inseparable from the Gulf region (Kathiravelu, 2016).

Dubai’s urban development currently focuses on the construction of spectacular skyscrapers. A substantial concentration of high-rise buildings in Dubai that meet the standards of sustainability and compete with each other in height and design makes this city highly attractive for foreign investors and tourists. Dubai’s towers provide enough space for business activities and living in response to limited land and dynamic population growth and enhance the level of people’s interaction. However, Dubai’s extremely hot, windy, and dry climate defines the peculiarities of high-rise buildings’ construction in this region.

Production of the Building

Planning Process

Inspiration for the idea

The task of creating the tallest construction in the world required designers, engineers, and constructors the creation of a new form and implementation of innovative technologies. Burj Khalifa’s architecture is inspired by the regional desert Hymenocallis flower and presents the composition of “three elements arranged around a central core” (“Building a Global Icon,” n.d., para. 3). The selected design was thoroughly investigated concerning the effectiveness and safety of all structural systems. Viewed from the air, the tower resembles the “onion domes prevalent in Islamic architecture” (“Building a Global Icon,” n.d., para. 4). The central core of Burj Khalifa culminates in a spire, and a Y-shaped space planning provides ultimate views of the Gulf.

Purpose of the building

Burj Khalifa is a mixed-use building that represents the incorporation of residential, commercial, and business areas for reasonable energy consumption, units’ accessibility, and people’s interaction. The 162-story structure includes residences, offices, multiple retail outlets, and hotels, including a luxurious Armani hotel (Baker & Pawlikowski, 2015). Moreover, Burj Khalifa’s residents are provided with sky lobbies, Jacuzzis, fitness facilities, swimming pools, recreation rooms, a Resident’s Library, a public observatory, and a gourmet store (“Building a Global Icon,” n.d.). In general, the whole project consists not only of the tower but pool annex buildings, low-rise offices, an adjoining podium structure as well.

Length of planning

It goes without saying that the construction of the highest building required the thorough development of an architectural plan and the examination of potential risks for the structure’s construction and further exploitation. That is why it takes more than one year of planning and testing of concrete stiffness conducted by the CTL Group (Ghorbanzadeh, 2017). Moreover, the conducted 40 wind tunnel tests examined the impact of wind on the structure and its residents (“Building a Global Icon,” n.d.). These procedures were highly essential as the Burj Khalifa’s construction required both completely new ideas and reliable traditional technologies.

Employees Requirements

Dubai’s employment is a highly controversial issue up to the present day. This project involved 380 qualified in-site technicians and engineers (“Building a Global Icon,” n.d.). According to the official source, during the construction of Burj Khalifa, 7,500 workers with the required professionalism and experience were employed (“Emaar increases height of Burj Dubai; completion in September 2009,” 2008). However, the majority of workers were low-waged migrants from South and East Asia (Kathiravelu, 2016). They suffered from inappropriate conditions of living and unregulated working hours.

Issues Faced

The Burj Khalifa’s architectural plan was elaborated by the design team in the context of potential risks and issues. First of all, a building of such height needs an efficient response to gravity and wind loads (Baker & Pawlikowski, 2015). Moreover, modern buildings should meet the standards of sustainability and perform reasonable energy consumption. In addition, the hot and dry Middle-Eastern climate of Dubai requires the usage of substantial materials that may decrease solar radiation and maintain thermal comfort.

Implementing the Plan

Materials used

Burj Khalifa implements an armor-clad structure that strengthens its core, columns, and walls. The tower’s high-modulus concrete consists of fly ash, Portland cement, and various admixtures (Baker & Pawlikowski, 2015). In general, the construction of the steel and concrete structure of Burj Khalifa used 39,000 tonnes of steel rebar and 330,000 m3 of concrete (“Building a Global Icon,” n.d.). The height of the tower’s installation of a glass and aluminum façade of 512 m set a world record (“Building a Global Icon,” n.d.).

The combination of external walls made of aluminum with inner concrete walls creates hot air insulation by day and a natural airflow during the night (Darwish, 2014). The Burj Khalifa’s interior design of public areas led by Nada Andric, an outstanding designer, features stainless steel, glass, dark polish stones, Venetian stucco, and silver travertine (“Building a Global Icon,” n.d.). All materials were chosen to provide the tower’s solidity and sustainability and contribute to the symbolic collaboration of traditional culture with global tendencies.

Methods and strategy used in the implementation

The Burj Khalifa’s floor plan was designed to increase the stability of the building on a first-priority basis. It represents the Y-shaped structure formed by three separate wings attached to the central core of the tower (Baker & Pawlikowski, 2015).

With the building’s rise, one wing helically “sets back” at each tier (Baker & Pawlikowski, 2015, p. 389). This spiraling pattern results in 24 independent primary floor plates that create a stepping geometry, and such innovative form is highly essential for the reducing of the negative wind influence (Baker & Pawlikowski, 2015). Burj Khalifa’s building shape helps “to confuse the wind,” as it prevents the organization of the wind vortices (Baker & Pawlikowski, 2015, p. 390). This structural system was later defined as a “buttressed core” system that substantially changed the concept of structural design (Baker & Pawlikowski, 2015). It features a combination of construction techniques and conventional materials to achieve the impressive heights of buildings.

For Burj Khalifa, the latest achievements in a substantial high-rise building were applied. Three tower cranes were placed close to the tower’s central core. However, one of the fundamental strategies to facilitate and accelerate construction consisted of the minimization of the time when these cranes were used (Baker & Pawlikowski, 2015). The sequence of construction was divided into three sections – the adjustment of the central core with slabs, the wing walls with slabs, and the wing nose columns with slabs (Baker & Pawlikowski, 2015). For the implementation of perimeter blade columns and walls, workers subsequently employed automatic self-climbing formwork.

An issue faced during implementation

The most challenging implementation issue during the construction of Burj Khalifa was the support of high-modulus concrete at a substantial height. To solve this problem, architects established four separate designs to reduce pumping pressure that inevitably occurs when the tower grows in height (Baker & Pawlikowski, 2015). In addition, Burj Khalfa’s spiraling pattern promotes the reduction of its mass and concrete pressure as well.

Finalizing the Building

Advantages of erecting this building

Burj Khalifa is a respectable example of sustainable high-building that combines the latest technologies with the establishment of comfortable space for people. The mixed-use type of this tower provides a reasonable consumption of energy as commercial, residential, and business areas use energy during the day while hotels consume energy at night. The building helps to reduce traffic emissions due to the accessibility of all services and facilities in one place. Moreover, Burj Khalifa serves as a court for foreign investors and a popular landmark that annually attracts an immeasurable number of tourists.

Disadvantages of erecting this building

The main disadvantage of the tallest building in the world is connected with a potential risk of its destruction due to natural calamities or industrial disasters. In the case of any substantial incident inside the tower, the evacuation of people may be constrained by their number and the building’s size and height.

The construction of Burj Khalifa was oriented on its customers, such as the clients of outlets, hotel tourists, investors, businessmen, and residents. That is why the owners’ desire to create a tower that would impress the whole world by its size, fairness and reliability positively influenced the quality of its construction. However, the conditions of workers who constructed the structure were inappropriate. The substantively accelerated processes of material and economic development of Dubai and its recent focus on tourism, finance, and real estate resulted in international labor migration (Kathiravelu, 2016). However, people experienced low payments, long working hours at high ambient temperatures, and the absence of any comfort.

Issues faced

There is no reliable evidence that Burj Khalifa faced any substantial issues after its erection. High-quality materials, the precise implementation of all systems and facilities inside the building, and an innovative structure provide continuous and efficient building management. However, the price of the Burj Khalifa’s construction and decoration makes the facilities of the tower inaccessible for a significant number of tourists and citizens.

Success Factors

From a personal perspective, Burj Khalifa is a highly efficient building that made a completely new history in the sphere of architecture, design, and engineering. Its stable Y-shaped foundation, wind-resisting texture, sustainability, the largest systems of ventilation and condensation, and multiple facilities for a comfortable visit and living make the tower an outstanding human creation of the 21st century. Burj Khalifa positively influences environmental safety due to its effective energy consumption and the contribution to the reduction of hazardous traffic emissions. The accessibility of commercial and residential areas, restaurants, business offices, and hotels provides almost interminable building production.

The project of Burj Khalifa demonstrates that the development of tall building systems is inevitably related to the modern development of construction methods, material technologies, wind engineering, structural engineering theories, and seismic engineering. The design and experience of Burj Khalifa’s efficient erection and management promote the creation of even higher buildings in the future.

Recommendations

As the erection of Burj Khalifa was highly successful, at the present day, the control over the tower’s facilities and systems may require particular attention to avoid any incident. Moreover, the control of the seismic activity in the region should be exercised to provide the structure’s readiness for a potential natural disaster. Concerning the commercial efficiency of the building, the owners may consider the construction of a cost-effective hotel with affordable prices inside Burj Khalifa to attract more tourists.

Conclusion

The construction of Burj Khalifa, the world’s tallest building, required the collaboration between all members of a highly professional team with an impeccable reputation. That is why the honor of Burj Khalifa’s design was awarded to Skidmore, Owings & Merrill LLP (SOM) with Adrian Smith, an outstanding architect, as its consulting design partner. Burj Khalifa is located in Dubai, an emirate that composes the United Arab Emirates and currently focuses on the construction of spectacular skyscrapers. The tower presents the combination of the most innovative technologies in engineering, architecture, and design with local Middle Eastern culture. It became the global icon of development, human progress, advances in technologies, wealth, and success.

The Burj Khalifa’s plan designed to increase the stability of the building represents the Y-shaped structure formed by three separate wings attached to the central core of the tower. Its spiraling pattern creates a stepping geometry that prevents the organization of the wind vortices. Burj Khalifa positively influences environmental safety due to its effective energy consumption within 24 hours and the contribution in the reducing of hazardous traffic emissions as all facilities are accessible for customers in one place. In general, this tower is a highly efficient building that made a completely new history in the sphere of architecture, design, and engineering. Its design and methods of construction will encourage the creation of even higher buildings in the future.

References

Baker, B., & Pawlikowski, J. (2015). The design and construction of the world’s tallest building: The Burj Khalifa, Dubai. Structural Engineering International, 25(4), 389-394. Web.

Building a global icon. (n.d.). Burj Khalifa. Web.

Darwish, A. S. (2014). Eco-friendly buildings: The central factor in transitioning to a net neutral community. International Journal of Environment and Sustainability, 3(1), 54-62. Web.

Emaar increases height of Burj Dubai; completion in September 2009. (2008). Emaar. Web.

Ghorbanzadeh, M. (2017). The harmony between architectural forms and structural. Case study: Burj Khalifa Dubai. Bulletin de la Société Royale des Sciences de Liège, 86, 360 – 371.

Kathiravelu, L. (2016). Migrant Dubai: Low wage workers and the construction of a global city. New York, NY: Palgrave Macmillan.

SOM (n.d.) About. Web.

Executive Summary

The Australian government’s proposed change to 457 Visa Program has generated a lot of discussion. Companies such Management Foundations Construction is following the discussions keenly. The construction industry is likely to be most culpable owing to the many temporary immigrant workers it employs. The government claims that industry players employ such workers despite their lack of skills.

The government’s aim to attach certain skill levels to possibility of employment and to keep Australians at the forefront in consideration for employment is seen by many as racist and xenophobic. Some of the possible short-term risks include go-slows and industrial actions. Long-term risks span from economic slowdown to perennial xenophobic attacks. In addition, this is likely to pitch one group of workers against another.

The possible benefits of the 457 Visa Program include a permanent solution to labor problems in the country. It is also likely that Australia will solve problems associated with semi-skilled employees that companies hire to reduce costs. However, disgracing immigrants will also keep skilled immigrants away, which may create employee shortage in the future.

Introduction

The Australian Government intends to introduce a Bill in Parliament that seeks to regulate the manner in which companies located in the country hire workers. A cursory look at the Bill highlights a situation where native Australian workers will be given priority over immigrant workers. Currently, a number of organizations and companies based in Australia have more immigrant workers than native Australians.

This is because these organizations find it easier to employ such workers. Immigrants do not demand too much. The 457 Visa Program aims to inject “fair play” in labor according to the Australian Government (Hurst, 2013). It follows that more immigrants are employed in the lower tier jobs compared to Australians despite the fact that they may be more qualified and skilled.

The Australian Government is grappling with a rising level of unemployment and wants to keep that figure low. On the other hand, organizations want to increase shareholder value by reducing costs. Hence, the 457 Visa issue has generated a lot of debate in the media and civil society who vehemently oppose this move citing xenophobic and racist overtones (Migration Alliance 2012).

The labor market and companies located in Australia are at a confused trance. Management Foundations Construction, a construction company with vast interests in Australia, is one such company.

This report will advance this discussion and offer possible solutions to the CEO of Management Foundations Construction with regard to construction industry. It will also weigh the long-term and short-term risks associated with hiring immigrants (which the CEO prefers) with illustrations from comparative companies.

457 Visa Issue in the Construction Industry

The construction industry is at the center of 457 Visa Program. Majority of the work available in the industry goes to immigrants. Enactment of the program will have a profound effect on this industry. This is because there will be possible skyrocketing of labor costs, industrial actions from immigrants, and an enactment headache arising from the ground. Statistics indicate that over 70% of the work in construction is temporary.

Contractors do not engage workers for more than six months before a building is complete. They also try as much as possible to engage the worker within this period to be within the law. Enactment of this program is likely to stall construction work. Immigrants who remain at work after a section of their lot are kicked out to create space for the incoming Australians will have a go-slow.

Additionally, civil society groups and workers’ unions are likely to go ahead with the imminent strikes to force the government to back down. In light of this entire clamor against 457 Visa Program changes, a shrewd Company Management should choose sides. Many companies are likely to ignore the government. Management Foundations Construction should weigh the options critically too (National Visas 2013).

457 Visa Program Opportunities/ Possible Organizational Adjustments

The 457 Visa Program is crucial for the construction industry players. It allows them to hire immigrant workers at a lesser cost. This reduces budgets and ensures that the industry remains competitive which fuels economic growth. Failure to have a thriving construction industry is instructive of an economy in limbo. Most of the immigrant workers affected by the 457 Visa Program are in the construction industry.

The growth of immigrants between 2011 and 2012 was over 70% (Design Build Source 2013). This indicates a robust industry. However, it also indicates a situation where the Australians do not take up construction jobs or ask for too much in wages.

It may also indicate that industry players are greedy and want too much in profits. At Management Foundations Construction, this Bill that seeks to alter the 457 Visa Program to cap the number of Australians at a certain percentage and to prioritize their employment over immigrants’ will have a negative organizational effect (Design Build Source 2013).

The immigrant workers may have a negative view of the native Australian worker. The discord will not be good for work. The immigrant worker may also feel belittled. The CEO of Management Foundations Construction may have to engage the workers at a personal level so often, which will drive administration costs high (Perry, Mesch, & Paarlberg, 2006).

For any successful organization, the five pillars (dimensions) of organizational structure has to be set, defined, and finally made operational. These five dimensions of organizational structure include specialization, standardization, centralization, and finally configuration. From examining how the dimensions of a given organizational structure have been put in place, the efficiency of a company can be easily determined.

Large organizations such as Management Foundations Construction need to have an organizations structure, which consist of the above activities. For maximum productivity, a company’s management has to blend the organizational dimensions in such a way that they facilitate optimum production (Manzoor, 2012).

Several factors determine an organizational structure. These factors include but are not limited to, technology, size, and environment. These factors determine the organizational structure by imposing economic or other types of constraints. This forces the organization to choose certain structures over others. These dimensional factors are unique in such a way that they are independent of each other.

Moreover, the organizational structures are more bureaucratic in one characteristic and less bureaucratic in other characteristics. At Management Foundations Construction, the structures are such that there is flexibility in decision-making.

Hence, the organizational structure is hugely horizontal or flat after the CEO who makes strategic decisions. The proposed changes to 457 Visa Program will alter the structure resulting to skyrocketing administrative costs (Rynes, Gerhart & Minette, 2004).

Recommendations for Involvement in the 457 Visa Program

Most construction industry affiliated companies and unions are demanding the government to leave the 457 Visa Program as it is. Citing possible skills requirement in the sector, owing to its growth, the unions are highlighting a need for skilled workers to fill future demand (Australia Immigration 2013). It is instructive that many people in Australia are averse to construction work.

There are no enough programs aimed at making students warm up to construction holistically. Hence, many Australians fit in a small part of the entire construction industry. The requirements of the industry, however, when it comes to skills, are wide spread.

Hence, the input of immigrants is highly fundamental to bridge this skills gap. The immigrants are also needed to fill even larger gaps in the industry not related to the 457 Visa Program (Hubbard & Tham 2013).

The foregoing scenario will push away investors who would not want to be associated with local investors. Failure to have external investor input will dampen purchases and economic growth. The construction industry will also suffer costs escalations owing to lack of employees. The companies will have to adjust budgets, which may lead to potential losses.

The important projects, which are nearing completion, may be delayed. This delay will bring forth a situation where lenders are seeking repayments of loans but the monies are not available because the projects that were supposed to generate money are not complete (Hubbard & Tham 2013).

Since Management Foundations Construction is part of the construction industry, these scenarios are quite true. I would recommend that the CEO deal with the available projects first before taking up new projects. This will shelve the negative possibilities. Secondly, it imperative that that the employees of the company understand the company’s position on the issue.

This will curtail possibilities of go slows and participations in imminent industrial actions. Additionally, the employees will feel confident about their work (Aucoin, 2011). The position of the company should be that the 457 Visa Program, although needing improvements, should be left as it is.

Henceforth, the government should engage all the necessary stakeholders in drafting the changes. Although the government’s intention is not to hurt immigrants, it should not be viewed as favoring a section of the population, as this will lead to further discord among employees (Hurst, 2013).

The company in expressing these sentiments should also write a protest letter detailing the need for competition in labor. The letter should be addressed to the labor ministry. Management Foundations Construction should advise the need to exercise restraint in handling the matter as it has both short-term and long-term implications.

In whatever way, the implications will hurt the entire economy because of shocks in other sectors (Silverman, 2011). However, the company should follow strictly the laid down regulations in the 457 Visa Program, as this is the basis for the government’s current interference (Australia Immigration 2013). It must also agitate for other organizations to follow the laid down regulations in hiring.

The government says that some of the immigrants do not have valid skills and hence deny validly skilled Australians a chance to be employed. It is imperative that Management Foundations Construction strictly counter checks the credentials of its immigrant workers to denounce this assertion.

Employees found to have acquired work fraudulently should be kicked out immediately and reported to the authorities. This will increase the government’s confidence that other players can do the same. The result is that the government will denounce its clamor for stricter regulations of the immigrant workers (Hurst, 2013).

Reengineering of business processes is one of the most radical and effective methods of dealing with change. Reengineering is also effective in reducing costs and improving quality of service. A far-reaching method requires thorough evaluation before a firm embarks on it to refine its processes.

Many firms may try to fail to carry out Business Process Reengineering successfully. The reason is that the process requires a lot of time, resources, and knowledge for successful implementation. Management Foundations Construction may employ it to tackle the imminent changes in organizational behavior (Borghans & Heijke, 2005).

Long-term Risks and Benefits

Many organizations are apprehensive of the short-term risks. However, the long-term risks are the bane of the Australian economy. Many workers are likely to flee to neighboring countries with less strict labor laws. The demand for labor in Australia will sky rocket and employers will have a smaller pool of employees. The construction costs will increase sharply.

Investors are likely to shun the Australian construction industry, which will be left at limbo. The labor sector may be hurt by this twists and turns. This may reach irreparability levels. Xenophobia and racism, which is what many pundits fear, may be implanted in the Australian labor sector.

This will lead to high organizational administrative costs associated with creation of harmony at the work place (Manzoor, 2012). On the other hand, this may finally lead to cure in the labor market. The sector is full of much instability including wage differences. It may create jobs and enhance fair employment practices in Australia.

Short-term Risks and Benefits

The immediate risks associated with the passage of this draft Bill are already been felt. Unions are vowing to hold demonstrations to lobby the workers against this policy. Hence, work is likely to be interrupted (Manzoor, 2012). Organizations such Platinum Sign Installation Pty Ltd depends highly on immigrant workers.

The main reason for hiring the workers is that their wage demands are consistent with the work the company does. This is the same case with Management Foundations Construction. There will be possible adjustments to budgets and contract renegotiations (Doyle, 2008) However, the likeliest scenario is deficiency of workers before the adjustments. This will lead to losses.

Conclusion

The 457 Visa Program is hugely beneficial to the Australian economy. This is particularly true in the construction industry. This report, for the CEO of Management Foundations Construction, has highlighted crucial aspects about the program. The report can also be taken into consideration by any CEO in the construction industry.

Owing to the high media attention the 457 Visa Program has attracted over the last few months, any false move will have a lasting impact (Hubbard & Tham 2013). The impact may have catastrophic aftershocks that will shake the entire economy, leave alone the construction industry. However, the construction industry will have the highest casualties.

This is because of the ever-growing perception that the government’s move will attract xenophobic attacks from native Australians and is racist which will push away potential immigrants (Hubbard & Tham 2013). It will also push the already existing immigrants out at the slightest availability of an employment opportunity elsewhere. This will paint the government and Australia in a bad picture.

Reference List

Aucoin, R. 2011, ‘Information and Communication Technologies in International Education: An Australian Policy Analysis’, International Journal of Education Policy and Leadership, vol. 6 no. 4, pp 1-11.

Australia Immigration 2013, Changes to the Subclass 457 program. Web.

Borghans, L. & Heijke, H. 2005, ‘The Production and Use of Human Capital: Introduction’, Education Economics, Vol. 13 no. 2, pp 133.

Design Build Source 2013, Construction Industry Needs 457 Visas. Web.

Doyle, A. 2008, ‘Educational performance or educational inequality: what can we learn from PISA about France and England’? Compare, vol. 38 no. 2, pp 205.

Hubbard, L. & Tham J. 2013, 457 visa scheme: time for a proper debate. Web.

Hurst, D. 2013, Labor’s talk against 457 visa scheme ‘disgraceful and racist’: Murdoch. Web.

Manzoor, Q. 2012, ‘Impact of employees motivation on organizational effectiveness’, Business Management and Strategy, vol. 3, no. 1, pp. 1-12.

Migration Alliance 2012, Flexible visas ‘key’ to meeting construction demand. Web.

National Visas 2013, 457 Visa Scheme Filling the Gaps on the Construction Sector. Web.

Perry, J., Mesch, D., & Paarlberg, L. 2006, ‘Motivating employees in a new governance era: The performance paradigm revisited’, Public Administration Review vol. 66, no. 4, pp 505-514.

Rynes, S., Gerhart, B., & Minette, K. 2004, ‘The importance of pay in employee motivation: discrepancies between what people say and what they do’, Human Resource Management, vol. 43 no. 4, pp 381-394.

Silverman, D. 2011, Interpreting qualitative data, 4^th edition, SAGE Publications, London.

Introduction

The number of employed females in the United States construction industry grew significantly by over eighty percent from 1985 to 2007 despite being lower for the most part. Nevertheless, due to a loss of more than two million construction employment opportunities from 2007 to 2010, there has been a sudden drop of working women in that sector (Lekchiri and Jesse 575). Since peaking in 2007, above three hundred thousand female employees left the industry in a span of three years.

Whereas women make up only nine percent of United States construction workers, the total number in 2010 exceeded eight hundred thousand. This included those in managerial, administrative, professional as well as production roles and positions (Lekchiri and Jesse 575). An estimate of two hundred thousand belonged in the production line, for example, plumbers, laborers or electricians. It is important that the main actors in the sector understand that gender equality can help reduce the issue of shortage of skill that exists in that field. This paper argues that despite the construction industry being a male dominated field for a long time and suffering from skill shortage as a result, it is currently accommodating more women now than before.

Discussion

Construction Industry as Male Dominated Field

The construction sector is a male dominated area and the issue presents a great challenge for equal chances for females. For instance, in a country such as the United Kingdom, there is a very low participation rate for women. This is despite the sex composition of the labor force throughout the nation showing a substantial change in the last two decades (Lekchiri and Jesse 576). The workforce has witnessed a three percent and more than forty percent increase among male and female workers respectively. Based on the Construction Industry Training Board, the latter only consist of nine percent of the workforce. This shows that construction continues to be a most male dominated sector. A survey discovered that they are confronted by numerous hindrances, starting with issues in joining the profession and capturing top positions in the organizational hierarchies (Lekchiri and Jesse 580). Even though they now comprise more than half the British labor force and their number in construction training is overall increasing, they are still underrepresented.

Lack of females in the construction field has been an issue for worry for several years. Some of the studies conducted to investigate the matter have failed to pinpoint the factors that emerge against more women participating in the sector and specifically recruitment (Morello et al.). The industry is currently busier than it ever was or been for more than ten years. It is however encountering a problem of shortage of skill in craft as well as manual trades such as plumbing, bricklaying, and painting, and at the professional level, quantity surveying and estimating and engineering.

The issue concerning lack of females in the industry has become more prominent in recent times thereby attracting attention from even governments due to the possible shortage of skill the industry faces. Thus, some of them are examining the methods of empowering women into conventionally men dominated fields (Lekchiri and Jesse 584). Several programs have been started to better the current situation as well as raise awareness such as females working in the construction committees and as role models (Lekchiri and Jesse 590). Though investigators have focused on ways to improve women’s participation in the workplace, the goal appears to solve the labor resources crisis and insufficiency in skill than to better equal chances for females. In spite of the number of recent recruitment programs, the sector has failed to show great progress in recruiting more females.

Women Changing the Face of the Construction Industry

Despite being a male dominated industry, women are changing the face of construction. From specialist supplier to main contractor boardrooms, women can be seen now at every level of what was conventionally a male-dominated sector. It was not long ago that employment opportunities were seen as strictly only for men (Naoum et al.). Nevertheless, thanks to a thorough overhaul of the image of the industry and numerous programs to challenge stereotypes, females currently account for twenty-nine percent of the labor. According to Women in Construction, the figure which is the highest it has ever been, is anticipated to continue rising further to close to fifty percent. This shows that construction firms have realized the diverse advantages of hiring women.

Numerous have established recruitment drives to empower females into the sector. Based on an online survey, near half of females now view their employers as supportive. Additionally, their number in top positions has grown from six percent to sixteen percent in a span of ten years from 2011 (Naoum et al. 04019042). Nevertheless, in spite of the changing attitudes, the industry is under great pressure to build other three hundred thousand homes annually so that they keep up with the growth in population (Naoum et al. 04019042). This means that one more million workers are thus required to cater to the demand and up to fifty percent of the new workforce could possibly be females. Construction organizations have been introducing programs to empower more women at every level but multiple campaigns have as well aided in boosting numbers.

The different government and business-led initiatives have assisted in increasing the number of females in construction but so have leading figures who shared a history of their professional journeys. Nicole Dosso is one such individual and in 2006, she was honored by the United States National Association of Professional Women in Construction for her exceptional contribution towards rebuilding the site (Lekchiri and Jesse 591). Another notable female is Roma Agrawal who has worked in London before as a structural engineer (Lekchiri and Jesse 591). She notes that encouragement from her educators resulted in her desire to follow her career path.

She claims that it is essential for career advisers, teachers as well as role models show young females that they can excel in conventionally male dominated areas. In spite of the increasing number of role models at the senior positions in the industry, there is still insufficiency of women in other jobs. Females account for only two percent of the manual jobs, a portion that has only improved by one percent in a decade showing stereotypes still exist. Significant strides have been achieved in various construction areas but employers still need to guarantee the gender imbalance is being addressed at every level to bring equality.

How to Solve the Issue of Low Women Participation Using Ethos, Logos, and Pathos

Ethics in business is highly encouraged despite many companies and personnel engaging in unethical practices. Ethos, logos and pathos are Greek terminologies that explain the essence of ethics and which can help improve the issue of women participation in the construction sector (Lekchiri and Jesse 593). For instance, ethos which represents character prompts the top leaders in the sector particularly in the companies to possess and portray a character that embraces all genders in the workplace. Logos which means principle prompts them same individuals, who have the power to change the face of the industry further, to have guiding values that promote diversity. Lastly, pathos which stands for emotion ensures that gender equality and diversity is encouraged in the sector to prevent shortage of skill.

Conclusion

Construction is a male dominated area and the issue presents a great challenge for equal chances for females. For instance, the participation rate for women is very low. This is despite the sex composition of the labor force showing a substantial change in the last two decades. The workforce has witnessed a three percent and more than forty percent increase among male and female workers respectively. Based on the Construction Industry Training Board, the latter only consist of nine percent of the workforce. This includes those in managerial, administrative, professional as well as production roles and positions. This shows that construction continues to feature the male gender more than the other.

However, there has been growth experienced especially between 1985 and 2007. The trend has continued and it can be seen that women are changing the face of construction. From specialist supplier to main contractor boardrooms, women can be seen now at every level of what was conventionally a male-dominated sector. It was not long ago that employment opportunities were seen as strictly only for men. Nevertheless, thanks to a thorough overhaul of the image of the industry and numerous programs to challenge stereotypes, females currently account for twenty-nine percent of the labor. The paper also reveals that ethics in business should be highly encouraged. Employers in the industry should avoid discriminating against female candidates during recruitment as it is unethical and can lead to shortage of skill in the sector.

Works Cited

Lekchiri, Siham, and Jesse D. Kamm. “Navigating Barriers Faced by Women in Leadership Positions in The US Construction Industry: A Retrospective on Women’s Continued Struggle in A Male-Dominated Industry.”European Journal of Training and Development, vol. 44, no. 6/7, 2020, pp. 575-594. Web.

Morello, Anne, et al. “Exploratory Study of Recruitment and Retention of Women in the Construction Industry.”Journal of Professional Issues in Engineering Education and Practice, vol. 144, no. 2, 2018, pp. 04018001. Web.

Naoum, Shamil George, et al. “Gender in the Construction Industry: Literature Review and Comparative Survey of Men’s And Women’s Perceptions In UK Construction Consultancies.” Journal of Management in Engineering, vol. 36, no. 2, 2020, pp. 04019042. Web.

“Women in Construction – Overview | Occupational Safety and Health Administration.” Www.osha.gov, Web.