Category: Construction

Ethylene Tetrafluoroethylene, commonly abbreviated as ETFE, is an innovative construction material proposed as a substitute for glass in skylight applications. It is a fluorine-based plastic that offers advantages over the glass in terms of durability, weight, and transparency. ETFE was originally developed by DuPont as a material for use in aeronautics and was designed to comply with the strict requirements common in the field. Despite limited use in the construction industry in Europe, ETFE is gradually gaining popularity in the U.S. due to its superior characteristics and low cost.

The main advantage of ETFE is its outstanding light transmission. The material’s transparency ranges from 90 to 95% and, unlike glass, does not block UV, which makes it suitable for agricultural purposes. In addition, it allows for solar intensity control through the incorporation of frit patterns on different layers. ETFE is highly durable, with an exceptional tensile strength to breaking point. ETFE also permits sufficient acoustic transmission (up to 70%). Finally, due to a combination of its physical properties, resistance to environmental factors, and building physics capacity, the material is highly sustainable, energy-efficient, and cost-efficient.

Several areas of application of ETFE can be identified. A multi-layered system of ETFE film inflated with low-pressurized air creates a system with excellent thermal properties. The addition of inflation units provides the ETFE cushion system with resistance to wind and snow loads. The non-adhesive surface of the material creates a self-cleaning effect and ensures easy maintenance. Finally, ETFE film is self-extinguishing, ensuring compliance with fire safety standards.

ETFE has been successfully applied in several structural engineering projects. In addition to significantly reducing a structure’s weight, the use of ETFE offers a 30% reduction in energy consumption, 55% saving on light sources and a 20% increase in heating due to solar energy trapping. As can be seen, ETFE’s potential for energy efficiency maximization is unparalleled.

ETFE is a fluoropolymer initially developed for the aerospace industry in the 1940s and eventually adopted for use in greenhouse construction due to its superiority over the glass. In the construction industry, ETFE is used in the form of thin sheets 50 to 300 µm thick. A single sheet may be either single-layered or heat-welded into cushions. Due to its extraordinary durability and flexibility, it is possible to use ETFE cushions of much greater size than those made of glass. Some European projects incorporate ETFE panels 11 by 17 meters in size. In addition to aesthetic advantages, larger panels also offer better insulation capacity and reduce the total weight of the structure.

ETFE structures are reinforced against external loads by using a pump system. An automated pump inflates cushions with air, ensuring a steady pressure of 200 to 600 Pa, sufficient for withstanding the majority of environmental loads such as snowfall and wind. System monitoring is performed by several sensors that measure the cushions’ internal humidity, temperature, and dew point to maintain optimal conditions.

Another important property of ETFE is its flexibility. Traditionally, structural damage to large buildings is prevented by increasing the constructions’ stiffness. ETFE mitigates these risks by absorbing all changes in a building’s geometry due to its ability to elongate by more than 600%. The multi-layered structure of cushions adds to the structure’s overall ductility and provides additional protection from wind gusts. The extraordinary flexibility also contributes to the strain hardening capacity of the material, represented by a bilinear stress-strain curve. Finally, it is worth mentioning that ETFE’s surface is extraordinarily smooth, making it easy to clean and maintain. Planned maintenance is easy and often considered unnecessary since, in most cases, ETFE structures are self-cleaning.

One of the most common applications of ETFE is for roofing. The cushions used for the purpose are extruded or blown from molten ETFE resin and cut into five-meter pieces of foil. The final product is wound in rolls for storage and transportation. After this, cushions are designed using non-linear analysis software. Each piece is made of several layers of ETFE foil with different properties.

The design of each layer is fed into a CNC blade that performs high-precision cuts. The digital format of the analysis makes it possible to account for a variety of complex factors such as isotropic yield characteristics. After this, the layers are welded together under high pressure and temperature, creating a sealed environment. The welded cushions are trimmed and prepared for shipping. Due to its physical properties, ETFE is very cost-effective to transport.

On-site, cushions are installed with the help of aluminum extrusions. The extrusions ensure additional environmental protection and provide backup drainage systems. The resulting compound is fixed to the primary structure and connected to a plenum and inflation system that must be purged to protect the cushions from debris. A fail-safe mechanism is incorporated to prevent malfunction due to power outages.

ETFE begins to yield at a relatively low level of stress compared to other common materials like steel and concrete. However, this property also results in a considerable advantage in terms of the overall flexibility and ductility of the structure. The rigidity of a structure is maintained by pressurizing a membrane, and its flexibility allows it to withstand significant loads.

An ETFE roof is highly resistant to weather deterioration, both in terms of structural damage and self-restoring ability in the case of minor physical damage. It is also worth mentioning that pressurized cushions offer excellent thermal protection and optimize solar shading. As can be seen, ETFE demonstrates significant potential for the Estidama concept in terms of sustainability and environmental friendliness.

Introduction

The construction of any modern stadium should be considered a serious challenge to the agency responsible for this task and the authorities monitoring the process and providing resources for it. The fact is that the complexity of the project comes from the high number of factors that should be taken into account with the primary purpose of achieving success and guaranty the in-time accomplishment of the goal and construction of the stadium. That is why it is essential to review the scope of the project correctly, conduct a risk assessment, and outline the main milestones that should help to determine the status of the construction.

The Project Scope

Scoping is a critical part of any project as it helps to determine its goals and avoid confusion that can precondition the deterioration of results. The first critical element of this process is the SMART test.

• Specific

Construct the stadium (clearly defined)

• Measurable

The quality of built construction can be managed

• Achievable

Achievable with existing resources

• Rewarding

The country will benefit from the project because of the sports event, fans, and improved reputation.

• The bound

The deadline is FIFA 2022 World Cup

The SMART test shows that the project is feasible, and the main goals can be accomplished using the currently available resources. Thus, the scoping procedure also preconditions consideration of such important constraints as time, cost, and quality.

As for the first element, time, the stadium should be built for the FIFA 2022 World Cup, which means that there is a specific period that can be devoted to all procedures needed to achieve the outlined goal, which is the creation of the construction.

The planned costs should be discussed with the government to create the budget required to create the stadium. It will include the price of materials, equipment, salaries, and other factors related to the project. In general, about AED 500-700 million can be demanded.

Finally, the quality of the build is another important element of scoping as it should meet all international standards for this sort of sports object. For this reason, it is critical to ensure the use of appropriate materials, equipment, and skilled specialists to avoid flaws or critical deterioration of the quality.

In general, the given factors will determine the scope of the project, its main constraints, and feasibility. Moreover, consideration of these aspects is critical to outline risks that might arise during the construction process and introduce appropriate practices or strategies that will help to manage these threats and achieve positive outcomes.

Risk Assessment

Risk assessment is another important element of any project as it helps to reveal the opportunity of various problems’ emergence and decrease the chance by introducing appropriate actions or eliminating some vulnerabilities. In big scope projects, this practice plays a fundamental role and should be integrated into the planning; otherwise, the inability to foresee or predict some risks might have a negative impact on outcomes and precondition the failure (Cakmak & Tezel 2019). That is why the analysis of the stadium’s construction helps to reveal the following risks that should be considered:

1. Performance risk. It can be taken as the main problem of all projects, especially big ones, as there is a chance to fail to produce results consistent with specifications. It happens because of ineffective management, disregard of problems, cultural barriers between workers and problematic cooperation, and poor goal-setting (JetRuby Agency 2017). The minimization of the given risk is one of the pivotal tasks of any manager. It can be achieved via the monitoring of the status of the construction and its ability to meet specifications at different periods (JetRuby Agency 2017). That is why the constant meetings with managers and monitoring to guarantee that all requirements are followed are the effective approaches to minimize the risk.
2. Cost risk. This is another type of risk that might be associated with any project and precondition its failure. Typically, escalation of costs is associated with poor estimating accuracy, management, or even fraud or illegal schemes used to generate additional income by unfair employees (Koutsogiannis 2019). The demand for extra financing without any serious reasons might deteriorate the image of the venture and distract stakeholders, investors, and even workers. The main method to reduce the impact of this factor is an effective accounting procedure and the monitoring of all costs that are devoted to various activities. Additionally, all spending should be consulted and accepted only if they meet the requirements of the general plan.
3. Schedule risk. It is another critical problem usually associated with big projects and the construction of stadiums. The fact is that the prolongation of the main activities also preconditions the increase in costs, delays, and negative changes in the image of the project (Risk management in construction projects n.d.). Additionally, the world community might also be dissatisfied with the delays because of the need to organize the World Cup. That is why the main activity aimed at the reduction of this risk is the introduction of milestones that should be observed to guarantee that the status of the project meets the current requirements and the schedule is observed, which is one of the fundamental success factors.
4. External hazards. The given factor should also be taken into account because of the complexity of relations in the Middle Eastern region, growth of terrorism, and attention attracted to the World Cup, there is a high opportunity of maleficent actions aimed at the destabilization of the situation in the country, the spread of panic, and use of this event as a platform to promote some ideas. Additionally, the large number of workers from various countries also increases this very risk (Koutsogiannis 2019). That is why an effective security system should be created to monitor all areas and check employees to protect the project. Cooperation with the government can also help to guarantee safety to people affected by the project and avoid critical issues.
5. Environmental risk. Speaking about construction projects in the UAE, one should take into account the extremely high temperatures that can be problematic to people from other regions because of their unpreparedness or different expectations. This factor might precondition the decrease in performance levels, effectiveness, and deterioration of results (Koutsogiannis 2019). That is why a specific schedule should be created to consider the needs of people who cannot work in the hottest hours. They should be allowed to work at night or morning when the heat is not so severe. The given approach might help to solve problems with the climate and guarantee that various shifts demonstrate their best skills.
6. Quality risk. The final product or stadium for the World Cup should be ready to meet all modern requirements for construction of this sort. It means that the successful end of the project should be followed by the outstanding quality of all elements. Deterioration of this aspect might mean the failure and the stadium’s inability to meet guests from various countries. The risk of poor quality can be minimized by using only reliable suppliers and products that can guarantee an outstanding final result (Types of risk in project management 2019). Moreover, experienced and skilled employees should be hired to attain high accuracy during the vital stages of constructing to avoid mistakes or poor results.
7. Organizational risk. The given issue is closely connected with the schedule risk and should be taken as an aspect that might prevent all departments from their effective work. The fact is that the collaboration between all teams and members of the staff is a key to achievement, and a practical organization of the work can facilitate this very cooperation (Risk management in construction projects n.d.). On the contrary, the failure to align the interaction can promote schedule and other risks. In this regard, effective organizational patterns can be created via the consideration of the need of any department and formulation of the scheme that will be able to meet the requirements of various employees and provide them with the resources they need.
8. Finally, management or governance risks should also be considered. The factors belonging to this cohort presuppose that there might be flaws in performance with regard to the organization of the whole project, the creation of the appropriate climate, respect for cultures, or cooperation with partners overseas (Szymanski 2017). The inability to achieve success in the given sphere preconditions the lack of attention to the project, it’s becoming unpopular and decreased motivation of all employees. For this reason, one of the chances to reduce this risk is the observation of the basic principles of strategic management that guarantee enhanced decision making, creation of the appropriate conditions, and cultivation of motivation and achievement (Szymanski 2017).

In general, the given risk factors can be considered the most common ones as they are associated with any big project and might result in its failure or achievement of unacceptable outcomes. That is why, speaking about the construction of the stadium in the UAE, these aspects should be considered and managed to mitigate risks and achieve positive outcomes. The contingency plan is another practical tool that can be used to work with problems and outline the course of actions that can be performed if any of the issues from the risk occur (Szymanski 2017).

Usually, it is designed to respond to a negative event that can cause substantial harm to the organization or a project. For this reason, the adherence to the alternative or a course of actions different from the current one can be taken as an effective method to avoid crisis (Novotny 2019). For the outlined risks, the plan might be the following one:

1. Identify a risk
2. Determine its probability
3. Outline its impact on the project
4. Select among the possible alternative solutions
5. Share a new solution
6. Devote all needed resources
7. Revisit the plan

The given guide can be applied to every risk mentioned above and serve as a potent tool to eliminate threats and achieve a high level of performance.

Key Milestones

As it has already been stated previously, identification of the key milestones is critical for the monitoring of the progress and introduction of appropriate changes that might be demanded to avoid risks or guarantee the achievement of the positive result. For this reason, the following points are offered:

Design approval

The stadium should acquire an attractive appearance, and the whole project should be aligned in accordance with the design (Planning of a construction project n.d.). For this reason, this milestone is critical for the initiation of work and future decision-making.

Determination of funding and financial aspect of the project

This step is a milestone that is demanded to calculate all spending and investment that are needed to construct the building and achieve the goal. Additionally, the complexity of the given area requires an in-depth analysis of the whole venture to take into account all possible complications or emergencies (Planning of a construction project n.d.). For this reason, the obtainment of funding is an important phase of the project that indicates its correct development.

Recruiting

Employees are the main actors of any project as they precondition its success and the ability to meet the outlined goals. The recruitment of specialists for all positions and the creation of the conditions for their functioning is a key milestone that indicates the successful HR management and the creation of conditions beneficial for the cooperation of all cultures.

Contracts with suppliers

It is another critical element of any project as only after the partnership is aligned, the project can benefit from the continuous supply of machinery or equipment that is needed to construct the stadium and guarantee the high quality of the final product.

I am reaching core performance indicators

Specialists hired as supervisors or heads of departments should report about the current status of the project to ensure that it evolves in accordance with the plan established at the very first stage. The existence of specific indicators will help to meet these goals and reduce performance risk.

Quality assessment

The construction should be checked to ensure that all existing requirements to the quality of such buildings are met, and it can be used to host guests from multiple states.

Elimination of defects

Finally, this is a critical milestone indicating that all phases of the project are accomplished, and some small defects that are almost inevitable in big projects are improved to guarantee positive emotions for all possible users.

Conclusion

Altogether, the construction of the stadium is a complex and sophisticated project that demands consideration of multiple factors that might affect it. For this reason, it is critical to correctly realize all problems that might occur at different stages and devoted attention to them. Risk assessment remains one of the vital determinants of success that is needed to avoid fatal flows and ensure that the project will be completed in time. That is why the recommendations include:

1. Regular analysis of risks
2. Creation of alternative plans to solve problems
3. Monitoring of the process to ensure that all milestones are observed
4. Cultivation of diversity and improved cooperation with suppliers.

Reference list

Cakmak, P & Tezel, E 2019, A guide for risk management in construction projects: present knowledge and future directions. Web.

JetRuby Agency 2017, 7 common project management risks and how to avoid them. Web.

Koutsogiannis, A 2019, Risk management plan in construction – a practical guide. Web.

Martic, K 2018, Top 10 benefits of diversity in the workplace. Web.

Novotny, R 2019, The definitive guide to construction risk management for 2019. Web.

Planning of a construction project n.d. Web.

Risk management in construction projects n.d. Web.

Shemla, M 2018, ‘Why workplace diversity is so important, and why it’s so hard to achieve’, Forbes. Web.

Szymanski, P 2017, ‘Risk management in construction projects’, Procedia Engineering, vol. 208, pp. 174-182. Web.

Types of risk in project management 2019. Web.

Different workplaces are prone to different kinds of dangers. As usual, these hazards exist in various types of construction demolitions. Some of these dangers occur as a result of cuttings by sharp objects, objects falling, and some chemicals spill on our skin, personal falling, respiratory problems, and even noises from machines that causes ear impairment. Due to the above dangers, there is a need for safety precautions to be put in place. Controlling hazards is one way of ensuring employees’ good health and improve their performance. Risk management which integrates the recognition of risk and risk assessment then the development of strategies to manage it is crucial. (Gregory 2006)

People in the construction and demolition sector are exposed to chemicals such as lead and asbestos. Asbestos and lead are dangerous to human health. They are introduced to the construction industry by installing products through spraying on fireproofing, pipe insulation, cement pipes, and ceiling tile.most workers are exposed to asbestos-containing products during the removal of these products at demolition periods or renovation aimed at maintaining buildings and other structures in good conditions. (Gregory, 2006)

The danger attached to asbestos comprises fatal diseases including asbestosis, lung cancer, mesothelioma, and gastrointestinal cancer. Employees working on the removal of asbestos-containing thermal systems insulation and toweled on surfacing materials or sprayed–on materials are at greater risks than those involved in the removal of resilient floor, roofing, and ceiling materials or any other type asbestos contain materials. It is very important to control the risks of asbestos as it poses these risks to employees.

Some of the measures that should be taken are proper regulation of the area by having competent personnel on such sites, inspecting the materials before the commencement of the demolition process, and having proper inspection and supervision. To further improve on this, employees should go for training on operation and handling procedures of asbestos. Employers should provide the necessary protective clothing and equipment at the workplace.

Many occupations have the potential for high exposure to lead. Exposure to lead is one of the most common dangers that occur in many demolition companies. Lead causes workplace illness. Results from Toxic release inventory show that more than 22 million lead and 194 million kilograms of lead compounds are released on and- site in 2001. Lead has numerous adverse effects on a human being.

A short period of exposure to lead causes various health impairments and diseases by adversely affecting numerous body systems. Lead poisoning in the blood causes loss of appetite, headache, difficulty in sleeping fatigue, decreased sexual drive, and many other problems depending on the toxicity level. Lead and lead compounds are anticipated to be human carcinogens. It is associated with an increased risk of lung, bladder, and stomach cancers. (Boffeta, 1995)

The most effective way in controlling lead hazards in the workplace like in construction demolition is to minimize the exposure through good work practice, engineering controls, and use of personal protective clothing and equipment some of the good workplace practices that are fundamental for implementation includes housekeeping, periodic inspection, and maintenance of process and control equipment. The use of proper procedures and tasks together with appropriate supervision to ensure that the proper procedures are followed still will make a great difference. Observing personal hygiene will prevent direct entry of these chemical substances into the body.

People working in construction often work at high places such as the top of buildings. Fall dangers remain a serious health problem. It is one of the leading causes of traumatic occupational death. Thus, it accounts for eight percent of all the deaths associated with the industry of construction demolitions. Any work at a height of more than four feet is always at risk hence needs to be protected.

In many situations, slips or trips and falls are caused by loose objects, wet spots, polished floors, uneven walking surfaces, grease, electrical cords, and open desk drawers, and damaged ladder steps. The prevention of these hazards calls for the controls such as wearing and using personal fall arrest equipment. They work also need to take precautions by installing and maintaining the perimeter of protection. The use of an unworthy ladder should strictly be discouraged by the person in charge of supervisory work. He should also make sure that all the floor openings are secure and covered if necessary within the demolition site. (Boffeta, 1995)

During the demolition of houses and high towering objects, there is a greater risk of people getting stuck in between the collapsed walls. To make sure that you are on the safe side, it is quite recommendable that you should never weak a place that seemingly may let you being surrounded by it. In an area involving a trench and excavation process, it is too risky to enter an unprotected part like a trench of 5 feet or more without adequate protective systems being put in place.

Demolition of construction may involve working in an area where there high temperatures and intense heat. These working places include demolitions of road works or renovations of old roads. It also comprises heat production by the machines that are being used. such operations involving high air temperature, high humidity; direct physical conduct with hot objects, and finally radiant heat sources pose a high poten6tial of inducing heat stress.

One of the most serious health problems in a hot environment like in the demolition of roads in the direct hot sun is mental confusion other problems that are associated with heat are delirium, loss of consciousness, and convulsion which are likely to cause abrupt illness and death.heat problems can be reduced and prevented by having engineering controls such as installation of general ventilation and spot cooling at [point of high heat production. protection from direct heat by shielding from radiant heat sources reduces such hazards to a greater extent. Elimination of steam leaks from working machines and other equipment may also provide the workers with a better working environment.

Through modern technologies, the provision of improvised tools that are not too manual and personal cooling devices is of great help to the reduction of heat hazards. Employees should be educated concerning the effects of dehydration exhaustion, fainting, heat cramps, heat stroke, and salt deficiency.

Noise is not a new hazard. It has been a constant threat since the industrial revolution. Too much noise exposure causes a temporary change in hearing or a temporary ringing in your ears. These short-term problems usually go away within a few minutes or hours after leaving the noisy places. However, repeated exposures to loud noise lead to permanent, incurable hearing loss. Approximately every year, 30 million people are exposed to hazardous noise in the United States.

Noise-induced hearing loss is also one of the common occupational illnesses but it is quite much ignored because of lack of visible effects. It also develops over a long period of time, and there is no pain except in very rare cases. Prevention of the peril of noise from the workplace can be done through engineering controls like installing a muffler or building an acoustic barrier. This is one of the most effective ways to prevent noise-induced hearing loss. Hearing protectors such as earplugs and earmuffs should be used when it is not feasible to otherwise reduce noise to a safe level. The introduction of hearing loss prevention programs for all workplaces with hazardous levels of noise is a necessity.

Many employees are unaware of the potential hazards present in the work environment. Poisonous gaseous substances are released into the environment in the area of work. Most workers do not recognize the risks of these poisonous substances occurring in form of gases. Respiration systems are affected by harmful clouds of dust, fogs, and smoke, mists, favor, and sprays. These hazards cause diseases such as cancer, lung impairment, or death. Due to the risks involved in respiration systems, prevention of such risks needs to adhere to the laid down international standards U.S. Department of Labor. (Anderson, 1998)

Welding poses enormous hazards which include many chemical applications in the workplace. These chemicals are all termed to be poisonous in the environment of human nature. Zinc is used in great quantities in the production of brass, galvanized metals, and various other alloys. Breathing of zinc oxide fumes occurs when welding or cutting on zinc-coated metals during the demolition process. Introduction to these fumes is acknowledged to cause metal fume fever, influenza.

Cadmium is used often as a rust-preventive coating on steel and also as an alloying element. Acute exposures to high concentrations of cadmium fumes can produce severe lung irritation, pulmonary edema, and in some cases, death. Long-term exposure to low levels of cadmium in the air can result in emphysema and can damage the kidneys.

Beryllium is sometimes used as an alloying element with copper and other base metals. Acute exposure to high concentrations of beryllium can result in chemical pneumonia. Long-term exposure can result in shortness of breath, chronic cough, and significant weight loss, accompanied by fatigue and general weakness.

Iron is the most important alloying element in steel manufacture. During the welding process, iron oxide fumes arise from both the base metal and the electrode. The primary acute effect of this exposure is irritation of nasal passages, throat, and lungs. Although long-term exposure to iron oxide fumes may result in iron pigmentation of the lungs, most authorities agree that these iron deposits in the lung are not dangerous.

Mercury compounds are used to coat metals to prevent rust or inhibit foliage growth). Under the intense heat of the arc or gas flame, mercury vapors will be produced. Exposure to these vapors may produce stomach pain, diarrhea, kidney damage, or respiratory failure. Long-term exposure may produce tremors, emotional instability, and hearing damage. (Anderson, 1998)

Welding and cutting of lead-bearing alloys or metals whose surfaces have been painted with lead-based paint can generate lead oxide fumes. Inhalation and ingestion of lead oxide fumes and other lead compounds will cause lead poisoning. Symptoms include metallic taste in the mouth, loss of appetite, nausea, abdominal cramps, and insomnia. In time, anemia and general weakness, chiefly in the muscles of the wrists, develop. Lead adversely affects the brain, central nervous system, circulatory system, reproductive system, kidneys, and muscles.

Fluoride compounds are found in the coatings of several types of fluxes used in welding. Exposure to these fluxes may irritate the eyes, nose, and throat. Repeated exposure to high concentrations of fluorides in the air over a long period may cause pulmonary edema and bone damage. Exposure to fluoride clouds of dust and fumes has also produced skin rashes.

Various chlorinated hydrocarbons are used in degreasing or other cleaning operations. The vapors of these solvents are a concern in welding and cutting because the heat and ultraviolet radiation from the arc will decompose the vapors and form highly toxic and irritating phosgene gas.

Phosgene is formed by the decomposition of chlorinated hydrocarbon solvents by ultraviolet radiation. It reacts with moisture in the lungs to produce hydrogen chloride, which in turn destroys lung tissue. For this reason, any use of chlorinated solvents should be well away from welding operations or any operation in which ultraviolet radiation or intense heat is generated.

Carbon monoxide is a gas usually formed by the incomplete combustion of various fuels. Welding and cutting may produce significant amounts of carbon monoxide. In addition, welding operations that use carbon dioxide as the inert gas shield may produce hazardous concentrations of carbon monoxide in poorly ventilated areas. This is caused by a breakdown of shielding gas. (Powergen, 1996)

Ozone is produced by ultraviolet light from the welding arc. Ozone is produced in greater quantities by gas metal arc weldings like gas tungsten arc welding and plasma arc cutting. Ozone is a highly active form of oxygen and can cause great irritation to all mucous membranes. Excessive exposure can cause fluid in the lungs. Both nitrogen dioxide and ozone are thought to have long-term effects on the lungs (Powergen, 1995).

The ultraviolet light of the arc can produce nitrogen oxides from the nitrogen and oxygen in the air. Nitrogen oxides are produced by gas metal arc welding. Even greater quantities are formed if the shielding gas contains nitrogen. Nitrogen dioxide is one of the oxides formed with the greatest health effect. Dangerous concentrations can be inhaled without any immediate discomfort. High concentrations can cause shortness of breath, chest pain, and fluid in the lungs.

References

Anderson, T.M. (1998): Addressing Barriers to Improve Safety Performance; Construction Manager; Nov. Vol. 4, Issue 9, p. 13-15.

Gregory, E. D. (1996): Building an Environment that Promotes Safe Behavior. Professional Safety; Prentice Hall, New York.

Powergen, J. (1996): A design risk assignment manual published: Prentice Hall, New Jersey.

Powergen, J. (1995): total project management of construction and safety healthy and development; Prentice Hall, New York.

Pierson, P. L. (1997): Construction and Demolition Debris: Recycling and Reuse In Washington State; Prentice Hall, New Jersey.

The first step in performance monitoring relies on the n-dimensional building/civil information model to plan, schedule, and estimate project costs. An analysis of the results are documented and presented in charts to ensure effective communication of the project idea. The charts are used to conduct construction reviews to identify any areas which need improvement.

Once the reviews are over, the second phase of the automated construction performance monitoring commences where each component of the project progress is presented using visual aids to identify all project components that are on schedule, behind schedule or ahead of schedule and take corrective actions.

Unordered photos collections, modeling pipelines, and modeling demos underlie the assessment criteria for establishing the quality, safety, and sustainability of the construction pace of the which is remotely used to monitor construction safety.

Phase three of the automated construction safety uses cameras and remote sensors to monitor the construction safety based on a framework of automated behavior monitoring and the automated vision based tracking. That is followed by the automated construction quality monitoring to detect safe drilling areas, which leads to the automated construction productivity monitoring based on the automated vision based tracking system to identify activities of the excavators.

A construction site information management system which uses a mobile AR system provides high precision information on the construction site using a 3 d model and a hybrid 4-dimenaional model augmented in reality. The performance monitoring system is built by augmenting energy performance in reality with automated monitoring done in extreme events, and systems for disaster recovery put in place with different cases study results compared to build the best case scenario.

The Built & Urban Environment

Information technology plays a role in the construction, invention, and innovation in the construction industry. The generic issues affecting the design and construction of buildings include security, accessibility, buildability, affordability, customer satisfaction, crime, and sustainability.

Process issues which form the next elements of the cycle is defined by assessing project stakeholders, partnering based on relationship building, process coordination, learning organization, and building virtual teams. The process is expressed using visual charts that provide information about the project progress management, health and safety issues, effectiveness in plant usage, measures of productivity, and material management.

The invention/innovation involves creating new ideas, which are exploited in a research, innovation, enterprise, and community cycle. The entire process is defined by key activities which include teaching and learning, research, and outreach to business and community activities. The drivers of innovation which play a critical role include academic and industry elements.

The academic drivers of invention and innovation include policy reasons, core purpose values, industry drivers which include economic factors and policy issues. However the drivers of innovation and invention encounter barriers at the academic and industry levels. Typically, most innovations and inventions do not make it to the innovation/invention stage because of limitations at personal and organizational levels, the prohibitive cost factors involved in the processes referred to as the “future thinking perspectives”.

However, it is possible that entire process of integrating IT brings about ICT vision management to answer the strategic questions of invention and innovation. ICT brings into plays the role to shape the environmental and political issues to shape desirable future based on different models, with measurable progress on different change platforms.

In the fast paced modern life, it had become almost equally complex to maintain road safety. Engineers and other authorities have come across many issues regarding safety of county roads. Similar case that had been analyzed in this paper is about the Verdant Country Commission (VCRC). This paper is a case analysis recommending some of the engineering and construction techniques that would help engineers regarding road safety.

Case Presentation

The Forest drive had recently became the centre of attraction as the Verdant County’s population had been observed to be increasing rapidly. The increase in the population had been observed to be 30% in the past ten years according to the Verdant population statistics. The increase in population had automatically increased the levels of issue regarding road safety.

Traffic had been considerably increasing that is directly proportional to the increase in population of Verdant County. Forest Drive had thus become one of the main roads that transfer the heavy traffic towards industrialized city of Verdant (Online Ethics).

Verdant County Road Commission had assigned the responsibility to Kevin Clearing to solve the problem of Forest Drive as soon as possible. The urgency to go about the problem is due to the increasing accidents by cars and incidents of wreckage of cars due to the lush green forests by road sides (Online Ethics).

Analysis

Previously it had been noted that Mr. Kevin Clearings had proposed the plan to cut down the trees alongside the road because the roads had become quite small in width. At first the plan by Kevin Clearings were accepted by the company but due to the admission of law suit by citizen environmental group, his plan had been questioned by both media and VCRC. The citizen environmental group had come up with petition signed by 150 citizens along with the protests that had been news from quite a long time (Online Ethics).

Many media persons and other social workers had claimed that it is due to the carelessness of the drivers that the roads are now being considered as small in width. The opposing groups have been claiming that VCRC must make sure that the driving rules and speed is being checked by the authorities rather than suggesting the cut down of trees which would be decline for natural habitat (National Academy of Engineering)

It is clear from the above noted case that the problem will continue to grow until or unless the trees are not being cut down. It is suggested that Kevin Clearings make use of the civil engineering theories that recommend engineers to keep a saturation flow values in situations such as Forest Drive in the chosen case.

The traffic in 3.5 meter wide road needs mapping that would allow landscaping as well as activities of pedestrians. It is also to be made sure by planning of Kevin Clearing that he considers the prospects of driving rules and regulations (Turner and Haraharp). The county governing authorities must file law suits against the drivers and not just amount as a fine.

The mapping and modeling of Forest Drive must undertake accurate saturation flow values to manage the increasing Verdant traffic. The citizen environment group also needs to understand that the road safety is far more important than the safety of animals and habitants. The cutting of trees could easily be replaced with landscaping which could be considered in the new modeling of Forest Drive.

Works Cited

National Academy of Engineering. “John B. Dilworth’s Commentary on “Cutting Roadside Trees”” 8/17/2006 National Academy of Engineering” 17 August 2006. Online Ethics Resources. Web.

Online Ethics. “Cutting Roadside Trees.” 2005. Online Ethics. Web.

Turner, J and Haraharp. G. Simplified Saturation Flow Data Collection Methods. Berkshire: Department of International Development, 1993.

Construction Management

There have been immense construction projects in China, the U.S. and India. This has resulted in huge consumptions of energy, as well as other resources.

India

The construction sector in India is estimated at 100 billion dollars. Globally, the country is among the top ten nations, which spend a lot in construction projects. This is attributable to the government’s spending, foreign direct investment, and private investments. India manufactures close to two hundred and fifty million tons of cement, which places it second to China. According to the Global Construction 2020 report, India is likely to be the 3^rd biggest construction market globally, with the USA and China taking the first positions.

India is aware that there is a need to curb infrastructure bottlenecks, which will ensure improved living standards for the masses. It is worth noting that the federal government has declared its commitment to the eleventh 5 years plan. This will direct nine percent of the country’s GDP to infrastructural ventures.

A zenith body of the federal, the National Planning Commission has projected dedicating 515 billion dollars to infrastructural schemes for the next five years. This will be used to construct ports, railways, highways, and bridges, among others (Robert et al 643).

China

While construction projects in India have majorly been internal, construction companies in China engage themselves in global improvement projects. These include Kenya’s highways, Brazil’s power plants, Turkey’s high- speed railways, and Dubai’s skyscrapers. In 2009, fifty Chinese companies were ranked among the top 225 global contractors.

The Chinese government gives the construction industry a lot of attention. This is because the industry has been a source of overseas revenue. Construction companies have to adhere to stringent domestic construction practices. Consequently, these companies have become a powerful force in the global construction market.

USA

In the United States, construction management mainly deals with assessing the resources and risks, which are probable in their construction projects. The U.S. government is aware that construction management is essential for the effectiveness of any project.

Contemporary construction management procedures have been accused of hindering trust between contractors and agencies. Furthermore, they prevent efficiency and innovation. In regard to this, the U.S. government appreciates the need for novel construction innovations and technologies in the industry.

Consequently, there is doubt whether the industry can perform efficiently (Sathaye and Stephen 330). Together with industry partners, highway agencies are considering principal construction and design management principles. Scan teams in the country recommend that the construction industry should invest in partnerships, and concentrate on projects that fulfill customer needs.

New Technologies and Innovations

India

India recognizes that novel innovations and technologies are significant to meet the construction needs in the country. Therefore, India has embraced dry-wall technique, Mivan technology, pre-fabricated construction, and slip form construction. These technological innovations have brought about significant benefits in the construction industry. Some of these technologies were introduced from Malaysia, China and Europe.

Mivan shuttering enhances timely projects and unique finishes. Through Mivan technology, 70% more steel is used, which increases the lifelong of a construction (Ghassemiand Ian 69). Painting can be done without plastering, and construction time is minimized by ten days. During construction, many companies use the de-watering technology, which saves cost and time. Moreover, reconstituted marble enhances uniform finishes during cladding and flooring.

China

The Chinese government has laid down policies to enhance scientific research development in the construction industry. The 10^th 5-year plan had objectives aimed at coming up with high- techs, promoting technical innovation, and developing industrialization.

To ensure the implementation of technological reforms and promote the innovative capability of companies, several incentive policies were laid down. Some of the innovations and technologies include Integrated Circuit and Software industries, promoting basic researches, increasing industrialization, promoting adherence to international standards, and promoting global trade.

US

The new innovations and technologies in the country focus on meeting consumer needs. Moreover, they aim at minimal costs and better convenience, comfort, and beauty. To promote the technologies and innovations, there is a need for communication between partners. One of the technological approaches is turnkey, which has enabled the construction of steel, power, and chemical plants. The skyscrapers structural design has been extremely useful in cost reduction when constructing tall buildings.

Laws and Regulations (Labor and Environmental Law)

India

Every city has to adhere to a set of regulations and laws. These are in the form of construction bylaws, which are put into practice at the city and town level. This is carried out by the relevant municipalities and authorities. It is worth pointing out that the economy in India is growing at an alarming rate.

This implies that there have been immense developments and constructions. Consequently, the government has ensured measures that promote environment protection and construction safety. Government agencies have to adhere to NOCs (Non-Objection Certificates) for them to be permitted to proceed with construction (Sathayem and Stephen 328).

The Tree Authority has to establish whether there are important greeneries and trees at a plot before construction is permitted. Commercial properties have to be provided with a NOC by the chief fire officer. Construction plans are shown to the chief fire officer for them to assess whether the construction adheres to fire safety regulations.

Construction in India requires the Building Proposal Office to approve novel building’s development. The authorities then decide if the proposed structures should proceed. The office assesses ozoning, preservation and aesthetic procedures, and the socio- economic consequences the constructions will have (Dixon et al 80).

China

China considers green building as exceptionally significant, where majority of the construction projects have to be certified. The Chinese construction companies are making a mark in the worldwide construction market. This implies that there is a need for construction companies to pay keen attention to lawful risk management.

Law firms have been greatly dedicated to promoting the flourishment of construction practices. This has resulted in more legal teams. The Chinese construction companies adhere to the environmental and labor laws of the countries they work. Consequently,the country has been greatly rewarded for compliance and diligence in this area. To ensure adherence to these laws, the companies work hand-in-hand with law firms.

US

Similar to the case in India and China, the labor and environment laws have to be adhered to whenever a construction is taking place. The relevant authorities have to inspect the site and determine whether construction should proceed. Whenever a construction is taking place, child labor has to be avoided at all costs. Moreover, a conducive working environmentshould be ensured. The city municipality has to be aware of the construction. This promotes accountability and transparency.

Works Cited

Dixon, Robert K., et al. “Integrated land-use systems: assessment of promising agro forest and alternative land-use practices to enhance carbon conservation and sequestration.” Climatic Change 27.1 (1994): 71-92. Print.

Ghassemi, Fereidoun, and I. White.Inter-basin water transfer: case studies from Australia, United States, Canada, China and India. Cambridge, England: Cambridge University Press, 2007. Print.

Robert, Christopher, et al. “Empowerment and continuous improvement in the United States, Mexico, Poland, and India: Predicting fit on the basis of the dimensions of power distance and individualism.” Journal of Applied Psychology 85.5 (2000): 643. Print.

Sathaye, Jayant, and S. Tyler.”Transitions in household energy use in urban China, India, the Philippines, Thailand, and Hong Kong.”Annual Review of Energy and the Environment 16.1 (1991): 295-335. Print.

Executive Summary

The purpose of this report is to identify the key problems of Constructions Products (subsidiary of Metrivac Company), and to recommend possible solution in order to improve present situation and to increase productivity and profitability.

In order to recommend the company, this report will concentrate on staff turnover rate, leadership crisis, communication, and motivation, reasons of dissatisfaction of the employees, organizational structure, problems of production, sales, and marketing departments.

Problem Identification and Analysis

The Construction Products Company, being a subsidiary of Metrivac Company, is currently undergoing a range of problems related to operations management, motivation, wage patterns, autocratic leadership, recruitment, training, communications, organisational structures, and many more.

According to the case, Aaron Fernandez, as an employee at the company, suffers from some of the problems. One of this problems, for example, include job dissatisfaction, that results from the autocratic style of leadership, appalling workplace environment, pay (which points towards the hygiene factors), company policy and administration, over supervision, interpersonal relations, and the Taylorite approach in operations.

Therefore, Aaron faces tremendous decline in his motivation and feels his job to be extremely monotonous because the production line has designed to produce at a constant rate – where there is no space for job rotation, job enrichment, empowerment, or team working.

Aaron’s job description, as provided in the case, also point towards another big problem that the Construction Products Company is facing – delayed production processes caused by lack of production level employee training, and lack of their motivation as well as poor delegation, poor pay, and a general boredom towards work.

For example, failure of forklift-drivers to substitute steel-shelving swiftly results in breakdowns, and sluggishness of production process (consequently less production); moreover, disinclination of lift-drivers, absence, deprived quality-control in batching, deflection of block-moulds, and poor-compaction of blocks because of machine-failure, together with damages caused by workers throwing foreign-materials over batching-system, and causing cracking of moulds results in one hour delay everyday.

As discussed before, just like Aaron Fernandez, all the other workers in the Construction Products Company suffers from the same problem – poor motivation, job dissatisfaction, awful payment structures and the consequent absenteeism and low quality outcomes resulting from Taylor’s approach to management and leadership that the business adopts.

Aaron expresses himself to be ‘moderately satisfied’ with pay; this is probably due to the way in which his pay is calculated; he gets basic wage-rate and a group-bonus; the group-bonus requires each supervisor to decide on performance-rankings, and therefore bonus-differentials; moreover, Aaron told David Schneider that ‘the worth of a job is determined by the money paid for it’.

Such and comment from an employee indicates that although they are receiving bonuses, the workers are not getting sufficiently motivated due to fact that the bonus payments are liked to performance, which is to some extent equivalent to payment by results, or piece rates; furthermore, forklift drivers are not included in the bonus system.

The employees here do not feel themselves as a part of the business and so do not want to provide something more than they are told to do because of the Taylor-like behaviour they receives from the management. Although there are many theory Y workers who are able to give a lot to the company, the theory X treatment from the upper level subsequently means lack of interests.

In addition, there exists inadequate opportunities for promotion or personal development, pitiable working environment, and the dissatisfaction from doing highly repetitive tasks; moreover new recruits are here one day who depart the next day; this lack of continuity makes it tough to extend downy coordination and more often causes high staff turnover which causes rising recruitment costs of the company.

Apart from high staff turnover and company’s autocratic philosophy, another big problem is in communications – there are the irregular verbal communications of the supervisors with the forklift drivers, floor workers with the managers, or even supervisors with the managers.

Sales dispatcher Sandra Mayson recruited as a salesclerk in 2005, she is now responsible for dispatching orders and supervising three clerks who engaged this department. However, she was satisfied with her job but she was disappointed for facing two problems such as communication problem with the senior manager and excessive workload as she has to handle all minor customer complaints, order delivery issues, and communicate with the staff.

On the other hand, senior executives never appreciates her performance along with complain that she show biased attitudes and delay occurred for her activities though these are not true. In addition, she identified that job pressures, rewards provisions, separate payment method for male and female, seniors like to talk rather than listen, and lack of verbal recognition of her performance by senior executives demoralize her to work in Construction Products.

Vikram Bangara joined in the Construction Products in 1999 as an industrial sales representative, but appointed as a sales manager in 2004 due to his excellent decision-making power and motivational factors.

However, he was initially responsible for sending e-mails, receiving telephone calls, and meeting with customers, communicating with subordinates and superiors; however, he is now in charge for supervising and coordinating all the activities in the sales department, for instance, controlling daily production, and disseminating information returned by representatives, communicating with the potential customers.

According to the view of Vikram, the main problem of the company is leadership approach as Construction Products is controlled by the highly autocratic leaders who enjoyed ultimate power in case of decision making as well as implementation of the strategies.

However, Weihrich & Koontz (2005) argued that Autocratic leadership is the older style of leadership where leaders took the decision and subordinates or team members had to follow the decision and Vliert (2006) stated that autocratic executives act in more self-centered ways, take decisions more unilaterally and it is a less effective and attractive to govern the organizations of developed countries.

In addition, Robbins & Judge (2004) stated that orders must be obeyed approach to the staff demoralize the employees to show their highest efforts and fails to provide quality services to the organizations, which reduce profit margin of the company.

However, the aim of Vikram was to restructure the sales department by developing knowledge and skills of the employees and eliminating any social obstacles to contribute to the department’s success but he identified that senior managers criticize his initiatives, which was also the main cause of his dissatisfaction.

At the same time, the senior managers never appreciate the work of the subordinate is also a great for the development of Construction Products though they implement the suggested strategies of the employees in some extent and provide rewards for their activities, but the company can’t motivate the employees due to their autocratic attitudes.

Statement of Key Problems

Problem One

Poor motivation is a great problem in the firm – an autocratic approach in leadership means that the motivation of the workers is adversely affected. However, apart from autocratic approach, there are some other imperative issues, which cause this insufficiency of motivation.

The hygiene factors, such as low pay, poor working condition, highly repetitive and extremely monotonous tasks, and many other factors create a decline in motivation amongst workers. Lack of motivation also results from an organisational practice that does not ensure equal opportunities, for example, as suggested by Sandra Mayson, women are not paid equally as men.

Poor motivation, in turn, means slower production process, poor quality production, more absenteeism, and high staff turnover, which results in rising operating costs. Increasing staff turnover causes the problems outlined below:

Figure 1: Costs of Increasing Staff Turnover

Source: Self generated from Nierman (2001) and Chavez and Lobo (2010)

Problem two

Autocratic leadership style is one of the key problems as directors of parent company “Metrivac” and other senior executives are not appreciate the performance of the subordinate, take inappropriate decisions without considering feedback of the staff, and force employees to implement the strategies. As a result, the members of the departments of Construction Products cannot work as a team due to lack of communication and leadership problems, which also creates misunderstanding between employees and top-level management.

Problem three

One of the biggest troubles for the company is poor operations management. Inefficiency in operations management results from bad decision making from the managers, lack of training of the low-level workers, and poor job design.

This causes delayed production processes, disappointment to work swiftly, frequent stopped working process, aversion of floor workers, non- attendance, deprived quality, and poor compact of lumps, malfunction of appliances accompanied by damages in moulds, and many other problems in the entire plant.

Problem four

The awful work pressures faced by Sandra Mayson, or the problems in communications faced by all the subordinates of Operations and Purchasing Manager (as argued by production worker Aaron Fernandez) have profound links to a single key problem – a badly designed organizational structure.

Figure 2: Organisational Chart

Source: Construction Products Case

As illustrated in the above organisational chart, there is a tall hierarchal structure under the Operations and Purchasing Manager, which results in a number of problems apart from communicational gaps between the supervisors and the forklift drivers, floor workers and the managers, and even supervisors and the managers.

Additionally, tall hierarchal structure means narrow span of control, resulting in more costly day-to-day running with negative impact over lower level workers. Conversely, there are no subordinates under Sandra Mayson, which is why she faces the great workload.

Generation and Evaluation of a Range of Alternative Solutions

Table 1: Creation and Valuation of Alternative Solutions

Source: Self generated

The figure below shows the ways of managing the consequences of staff retention by enhancing motivation:

Figure 3: Managing Consequences of Turnover

Source: Vale (2010)

The figure below shows the practice of effective strategies that can retain staff:

Figure 4: Practice of effective strategies that retain staffs

Source: Loquercio, et al. (2006)

Recommendations

In order to reduce staff turnover rate, the management of Construction Products should change entire recruitment and selection system to appoint most competent person for the post who can take workload, behave gently, dynamic, educated, and have previous experience in particular job as the company employed 150 unskilled production employees.

As Construction Products discriminate male and female in terms of payment policy, it should follow the employment law of Australia and ethical code of conducts in order to develop organisational culture, and ensure equal opportunity for all irrespective of race, ethnic minority and so on.

However, the leader should consider democratic leadership approach instead of Autocratic approach and the management should train the employees to work as a team, which will help Construction Products company to satisfy the employees and reduce internal problems.

Implementation

Following figure shows recommended strategic leadership and management process for Construction Products as it should have anticipation, envision and flexibility to implement projects –

Figure 5: Strategic L&M process for Construction Products

Source: Self generated from Hitt, Ireland, Hoskisson (2001, p.488)

As Construction Products has unskilled along with mental employees, it should have experienced R&D team, training department skilled leader who have motivational power and good communicating skills to bring success for the company by implementing strategy.

However, directors of Metrivac Company should communicate with the employees each department of Construction Products, regularly meet with the employees of outlets and periodically visit the production department to know the problems of the staff, and their opinion to take major decisions, as different employees have dissatisfied for different reasons.

Reference List

Chavez, J. L. & Lobo, V. (2010) ITR’s Six Sigma Approach to Reducing Its Employee Turnover Rate. Web.

Griffin, R. W. (2006) Management. (8^th ed.). New York: Houghton Mifflin Company.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2001) Strategic Management. (4^th ed.). South-Western Thomson Learning.

Johnson, G. Seholes, K. & Whittington, R. (2008) Exploring Corporate Strategy: Text & Cases. 8^th ed. London: FT Prentrice Hall.

Kotler, P. (2003). Marketing Insights from A to Z：80 concepts every manager needs to know. (10^th ed.). New York: John Wiley & Sons Inc.

Loquercio, D. (2006) Turnover and retention: General summary. Web.

Nierman, L. (2001) What Is the True Impact Of Employee Turnover?. Web.

Robbins, P. S. and Judge, A. T. (2004). Organisational Behavior. (12^th ed.). London: Prentice Hall.

Vale, I. (2010) Addressing Staff Retention & Improving staff engagement. Web.

Vliert, E. V. D. (2006) Autocratic Leadership Around The Globe Do Climate And Wealth Drive Leadership Culture? Journal of Cross-Cultural Psychology, 37(1): 42-59. Web.

Weihrich, H. & Koontz H. (2005). Management a Global Perspective. New Delhi: Tata McGraw-Hill.

Twenty-Four Hour Security Management

Site security is one of the fundamental aspects, which must be given first priority in the event that a construction expects to undertake any assigned project work in a timely, as well as less costly manner. In every construction site, the term security has a wide range of meanings. It may refer to the safety of the workers who are on the site in terms of enjoying an accident free environment.

Security can also refer to the undertaking of loss control through the prevention of equipment theft. In most of the Venezuelan construction sites, contractors incur big losses as a result of equipment theft. Even though insurance firms offset some of the financial costs, the contractor settles most of the uninsured costs. The runway construction will entail a wide range of equipment along with a diverse workforce and thus it will be of great essence to put in place vibrant security measures (Fay, 2011).

Contractors with insufficient security management remain to be theft targets. The security personnel should address all issues leading to both tool, as well as, equipment theft. In most of the scenarios, the profitability of a construction company highly relies on the ability to prevent theft losses effectively.

An effective construction-site security requires good planning along with programming. Runway construction involves the use of construction material along with equipment of high value and thus it is vital to prevent them from being stolen. Secure equipment automatically leads to secure business.

Equipment theft is associated with various potential sources. However, the two principal sources are the workers on the site along with the general public who visit the site as the construction work continues. Caspian Construction PLC has to implement various measures to succeed in maintaining a twenty-four hour security operation within the Venezuelan site.

In the first place, it will be of great essence to establish methods of getting early warning signs while undertaking construction site monitoring. It is highly unlikely that thieves or vandals will forewarn anyone about their intention to carry out theft on a certain place.

Nevertheless, it is important to note that there are various techniques that could be used by a security manager in order to acquire information concerning a planned theft (Sennewald, 2011). This could be through early warning messages. For instance, using Google alerts, one can get aware of the string of thefts taking place within the neighborhood and thus tighten vigilance within the site.

The other measure, which will be put into consideration, is ensuring that the security lighting within the construction site is at acceptable standards. Lighting brings down construction site theft because it discourages prowlers. In addition, adequate lighting assists those assigned the duty of monitoring the site in identifying the suspicious activities. It has been established that intruders will tend to target the poorly lit areas.

Therefore, before the construction materials along with equipment are brought to the site, security lights should be positioned in various points within the site. It is always recommended to make use of white light because it is considerably bright. White light is also helpful in making a clear color differentiation, thereby facilitating the identification and reading of license plates.

Even though the white lights are expense to maintain lit; they are worth the price. In accordance to the basic thumb rule, the white light can assist the security personnel to identify a certain face, which is approximately thirty feet away.

It is also essential to make it certain that the power sources within the site are protected. Thieves always attempt to interfere with the power source prior to carrying out their agenda. It is therefore advisable to have a well-secured private power source for the purposes of the security lighting.

Daytime security should no be taken for granted. In most of the construction sites, the security managers tend to overlook daytime security issues. In this regard, it is essential to formulate security questions, which will be applied within the field. Moreover, it might be essential to request all the site workers to remain dressed in a set standard uniform while undertaking their daily duties (Fay, 2011).

This might seem insignificant but it makes the identification of unauthorized “visitors” easier. In respect to the security questions, the on-site staff should be trained on formulating strong lined questions, which might assist them in identifying unauthorized persons within the site.

For instance, instead of asking an individual whether he or she works within the site, the crew should inquire from the individual whomever he or she works for within the site. This is due to the fact that a construction of this magnitude will entail a number of sub-contractors and some invaders may hide their identity behind the sub-contractors’ names.

The other step will be the development of a pre-job checklist. A checklist will turn out as vital in making better the site security. Within the list, various personnel will be assigned certain security duties. The assignment should be allocated to those who have the required expertise, as well as, experience.

Since some of them will have served in the same capacity in the previous projects, they will be requested to dedicate themselves more within this project by promising them various incentives. The checklist will also consist of items such as inventory management system, mandatory sign-in register along other documents, which may assist in reducing theft.

Consideration will also be made to award gifts to individuals thought to have made the most helpful security tip within a certain time, for instance, per month. The gathering of essential contacts such as police contacts, fir department’s contacts, as well as, neighbors’ contacts will not be overlooked (Sennewald, 2011).

Through the use of internet, substantial information about the local contacts of all the individuals mentioned previously will be obtained. The local police will assist in making specifications about the distinct security precautions, which should be made.

The aforementioned security measures may not achieve much success in the absence of a strong security fence. Within every site security program, more focus should be directed towards the establishment of the perimeter fence as it acts as the site’s defense line. Security fences are fundamental for the protection of tools along with materials.

They also assist in bring under control the issue of trespassers. It is only at the presence of a security fence that one can launch a lawsuit on trespassing against any culprits. Therefore, the security fences should satisfy certain characteristics. The security fences should be high such that they cannot be climbed.

Moreover, high fences play the role of psychological deterrent. Trespassers along with “impulse” vandals get discouraged upon coming across high fences. It is also important to ensure that the number of gates within the security fence is brought to the minimum. In the event that the access gates are numerous, the more vulnerable is the security detail. The gates should also be narrow enough to allow the entry of emergency vehicles.

It will also be necessary to conduct an analysis of the security needs of that specific site. The analysis will entail of reviewing the crime rate within the area. This is due to the fact most of the site theft is always organized from within (Fay, 2011). In addition, while conducting the security analysis, safety zones will be identified within which the stores along with car park will be located.

There are other rules along with regulations, which will be passed to all the workers prior to the commencement of the project. The staff will also be informed about the reporting procedures to be followed in case they discover cases related to equipment theft. It is unethical to wait for a certain theft incident to take place to establish the reporting procedures. In the course of the working hours, all the equipment should remain locked, as well as, immobilized.

Anti-theft devices will be attached on various equipments such as steering-wheel locks, locked fuel caps along with some more others. Where possible, all the equipment within the site should remain securely locked once not in operation. It will also be essential to install an alarm system within the site.

Moreover, all the major equipments along with site vehicles should be protected by an alarm system (Sennewald, 2011). Alarm systems will always send warning signals to the security personnel in the event that thieves strike. In order to ensure that everything within the site is well monitored; surveillance cameras will also be installed within various areas along with main stores within the site.

Basically, it is only with commitment that it is possible to prevent theft effectively. In the event that not all the employees are enlightened about the essence of prioritizing theft prevention, all the formulated theft policies will be bound to fail.

All workers along with their supervisors will be held accountable in playing their assigned role within the theft-prevention program. Proper communication channels will be established to ensure that all the workers, as well as sub contractors have all the required information related to security matters.

Benefits and shortfalls of making use of local security personnel

It is always vital to make use of the local residents or security companies in the provision of security services. Given that the project is being carried out within an area whereby the company management is not conversant with the security situation, securing the services of a local security agency is well advised.

The local security firm will have an upper hand in offering efficient security services because it understands better the security needs of the area. Moreover, in relation to the social constructivism theory, cultural understanding is essential in the establishment of practical security system.

Even though security issues are currently approached with a global perspective, the local security aspects cannot be overlooked. Moreover, the local security firms will have already established good relationships with the local police such that they can offer them any kind of assistance they may require.

Making use of local security firms will also establish good public relations of the Caspian Construction PLC with local companies. It is essential that multi-national companies dish out some contracts in form of sub-contracts to the local firms within which they are carrying out a given project.

The locals will be even more ready to cooperate with the company because they are offering them employment. Moreover, in relation to the chaos theory, it is only the local security firm, which can comprehend well the prevailing security conditions. Even though much information can be obtained online regarding the security situation within Venezuela along with the crime rate within the earmarked site area, the information may not be adequate to formulate effective security policies.

In addition, the locals are well equipped with the local security laws and thus when they need to initiate lawsuits against other parties; they will take up the assignment with a lot of ease. The chaos theory is mostly based on the visual ‘butter fly effect’ whereby underestimated aspects can bring about unforeseeable effects.

While the idea of contracting local security agency may seem small, it can help much in mitigating various security issues. It is the local firm, which is well informed with the various forces, which can trigger security instability within the construction site.

Putting into consideration the contract involves runway construction within an airport; matters concerning security will be highly prioritized. Airports are sensitive areas and a slack in the security detail can put at stake the lives of numerous individuals (Fay, 2011). The contracted local security firm will be more dedicated in protecting its fellow citizens against any form of attack, which can be targeted to the airport as a result of the on-going construction work.

Moreover, the local security firm will also be well placed in communicating with the local stakeholders in regard to offering other types of support to the project. Given that they understand Venezuela better than the Caspian Construction PLC management, they will offer suitable advice on the local firms, which should be assigned various sub-contracting jobs. Sub-contracts should be offered to reputable firms.

In the event that the sub-contracts are assigned to unworthy companies, the security within the construction site may be at stake. Malicious sub contractors can even organize theft within the construction site. Information provided by various companies within their websites may not be the most appropriate for establishing their actual capacities (Sennewald, 2011). Some firms in the endeavour of expanding their client base post misleading information within their websites.

It will also be less expensive to make use of local security firms. These firms will be well informed about the various costs which they have to pay for various security equipments such as surveillance cameras. The local companies may attempt to fleece Caspian Construction PLC in the event that they attempt to purchase such equipment by themselves.

Caspian being an international company, majority of the local firms may be more concerned with taking advantage of the firm. However, making use of local security firms will be quite helpful in resolving such contracting obstacles. Moreover, the contract to undertake the runway construction was most likely awarded by the Venezuelan government.

The government will therefore be highly impressed to have local companies involved in the project because that will be a form of supporting local Venezuela business. Besides, it will be a good gesture by the company, as it will show commitment in investing in the country’s local economy.

Awarding the security provision contract to a local company will also assist Caspian Construction PLC in reducing the administration workload. This is due to the fact that the company management will not be involved in the recruitment, as well as, supervision of security personnel.

It will be the duty of the contracted local firm to carry out all the duties concerning the provision of security within the site. In addition, outsourcing security services increases the reliability of the security team (Fay, 2011). Given that the contracted firm is strictly involved with the provision of security services, its personnel will obviously be well trained and in possession of the desired experience.

Moreover, in case the need to replace the security personnel emerges, the local firm will be in a position to undertake that duty immediately without major constraints. On the contrary, in the event that Caspian Construction PLC decides to manage its security workforce, it may face staffing problems given that they are operating in a foreign land.

In case emergency cases emerge which require extra security staff, the local firm will be capable of meeting that requirement. The security needs within the site will not remain constant through out the construction period, as time progresses, there may be the need to trim down the security personnel.

The local security firm will accomplish that without making the personnel redundant because they will be posted to other stations. Besides, Caspian Construction PLC may not be in a position to retain the security personnel after the completion of the project.

Nevertheless, in the course of contracting the local firm, it is advisable to evaluate the company’s reputation along with efficiency. Even though there are numerous advantages associated with the contracting of local firms for the provision of security services, there are also several disadvantages linked to such a step.

The procedures of the security firm may not be suitable for the Caspian Construction PLC. The local firm may indulge in certain work ethics which may not be acceptable within the Caspian Construction PLC. The local firm may take security issues with much unnecessary concern.

The local security firm may also end up being sued for using unnecessary force in scenarios which did not require such forces. In the event that the firm is charged within the local courts for causing unnecessary harm on suspected vandals, disagreements may emerge on the firm which is supposed to take responsibility. In other cases, the costs of sub-contacting a local security firm may be considerably high than employing such personnel directly. The sub-contracted firms will cite various management issues to justify their exorbitant costs.

The other disadvantage is that the contracted security firm may have poorly trained security personnel. This will lead to making the construction firm even more vulnerable to incidents of theft. As mentioned earlier, most of the on-site thefts are masterminded by the workforce present in the site (Sennewald, 2011).

The contracted security firm personnel may not integrate well with the Caspian Construction PLC employees. Due to the poor relations between the security personnel with the other workforce on the site, it will be easier to plan equipment or even material theft. The loyalty of the local firm’s employees may also be questionable. Given that any equipment loss will not affect them directly, they may even abet in organizing equipment theft with willing parties.

Moreover, unfaithful security personnel can also take part in offering security information which is supposed to remain confidential to outsiders. Seeking the services of another firm to deal with security issue may impact negatively on the relationship of the construction firm employees with their management.

The employees may get the false impression that the company management does not trust them. In the effort to prove that such a measure was not worthwhile, these employees may organize equipment, as well as, material theft so that the sub-contracted firm may turn out as ineffective.

In the event that equipment loss takes place, the sub-contracted security firm may object taking up responsibility. This may lead to unnecessary costs as the Caspian Construction PLC may be forced to launch lawsuits against the firm. Besides, the insurance companies can also deny compensating for the lost equipment on the excuse that the company had passed the responsibility of taking care of its assets to another firm.

To overcome all these shortcomings, prior to warding the contract to a certain firm, it will be necessary to evaluate the company’s policies. Construction equipments are highly expensive and thus the hired security should have a good history in the security field. Besides, the company should be in a good financial position such that it can meet the costs of establishing vibrant security systems, which in most cases prove to be costly.

Reference List

Fay, J., 2011. Contemporary security management. Burlington, MA: Butterworth-Heinemann.

Sennewald, C. A., 2011. Effective security management. Burlington, MA: Butterworth-Heinemann.

Introduction

The concept of partnering emerged within the Japanese construction industry. Partnering refers to creation of an owner-contractor relationship which promotes achievement of mutual beneficial goals. It involves an agreement in principle to share the risks involved in completing the project, to establish and promote a beneficial partnership environment (Staveren, 2006, p. 237).

The commitment of those involved in the project is aimed at working closely instead of working as adversaries or competitors. The parties utilize such kind of design and construction methods with an aim of achieving an increased project value. They are guided by a moral charter in order to successfully implement the projects.

Partnering in Australia

The construction industry in Australia has a long lasting history of mutual partnering. The concept of partnering has significantly contributed towards the success of this industry. In the late 1980s, there was a prevalent view that an increment in the number of contractual claims and disputes in the industry had eloped in the Australian construction industry over the previous ten years.

A change in attitudes which forced parties to pursue or resist claims had been addressed often with little regard for particular merits of the claims. This inclination towards increased disputes and lawsuits as well as the changes in attitudes which promoted numerous aggressive and provoking relationships was perceived as a threat to the efficiency and well being of the industry.

Consequently, the co-operative was to be put at risk in terms of the attitudes that were necessary to achieve timely and efficient completion of buildings and construction projects. Concerns regarding this issue resulted into the formation of a Research Project Group comprising of senior management people from various stake holders such as; the Australian Federation of Construction Contractors, the Australian Institute of Quantity Surveyors and the Federal and State Government.

Construction partnering was officially introduced into Australia’s construction industry in 1992 through a series of seminars propounded by Charles Cowan. Since then, partnering in construction has been implemented in both the public and private sectors for both civil as well as building projects. Guidelines, principles and policies on partnering have also been devised and included in the New South Wales Government’s Capital Project Procurement Manual.

In 1994 the Construction Industry Institute instituted a task force whose major task was to come up with ways in which partnering preparations could augment the construction projects and industry as a whole. The endeavor of the investigation was to discover the criteria for thriving partnering, to determine what benefits mount up to the parties and eventually identify models which may be appropriated by the Australian construction industry.

The outcome indicated that there were numerous achievable approaches to partnering in the Australian construction industry in addition to varying degrees of commitment particularly on the part of industry participants and stakeholders (Stehbens, Wilson & Skitmore, 1999, p.234).

Prior to implementing partnering in a construction company, it has to be practiced and learnt over a sequence of projects (Harris, McCaffer & Edum-Fotwe, 2006, p. 87). This means that it requires an early loyalty in terms of management of the resources and direct costs. Organizations that share the same vision in terms of investing in partnering are the major contributors to the initial stages of the process.

Partnering entails an intensive investment in terms of organizing workshops that provide information to staff members and time on the part of the management in terms of instituting the necessary strategic plans. Other expenses include the costs incurred in terms of reviewing the content of the workshops and that injected into monitoring the process, valuation and instructing new organization members during the process of implementing the contents of partnering.

It is also reported that contractors incur increased overheads, quite often. Time was also necessary especially on the part of the senior staff members in terms of attending to meetings on partnering and communication of the findings and recommendation of such meetings to other members.

Definitely, effective partnering requires a competent and “time now” contract management which for some contractors, employers and organizations might regard as increased or extra expenses. Partnering in projects implementation may range from single to long term commitments. The organizations with specific business objectives capitalize on the efficacy of each other’s resources. For a successful operation, participants must have trust and be dedicated to achieving the common goals and values of the other partner.

Since its incorporation into the construction industry, partnering has improved the transactions in the construction industry in a number of ways. For example, predictability of both time and cost have improved since late design changes have became less as a consequence of early participation of carefully preferred chains of supply.

Similarly, an approach of early participation and forward scheduling increased the potential for cost reductions along with savings. In addition, a long-term relationship agreement provides a stability of works that allows contractors to comprehend the client’s desires. A pain or gain share formula also encourages supply chains to be innovative and improve performance. Further, problems are identified at an early phase and resolved in a collaborative manner.

Close communication plus partnering working within the projects reduces the defects and accident rates. Consequently, lessons learned are shared across the industry thus creating a culture of continuous progress. Finally, the findings of the processes of project assessment and standardizing presented to customers serve as markers of the progress of construction projects (Staveren, 2006, p. 238).

The graph above shows the findings of project assessment which indicate the extent to which construction management is successful. The data was generated from three major levels of management (that is) project results, cost control and the ability to meet project deadlines. Additionally, the process of project assessment involves measuring the ability of the construction teams and contractors to meet the required performance standards, customer requirements, and evading legal tussles among other issues.

By every measure those projects which had invested in formal partnering team building excelled over all the optional management relationships. The final result of the assessment process indicated that partnering enables engineering teams to achieve the required project performance and customer satisfaction when compared to other informal project management mechanisms that were in place (Skeggs, n.d).

Based on the findings above, it is evident that partnering contributes to numerous positive end results particularly in terms of the project upshots. However, despite the existence of misgivings in partnering, the process can benefit from additional research which will enable the stakeholders to evaluate and validate the benefits of the whole process in addition to singling out the prevailing problems.

Setbacks of partnering

Although partnering has demonstrated good construction project outcomes in the evolution of the construction industry as seen above, there are however shortcomings which are directly or indirectly linked to cost management. These disadvantages include:

Stale ideas- There are chances of gaining stability in partnership hence those in a partnership relationship become more used to each other. As a result, stimulation in the relationship deteriorates.

The contented parties may end up giving deliberate undervalued ideas to the other participants instead of giving respective interests that woud exploit the benefits of the collaboration. This is because one party may feel that it has achieved its goals using the shared resources. Naturally, some people work hard when there is some motivation of whatsoever kind.

The cost of consultations may be higher in situations where the partnering process produces more solutions which are to a greater extent alternatives of the same problem. Additionally, the cost of reviewing the content and evaluation process may overstretch the budget.This may imbalance with the level of the existing resources, hence the parties may be forced to stretch their limited resources so as to accommodate the urgency of partnering.

Reduced career prospects in the sense that the staff members involved in partnering might perceive it as an extra burden in terms of workload and something which might not in any way contribute to their career advancement.

Loss of confidentiality may also occur since partnering involves many stakeholders some of whom may be out to achieve their own interests. As such, chances of confidential information being leaked out become a common case. On this view it may be easier for the parties involved to use the leaked information as a competitive advantage instead of operating as equal partner. This may affect future relations among the parties.

Investment risk may occur in terms of investing in joint development for a project. For example, in the process of developing an electronic data intercharge system, it may be risky if the single project partnership does not extend into future contracts. As a result, the implementation of the project may be at a great risk and could at the end collapse. This would only mean a wastage of resources, time and energy since little can be done to salvage such a case.

Partnering in construction may also lead to high dependency risk especially when the partners become too dependent on each other for certain performance activities.

Corruption may arise in cases where a company strongly desires to establish partnership with another which is reputable and progressive. This leads to corrupt deals where one is willing to do anything just to secure partnership with a given company (McGeorge, Palmer & London, 2002, p.241).

Conclusion

Project partnering in Australia has registered tremendous positive development within the construction industry just after its introduction. However, it became disreputable due to the lack of alignment between the ethics and standards expected and the contractual framework that was in use. Despite this limitation, project planning has a high prospective of developing performance of the international construction industry.

There is an adequate theoretical and practical substantiation to point out that when effectively implemented, project partnering facilitates the improvement of the performance of the participating organizations. However, the benefits realized in most partnering projects are usually related to large-scale ventures rather than the small-scale projects.

There is a broad universal consciousness of partnering and a more accurate understanding of partnering along with its potential which is not widespread. Most high-ranking international industry institutions have no precise policy on partnering. It is thus imperative for partnering to be encouraged in most industries besides the construction industry.

Additionally, collaborative institutions or bodies should be established and given the responsibility of carrying out project assessment in order to provide the stakeholders with the required information pertaining project performance and validation.

Reference List

Harris, F., McCaffer, R. & Edum-Fotwe, F.2006. Modern construction management. New York: Wiley-Blackwell.

McGeorge, W. D. Palmer, A. & London, K. 2002. Construction management: new directions. 2^nd Ed. [E-book].UK: Blackwell Publishing CO. Web.

Skeggs, Chris. n.d. Project partnering in the international construction industry. International Federation of Consulting Engineers. Web. Web.

Staveren, V. M. 2006. Uncertainty and ground conditions: a risk management approach. [E-book]. Great Britain: Elsevier Ltd. Web.

Stehbens, K.L. Wilson, O.D. & Skitmore, Martin, R. 1999. Partnering in the Australian construction industry: Breaking the vicious circle: Australia: Queensland. University of Technology. Web.

Introduction

A contract is an agreement between two or more persons, which becomes binding on them once they consent to its terms and conditions. The companies are regulated by rules and terms of engagement, which are spelt out in the agreement. Penalties for failing to adhere to the rules are also clearly defined in the contract agreement.

Each company wishes to benefit from any given contract and will, therefore, endeavor to ensure that the other company in the contract does not derail its activities. This calls for strict rules and tough penalties for delinquent parties as outlined in most contracts.

Background of the Study

The Mirage Resort (MGM) is an exquisite hotel in Las Vegas, USA. Dubai World, on the other hand, is a global construction company in Dubai specializing in the areas of transport and logistics, urban development, investment and financial services.

On 21^st August 2007, MGM entered into a contract with Dubai World (DW) to build a gaming center for the hotel.

Purpose of the Study

This study aims at analyzing in details the components of a contract. It shall study obligations for each party, remedy for failing to honor the obligations, division of responsibilities between the parties and methods of solving conflicts whenever they arise.

Methodology

This study gathers information from secondary documented sources. These are available in print and electronically on the internet.

Literature Review

Parts of a Contract

Duties

Parties to a contract have specific responsibilities and obligations that they must meet in order to achieve the contract goals. These vary depending on the nature of the contract, but strict measures are outlined to deal with parties that fail to perform their duties (Gido, 2006).

Rights

While each party has duties to carry out, they also have rights that defend them from malicious intentions of other parties so that each side enjoys equity in the share of the benefits of the contract (Gido, 2006)

Dates

A contract should have the dates of commencement of the contract and its ending. The start date of a contract is usually known, but the termination date is determined by factors like the death of a party and breach of duty by either party among others. Clear guidelines to indicate the end of a contract are necessary in order to avoid ambiguity and conflict among members (Plimpton, 2007).

Payments

Periods, mode and rate of payment are clearly indicated in the contract. Interests, fines and rates of units are all included so that parties are able to control and determine the amount they get (Gido, 2006).

Confidentiality

Details of the contract should be kept within the parties alone. Third parties should not be included in the agreement. In case of conflict, appropriate ways of arbitration should be sought to avoid speculation by third parties (Plimpton, 2007).

MGM and DW

Organization

Within five days of signing the agreement as written, members will have to establish a limited liability company. This is the company referred to in the agreement. This company shall be formed in accordance with provisions of the companies act in Nevada and those in the agreement (Kohn et al, 2007).

Upon formation, the company shall immediately enforce the legal requirements as outlined in the agreement forming the company. These shall affect all rights and obligations of the member companies that are relevant to the formation certificate (Kohn et al, 2007).

The two companies agree to contribute specific amounts of money to the company formed. MGM will contribute to the project while DW will contribute to the initial capital, according to the terms set in the agreement (Kohn et al, 2007).

Name

The two companies agree that the resultant company shall be called City Center Holdings, LLC. In this regard, all business transactions by the company shall be conducted under this name henceforth. In case of the need to use a different name, such will be agreed upon by the board of directors representing both companies (Stutz, 2007).

Place of Business

The place and location of business are yet to be selected and approved. This shall be done by the managing members who will agree on the appropriate location. In case of disagreement, voting will be done in order to reach an acceptable consensus. Change of this location will have to be agreed upon by the board of members through open deliberations (Kohl et al, 2007).

Business of the Company

The company will deal in the business of acquiring and owning assets of the project. Besides, it will design, develop, construct, finance, own and manage all operations of the project. In addition, the company may, in accordance with the laws of the state of Delaware on limited companies, engage in related business activities by initiation of accidental occurrence.

The related activities may include owning and operating subsidiaries in accordance with the rules in the agreement. These subsidiaries may be wholly owned by one or more individuals. The capacity for engagement in such venture is not limited as stated here. Deliberations on more ventures are open for discussion by the board members whenever a need arises (Stutz, 2007).

Purposes Limited

The company shall not take part in any other business activities unless as stated in the agreement. Members shall not carry out such activities in the name of the business or serve as representatives of other members in such activities. Such actions shall be dealt in accordance with the legal specifications as outlined in the agreement (Stutz, 2007).

Individual Obligations

Members are bound to use the company assets for the company’s needs and benefits alone. Company assets will not be used to settle individual members’ obligations such as debts or pledges. Exceptions can only occur when such use is set forth in further Additional Agreement.

This means that the company shall have considered the case and given authorization for such use. When this happens, regulations outlined by the company additional agreement shall bind the benefitting individual (Stutz, 2007).

Statutory Compliance

The company shall exist and be subject to the laws of the state of Delaware. The agreement, therefore, shall be enforced in line with the laws and all necessary adjustments and amendments shall observe the laws of the state.

This shall, however, exclude conflicts that shall emerge on matters of law. In such cases, both contexts as applicable in the UAE and the state of Delaware shall be incorporated in case solving (Kohn et al, 2007).

Title to Property

All property accrued to the company shall be owned by the company. The property may be real, personal, tangible or intangible. There is no person who shall have the right to claim any such property for personal use (Kohn et al, 2007).

Duration

The company shall begin to exist from the date it is formed according to the agreement. It shall exist indefinitely until it shall be dissolved and liquidated in accordance with the provisions of the agreement (Kohn et al, 2007).

Conduct of the Business

The company shall exist and operate as a holding company. It will conduct its business operations and own property by a single purpose limited liability that is wholly owned (Kohn et al, 2007).

Members

Identification

MGM and DW shall be the rightful members of the company. Persons not belonging to the two companies shall not become members of the company. Exclusions are made for transfers if persons are outlined in the agreement. Such transfers must be done openly, with both relevant members of the two parties informed in good time and appropriate procedures (Stutz, 2007).

Services of members

Members of the company shall be required to dedicate the necessary time and effort in order to meet the requirements of the company and those of the members. The members are not obligated to devote full time to the company operations beyond the required time. They are free to engage in other business activities and ventures in as long as they do not contradict the requirements of the company.

In such ventures, members engage as private persons and shall not use the name of the company nor represent the company. Members can also partake in ventures that are competitive to the company business. In such cases, the business or members of the company shall not demand of the member any dues from the venture (Stutz, 2007).

Reimbursement and Fees

Members shall not be compensated or reimbursed expenditure on the management or running of the company. If a member uses his own money to settle administrative expenses, such shall be considered charity. Exception exists when such expenditure is authorized expressly or by additional agreements. In such a case, the member shall be refunded the amount spent or as otherwise agreed (Kohn et al, 2007).

Transaction with Affiliates

Upon the approval of the board of members, the company may engage a member, employee or affiliate member in the business operations. Unless stated in the additional agreement, the member engaged under these conditions shall not receive any favorable treatment unlike that of unrelated employees. Engagement in this case, therefore, is at the member or affiliate’s cost (Kohn et al, 2007).

Indemnification

Members, employees, agents or affiliates of members of the company shall not be liable for compensation or damages to the company and members of the company in case of loss or injury while on duty. Such an act, however, has to be ascertained to have occurred in good faith and while carrying out operations of the company.

The manner of occurrence must be shown to be within the scope and authority of the company and proven that due care was taken to avoid the occurrence.

The Instances of gross negligence and voluntary will to hurt disqualifies the act from the omission of indemnification. As a result, the person guilty of the commission or omission is liable for damages to the company or the individual hurt (Kohn et al, 2007).

In case of viable case for indemnification, the indemnified party shall not be held accountable for any loss or damage incurred by the company or any member. The company shall defend the party from actionable cases arising from the actions of the indemnified person.

Such action should not, however, include fraud, malicious intentions and gross negligence on the part of the indemnified person. Whatever decisions the company takes, to indemnify or not to, it should reflect the best and good faith intended by the company (Kohn et al, 2007).

The indemnified act shall be compensated by insurance or proceeds thereof. In the event that the act cannot be paid by insurance, compensation must be made through the company assets in manners appropriate. No individual member shall be obligated to settle the cost, unless as voluntarily and expressly agreed or by any such additional agreement. The indemnified person is by no means bound to settle the costs (Stutz, 2007).

Capital Contributions

Issuance of Units

The hundred members shall each receive a unit upon formation of the company. If any member shall find appropriate to make additional contributions, there is freedom to do so and the necessary documentation should be done.

The clause on units is open for frequent revision to reflect units issued to members at any one particular time. The units represent the ownership and voting capabilities of each member. The more the units a member owns, the more the rights. This, however, does not necessarily apply to distribution of profits (Stutz, 2007).

Initial Capital Contributions by Members

Each member should contribute initial capital as required by the agreement. MGM shall, in the close of the project, contribute all assets of the project to the company.

In order to legitimate the transfer of title for MGM to the company, MGM shall have to surrender a bill of prove for the sale, assignment intangible products such as leases, contracts and intellectual property. It shall also transfer tax forms that will have to be up to date (Stutz, 2007).

For MGM to become obligated to make the initial capital contributions, DW shall have to comply with its obligations as stated. The company shall have to have been formed, DW shall have obtained authorization to run the company according to legal procedures, DW should prove not to be a default member, the period for waiting for the surrender should have expired and no legal action should have been commenced on the details of the agreements. This means that the agreement must be lawful for the surrender to be legitimate (Stutz, 2007).

Upon MGM meeting these requirements, DW shall become liable to make its initial capital contributions as agreed in the agreement. DW must verify and be fully satisfied that no major changes were made to the project from the original expectations. MGM must have met and fulfilled its requirements as outlined in the agreement. The company too must have been formed in accordance with the agreement and DW received survey results of all assets of the project (Stutz, 2007).

When all the requirements will be met, the county officials need to approve the project and verify the premises that will be legally owned.

Failure to Make Capital Contributions

When one company fails to honor its obligations and does not meet its initial capital contribution, the other company may issue the delinquent company with a notice and take legal measures to obtain the contributions. The expenses incurred during such an undertaking are settled by the delinquent member.

The amount sought in this case is the total original contribution by the delinquent member, plus interest accumulated. Interest is calculated from the day the contribution was due to the time they are actually availed. Besides, the delinquent member is obligated to pay the other a 10% of total unpaid capital as inconvenience fees (Kohn et al, 2007).

Capital Accounts

Each member shall have a capital account. This account shall be maintained for as long as the business shall exist. The account shall be increased in proportion to the amount as increased by the member’s contributions. Any amount of money that a member shall incur as loss or liability to the company shall be decreased from the account (Kohn et al, 2007).

Return of Capital

Unless stated otherwise in the agreement, no member shall withdraw company capital for personal use. Members shall not be paid interest on capital contributions they may make toward the company.

Covenants

Financing

The company is allowed to employ unlimited legal efforts to seek its funding. The terms for seeking such funding shall be outlined by the board of directors (Kohn et al, 2007).

Licensing

Each member shall, upon formation of the company, employ reasonable commercial resources to obtain the various licenses as required by the business by relevant authorities. Each member shall be obligated to cooperate with authorities in pursuing illegal gaming practices. In the event that a member or member of the company obstruct efforts to get the right documents for gaming, then MGM shall be empowered, at the expiry of a ten day notice to DW, purchase to own all rights of ownership from DW (Stutz, 2007).

Confidentiality

Each member and their affiliates agreed not to disclose company information to the general public without prior approval by other members. Secrets of trade shall be kept from non-members and only disclosed carefully to members and affiliated parties. Such information can, however, be disclosed freely when it is already in the public domain.

This way, it helps the members to give accurate information that is not distorted by speculations. It can also be disclosed when needed by a supplier or client, or when the information is needed by legal bodies for actionable reasons (Kohn et al, 2007).

Intellectual Property

Trademarks, service marks, logos, trade names and copyrights shall be legally owned by the company. Re-use of the items by another company or individual shall be treated as illegal and will require legal action. DW and its affiliates shall not have the rights to use the company’s signs elsewhere for activities besides those of the company, except as may be expressly implied in additional agreements (Stutz, 2007).

Warranties

It should be agreed by both members that MGM is a corporation of Nevada. This gives it powers to exist as a valid entity within the state’s laws and has the power to execute the terms of the agreement. All benefits accrued to MGM are owned directly by MGM MIRAGE. MGM approves the terms of the agreement and agrees to be bound by them by signing the document (Stutz, 2007).

It is also vital that members should not hold criminal records with regard to their businesses. DW should agree to the terms of the agreement being subject to rules and regulations of the state of Nevada.

The knowledge and acknowledgement of the agreement means the same for the company owners Abdul Wahid Al Ulama and Kar Tung Quek. Members should also acknowledge that DW is a government decree of Dubai, solely owned by the government of Dubai and existing legally and in good will of the laws of Dubai. DW too has given its consent to the agreement and agreed to be bound by its requirements (Stutz, 2007).

The Entire Agreement

The agreement is superior to individual members and needs. It is a complete and inclusive statement of a contractual agreement binding the two parties by its specified terms and conditions. Each of the two parties has agreed to be bound by the terms of the agreements and accept liability for failure to observe the terms (Kohn et al, 2007).

Conclusion

This study analyses the components of a contract by a construction firm in the United Arab Emirates. It outlines the major parts of a contract, the terms of agreements that bind the two parties of the contract and remedies for failure to honor the terms.

In the case above, the two parties, DW and MGM are treated as legal entities, whose actions can be actionable before a court of law. The interests of the contracting parties take precedence over those of individual members and efforts of the members are in line to achieving the goals as outlined in the agreement.

Recommendations

The study on contracts is a wide one that requires deep and critical analysis than the one allowed in this study. Because of limited time and space, a lot about contracts has to be left out as even the included sub-headings are in summary. I would, therefore, recommend that another study be formulated, which will gather sufficient information on the process of contracting so that the study findings can be more useful to interested parties.

Reference List

Gido, J. & Clements, J. (2006). Successful Project Management. KY: Thompson South-Western.

Kohn, A. E., Macomber, J. D. & Creo, B. (2009). City Center (B): Economics and Delivery. Harvard Business Review, 2. pp 435-37.

Plimpton, L. (2007). Business Contracts: Turn any Business Contract to your Advantage, Entrepreneur Legal Guides. Irvine: Entrepreneur Press.

Stutz, H. (2007). MGM Buys Parcels for New Center. Las Vegas Review Journal, 3(1) 23.