Dr. Abdulaziz A Bubshait Dean, College of Environmental Design

1. Looking for Innovative ways to Manage Projects During the Global Financial Crisis Dr. Abdulaziz A Bubshait Dean, College of Environmental Design Chairman, Department of Construction Engineering & Management (A) King Fahd University of Petroleum & Minerals Dhahran, Saudi Arabia 1

2. Presentation outlines Definitions Financial Status & the Present Conditions Innovative Ways to Manage Projects VICTORY Model Closing Remarks

3. Values of Capital Projects in Arabian Gulf countries 2008-2013 October 20, 2008

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7. Changes What is the effect of Global financial crisis on construction industry?

8. Economical ImpactsJan 2005- Dec 2008 Oil prices: $40-$ 147-$60 Many Mega Projects High development rate 8

9. Economical Impacts Jan 2005- Dec 2008 World Economical Recession Reduction of 58% in the value of Dollars Inflation rate 10.4% (April 2008 SA), 13.8% Qatar Inflation control Recession control High cost of Construction Materials (prices 250% up) Scarcity of Engineers/Skilled Labor  Glut of workers Escalation of lands Prices (200-300%)decline in prices What is the Effect of Rapid Changes on construction Industry

10. October, 2008

15. Where are we heading to? Projects cancellation? Projects Delay? Difficulties in Project Financing? Cost/Budget overrun? Quality? Bankrupts/ Projects failure?

16. Integration Time Scope Cost Project Management Quality Risk Human Resource Procurement Communications 9 Core areas for improvement

17. Innovative Methods to manage Projects Effective utilization of Technologies Contract Types/Risk Allocation Quality Improvement Victory Model

18. Effective Utilization of Technology: e-project Management . . .

21. Doha International Airport, Qatar

22. Tools for Improvement Project Management’s Value Practices • Project Definition Rating Index (PDRI) • Schedule Optimization • Scope Control + Change Management • Constructability • Lessons Learned • Value Engineering • Benchmarking

23. Remote Data Entry CII Database Project Reports Industry Analysis CII Benchmarking System

24. When To Use Best Practices HIGH HIGH DBSP Proposal Design Procurement Construction Cost of Changes Ability to Influence Outcome Start-Up $$$$$ LOW LOW PROJECT PROGRESS Optimum Time For Best Practices

25. Types of Contracts Cost Reimbursable Min Min Lump Sum Lump Sum + Variation Bill of Quantities Admeasurement Schedule of Rates Owner's Flexibility Owner’s Control (Contract Type) Cost + Fixed Fee Cost + % Fee Max Max Client‘s Risk Min Max Contractor's Incentive to Perform Max Max Min Client’s Project Definition Firm Changeable

26. Project Schedule Duration vs.Type of Contract 5 Engineering Required to Start Construction 4 Construction Contract Type 3 Start of Construction Project Completion 2 1 Project Duration 1. Cost Reimbursable w / %Fee 2. Cost Reimbursable w / Fixed Fee 3. Cost Reimbursable w / Incentive 4. Guaranteed Maximum Price 5. Lump-Sum Fixed Price

27. “Continual Improvement” Continual improvement is a permanent objective of the organization.

28. Example of InnovativeProject Management System: CDPM ُ ProjectManagement + TotalQuality Management = Customer Driven Project Management 28

29. CDPM Requires a T Q M Environment openness, honesty, trust, communication, involvement, Ownerships innovation pride of workmanship accomplishment individuality Creativity strategic thinking, and personal commitment to be the "best.“ It must include the entire organization and be shared by everyone in the organization.

30. VICTORY Environment focused on total customer satisfaction Vision and the leadership to make it happen. Involvement of everyone and everything. Continuous improvement system. Training and education. Ownership. Rewards and recognition. Years of support and commitment.

31. V I C T O R Y V I C T O R Y V I C T O R Y V I C T O R Y

32. In ClosingCHANGE IS IMMINENT ENGINEER IT PREPARE FOR IT RESPOND TO IT

33. BE PREPARED TOPAY FOR IT OTHERWISE