FIFA’s decision to award Qatar the vote to host the World Cup tournament in 2022 has created a lot of debate, excitement, uncertainties, opportunities and challenges to different stakeholders. It will be the first country in the gulf region to host the most watched sporting event in the world. To accomplish this, there are many questions and challenges to be addressed. The country’s ability to be ready by 2022 is questionable since most of the proposed projects are yet to start.
The country has planned to have 12 stadiums ready by 2022. There are several other mega-projects that are set for completion by the end of 2021. An international airport is set to be complete by 2013 at a cost of $13 billion. A new deep water port is set to be complete at a cost of $5.5 billion. In addition, there are roads and highways which are estimated to cost a total of $ 20 billion. From the figures, it is evident that the country needs to stretch its financial resources.
Other significant challenges the need to be addressed in Qatar include laws regarding women’ dressing, alcohol, and rights for people with different sexual orientation, just to mention a few. Logistical challenges, labor and accessibility of materials are further expected to be major obstacles towards having the projects completed on time. How the country manages these concerns will determine its capability to have the projects completed on time.
This paper discusses the challenges in detail and addresses tools that will help the country manage not only projects, but also the number of visitors it will be expecting, their security and the interest of different stakeholders. Information was collected through the study of books, past research projects, reports from different stakeholders, and statistics from government and non-government organizations.
Background of Qatar
The State of Qatar, simply known as Qatar, is one of the Arab Emirates in the Middle East. “The State has ruled as an absolute monarchy by the Al Thina family since the mid-19th century” (International Monetary Fund Legal Department 10). It is considered one of the most exciting countries in the Middle East due to its predominantly young population, a thrilling economy and the fast rate of modernization. It is highly applauded for its far-reaching and education centers supporting education and research in the whole of Middle East.
The country gained its independence in 1971 and is today one of the wealthiest states in the gulf region. Qatar gets its wealth from its enormous natural gas and oil revenues. Its population has more than doubled in the last ten years and is expected to reach 124% by 2015 (United Nations Dept. of Economics and Social Affairs 114). According to Qatar’s ministry of municipality and urban planning, the population is expected to be over 3 million people by 2022. The growth is largely attributed to western immigrations as a result of the region’s economy growth. This is evident from the fact that Qatar’s native population numbers only 200,000 (Hyslop 12). By 2030, analysts expect the population to start decreasing again or grow very slowly. This is from the assumption that most projects in the region will be complete and investors might start migrating to other new markets. As economies mature, population growth rates in the corresponding regions tend to moderate.
Big populations of immigrants are involved in building Qatar’s infrastructure and different housing projects. When these projects are done, they are all bound to return home or relocate to different markets. Meanwhile, they are very significant to Qatar and business people in the region, since they provide the much needed market to sell different goods. A big presence of immigrants is a result of the fact that locals are not well trained for the job opportunities coming up. The country still lacks trained professionals in industries coming up and has to rely on foreign labor. As time goes by, more locals are being trained in different professions and they will start taking over jobs held by immigrants.
The energy industry has also attracted a big number of immigrants. Almost half of foreign human resources are involved in building the regions energy infrastructure. The state has incredible energy potential and is seen as a being likely to outperform other oil producers in the region. As a result, it is investing heavily on gas facilities which have attracted a lot foreign attention and investors. Being a young market in the oil industry, many foreign investors have had to bring their own professionals and personnel. Its young energy industry thus contributes much to the population growth.
Qatar’s international relations and policy is based on diplomacy, respect and promoting peace. “Beginning1992, Qatar has built intimate ties with the United States, and is now the location of U.S Central Command’s Forward Headquarters and the combined Air operations Center” (Ali and Hassan 123). As a result, it enjoys a high level of support, even as it embarks on a major project such its bid to host the World Cup in 2022. “Qatar has the world’s largest per capita production and proven reserves of both oil and natural gas and in 2010, the country had the world’s highest GDP per capita, while the economy grew by 19.40%, the fastest in the world” (Central Intelligence Agency 2). The rapid growth is attributed to an increase in exports and production of petroleum products and the related industries.
Qatar’s standards of living have substantially improved in the last ten years. The state has posted a surplus in its budget for eight consecutive years starting 2000 to 2008 (International Chambers of Commerce 34). Oil and gas account for half of Qatar’s budget as the industry continues to enjoy favorable investments from both locals and foreigners. It is now the second in the list of countries with highest per-capita income. “As a result of this, the country today has a high standard of living while its citizens enjoy all amenities that people in modern states do” (International Chambers of Commerce 34).
Improved standards of living, availability of job opportunities and good salaries have given the people of Qatar access to the best medical care. It has made it possible for them to afford good foods and take care of their nutritional needs. Since more people are able to take care of their basic needs, levels of depression and other psychological conditions are minimized (Zuhair 30). Qatar has fitness centers with the most modern equipments, mainly put in place to cater to tourists and foreign professionals working in the region. Locals have therefore benefited from them and learnt to appreciate sports and other physical activities more.
Qatar 2022 World Cup
Qatar’s bid to host the 2022 World Cup has created a lot of excitement among those in the construction and project management industry. The country hopes to make history by being the first country in the region to host the most watched sporting event in the world (Marshall 2). To accomplish this, the task ahead will involve a lot of expertise on how to manage mega projects. Furthermore, the amount of money required to host such an event is enormous and would require very professional planning and budgeting. For such a small country, the world will be watching to see how well Qatar can manage the projects and how successfully they can be completed. Areas of interest will include technological innovations to manage weather, environmental concerns, communication and trading activities.
To accomplish the objectives of this paper, there will be a review of main mega-projects in the region such as hotels and stadiums. The gulf region has in the recent past experienced an increased level of interest from investors in the real estate industry. The UAE is home to Burj Khalifa, the tallest buildings in the world and the Dubai Mall, one of the biggest shopping malls ever built. Qatar is in the process of building one more mega-project. Lusail is a city which does not exist on the world map, but in 11 years Qatar government is planning to build this city which going to inhabit 200,000 citizens. It is planned that his city will host the World Cup final (N.A. 2)
Looking at the plans devoted to the stadium building, it is impossible to avoid the fact that their architecture and design impress with magnificence, innovations and beauty. The use of the innovative technologies is inevitable as the design issues predicted to be implemented require direct technological assistance. Stadiums that the country intends to build include the Doha Port Stadium in Doha designed by Albert Speer & Partner with expected capacity 44,950, Al-Shamal Stadium in Al-Shamal with expected capacity 45,120, Al-Khor Stadium in Al-Khor with 45,330 capacity, Umm Slal Stadium in Umm Slal with expected capacity 45,120, Education City Stadium in Al-Rayyan (capacity 45,350), Al-Wakrah Stadium in Al-Wakrah (Expected capacity 45,120), Qatar University Stadium in Doha with expected capacity 43,520, Sports City Stadium in Dohawith 47,560 capacity, and Lusail Iconic Stadium in Al-Daayen with expected capacity 86,250, a masterpiece of engineering (“World Cup 2022” n.p.).
Those to be re-constructed are the Al-Gharrafa Stadium in Al-Rayyan (44,740 capacity), Khalifa International Satdium in Al-Rayyan (68,030 capacity), and Al-Rayyan Stadium in Al-Rayyan (44,740 capacity) will experience the major renovations (“World Cup 2022” n.p.). The reconstruction of these stadiums is necessary as they do not meet FIFA requirements being in the present condition. There are also other projects which the country has to complete before 2011 to facilitate a successful World Cup. They include roads, shopping malls, and airports, among others.
The issue of temperatures and climatic conditions appears to be the biggest challenge for the region so far. The temperature in Qatar sometimes reaches 115 degrees Fahrenheit that may be extremely inconvenient and even harmful not only for team members but also for fans. Keeping in mind the climate peculiarities of the country, Qatar government has found a perfect solution to the problem. Most of the stadiums are going to have canopies which may be closed and the air-conditioning systems are going to work with the maximum efficiency. Skeptical consideration of such specific system shows that solar energy is able to heat water to 200 F as well as to cool it. The cooling systems have been used for 100 years in industrial needs, so it can be easily transmitted to the utilization for human needs. The system works by using solar collectors located next to the photovoltaic panels with a number of mirrors, which are going to direct sun power to the necessary direction. The gathered energy is collected in specific tubes used for conversion into cooling for the stadium (“Qatar 2022 Showcase” n.p.).
Such facilities and other technological innovations are all included in plan for Qatar World Cup 2022 to meet FIFA’s requirements and make the event comfortable and of the desired level. It should also be mentioned that the president of FIFA Sepp Blatter has in the past offered to move Qatar World Cap 2022 from summer to winter. Such decision may help protect health of the players as it is too difficult to play while enormous heat. Blatter states that, “We must play at the most adequate period to have a successful World Cup. To have a successful World Cup, we have to protect actors, the players, which could mean playing in winter” (Casey 3). Still, such decision faces the dissatisfaction of the big clubs in Europe as if the World Cup 2022 is moved to winter, their national league schedules will be disrupted and inconvenienced.
The issue of laws and regulations is of a major concern to players, fans and other stakeholders. Being an Arabian country, Qatar has specific relation to drinking alcohol in the public places and cloths wearing, especially for women. The problem with drinking in public may be easily solved by the creation of the special spaces, but the issue about cloths for women and other related questions have not been considered yet (“Qatar to host football World Cup in 2022” 8). In the past, the gay community has engaged the FIFA executives in continued debates over their rights in the country during the event.
Accessibility of stadiums will have to be addressed comprehensively to make it easier for fans to enjoy more games. According to the bid committee, the stadiums are located in such a way that each of them can be reached within one hour from FIFA World Cup 2022 headquarters. This will help fans watch more than one match a day. An absolutely new metro system is going to be built. Its total length is predicted to be 320 km. The accomplishment of the project is predicted for 2021. Moreover, the highway system and water taxis will also allow fans and teams to reach the place of destination for less than an hour. One more benefit from such compact location is the possibility of a team to remain in their team base camp for the whole period of the tournament (“FIFA World Cup Stadiums, Qatar n.p.). This paper seeks to answer the questions raised by the above named issues, as well as answer the question on whether Qatar has what it takes to host the games.
Major stakeholders and their expectations
The most important stakeholders of this project are the people of Qatar. 2022 World Cup is expected to attract more than 500,000 million visitors during the season. It is also expected that the number of tourists will go up just before and after the World Cup. Qatar hopes to use the tournament to market itself as a tourism destination. If the country is able to achieve this, it will be able to diversify its sources of income and reduce dependence on the petroleum industry. The people of Qatar are bound to benefit from having a more beautiful and developed country. They are also the main beneficiaries of the current situation in the construction industry. The numbers of projects under construction today provide an incredible opportunity for experts and other employees in the industry.
Other significant stakeholders in Qatar 2022 World Cup project are business people in the region. The country is expected to expand its hotel’s capacity by over 30% by the year 2022. Hotel and accommodation industries are expected to be the biggest beneficiaries of the tournament. Throughout the World Cup season, it is expected that there will be more than 400,000 visitors in Qatar at any particular time. During the final matches, it is expected that the number could be as high as 700,000. The hotel industry is expending and is expected to reap maximum benefits during the tournament. However, they face a challenge of ensuring that the facilities remain relevant after the tour is over.
The government is the biggest stakeholders in the project. It is financing more than three-quarters of the projects being constructed, and other activities that are lined up to ensure a successful tournament. The government is expected to spend over $4billion by the year 2022 in stadiums and related preparations. It is also responsible for ensuring that other challenges such as laws and regulations are addressed. They will however benefit from the facilities that are being put in place for many years after the tournament. For example, power supply is being boosted and 100,000 more homes will now be powered in the area due to increased capacity.
Other important stakeholders in this project include sponsors and financial partners such as the banks and other external donors. The sponsors will expect a project worth their money, one that is sustainable and one with a high rate of return. The sponsors’ expectations will be met by ensuring a high quality work and a timely completion of the project. It will also be through giving them a project that will have a long life cycle. Environmentalist and naturalists are important stakeholders in the project. Through negotiations and consultations, the project managers should be able to come up with measures that minimize the project’s effects on the environment and other natural resources. Such measures include proper disposal of waste created during construction and installation of proper safety measures. It will also be through a proper site evaluation and environmental analysis, to ensure that no natural resources such as rivers and animals are interrupted.
Background of the study
Qatar has been chosen as a country which is going to host FIFA World Cup in 2022. Many scholars have expressed misunderstanding and dissatisfaction with this decision for a number of reasons. The one of purposes of this research paper is to consider the issues related to buildings and other facilities the country is going to face and to identify whether the decision FIFA has made is objective and an Arabian country Qatar will manage to host such a great tournament as World Cup 2022. To check evaluate the decision made by FIFA, it is important to consider several issues. The main mega-projects and World Cup facilities are going to be discussed along with critical evaluation of the environmental factors, transport and communication, and other components required for providing successful World Cup 2022. The research is going to focus on the already built and planned to be built stadiums, hotels, and other issues which require renovations to meet FIFA demands. The literature sources are going to be considered and the information will be analyzed to make it possible to relate the discussion to the critical issues in the design and construction of the Qatar World Cup buildings and facilities in 2022. The following facilities should also be explored, environmental factors, transport and communication, assembly and dis-assembly, and reconstruction of the facilities somewhere else, climate change and emission control.
Establish and discuss critical issues in the design and construction of the Qatar World Cup Buildings and facilities for 2022 World Cup
- Review previous mega-projects in the gulf region, their management and outcome
- Analyze critical issues in project management and planning
- Study FIFA’s decision to allow Qatar host the 2022 World Cup, and try to understand what specifically Qatar offers to make FIFA prefer it over USA, Australia, and some other developed countries that submitted their bids
- Research on managerial and design issues in the construction of Qatar World Cup 2022
- Being aware of the number of changes and innovative facilities used in the preparation of Qatar to World Cup 2022, the paper will discuss measures put in place and those available to make the projects more “green” and environmentally friendly
- Present findings of the paper and prepare a conclusion and recommendations based on them
The research methodology applied in this paper included study of books, academic journals, online articles, past projects by different authors, government and non-government statistics on the role of Qatar in ensuring the world enjoys a successful World Cup in 2022. Government and non-government reports were very resourceful in understanding the statistics and preparations being put in place for 2022. To come up with a comprehensive report, several subjects and topics had to be studied. The process of doing that included a study of various works on different topics. These topics include project management, Qatar’s construction industry and important trends, crisis management, preparation, the role of the economy, stakeholders in Qatar’s project, ensuring quality during construction and managing labor needs, just to mention a few.
Study of books and different articles reveals that Qatar is perfectly capable of hosting the World Cup because it has the financial capacity to manage different challenges that may arise. To manage challenges along the way, developers of mega-projects have realized that the most important factor in completing a big project successfully is preparedness. As a result, a lot of attention is being focused on preparedness and prevention of any incidents which could hinder progress in a timely manner.
It is also clear that Qatar is spending a lot of money to ensure safety for their citizens and foreign investors. Such information was collected from various reports by governmental and non-governmental organizations. These reports served very effective and relevant in trying to understand this paper’s concept. Recent and past books and research papers by different authors were also helpful in understanding the World Cup and what is required to have a successful tournament.
Project management of Mega-projects in Qatar
Qatar is setting a new record as far as hosting a World Cup is involved. The country is set to have a new international airport at the cost of $13 billion to be complete by 2013. Roads and highway projects will cost the country more than $20 billion. Another $5.5 billion will be spent on a deep-water port in Qatar. The stadiums and other entertainment facilities built specifically for the World Cup will cost the country more than $4 billion.
Estimated construction industry growth in Qatar
Tools and techniques for mega-projects in the gulf region
Developers and constructors in the gulf region are constantly outdoing each other to create history. The biggest and most costly projects are those in the petrochemical and petroleum industries. In the construction industry, examples of mega projects in the gulf region include “The Palm and World Islands, Burj Dubai, Burj Dubai, Burj Al Alam, Al burj, Dubailand, Reem Island, Al Zorah, and The Pearl Qatar, among others” (Kahkonen 14).
Termini defines “project management as the discipline of planning, organizing, securing and managing resources to bring about successful completion of specific project goals and objectives” (23). The objectives of project management could vary with different projects but all serve the purpose of ensuring that the project runs smoothly and is completed on time. Project management is also an important tool when identifying risks and managing them. The development phase in Qatar’s 2022 World Cup projects and facilities will include initiation, planning and design, executing, monitoring and controlling and finally closing.
“The best avenue for driving a project’s performance gains is managing the implementation of its processes” (Winser 22). Identifying the key processes in a project is the first and most fundamental step for any team planning to execute their strategy. Project management is only productive if the results will be aligned with its strategic objectives. Key project processes are easily identifiable by their level of impact on the success of the project. They are those processes whose success or failure has serious implications on the team’s goals and revenues. For a project to be successful, its implementation and management has to be given priority and has to be right. It should also be specific to a team’s or a country’s unique policies, goals and approach (Wells 20)
The gulf region has experienced an exciting season of construction in the last ten years. The region is home to some of the biggest buildings and shopping malls, among other projects. The UAE is today home to the tallest building in the world, and a shopping mall listed among the biggest globally. Most of the mega projects in the gulf region are located in Abu Dhabi. Among these projects is Khalifa City, which is expected to be the new capital center of Abu Dhabi city. The YAS island is a $40 billion entertainment mega development, planned to be the first Ferrari theme park.
Villamar Towers in Abu Dhabi was constructed on its own island at a cost of $650 million. In 2007, Qatar had its tallest building completed. It was designed by architect Hadi Simaan and build under the supervision of engineer Ove Arup and partners. The Aspire Tower’s height is 300 meters (984ft). It is currently the tallest building in Qatar but will soon be surpassed by the Barwa and Dubai Towers. The Doha Convention Center Tower is 1,300 ft (400m) tall. Another mega project in Qatar is the Qatar National Bank Tower. Major steps involved in the construction of mega-projects include those discussed below.
The World Cup 2022 is so far the biggest project in the gulf region. This factor on its own posses as a challenge since their no other project available in the area to make comparisons with. Projects are much easier when similar projects have been tested and worked out before. The project has already received much support from the locals and the country’s leadership, but also faces resistance from naturalists and environmentalists. The initiation process for mega projects that have been completed in the past has included a proper consultation with authorities, to ensure that work is not disrupted by protests from naturalists and environmentalist. It further includes a proper survey to ensure that private property is not destroyed as materials are being transported and set up. The initiation stage for mega-projects in the past has included a confirmation of the availability of professional and casual labor.
Planning and design
Planning is the stage at which what is supposed to be done is worked out, who will do it, and when it will be done (Milosevic 47). It is the stage at which the mandate to begin is given, everyone involved is briefed, cases and contracts are established and finalized and the project’s goals are defined. The projects planning involve determining the level of detail and developing the scope statement. At this stage, the project managers select the planning team, identify deliverable and break down the work structure. It is also at this stage that a plan is in place to complete the deliverable and network all the projects activities. “Networking the activities in their logical sequence ensures that all the major activities are synchronized and proper coordination is made possible” (Milosevic 99).
Estimating the resources, time and funds needed for the project is established at the planning and design stage. There is a team to develop the schedule and the budget, as well as assess the level of risk involved in the project. Identifying and assigning responsibilities is an important task during planning to ensure everyone adequately prepares for their tasks before the project begins. It is always important at this stage to ensure that all the stakeholders’ interests are considered and any disagreements are resolved. The investors at this point explain the project’s justification and why it has to be done. People involved in this stage include the project managers, designers, team managers and the sponsors.
Responsibilities in mega projects are assigned as follows:
|Project manager||Designer||Team manager||Sponsors/investor|
| || || || |
Scheduling and resourcing
“Scheduling is an inexact process in that it tries to predict the future” (Winser 82). With a realization that many mega-projects come in late, the projects are scheduled in a very realistic manner. While it is not possible to have the exact time under which the project will be complete, the scheduling process helps estimate when the projects will be closing. It is also an important tool to ensure some processes are accelerated and time is allowed for modifications of any inconveniences. Most mega-projects in the gulf region have taken an average of four years. In the recent past, there have been more delays, a trend blamed on the recent financial crisis, which made it hard for investors to access funds.
In the gulf region, projects are very dependent on weather conditions and may therefore be interrupted by extreme hot conditions. Scheduling is therefore done in consideration to such possibilities, and time allowed for interruptions. Suppliers and availability of resources play an important role in this process. Most of the materials used in the region are imported. This is a common cause of delays since the region’s infrastructure is still under development stages. Logistical and transportation challenges therefore, have to be considered when allocating time for different tasks. Delivery of components is strictly dependent on suppliers, bringing in more external influence on the project. For a region that heavily depends on foreign skills, availability of labor further plays a role in ensuring the project is completed on time. As a result, lack of well skilled people has many times been a cause of delayed projects. Scheduling allows consideration of all the external factors and ensuring a realistic program and timeliness (Keong 17).
Accounting covers a wide range of issues in a project. This is especially so for the gulf region where construction projects cost as much as US$ 1 billion and more. It involves estimating the overall viability, sustainability and profitability of the project. Budgeting covers all related accounts in and outside the organization handling the project. It also involves setting budgets for all the activities expected before the completion of the project. Estimating the costs is the most important of a project and determines how well intended activities will be accomplished (Keong 112). Accounting also involves assessing costs, price changes and pricing of the final product. It is at this step that the viability or sustainability of a project is established.
Sponsors play a key role in accounting. Sources of funds have to be established and the process has to ensure that what is being input matches what will be output, otherwise the project may stall halfway. Four major components have to be considered in this process; the forecasts, how much will be needed, when it will be needed and where it will come from. The budgeting stage therefore, ensures that it comes up with a budget that reflects the plan, time and the cost. Time includes the direct input of labor into activities. Materials include consumables and all the other items and tools used in the process.
Capital, which is a big factor during budgeting includes all expenses and input that go into ensuring running and maintenance of the project is done well. Indirect costs include transportation, training and other costs that do not directly affect the project. Another important component of the budget is the overheads, which include office supplies, subordinate staff and other support mechanisms. It is also at this stage that the project managers need to justify why the project is the best option in terms of financial considerations. The right estimates are calculated by keeping records of all the necessary requirements and taking into consideration risks involved.
Communication is important to ensure proper coordination between all the teams (Milosevic 11). The communication web is made up of the senior management, the project team, clients, and all other stakeholders. It is headed by the project manager, who serves as the link between the rest of the people. Communication ensures that the project team is well advised on the progress and can do the same to those above him. It also ensures accurate communication of ideas and reassurance that the project is going on as intended.
Communication in mega-projects is made easier by ensuring specific, orderly and well defined information. Communication is done through reports, advice and meetings. The purpose of this step is to ensure conformity to the process’ standards and procedures, by making sure that everyone’s roles are well communicated and so are any changes made. The process usually includes proper demonstration of every step of the project and convenience is allowed through proper consultations and communications.
Project change controlling
For a project to be successful, the element of change has to be considered. Every project must have a plan to manage change when it happens. In the event that a risk materializes, the team leader must be able to consider the issue appropriately, decide what to do in a timely manner and the team must be able to control the change. There must be systematic plan to ensure that the change does not destroy what has already been achieved and does not hinder further development or completion of a project. It involves capturing and understanding the issues, assessing the effects on the project, investigating the available options, establishing a plan of action, authorizing the action plan and sometimes resetting some of the project’s parameters.
Project change control in mega-projects is done by documenting all actions and confirming each of the project’s steps completion. It is also done through a regular review of issues considered as risks or threats to the project. Constant review of the project ensures that risks are easily identified and dealt with before they can harm the work’s progress. Original baselines may need to be changed regularly to allow flexibility. The project may have to stop for a few days when there are extreme weather conditions, or lack of funds and proper measures are put in place to ensure that the progress made at that time is not negatively affected.
“Monitoring involves collecting, recording and reporting information concerning any and all aspects of project performance that the project manager or others wish to know” (Termini 36). Factors to monitor include a project’s activity, time, cost and other specifications. Things to be monitored under project activity include issues, unexpected events, news, communications, significant variations from the original plan, and any possibility or threat of a risk materializing. Time monitoring ensures that planned time and effort is achieved, time elapsed and that left is as scheduled and estimated effort has been achieved. It also helps the project team to test the validity of the team’s assumptions.
Monitoring costs involve ensuring that expenditures are checked, the actual and estimated costs tally, and actual costs are not too different from those estimated. The types of measurement used in past projects have included efficacy, efficiency and effectiveness. Efficacy measures whether the project is working, efficiency tests the amount of output as compared to the amount of resources used, while effectiveness measures the validity and practicability of the plan.
The role of the economy on the project
The role of the economy on the construction industry is more evident after the recent financial crisis. The effects of the financial crisis were hard on different countries and sectors. The real estate was among the most affected industries, especially in the American, European and Asian markets. The gulf region has been a safe haven for investors in the real estate industry. The industry has seen tremendous growth and is expected to remain so after the economy is fully recovered. The region has shown a positive growth and proven to be among the most recovered economies from the crisis. Since the region is highly dependent on foreign investors, the effects of slowed economies in other regions crept in easily and fast.
“The economic crisis marked the end of high valuations of properties in the gulf region” (Trident Press Staff 10). The results were a sudden decrease in prices and low demand. Qatar’s valuation process before this period put properties at a very high value raising their prices and allowing big profits for the sellers. As the crisis started to creep in, there were no buyers willing to take risks worth the quoted amounts. The high prices created havoc in the market as there were no buyers. The only solution was to reduce prices bringing an end to the high valuation of property.
Demand in the real estate industry was adversely affected. Since 2008 when the crisis began, the rush to buy off-plan properties in the region has slowed down. As opposed to the past years, investors consulted highly with property experts before purchases. In the past years, the region experienced a high demand and off plan purchases were high. The end users could not afford property meaning that property was being traded by the bug investors who were willing to hold on to them until prices got better. There was no more drive for demand reducing the number of real estate transactions and construction activity.
Qatar is heavily dependent on foreign investors and buyers. The crisis has seen reduced number of investment tourism, one area that the country expects to strengthen by hosting the World Cup. The number of visitors has gone down since the crisis and even those who come only participate in sightseeing rather than buying. As many businesses closed down or reduced their number of employees, many expatriates returned home, further reducing the market size for business people in Qatar. A decreased demand further lowered the prices, meaning that developers didn’t have funds to build more houses. There has been fewer projects launched in the recent past than it was anticipated.
The market was undeniably slow for a period of three years and buying trends changed, a trend that is now changing. Many end users opted to buy properties themselves rather than go through middlemen and banks to minimize cost. As a result, banks’ willingness to finance projects has been on the decrease. Since few developers can afford to build on properties with their own money, the banks willingness to fund some of the projects has to improve to ensure timely delivery. The situation currently looks hopeful as the economy regains stability. It is therefore expected that developers in Qatar putting up structures for the purpose of the World Cup in 2022 will have enough support from the banks and other financial institutions.
The region’s oil industry was badly affected and it is the main source for funds that go into real estate development. It is expected to be the bigger financier of the World Cup 2022. High financial risks at the time affected the cost factor of a project. They included inflation, fluctuating tax rates, delayed payments, repatriation of funds and foreign exchange rates (Oxford Business Group 15). In Qatar, housing projects are mainly funded by foreign investors, making financial risks a big reality for the developers. Most of the raw materials are also imported, meaning that foreign exchange rates play a major role on the total cost of projects. A big percentage of the professionals involved in construction are also foreigners and sometimes have to be paid in their own currencies. Fluctuating oil prices and exchange rates therefore pose as a major challenge for developers and makes cost management even harder.
Evidence of the economy’s influence on projects
Major consequences evident in Qatar when the financial crisis hit and risks were not managed included late delivery of projects. Since that period, late delivery of the project has become a common risk in Qatar. Housing projects are becoming bigger and bigger and as a result, logistical, financial and technical challenges increased. Expensive foreign expatriates to take care of such challenges increased the cost of projects making them more expensive and less attractive to buyers. Since most of the materials are imported, their availability and transportation is many times a challenge and as foreign markets remain unstable, costing is a major challenge. The country’s infrastructure was adversely affected and slowed down making it hard to access some of the remote areas where materials are collected. Many housing projects are also affected by fluctuating foreign currencies, which have not yet stabilized, forcing developers to wait until rates are friendly enough to purchase materials (Oxford Business Group 27).
Another major consequence was increased operating costs. The amounts of money spent on projects in Qatar are staggering. Many times the intended budgets have to be modified to accommodate more costs caused by financial risks. The global crisis caused major fluctuations in foreign exchanges resulting in high buying prices. Since rent rates remain almost the same, the rate of return on projects has been slow. Slow rates of return discourage investors, slowing down the rate of housing development in the region.
Technical risks have in the past caused design and construction defects after completion. During and after the crisis, financial challenges made it hard for constructors to hire foreign expatriates, reducing the quality of professionalism involved in the projects. Big projects have had to be demolished halfway or after completion, causing major losses in the industry. Construction risks have also had major effects on the safety of the people of Qatar, as well as property. Some buildings may not be able to withstand the strong winds periods and fire incidents arising from hot weather conditions.
Comparing the housing cost indexes between New York and Doha in 2008 and end of 2010, it is evident that the index went down at the period but is slowly going up. This is evidence that demand in the Qatar region has increased taking prices up.
The housing cost index. Doha/New York.
|Type of dwelling||Number of bedrooms||Index Doha/New York |
|Index Doha/New York |
“Like any other market, Qatar is cyclical and the cycle is constantly changing” (International Quality & Productivity Center 7). The region is the newest international property market and is attracting a lot of attention internationally. The market is still considered under-supplied and prices keep on going up as a result of higher demand than supply. The economic crisis however changed the trend for a short period of time where demand was much lower than the supply. Many people couldn’t afford homes as they had a hard time accessing funding. Investment tourism suffered a major blow and less capital was flowing in to the region. The oil industry, the biggest source of income for the region, had reduced earning affecting the region’s income levels.
An important lesson learned from the crisis is the need for preparedness in risk management. The recent economic crisis taught many developers the importance of mitigating risk in a project delivery. Costs escalated, more projects needed time expansion, funding became a challenge, all these putting more pressure on the team to deliver quality at a less cost. When that was not possible, the projects were completed at high costs making them unfavorable for buyers.
The region has since recovered and the real estate industry is a beehive of activity. The country’s economic growth has remained healthy in recent years and inflation rates have been very stable, minimizing financial risks. Qatar’s construction industry has experienced an accelerated growth in the last two years and is expected to remain vibrant, especially now as the global economy continues to stabilize. It is estimated that the industry will have an annual growth rate of about 20% from 2011 to 2013 (Redfern 457). From the lessons, risk management is becoming an increasingly important topic of research in the region.
Case study: Planning for the World Cup facilities in Qatar 2022
Qatar is expected to spend over $57 billion in the next decade on stadiums, airport, railways and other areas of infrastructure. The stadiums and other sports facilities alone are expected to cost over $4 billion. After its completion, Doha Sports City Stadium is be the most expensive stadium in the world. Its expansion to sit 65,000 people from the current 46,800 people is expected to soar the costs to over $2 billion. “Currently, the Wembley Stadium in London, which seats 90,000 people, is the most expensive and the Cowboys Stadium in Dallas are the most expensive at a cost of $1.3 billion each” (Marshall 3). Marshall further points out that “London’s Olympic Stadium recently cost $867 million to complete” (3). Doha’s Sports City Stadium’s cost is this high because of the architecture, design and the materials used to build the stadium.
The architects are quoted as saying that “the stadium will be the most flexible, technologically sophisticated and environmentally sustainable stadium the world has ever seen” (Kahkonen 23). Temperature controls and cooling technologies are expected to be the most expensive element of the stadium. “Maximum comfort of the fans and the players will be guaranteed through pumping cool air at the neck and ankle level” (Marshall 3). Other costs will go into other facilities available in the stadium such as the entertainment, the hotel tower, offices and a media tower, all expected to be incorporated in the same structure.
The Sports City Stadium is just one of the stadiums to be constructed in Qatar. Nine other stadiums are expected to be complete by 2011 at a cost of more than $4 billion. Qatar 2022 CEO has in the recent past hinted that the first of these stadiums will be ready by 2015, complete with the cooling system. The country’s biggest challenge in its efforts to host 2012 World Cup is also expected to be the most expensive to fix. Controlling Qatar’s extreme summer temperatures is approximated to account for almost half the cost of hosting the World Cup. All competition and entertainment venues are expected to utilize new technologies such as zero-carbon cooling. Most of the technologies that Qatar intends to use are new, making the cost of implementing them even higher.
The opening and closing ceremony are a significant expense for the country’s budget. These events are expected to cost over $1 billion. In its bid to host the most sophisticated, exciting and unforgettable World Cup, the costs of décor, entertainment and other aspects of the ceremonies will be high.
“Qatar, geographically a mere speck on the world map, successfully marked itself as a viable venue for the 2022 football World Cup” (Watt 3). “For Qatar, the event is as much an image-building exercise, as an economic strategy” (Watt 7). The government believes that the benefits will last long after the world cup is over. Its vision on the financial dividends is set beyond 2022.
Work on the Qatar-Bahrain connection has already stalled due to a new plan to add freight and passenger rail lines. A dispute over cost has also held the project at ransom for making it hard for developers to progress. According to the, credit ratings agency Standard and Poor’s, cited by Oxford Business Group “the country is well-placed to fund the vast infrastructure program through oil and gas revenues” (9). Such an analysis further raises arguments of the role of political interests and leadership in the development of mega-projects.
The region further needs to learn from others. According to The Times of India “South Africa struggled to find use for some of the World Cup facilities it built in 2010, with the stadiums and transport links connecting them to urban centers now underused” (3). In Qatar, officials have stressed that their plan and projects developed for the purpose of hosting the world cup will be critical investments in the long-term success of the tourism and logistics sectors, among others. These projects are expected to continue paying dividends long after the world cup is over.
The neighboring countries have also announced large-scale infrastructure programs to enable them benefit from the 2022 world cup in Qatar. These include the multi-billion dollar light and mainline rail projects to be developed in the UEA, Saudi Arabia, Kuwait and Oman. If these projects are not completed on time, they could affect those fans that prefer to use trains and road to travel to Qatar. Such big developments in the region are expected to exert a lot of pressure on the suppliers of construction materials, labor and other resources required in the construction industry. The results could be tight deadlines and delayed completion dates.
Security is among the crucial factors as Qatar prepares to host the World Cup. The world will especially be keen to see how this is addressed, especially knowing the region’s history of conflicts, extremism beliefs and alleged connection with various terrorist groups in the past. “While the country’s transport scheme seems to be enjoying an aggressive head start with plans drafted years before the country went into bidding to host the cup, intense international scrutiny of its World Cup build-up means it can leave nothing to chance” (UK Euro-sport 4).
Compared to Arab states, Qatar’s laws are considered liberal but far from the level of liberalism enjoyed in many other countries in the world. “It is a civil law jurisdiction but Sharia or Islamic law is applied to aspects of family law, inheritance and certain criminal acts” (Watt 2). Qatar’s National Human Rights Committee has been credited for promoting issues to do with human rights and equality. Unlike some other Arabic countries, women are allowed to drive and have equal access to education. However, the country is often on the spot light due to ill-treatment of immigrants seeking labor in the region.
Allegations of bribery
In May this year, allegations of bribery were put in the open by Triesman of the English Football Association. They were on the part of two FIFA Executive Committees who were involved in the Qatar bid. These allegations have since then opened several inquiries into the matter. If they are proven, the possibility of a revoke remains very high.
This, combined with an increased support for the venue to be re-considered puts Qatar’s efforts to host the 2022 World Cup at high levels of uncertainties. “FIFA president Sepp Blatter admitted that there is a ground swell of popular support to re-hold the 2022 vote won by Qatar and inquiry into corruption claims could see the FIFA executive committee do the voting again” (The Times of India 1).
“Under the leadership of Emir, Hamad bin Khalifa Al Thani, the country has undergone a period of modernization and liberalization” (QatarVisitor 01). Today, the law can tolerate alcohol, even though it is to limited extents. “Unfortunately, the few nightclubs and bars in the country only operate in expensive clubs and hotels with Qatar Distribution Company, the only importer and retailer for alcohol in Qatar” (QatarVisitor 01).
The law against alcohol is expected to raise a lot of debate and controversy during the period. “Under country’s sharia law, it is illegal to show alcohol or be drunk in public” (QatarVisitor 01). In is estimated that alcohol consumption increases by over 300% during the world cups. This is not only an opportunity for the traders, but also for the manufacturers. “In the 2010 World Cup, the UK registered a 10.6% increase on its alcohol sales in the four weeks preceding the World Cup, and another 8.6% during the tournament” (Steam 2). Qatar’s laws restricting the sale and consumption of alcohol therefore creates uncomfortable sentiments from many stakeholders in the industry.
According to UK Euro-sport, “Hassan Abdullah al Thawadi, chief executive of the Qatar 2022 World Cup bid, said the muslim state would permit alcohol consumption during the World Cup” (3). The CEO further explained that the country would set up few specific fan-zones, which will have a alcohol for sale and allow them to drink from there. Even though this is expected to serve the consumers needs, it is expected that sales will not be as vibrant as they have been in the past World Cups, due to restriction on carrying alcohol around or drinking at whatever spot fans decide to entertain themselves in.
At the time when the World Cup is held, Qatar temperatures can go as high 1220F or 500C. Such temperatures, especially for fans from regions where they enjoy moderate temperatures throughout the year such as the Sub-Saharan Africa, will be a major challenge. Qatar authorities have been quick to assure fans and other stakeholders that this will not be an issue as they will use different types of technologies to create a cool environment for players and spectators. A sector of the Qatar 2022 Bid official site read as follows:
Each of the five stadiums will harness the power of sun rays to provide a cool environment for players and fans by converting solar energy into electricity that will then be used to cool both fans and players at the stadium. When games are bit taking place, the solar installations at the stadia will export energy onto the power grid. During matches, the stadia will draw energy from the grid. This is the basis for the stadium’s carbon-neutrality (World Football Insider 1).
The CEO of the bid committee is further quoted as saying “stadiums will have that zero carbon equipment utilizing solar technology to ensure the temperature is no higher than 270c, ensuring optimum playing conditions and a comfortable environment for fans” (World Football Insider 1).
The weather conditions further expose the locals and visitors to a high level of risk. The high level of temperatures makes the country susceptible to fire incidents. Fire disasters are the most common in Qatar and the neighboring region, and statistics reveal that up to 8% of all fire disasters in the last three years have happened in the gulf region, involving 800 victims and 20% of them didn’t survive (Oxford Business Group 17). Other types of crises in Qatar due to extreme weather and climatic conditions include floods, earthquakes, lightening and others. It is reported that every year, the gulf region losses an approximated AED 3, 400,000 worth of property in different types of disasters (Oxford Business Group, 2010). As a result, Qatar has to employ many strategies to avoid such incidents from happening and ensure that projects being developed are safe. An effective response program has to be in place before the tournament begins.
“Qatar, like its Gulf Arab neighbors, does not recognize Israel” (The National 2). If Israel qualified for the World Cup, there has been debate on whether Qatar would allow them to participate in their territory. Israel is deeply shunned by most countries in the gulf region and most observers say an invitation would be unprecedented. The issue puts Qatar under the spotlight and criticism, especially from the Christian community. It is predicted that some fans will not attend to World Cup because of the country’s views on a nation where their religion originates. Asked of what would happen if Israel qualified for the 2022 World Cup, the CEO of the Qatar 2022 World Cup said that all nations participating in the World Cup were welcome.
“With a small citizen population of less than 300,000 people, Qatar relies heavily on foreign citizens, both for its protection and generating labor demands” (Oxford Business Group 23). Its ability to manage the projects on time has been questioned due to lack of man-power. The country employs a large number of foreigners but most of them take long to adapt and are not able to work for long hours due to the weather conditions.
Currently, big populations of immigrants are involved in building Qatar’s infrastructure and different housing projects. When these projects are done, they are all bound to return home or relocate to different markets. Meanwhile, they are very significant to Qatar and business people in the region, since they provide the much needed market to sell different goods. A big presence of immigrants is a result of the fact that locals are not well trained for the job opportunities coming up. The country still lacks trained professionals in industries coming up and has to rely on foreign labor. As time goes by, more locals are being trained in different professions and they will start taking over jobs held by immigrants. However, there may not be enough time to train enough locals to manage all the projects that need to be completed by 2022.
The energy industry has also attracted a big number of immigrants, some of who may have knowledge on the construction industry and support the country’s efforts to have everything ready by January 2022. However, almost half of foreign human resources are involved in building the regions energy infrastructure. The state has incredible energy potential and is seen as a being likely to outperform other oil producers in the region. It needs to further invest heavily on gas facilities to enable the industry fund its infrastructure projects, meaning the country needs even more human resources than it already has. Being a young market in the oil industry, many foreign investors have had to bring their own professionals and personnel.
In the past, it has not been hard for the country to attract foreign labor, even though weather conditions are a discouraging factor for those who would want to go work in the country. The country’s standards of living have substantially improved in the last ten years. “The state has posted a surplus in its budget for eight consecutive years starting 2000 to 2008” (International Chambers of Commerce 34). Oil and gas account for half of Qatar’s budget as the industry continues to enjoy favorable investments from both locals and foreigners. It is now the second in the list of countries with highest per-capita income. As a result of this, the country today has a high standard of living and is able to pay foreign employees well.
Availability of good medical care further motivates those who want to work in the country. Improved standards of living, availability of job opportunities and good salaries have given the people of Qatar access to the best medical care. It has made it possible for them to afford good foods and take care of their nutritional needs. Since more people are able to take care of their basic needs, levels of depression and other psychological conditions are minimized and people are more productive (Zuhair 30).
New Technologies and the environment
“Since fraction of Qatar bid intended for 2022 World Cup, the London bottom designer accountable for the reconstruction of Wimble Stadium, 2007, have intended a stage efficiency toward exist construct into the capital, Doha” (World Football Insider 4).
The Lugsail stadium will seat 86.250 people and use solar panels to produce enough power of the sport ground. In the recent Leaders into Soccer meeting in London, Qatar unveiled its green skill cooling technologies expected to be used for the first time in the history of the Word Cup tournaments. As described by World Football Insider, “the concave outline of the outer wall of the stage comprises an organization of vents in the function, as the middle part of the burden shaped top be able toward exist comprehensive and take back toward let the field is open and completely enclosed” (2).
Qatar may use artificial clouds to keep the stadiums from overheating. As Watt explains “each cloud is constructed from an advanced, lightweight, and strong carbon-fiber materials” (4). To keep tit floated, the cloud is injected with light weight gases such as helium. It is them remotely controlled and hovers like a helicopter above the stadiums. It keeps the stadium cool by shielding it from direct sunlight and heat waves. Using different programs, the cloud is able to change its positions according to the changing positions of the sun. Experts have even speculated that artificial roofs and ceilings arranged horizontally and vertically to protect stadiums, entertaining facilities and other buildings from any direct sunlight. Below is a picture of an artificial cloud
Critical issues in project planning and management of the construction of football facilities in Qatar
It is a well established fact that infrastructure investments play an important role in any country’s economic development. However, the magnitude of its contribution and the extent to which the economy benefits may differ. When considering the kind of investments to make in a country’s infrastructure system, policy makers have to consider more than the immediate economic benefits. They have to put into consideration broader developments in a region and how they can work together with a good infrastructure to benefit the economy. There are various economic benefits which arise from infrastructure development. It enhances employment accessibility, increases employees output as a result of easier operations, impacts property value and it increases productivity.
When studying transportation problems, there are so far no reliable methods for calculating the larger effects. However, most researchers agree that the relationship between infrastructure and economic output can be used to evaluate both benefits ad problems of a transportation system.
It is a well agreed upon fact that transportation investments contribute to the overall economic output of a country (Transit Cooperative Research Program, III-14). To ensure that the output is worth the cost of investment, infrastructure has to be developed with much consideration to ensure that the country prioritizes according to its needs in various states. For example, a region with more industrial activity should have a better transportation system than a residential area. At a national level, measuring the relationship between transportation investments being made and their economic contribution to the country’s output is one way to study transportation problems. If the relationship is significantly satisfying, then the investment is a positive one. A transportation system must be able to sustain itself from the revenues it attracts after its completion to be viable.
Other empirical studies reveal that comparing the overall production of a country and how it is affected by mass transit is a good way to measure transportation problems or developments in that country. An example of how this can be done is studying the relationship between mass transit of a particular state and personal income of the people in that state. If after an increase in the mass transit expenditure personal income levels remain the same, then there is a problem with the system. Personal income rates should go up since people are able to access jobs more easily and spend less time on the road to work, allowing them to work for longer hours.
Using this method to identify problems may be challenging sometimes. It may not be possible to completely quantify the relationship between the overall economic output and transit investments especially over a short period of time. It may take time before the benefits can be established and problems identified. As a result, it may not be very applicable when short term analysis is required.
There are also no well established recipes or reliable relationships for calculating larger economic benefits (Transit Cooperative Research Program III-15). This makes it hard to apply this method of evaluation directly to local transit projects. After an established growth in per capita income, benefits on a local level can be done by analyzing incomes from individual states.
Urbanization and agglomeration
Urbanization and agglomeration economies can be used to measure how much transportation investments are contributing to the economy. Urbanization economies are the effects transportation investments have on urban areas and cities. The benefits arise from the fact that people now share common resources and infrastructure (Transit Cooperative Research Program III-14). If the unit cost of systems such as water and sewers are not decreasing, then the transportation system is not working and there will be no expected scale economies.
Agglomeration economies on the other hand can be used to measure the benefits arising from accessibility. As a result of compact settlements, interactions are easier and so are supplier and consumer relationships. Labor accessibility and proximity becomes easier. These benefits are supposed to be captured in cost benefits of a state and if none are revealed, it is an indication that the system and the investments may not be working. If supplier consumer relationships are enhanced but goods and services are still not available when they are needed, it is one way to evaluate where the transit system is not functioning.
By accurately measuring the extent to which the economy has been impacted, a state or the country is able to evaluate the value of their investments and their effectiveness. If the benefits are not felt, the cost of investment becomes more than the benefits accrued. In this case, the model is failing and maybe there would be need to restructure how the transit system is developed. The evaluations play an important role in the decision making processes over future developments.
The World Cup and Qatar’s road network
Road, rail and sea infrastructure projects in Qatar are to be fast-tracked to ensure the efficient movement of fans (Oxford Business Group 20). The region has already established a plan to have a new international airport worth $US 13 billion delivered by 2013. Qatar further plans to have more than US$40billion put in rail construction. “The rail plan includes a 340KM, 98-station metro line planned for Doha and its outskirts, and a high-speed connection linking Qatar with other Gulf states” (Watt 3).
While the commitment to establish an integrated and impressive transport network was a key selling point of a successful big to hold the World Cup, it is also being developed as part of the unsuccessful effort to host Olympic Games in 2016. The transportation design includes a plan to connect Qatar with Bahrain, at an estimated cost of $4billion.
Average federal contribution to both mass transit and highways
The Qatar government’s roles and primary goals for mass transit and highways may vary with what is more urgent at the present. However, there are goals which remain fundamental and have to be achieved if the country will enjoy quality and effective transit. One of its key contributions is establishing and providing funding mechanisms which will be sufficient enough to maintain existing infrastructure and provide investment to expand it (National Transportation Policy Project 1). Another important contribution is ensuring that infrastructure building resources are distributed with a sense of national priorities.
The federal contributes to mass transit developments by providing national connectivity where people and goods all over the country have accessibility to each other. By ensuring environment protection and energy security, the government of Qatar integrates these concerns with transportation programs and policies, an important contribution that they make. Safety is paramount when trying to develop a country’s mass transit. The government contributes to the process by ensuring that the number of injuries and fatalities from accidents are minimized.
Role of government in the development of mass transit system
The government should recognize and provide a clear understanding on the link between transportation investments and developments with the climate, energy and other areas which may be affected by infrastructure development (National Transportation Policy Project 14). The government of Qatar should research and have a clear understanding of the importance of a modernized infrastructure system. They should be more responsive to the new set of challenges the country is facing such as energy security and a globalized economy which puts more demands on the quality of infrastructure a country should have (National Transportation Policy Project 14). The government needs to develop proposals which will bring in infrastructure reforms, bold and effective enough to stay relevant for a long time to come. They also need to address the over dependence of the country on petroleum as a source of fuel.
Another important role of the government of Qatar in developing mass transit systems should be providing proper leadership and expertise in developing proper transportation policy. By listening to all users of the infrastructure systems such as the private sectors, every person’s voice will be heard and the country will be able to develop more comprehensive policies which take care of everyone’s needs. Finally, it should address the transportation sector’s negative effects on the climate.
Making transportation policy more performance oriented
The current transportation policy in the country has been criticized for slowing down infrastructure development by lacking incentives and lacking non-comprehensive criteria. The World Cup 2022 committee proposes a policy which will ensure performance and accountability. One of the proposals is to have a vigorous federal evaluation on proposed projects to reduce risks and ensure accountability. A second proposal is having a policy which ensures resources are allocated based on costs and needs as well as having penalties for any diversion of allocated funds from infrastructure investments (National Transportation Policy Project 42).
Another important proposal is considering measures to address safety risks. The Highway Safety Improvement Program should be strengthened by increasing its funding to ensure safety programs are run without interruptions. The safety policy must ensure that each state comprehensively defines its areas of safety concerns and what they are doing to reduce accidents. The plan must also include initiatives to educate the public about safety when on transit.
Qatar has less than 11 years to prepare for the biggest sporting event in the world. Of the 12 stadiums that the country needs to complete by the set date, none is complete. 9 are not even started and 3 need enormous amounts of renovations. The city expected to host the World Cup final is not half way built. The amount of money required to put the event together is staggering and there is no solid plan yet on how the total amount will be raised. Mega projects such as roads, a proposed airport and the metro infrastructure are yet to be completed.
Experts argue that FIFA is taking a huge risk in terms of the amount of construction that is needed for the World Cup to be successful. The country’s population does not provide the much needed labor to quicken the process. Risk management is a key element in construction process. For a region that has extreme temperatures throughout the year, a high level of professional capability
is required to ensure the comfort of fans. Availability of supplies and construction materials is further expected to slow down construction. Most of the materials are imported and may not arrive on time.
Economical factors play a significant role in the construction industry. The recent economic crises proved just how much the industry is dependent on the global economy. The cost of supplies could go up and make the process even more costly. The industry is expected to employ a large number of foreign employees and consultants, some of who have to be paid in their currencies. Fluctuating currencies make it hard for the industry to access raw materials and could further impact the cost of construction negatively.
Hotels and size
Judging from the past World Cups, the event is expected to attract more than 400,000 fans. Compared to countries that have hosted the World Cup in the past, Qatar is a relatively small country to absorb this number of visitors. “10 of the stadiums will be located within a radius of 30 kilometers in and around the capital city of Doha” (Watt 4). This puts Doha under so much pressure t host at least half the people who will be visiting to watch the games. The biggest hotels in Doha currently can only host 100-300 each. Doha’s capacity is further restricted by the fact that it accommodates over 80% of the country’s population. The region is expected to have 39 more hotels by 2022 to allow it accommodate a considerable number of those touring the country in 2022. This will involve expanding the roads and its air transport capacity. Currently, Doha International Airport is the only international airport in the region.
Risk and crises management
Asimakopoulou defines risk management as the “identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control them” (10). Risk management is also used to maximize the returns in an investment and to boost the confidence of investors. “Risks arise from different uncertainties such as natural calamities, legal liabilities, and deliberate attacks from an enemy and economic uncertainties, among many other causes” (Asimakopoulou 11). Today, many risk management standards have been put in place to ensure safety and compliance of regulations that could minimize risks. “Such standards include the project management institute, the International Organization for Standardization (ISO) standards and the actuarial societies among others” (Asimakopoulou 11). Risk management goals and objectives may vary with the project at hand and the desired results. Goals also vary with the context of the project and the method used.
For most part, risk management methods consist of several elements, performed in a specifically defined order. The first element or risk management is assessment or identification of threats. It is followed by assessing the vulnerability of the project to perceived threats and determination of the consequences. The other important element of risk management is identifying ways to eliminate or reduce the threats, as well as the consequences if the threats materialized (Global Crisis Management Organization 9). Finally, a strategy is set up to prioritize risks minimization. Principals of risk management include creation of value, addressing uncertainties, creating a systematic and structured strategy and creation of a dynamic and responsive management of change (Coppola 27).
Risk management in the construction industry in Qatar
In recent years, a lot of attention has been focused on projects risk management. Research and development in this area of study has allowed developers to apply more effective risk management strategies and minimize risks. Research has revealed that the success of any project is very dependent on the management’s support for risk management processes. “Construction projects are characterized as very complex projects, where uncertainties come from various sources” (Craythorne 200). Since they gather too many stakeholders, it becomes a more difficult to study the whole network (Jobling 28). The industry however, offers a very good environment for risk management researchers.
The recent economic crisis taught many developers the importance of mitigating risk in a project delivery. Costs escalated, more projects needed time expansion, funding became a challenge, all these putting more pressure on the team to deliver quality at a less cost. Qatar’s housing construction industry has experienced an accelerated growth in the last five years and is expected to remain vibrant, especially now as the global economy continues to stabilize. It is estimated that the industry will have an annual growth rate of about 20% from 2011 to 2013 (Redfern 458). As a result, risk management is becoming an increasingly important topic of research in the region. Risks can be categorized as natural, financial, business and political.
Types of risks associated with construction
Technical risks are those risks related to the professionalism of the project and affects it directly. They include incomplete or wrong designs, uncertainties over availability or delivery of materials, inadequate or inaccurate site assessment and wrong specifications and estimations. Technical risks may times delay the start of a project and sometimes may completely stall it. Most of the materials used in Qatar construction projects are imported, exposing them to the risk of late deliveries and other complication in case of wrong specifications. A good example of delayed Mega projects in the region is the Dubai mall in UAE, the biggest shopping mall in the world, which had its opening delayed for over a year due to technical risks. Materials sent with wrong specifications took too long to be send back to their country of origin for corrections.
Logistical risks are mainly caused by lack of proper transportation infrastructure in a region. They include availability of resources and a timely delivery of materials. The labor market can also pose as a major logistical threat. Availability and accessibility of labor is crucial in ensuring timely delivery of a quality project. The construction industry in Qatar is getting more complex as developers compete on putting up the best designs. As a result, high level of expertise is required and lack of it could paralyze the industry. Logistical risks also arise when construction equipments, labor, fuel and other spare parts are not delivered on time (Price Waterhouse Coopers 201).
Financial risks affect the cost factor of a project. They include inflation, fluctuating tax rates, delayed payments, repatriation of funds and foreign exchange rates (Klemetti 116). In Qatar, construction projects are mainly funded by foreign investors, making financial risks a big reality for the developers. Most of the raw materials are also imported, meaning that foreign exchange rates play a major role on the total cost of the projects. A big percentage of the professionals involved in construction are also foreigners and sometimes may have to be paid in their own currencies. The country’s economic growth has remained healthy in recent years and inflation rates have been very stable, minimizing financial risks.
Construction risks include safety and natural uncertainties. Employees’ safety and well being, stability of the finished project and protection against natural risks such as strong winds are the major concerns in construction risks. Qatar has extremely high temperatures throughout the year, exposing the projects to high risks of fire. Project developers have to ensure fire safety measures even before projects commence. Other examples of construction risks are poor industrial relations, weather implications and uncertain productivity of materials.
Political risks make it hard for projects to access expatriates and import the required materials (International Quality & Productivity Center 123). It becomes hard to dispose plants and equipments. When a country is politically unstable, it is not easy to do any consistent work and the safety of the site and materials may be jeopardized. “Political risks may also bring about insistence on use of local professionals and materials, some of which may not fit the standard required by the project” (Trident Press Staff 13). Qatar enjoys a stable political environment and very friendly foreign trade policies. This has made it possible for developers to develop world class projects by being able to access the best materials from all parts of the world. As an incentive to developers, import duties are friendly. The country also allows developers to use foreign human resources.
Evidence of risk leading to poor performance
Major consequences evident in Qatar when such risks are not managed include late delivery of projects. Late delivery of the project has become a common risk in the Qatar and construction projects are becoming bigger and bigger. As a result, logistical, financial and technical challenges increase. Since most of the materials are imported, their availability and transportation is many times a challenge. The country’s infrastructure is still developing, making it hard to access some of the remote areas where materials are collected. Many housing projects are also affected by fluctuating foreign currencies, forcing developers to wait until rates are friendly enough to purchase materials (Oxford Business Group 13). Extreme weather conditions have many times forced projects to stop for a while, especially when temperatures go too high. Major construction developments in the region have had their completion delayed due to technical and financial risks.
Another major consequence is increased operating costs. The amounts of money spent on projects in Qatar are staggering. Many times the intended budgets have to be modified to accommodate more costs caused by financial risks. The recent global crisis caused major fluctuations in foreign exchanges, resulting in high buying prices. Since rent rates remain almost the same, the rate of return on projects has been slow. Slow rates of return discourage investors, slowing down the rate of projects development in the region.
Technical risks have in the past caused design and construction defects after completion. Big projects have had to be demolished halfway or after completion, causing major losses in the industry. Construction risks have also had major effects on the safety of the people of Qatar, as well as property. Some buildings may not be able to withstand the strong winds periods and fire incidents arising from hot weather conditions. Another important evidence of poor performance has been poor ability to manage unanticipated conditions. This is as a result of technical risks not being addressed. Poor designs, which do not take into consideration safety issues, make it hard to evacuate people when crises occur.
Established risk management practices
“Despite the lack of comprehensive health and safety statistics for the gulf region, there is a clear consensus that safety on construction sites is improving” (Turley 10). The Build Safe Qatar, an organization that collects and analysis data on construction safety, says the regions safety has tremendously improved since 2008. The Construction Management Association of Qatar champions for housing construction risk management. Different standards and regulations such as the International Organization for Standardization (ISO) standards and the actuarial society’s standards are taken very seriously. The country’s labor law of the year 2004 covers all safety, health and protection concerns. “The region advocates for the use of the ‘CM at-risk’ approach to project management, which seeks to ensure that the contractor delivers the project within the Guaranteed Maximum Price (GMP)” (Kahkonen, 2010). The concerned authorities also regularly organize conferences targeting various professionals in the construction industry. The region has now put in measures to ensure that working manuals are translated to a language that project managers can understand. Developers are obligated to train their employees and teams on safety and other types of risk management.
Risk management processes applicable in the region
There are enough risk management solutions that Qatar can choose from. The first step is to put in place a specific law that deals with construction safety measures. The region should also adopt standardization of construction processes, to ensure minimized risks and consistency. It is important that the government puts developers into task, to ensure that their teams are well trained on risk management and safety (Ghaemi 44). Training should involve intensive consultations from experts and from countries that have managed to eliminate major construction risks in major developments. Such training is not only important for risk management but according to El-Sayegh “the knowledge obtained from a risk management strategy can assist with preparing the tender, selecting the resources and methods of construction, interpreting the contract and pricing works” (440).
“Crisis management refers to the process by which organizations, countries or individuals deal with major event that threaten to endanger property of life” (Coppola 20). A crisis is defined by three elements: it threatens life and property, it comes as a surprise and it leaves a very short time to make decisions. “There are different types of crises including natural, technological, confrontation, leadership and crises of malevolence” (Craythorne 113). In this section of the paper, the focus will be those crises that affect construction such as fire, earthquakes, floods and other types of crises that the gulf region has had to deal with, which can either be natural or man-made. Qatar will need to pay attention to prevention and safety and crisis control programs, specifically looking at the most effective way to respond to local, regional, and national incidents and whether control centers must be localized, regional, or nationally based.
According to Asimakopoulou,“Crisis management can also be defined as the process of dealing with major events which may threaten to harm an event, organization or the general public” (11). A crisis is characterized by a surprising element, threat to harm and a short time for decisions. The need for change in the face of a crisis is imperative and changes made could define how bad the effects of a crisis will be. Crisis management also includes assessing potential threats of an outcome and putting in place measures to avoid or minimize damages. “Crisis management involves identifying methods to respond to real happenings and those which have a probability of happening, as well as establishing metrics that define scenarios that could lead to a crisis or trigger it” (Global Crisis Management Organization 113). Communication occurring within the emergency and response time is very critical in damage control.
In crisis management, there are different types of crisis. There are natural disasters, and disasters of management misconduct and technological crises. Malevolence is especially common when competitors or rival countries decide to get back at each other or when there is social unrest in a region. “It occurs when one team or community uses extreme tactics for the purpose of expressing anger or hostility against the other group” (Durham Fire and Rescue Service 5). Many times a different group will do this with the intention of destroying the other team completely or their facilities. In a situation where there are big crowds, such a crisis could lead to major injuries and fatalities.
Natural crises are those which the people involved have no much control over. They include earthquakes, landslides, lightening strikes among other events which could harm life. Technical crises are those which result from poor application of technology such as electrical faults. Technological accidents occur when something is wrong with technical settings or malfunction of different technical equipments. Many of them are as a result of human error either at the point of manufacture or application. Confrontational crises are also common and occur when different groups or their supporters fight to show off dominance especially after losing on developments that included competition.
Other types of crisis include those related to poor management. They include poor entry or exit plans to buildings and stadiums, which could cause stampedes or collapse of structures. Such incidents are common in sporting events and where management teams favor short-term economic gains and neglect safety and security measures. Management misconduct is many times blamed when there are such happenings especially in events which attract big crowds such as political rallies.
Crisis preparation and prevention is today emphasized in rules that govern every national, regional or local activity. Safety rules and regulations require that facilities be inspected regularly and certified by different safety organizations. Organizations such as Red Cross have been very instrumental in helping different organizations and groups prepare and prevent tragic happenings in crowded settings. Containment and damage control is another important part of crisis management. When life threatening situations arise, the main goal of crisis management is to limit threat of life and increase survival.
In any crowded environment, eliminating all risks usually means removing all the challenges and excitement associated with crowds, like in the case of sporting events. A risk management program is therefore important to help set the boundaries over how far challenges should go and how much risk should be allowed during any type of events. A proper risk management program minimizes the number of law suits against each other in different arenas, and significantly enhances the achievement of goals and missions of a particular activity.
Ensuring that the design of buildings is appropriate for the people who are using it is fundamental in risk management. The equipment must meet standards set by different safety associations. Supervisor-to-user ratio must be appropriate and should be set in consideration to age, type of activity and people living in them. Buildings, entertaining grounds and other facilities should have signs and warnings in languages which everyone understands to ensure that people don’t expose themselves to hazardous situations. Training and coaching is very important not just for professionals but for everyone.
Crisis management is intended at creating value and helping in safety decision making processes. “It is supposed to explicitly address uncertainties and be tailored to create transparency and inclusiveness of events so that risks are easily identified” (Craythorne 12). Risk management should include interactions, it should be dynamic and appropriately responsive to danger. “It should create a continual improvement and enhance security during any events” (Asimakopoulou 34). The process starts with establishing the context, in this case stability of facilities, crisis management capabilities, evacuation procedures and many other safety concerns. “The identification process also includes planning and mapping out the scope of risk management” (Asimakopoulou 76). Defining a framework and developing an analysis enables stakeholders identify their objectives and identify constraints.
Environmental concerns: How to build green on a budget
Planning and procedures
Different experts in the industry credit their success to different cost-effective building and design tips to various tips. Among them is continuous monitoring of emissions. As Turley “Testing emissions on construction vehicles ensures they are meeting current standards for minimal carbon output” (12). In big projects such as the construction of stadiums involves a lot of vehicles movement. Project managers and planners have learn to have supply chains and schedules that minimize the amount of greenhouse emissions from the transporters.
Another significant strategy that help developers build green is creating carbon maps before projects are initiated. The maps are developed at the planning stages to allow evaluation of possible carbon-saving measures. Project developers have also realized the need to use locally made materials. This does not only allow cost reduction, but further reduces the distance which the materials have to travel. Car emissions account for almost half of all the greenhouse emissions in the gulf region. Cutting on that goes a long way in achieving more green environments.
A common trend in the construction industry today is on-site batching, to minimize the amount of transportation taking place to the site. It further allows constructors to minimize energy use. On-site batching further enables projects to make only what they require for a day or a certain period to minimize wastage. To discourage wastage, most big projects today have facilities where the waste can be recycled to encourage sustainable procedures and environmental trends.
Monitoring and reviewing waste output is a common strategy among managers developing big projects. They help project managers to identify and waste streams that can be improved. Countries in the gulf region have in the past received a lot of criticism for not having proper waste management strategies. Reacting to the pressure, some of them have put in place measures and policies to ensure developers take responsibility for waste-management strategies considered a risk to the environment. For example, the UAE recently increased waste disposal fees to encourage developers to re-use and recycle most of the waste.
However, it is important for developers to realize that recycled materials could be a source of even bigger problems. It should only be done if it makes financial sense, and does not pose any safety challenges. As Turley cautions” be careful using recycle materials as this isn’t necessarily more sustainable, for example, it would be counterproductive to haul recycle aggregate 200 miles by road when there is a local primary aggregate source nearby” (89). Quality assurance is critical if a project decides to use recycled materials.
220.127.116.11 Lighting and orientation
Lighting accounts for a large percentage of electricity consumption in a building. Saving energy on this area of the building goes a long way in the final budget for electricity, as well as environmental impacts that arise in the course of the project. Internal designers play a role in the choice of colors, lighting systems and their placement. Choosing a light-color for the exterior increases heat reflection and will save a lot of energy that would otherwise be used for lighting.
It is very important that a designer takes into consideration the orientation of a building as far as sunlight in concerned. Windows should be able to transmit enough light during the day to minimize the need for having bulbs on. They should also not allow too much heat into a building as this increase the need to have cooling systems. The color used in a structure should be able to retain warmth in a room for the transition to a cold environment at night.
As Redfern explains, “every piece of land has a north, south, east or west exposure. The east and west are most intense. Controlling rising and setting sun can be done using overhangs, sun screens, shading devices, or proper landscaping” (560). The author further advices that green credentials can be achieved at no increased cost using cut and fill balancing methods. Using lighter shades on the exterior finishes further reduces the amount of heat being absorbed in a building.
Heat transfer makes a big part of construction and thermal engineering, especially in the regions that experience extreme weather conditions such as Qatar. It is concerned with how heat is exchanged between different mediums. For countries that are prone to extreme temperatures, heating and cooling is a major consideration during construction. The design of any commercial building today requires that it allows easy installation of cooling and heating systems. The Heating and Ventilating Contractors’ Association (HVCA) requires that any building’s heating and ventilating systems be installed by qualified and licensed engineers to avoid risks that are associated with the process.
Cooling load can be calculated in different ways depending with the building in question. Since cooling load calculations are sometimes very complex, different authors agree that software developments will go a long way in helping achieve accuracy and reliability. To make these calculations easier, several assumptions have to be put into consideration. Different experts argue that making assumptions to make the calculations easier and then using complex formulations makes the process more unreliable.
Acquiring environmentally friendly cooling loads can be calculated in different ways and several are available for Qatar developers. “The most basic of the available methods is the rule-of-thumb value, which is using square feet of floor area per tonne of cooling” (Grondzik 20). Such methods are very important in schematic designs and when an engineer is approximating equipment costs and sizes. The main challenge for this method is the common assumption that the building’s design will not make a difference, while it has a significant influence on the final number. The other method is “using design equivalent temperature differences and design cooling load factor” (Grondzik 20). The method is more sophisticated but is more applicable in small projects such as fans social and relaxing venues. The main challenge for Qatar when attempting to use this formula will be putting the many opaque components into one useful factor (Spitler 163). For big building’s such as the planned stadiums, such methods are not appropriate due to the high number of assumptions in them. For such mega-projects, the most applicable method is that developed by ASHRAE. With new technological innovations every day, computerized simulations are becoming increasingly common when estimating or calculating cooling loads for big buildings.
One of this paper’s objectives is to explain the available cooling methods for Qatar, how they can make the project more environmentally friendly, and parameters put into consideration, as well as factors that affect the outcome. This part of the paper analyzes different views by different authors and seeks to understand their stand on the subject. It also examines the components of design cooling load and how different decisions affect them. Finally, the looks at how the high costs of heating and cooling can be minimized by utilizing new technologies. A literature review will be conducted to understand how the technologies work and how they can be helpful to Qatar.
In mega-projects, very simple problems can be made complex due to different compulsions, many times academic or business. The professors also show how many simplifying assumptions can make it hard to handle a problem and many times result in a failed project. The article argues that dual policies in heat transfer calculations do not work, meaning that making too many assumptions to simplify a problem and using complex schemes to work it out at the same time will not work. Today, projects have the advantage of available technological innovations such computer software, which can be used to make calculation simpler and more accurate. Available technology can be used to easily investigate significant building parameters such as glass panes, roof types and glass shades just to mention a few. The authors conclude that computer software will make these calculations easier in future without compromising accuracy.
Grondzik explains that there is a significant relationship between design cooling load and its relationship with other parameters such as heat gains, heat loss and heating load (456). It is important for the project managers to analyzes the different types of calculation methods and realize that the simple methods must not be used in calculating cooling load, since the projects are too big compared to where these technologies have been used before. Such formulation according to the author should include “the rule of thumb, which uses square feet of floor per tonne of cooling to calculate the total cooling load for a building and the design equivalent temperature differences formula” (Grondzik 20).
Energy publications written in the recent past explains how building and investing in energy software will enable engineers involved in the Qatar’s 2022 World Cup have more accurate work when calculating the cooling load for the stadiums and other social facilities. There are available tools for load calculations to allow the engineers save as much energy as possible. These tools include the AEPs system planning used in calculating and monitoring system performance, generation load storage calculations, and residential and commercial system sizing. Others include the AIRWIND Pro used for air conditioning and energy transfer systems.
Omer is his article clearly states that heat pumps significantly reduce the amount of energy used for cooling or heating buildings (367). According to the author, ground source heating pumps can be used to reduce the need for primary fuels by more than 65% which would have increased the amount of emissions to the atmosphere. Cooling analysis for Qatar should be focused at estimating and comparing the warming effect of a GSHP and that of other cooling and heating systems. It should also include a comprehensive study of the effects of heating on both commercial and residential buildings where some of the visitors will be staying.
Research study in the past has revealed that conventional methods of heating and cooling emit up to 36% more greenhouse gasses than does GSHPs. They also reveal that this technology is most effective in places such as Qatar and other regions across the globe which suffers extreme temperatures in different seasons. From the analysis available by different experts, it is unlikely the world is going to have a heating and cooling technology as friendly to the environment as the GSHP technology.
Phetteplace studies the technology behind heating and cooling buildings and explains how the technology operates by heat transfer from different sources to a building when it is cold and the reverse is true when it is hot (32). The journal is a simple explanation of the basic process which the readers would easily understand. It is also a comparison of the technology with other thermal technologies. The various types of heating and cooling together with their benefits are reviewed. A big part of the paper is the vertical borehole heat exchanger which is the most commonly used method of ground coupling (Phetteplace 33). The author discusses issues regarding sizing of heat exchangers and the various reasons for using each of the technologies.
Spittler argues how different technologies are being used as seasonal energy storage schemes (165). The paper uses the now common ground heating and cooling technologies and gives a general overview of how these technologies work. The paper gives a detailed overview of the buildings cooling technology since it was first mentioned in 1912. It is a discussion of how the technology has evolved and its current applicability in different parts of the world. The author also gives a highlight of what is expected of the technology in the few years to come. In regard to the current environmental concerns, more natural technologies appears to be the most favorable in minimizing environmental damages caused by conventional heating and cooling systems. Environmental studies of the 2022 World Cup will include a brief research into how the GSHPs can be optimized to improve the technology’s thermal conductivity, a more environmental option for the cooling and heating processes.
Milenic, Petar, and Ana argue that environmental protections are conducted by use of renewable energy sources (650). The authors go through a discussion of how the cooling and heating technology is being used in developed regions today such as Europe. Considering the number of homes and buildings put up in the western countries and the gulf region each year, the article argues that there is need for reduced energy consumption levels by utilizing technologies that can store heat while cooling and utilize it when heating is needed. Eicker and Christoph on the other hand propose that geothermal heat exchangers would be the best technology as heat sinks for buildings energy produced during the hot seasons (1128). An experiment carried out in this study is used to study how a building parameters, inlet and exit temperatures would influence the operation and effectiveness of heat transfer processes in a building.
Information and analysis
Cooling or heat loss calculations are many times used to determine a building’s heating load, which then helps design its cooling system. Heat loss is simply gotten by summing up all the heat flows out of a given medium, in this case a building (Eicker 113). Heat gain on the other hand is calculated by adding up all the heat flows to the building and then summing it up with that generated internally.
The assumptions behind most design cooling loads include the following:
- Weather conditions are usually selected from statistical databases accumulated for a long period of time. “The weather conditions do not necessarily represent any specific year but the project always ensures that the figures used represent the buildings location” (Eicker 23). Many times, this data has been or has to be tabulated by different researchers and groups such as ASHRAE. Engineers and designers must ensure they select the most appropriate weather for a building. There are specific codes for different locations, which allow accurate selection of data to avoid over or under-sized systems.
- “For accurate calculations, solar loads for the most clear day of the month chosen for calculations are used” (Eicker 23).
- “The building/stadium in question is always assumed to have a full design capacity occupancy” (Santamouris 34).
- The building’s appliances and equipments are assumed to be operating at the expected capacity or according to the design specification.
- “The building’s lights and lighting system are assumed to be operating at the expected capacity as per the design calculations” (Santamouris 34).
- Several loads such as sensible and latent loads are considered during calculations.
- Dynamic conditions are assumed when analyzing heat flow.
- Heat storage in the building and other interior materials, which may affect heating, are put into consideration during calculations.
“Such assumptions make it hard to calculate design cooling load than it is to calculate design heat loss but unfortunately, there is no way around them, especially in a cooling load dominant climate such as that in the southern United States” (Sawyer 20).
During calculations, the cooling load for the building must include heat through the buildings from other sources, as well that generated internally by the lighting system, people and other electrical equipments (Huber and Seeberg 576). The heat from outside, also known as external load, may come from different external environments depending with the building’s design and that of its heating system. Heat from within the building is known as internal load and will vary with the building’s location, structure and type of electrical and other equipments in the building. Buildings used for manufacturing purposes for example will have a bigger internal load than one used for administration purposes. Other types of loads include latent and sensible loads, which affect the dry bulb air temperature and absolute humidity respectively.
Factors to consider during calculations
The first step in calculating heat loads usually involve establishing each zone’s peak heating and cooling load. The zones loads are then put together to get a building’s peak load (Wang 19). For these step, several factors need to be put into consideration. These factors include solar gains through windows and when there are glazed windows and glasses, they should be also put into consideration (Omer 360). The next step is ensuring that all the buildings meet the required air requirements. “The amount of outside air is taken from ASHRAE Standards 62” (Omer 360). Other important considerations during calculations include heat lost and gained through walls and roofs.
Carbon neutral World Cup
In spite of the huge costs and efforts required to host a successful World Cup, Qatar is determined to bring the event to the gulf region. The country is now tasked with ensuring a spectacular tournament, an exciting experience for the fans, the media and players, and a lasting legacy for the region. Qatar is focused with a first ever carbon-neutral World Cup legacy. The technical team hopes to utilize the solar technology to create favorable conditions for the fans and players alike, as well as those who will be touring the country at the time for other purposes. The biggest challenge for Qatar so far remains overcoming the dessert heat during the summer months when the tournament is expected to be held.
As Watt explains “controlling the temperatures will no doubt require vast amounts of energy” (3). The country in its plan included two solar energy systems that are expected to work together to deliver the expected results. “The first of these technologies in a photovoltaic system, which will use a photovoltaic array to convert the sun’s rays into electricity” (Watt 1). As Al Jamal explains, “the electricity will be used to power all the systems at the stadiums and training sites, as well as FIFA fan Fest and FIFA Fan Zones” (Watt 1).
The second system is a solar-thermal system, which uses heat collected from the sun to generate hot water. This water is then channeled to storage tanks where it can be used for immediate purposes or be stored for future use. “The water can further be chilled to supply the HVAC systems from the ice storage tanks, which will then supply cold air at 180C.” (Eicker 44).
Both these technologies are already in existent but it will the first time they are being combined to work together. “The energy generation will offset all the energy requirements of the stadiums, training sites and the FIFA Fan Fest Zones within a period of one year, and will also generate electricity to be stored as backup power at each facility” (World Football Insider 2). It is expected that the systems will pay for themselves within a short period of time, and give a strong legacy even for many generations in future.
The number of people traveling to and from Qatar in 2022 is a cause of concern for the environmentalists in the region. Managing their carbon footprint was a key issue as the country bid to host the tournament. Initiatives put in place to manage this are supported by FIFA, who provide hosting countries with guidelines and environmental advice on how to minimize environmental damage created by having so many people in one place at the same time. The guidelines were used by Qatar to come up with a protection plan, which together with FIFA’s guidelines will be used to manage environmental consequences that arise during and after the tournament. The Green Qatar 2022 is expected to work closely with Environmental Advisory Board, which comprises of business leaders, government representatives and the Bid Committee.
Other than the sporting facilities, the country has been forced to develop other facilities at a rate that will negatively impact the environment. The officials have put in place several programs and initiatives for protection purposes. The Qatar Sustainability Assessment System (QSAS) is one such program used to ensure a green Qatar. Other environmental programs include LEED and the Environmental Management Organization Standards.
Ground source heat pump system
Ground-source heat pumps (GHSP) are perhaps the most used green cooling and heating systems. Their operation is based on a renewable energy technology utilized in heating or cooling spaces. “This technology is dependent on the fact that the earth has the most stable temperatures, warmer than the air during winter and cooler than the air during the hot temperatures in summer” (Omer 367). As Omer further explains, “the earth can therefore serve as an exchange environment by using a geothermal heat pump to transfer heat from the earth to a building during winter and transfer heat from the building to the earth during summer” (367). There are no special geological conditions required for this technology making its application easy.
Ground-source heat pumps are today attracting a lot of attention due to their environmental advantages. They have potential to reduce heat energy consumption which would in turn reduce greenhouse gasses emissions (Eicker and Christoph 1126). This technology is today well established in North America and is also picking up pace in some parts of Europe. In the United Kingdom, the technology is still at its demonstrative stages and is well received in the neighboring countries too. Qatar developers and consultants have expressed an interest to utilize such technologies to save money, protect the environment, and make it more convenient and comfortable for players and fans in 2022.
Ground-source heat pumps uses pipes buried in the ground to transfer heat from the ground to a building and the other way round. During cold seasons, heat from the ground is converted to warm air and is distributed in a building using air ducts. During hot seasons, heat in the room is cooled by using the cooler ground as its heat sink (Milenic and Petar 650). The process does not involve any combustion processes. It is simply transfer of heat from one place to the other. Transfer is done through open loop where surface or well water is circulated or through closed loop systems where water or another a fluid mixture is transferred through pipes.
Heat pumps significantly reduce the amount of energy used for cooling or heating buildings (Omer 367). Cost and environmental benefits arise from the fact that GSHPs reduce the need for primary fuels by more than 65% which would have increased the amount of emissions to the atmosphere. However, these benefits are dependent on the estimations and comparisons of the warming effect of a GSHP and that of other cooling and heating systems. This technology is applicable even in residential houses.
Looking at the analysis of data types of data from various studies reveal that conventional methods of heating and cooling emit up to 36% more greenhouse gasses than does GSHPs. This technology is most effective in a place like Qatar which suffers extreme temperatures throughout the year. Experts have argued that it is unlikely the world is going to have a heating and cooling technology as friendly to the environment as the GSHP technology.
For the analysis of different authors and research projects, it is clear that the technology behind GSHPs operates by heat transfer by utilizing the temperature differences between the earth and different facilities. This through the transfer of heat from the earth to a building when it is cold and the reverse is true when it is hot. Comparing the technology with other thermal technologies, benefits arise from its ability to utilize natural energy to cool or heat an atmosphere. The various types of geothermal heat together with their benefits need to be reviewed to understand to understand their possible application in Qatar. The point of discussion and research should include the vertical borehole heat exchanger which is the most commonly used method of ground coupling. Other issues that should be reviewed include sizing of heat exchangers and the various reasons for using each of the technologies.
GSHPs can and are being used as seasonal energy storage schemes (Spittler 165). In regard to the current environmental concerns, the technology appears to be the most favorable in minimizing environmental damages caused by conventional heating and cooling systems. There are many suggestions that more research into how the GSHPs can be optimized to improve the technology’s thermal conductivity should be conducted. The technology is being used in developed regions today such as Europe as a substitute for fossil fuels and as a measure to reduce greenhouse gas emissions. Use of geothermal energy sources give higher economical growth rates in a country due to minimized costs and negative effects. Considering the number of homes put up in Qatar each year, and the number of projects to be put up by 2022, there is need for reduced energy consumption levels by utilizing such technologies. Geothermal heat exchangers would be the best technology as heat sinks for buildings energy produced during the hot seasons.
Triple bottom line of sustainability
Other than wind, solar, water and biomass, ground-source heat pumps have proved to be very environmentally clean methods of providing heat and light. They are easily applicable without major environmental distraction such as clearance of large portions of land. It is also notable that their application does not require distraction or interference with water bodies. Use of GSHP eliminates the need for furnaces or even air-conditioners which use too much energy to run. The technology can be used to heat water in buildings at no added costs and at zero risk of polluting the environment as is the case with use of conventional heaters.
Since the process requires no combustion, the technology has been proven to reduce green house emissions by 66% or even more. This helps protect the environment from the biggest concern today which is emissions. There are reduced carbon dioxide, nitrate and sulphate gases being emitted to the atmosphere, thus protecting the ozone layer. The piping does not take a lot of space and is underground meaning that land can still be utilized for other purposes especially in the case where the technology is used in residential areas or small commercial neighborhoods.
GSHPs offer consumers a more pocket and environmentally friendly option to warm or cool their houses as desired. The technology is reliable since earth temperatures are not likely to fluctuate. It is efficient and once installed correctly, consumers are not likely to suffer interruptions like it is with electricity and other energy sources. It is cost saving it has no production costs. The only costs incurred operation and maintenance costs, approximated to be 60% less than those of conventional energy technologies (Omer 366).
Ground-source heat pumps have a level of flexibility that is not easily achievable in other energy technologies. It can be used in big commercial buildings and can be used in homes and other small structures. Its applicability in residential building is now applicable in Japan, the U.S, Canada and other European countries. China is now using the technology and testing it in smaller structures such as homes. As a result of reduced green house emissions, GSHP gives its consumers a confidence of knowing they are protected from the negative effects which may arise. Consumers can comfortably benefit from the technology without having to worry about the side effects.
GSHP causes no carbon, nitrate, sulphate and other poisonous gases emissions to the atmosphere. This means that consumers are protected from health complications resulting from such emissions. Their plants, vegetation and animals are further protected from such concerns. All these advantages convert to more economic benefits from minimized health bills and time wasted during treatment. Psychologically, it is very assuring and peaceful to use an environmentally friendly product. The technology is not noisy compared to other technologies such as generators.
It is also proven that a building could use up to 70% less electricity by using GSHP technology. Its maintenance costs are half that of conventional systems while the cost of installing it can go as low as a quarter that of conventional systems.
The pipes are installed in such a way that they utilize the energy near the surface of the earth. This minimizes the time taken to transfer energy from and to a building. By tapping heat energy nearer to the surface, the length of piping is reduced which significantly saves on cost.
Omer estimates that an open-loop water source system for an average residential house would cost no more than $ 10,000 while the price may double for a closed-open loop system (367). These figures can be used to get estimations for application in bigger facilities such as sports arenas and stadiums being constructed in Qatar. The annual operating costs and maintenance costs amount to a far much less figures compared to other conventional heat exchange systems. The total cost of running a GSHP system average to $850, while a conventional system would amount to three time this. Even though the savings may be dependent on different factors such as climatic patterns of a place, lifestyle and size of a building, they cannot add up to the costs incurred when using conventional systems of cooling and heating buildings. Economical benefits also arise from the fact that the technology does not incur any space for storage like in the case of boilers, cooling towers and generators. All the money saved can then go to savings and other economic developments in the country.
Use of innovative techniques
“Prefabrication is the practice of assembling components of a structure in a factory or other manufacturing site, and transporting complete assemblies or sub-assemblies to the construction site where the structure is to be located” (Shahawy 13). Traditionally, construction has involved the process of transporting raw materials to the construction site, and assembling them from there. In the construction industry, “the most widely-used form of prefabrication is the use of prefabricated concrete and prefabricated steel sections in structures where a particular part or form is repeated many times” (Rahman 3).
One company that is well recognized for prefabricated components is the Lichtgitter in Germany. According to Karlheinz Haller, a sales manager at the company, “December 2010 was a red-letter day for companies that build these flexible stadiums. That is when FIFA awarded the 2018 World Cup to Russia and the 2022 one to Qatar” (Eberle 1). Most of the stadiums to be built in Qatar are expected to be taken apart after the championship.
Most experts point out that building concrete component that can withstand temperatures above 40 degrees Celsius is a challenge. Nussli, a company from Switzerland, is already working on blueprints for Qatar. Haller Company is expected to win most of the contracts in Qatar to provide prefabricated components. The components will include ticket booths, VIP boxes, restaurants, and changing rooms, among others.
- “The need for scaffolding, formwork and shuttering is greatly reduced” (Shahawy 13). This is so because projects use ready-made components.
- Space required at the construction site is minimized. Project managers are also able to minimize congestion.
- Managing quality is easier in a factory setting than it is on a construction site
- The time materials are exposed to bad weather and hazardous environments is reduced
- Prefabrication allows materials to be materials to be made and assembled where skilled labor is available, and where costs of doing so are lower
- In a factory setting, less waste is generated. It is also easier to recycle by-products and waste materials.
- Moulds can be utilized more than once in a factory setting where they are well protected and kept under safe settings
- Prefabricated components are very fragile and excessive care is required to use and store them
- Failure of joints is common in prefabricated sections due to corrosion and wear during transportation
- For voluminous components, such as would be required for the Qatar stadiums, the cost of transportation may exceed that of assembling parts at the construction site
- Position and placement of large prefabricated sections may be challenging
- Using the same type of prefabricated elements for big projects such as the construction of stadiums may lead to drab and monotonous looking projects
- Using prefabricated components will deny the locals a chance to benefit from labor opportunities
According to Nethercot, “composite construction is a generic term to describe any building construction involving multiple dissimilar materials” (41). As Rahman further explains, “there are several reasons to use composite materials including increased strengths, aesthetics, and environmental sustainability” (5). One example where composite material can be used in Qatar is steel beams to support concrete floor slabs due to the amount of weight that the structures will be required to handle.
Cement-polymer composites will be a good option for Qatar 2022 projects. They can be used to replace traditional cement, which easily cracks due to high temperatures and other thermo processes. “It has already been proved that 20% crumb rubber can be added to the cement mixture to improve strength and durability, without affecting the appearance of the cement.” (Loulfy 2). While pressure treated wood has traditionally been used for decking, plastic reinforcement can be used to make construction projects stronger and cheaper in Qatar. This can be utilized in the construction of sheds and fences. To reduce the amount of wood used in construction, steel plates can be sandwiched between two wood pieces. This not only reduces the amount of wood required for construction, it also ensures stronger structures.
Disassembling the stadiums
Qatar has pledged $50 billion to facilitate construction of different projects in preparation for the 2022 World Cup. These projects include twelve stadiums, which the country does not need when it is not hosting a World tournament. To avoid a situation where the country has under-utilized facilities, there are plans to disassemble some of the stadiums and use the material to rebuild them in other regions. It’s expected that nine out of the twelve stadiums to be built will be either disassembled or reduced to a smaller size. “The Ghana Football Association has already signed a memorandum of Understanding to receive one of the disassembled FIFA World Cup 2022 stadia” (Funzug 2).
According to Funzug, “the upper tier of nine of the stadiums will be removed after the tournament. One, Doha port Stadium, will be completely modular, and will be deconstructed following the FIFA World Cup” (2). The stadiums will be built to accommodate 40,000 to 60,000 people. After the tournament, the upper tiers will be removed, leaving the stadiums with a capacity of 20,000 to 25,000 people. This capacity will be suitable for regular games in the country, and will be easier to maintain.
The Doha Port Stadium, together with their other stadiums upper tiers, will be sent to developing countries such as Ghana. Qatar pointed this as an integral part of their plan during the bidding process. It is aimed at helping some developing nations who do well in football but lack sufficient football facilities and infrastructure. Qatar further hopes to make the cooling technologies available to other nations with intentions of hosting sporting tournaments but cannot do so due to weather challenges.
Qatar can learn from regions that have tried this technique before and benefited from it. One good example is the 2006 Soccer World Cup in Germany. To create an avenue where fans could watch public screenings of the game, a stadium was set up in front of Reichstag. The stadium had a capacity of 10,000 viewers, fitted with other facilities such as toilets. The Vancouver Whitecaps in Canada have also in the past built a prefabricated stadium that could sit 27,500 people, which they used temporarily as their stadium underwent renovation. Most of the stadiums to be built in Qatar will sit double or triple the Vancouver stadium. Such success stories in the past prove that it is possible for Qatar to utilize prefabrication techniques, and have stadiums that can be disassembled after the tournament to be sold or donated to other regions.
Nearly every project manager today is faced with a challenge of coping with constantly changing information systems and needs. Those who have been around for a long time have had to adjust from ledger cards to keeping up with big volumes of information generated in the digital era. The speeds at which information flows in today is making it hard for project managers to keep up. “As we move rapidly into the future, leaders face the challenge of being effective in a global knowledge environment” (Politis 26). “Today, leaders have to undertake the responsibility of helping their projects cope with the challenges they face from expanding knowledge and knowledge systems” (Lakshman 84).
Knowledge management is of paramount importance in any project today. It comprises of many tasks and initiatives to enable a project create, represent, distribute and adopt data and information. As a part of their strategy, many project managers today have a department and resources strictly dedicated to knowledge management. There are also many consulting companies coming up to help organizations understand the role of this significant aspect of business. Knowledge management is concerned with creating competitive advantages and innovations to improve performance. It also plays a major role in ensuring continuous improvement and accurate interpretation of data.
Knowledge management seems to be attracting a lot of attention in both small and big projects today. This comes from the realization that it is impossible for a project to successfully complete in today’s constantly changing markets without proper investments in knowledge and information. In order for projects and events to become and stay truly globally competitive, it is important for them to recognize that information is required to support decisions at various levels. “In a world overloaded with information, there is need for emphasis on not just more information but actionable intelligence that is capable of guiding decisions in a business” (Awad and Hassan 127). Therefore, knowledge management, which creates competitive intelligence in any project, must be positioned in a way that it can easily identify threats capable of negatively impacting the business in its external environments. The other functions of knowledge management processes is to identifying new opportunities for the project, and hopefully lead to new innovations, which will create more benefits and productivity for it.
Designing and implementing information management
Implementing knowledge management may take place in different models which will prove fundamental for Qatar in their efforts to complete all planned projects by 2022. However, regardless of the model used, the entire process must be guided by the country’s strategy. Constant guides for the process must take into consideration the mission, vision and strategic objectives of the country for 2022. There are several areas that must be considered fundamental for the success of knowledge management. They include top management support, unfiltered access to information, knowledge management teams and resources, and professional knowledge on how to implement the process.
Cultural support in the country is important as the whole team must be willing to adjust and adapt to changes that may be brought about by the implementation of the process. Clear priorities and key intelligence needs must be well identified and specific enough. Finally, the process must have set objectives, products or outputs. This will enable the team to develop a clear route of development and be able to easily monitor progress. Each model is based on simultaneous development of both capacity and infrastructure development and value addition. “Each process theoretically starts with the development of capacity and infrastructure but the process of adding operational value is initiated soon after management has brought in the concept of knowledge management” (Nonaka and Nishiguchi 56).
For the process to be successful and effective, it is important for the government to support the information management tools and have a clear and shared vision for the function. When this support is not available, the function seizes to be viewed as important and priority is no longer placed on it. It is important for the management to be open and appreciate new tools for decision-making. They should also appreciate that the function of knowledge management is an important support for the country’s landscape. Every stakeholder should maintain a healthy level of pressure for change to allow implementation of new project tools such as knowledge management.
Good leadership is important for a successful implementation of knowledge management systems in Qatar 2022 project. The country should find, and has already appointed the most suitable person to oversee and drive the process. Apart from having extensive and professional knowledge on the concept of knowledge management, the leader must be well conversant with the project’s management and have healthy relations with the rest of the stakeholders. “The person’s access and relationship with the senior management and especially the chief executive is equally important as his skills and character” (Nonaka and Nishiguchi 73). The issue of choosing a driver for the process is as important as the amount of support the top management is ready to accord to them.
Timing and readiness are important elements when implementing information management in any project. Since most organizations are normally overloaded with other core operations, timing is an important consideration in adding another operation to the already existing load. The plan and timing must make it easy to integrate knowledge management with other initiatives in Qatar. It should also be easy to integrate it to the country’s culture and decision-making.
“The requirement to be able to fulfill the entire scope of functions is more important than where the function is positioned” (Tsoukas 115). Information management should be positioned in a place where it is able to look out for significant changes that may impact the outcome or future of the project. The author continues to point out that the function is more effective when positioned as high up in the organization as possible where it will have unfiltered access to the major decision-makers in the country.
Benefits of information management for Qatar
Managing information that comes with such a big event can be overwhelming. The country will need to be constantly updated on the progress of events. They also need to be able to communicate the information with other concerned parties and stakeholders. There is need to understand the expectations of the fans and players, know the origin of their visitors and their intentions, as well as protect the country from criminals who may take advantage of the event. The implementing committee further needs to be aware of rules and regulations affecting different components of the tournament, and ensure they comply with all requirements and regulations.
The most important thing that leadership can do is understand the importance of knowledge management in their country and work towards implementing its success. For the big projects, selecting a chief knowledge officer will enhance the country’s capacity to integrate and benefit from such a management tool. Knowledge management has many benefits in modern times, especially for a project that is serving people all parts of the world with different expectations. Among the most important benefits is its ability to promote stability in today’s ever changing environments. In an era where information streams in every second, it is very important for Qatar to be able to convert it to information and to useful knowledge.
Knowledge management will provide Qatar with a capability for timely delivery of projects and arrangements. The hotels and shopping malls will need effective and modern strategies in their supply chain systems to ensure reliability and visitors’ satisfaction. In this case, knowledge management is important in ensuring proper communication between manufacturers, transporters, warehouses and chain managers. “Knowledge management is important in fostering organizational synergy by sharing resources and knowledge in a timely manner” (Tsoukas 99). It is through a well established knowledge management infrastructure that all the concerned parties in the supply chain can have access to information as soon as it is available and as soon as it is needed.
Another important benefit of knowledge management is the fact that it will help Qatar 2022 World Cup’s implementation committee make it more feasible for project managers to specialize and do things in a systematic manner. When a project has the ability to sort out information and knowledge, it is easier for leaders in different departments to only focus on what they require and save time that would otherwise have been used to sort out all the information available. Knowledge management will make leadership easier by allowing people to focus on specific needs of the arrangements at any particular time.
Information and data management strategies
Leaders in World Cup 2022 implementation team can access knowledge in three different stages. They can access it before, during or after knowledge management activities. As different projects try various incentives to capture knowledge, it is clear that leadership plays a critical role in implementing knowledge management strategies. “Leaders have the responsibility of making content subscription mandatory and incorporating rewards into performance measurement plans” (Politis 100). Active management of knowledge is a commonly used strategy by leaders today. In this strategy, every department in the organization has the responsibility of encoding their knowledge into databases and being able to retrieve it whenever it is needed.
Another commonly used strategy is managing information at a central location and having making available to leaders when they need it. The leaders then have the responsibility of converting the available information to helpful knowledge, on their own or with the help of experts. As knowledge management becomes more and more important, more consultancy business are coming up to help mega-projects understand the millions of gigabytes of information coming in everyday. Many international events such as the upcoming World Cup may need expatriate services, since consultants are knowledgeable on how to manage different environments and outcomes.
Whether a nation is well mature or new in its knowledge management strategies, there are going to be challenges. This is from the fact that knowledge management is a new concept in the market and experts are still trying to perfect the art. One of the biggest challenges facing organizations today is handling information overload. “As computing and connectivity capabilities become increasingly faster and more robust, people find themselves overloaded with information” (Schein 121). Small countries such as Qatar may easily reach the exhaustive point where it has no ability to take in more. Converting all the information into useful knowledge may then pose as a challenge.
Another major challenge is mastering information. When the process of capturing and transferring information is not done right, it may lose its intellectual value. To avoid this, every leader must have a broad management commitment to all the important processes of knowledge management. There should also be tools that allow accountability to ensure credibility of information.
Addressing people issues is a significant challenge in knowledge management. According to Lakshman “employee assimilation, development and retention are processes that, taken together, may contribute to the success of knowledge-based organization more than anything else” (18). Most organizations are still faced with the challenge of assimilating their employees and teams into the process to fully benefit from it. When this does not happen, the process becomes more complicated since it’s the same people who develop knowledge needed for the success of the organization.
Fostering collaboration is also a major challenge in knowledge management. Previously, countries hosting such big sporting events are faced with the challenge of finding ways to create and maintain a culture where collaboration among its teams is key. Since its the interaction of people that creates information and allows other to benefit from it, barriers in communication may make knowledge management impossible. Most organizations today try to ensure motivation among teams to work together and avoid unnecessary redundancy.
“Qatar currently imports 80%-90% of its food and other basic supplies” (Arabian Business 3). During the World Cup period, the country will need to import more than five times what the country imports. Due to the extreme weather conditions, it is hard for any food to grow. It will not be possible for Qatar to satisfy the needs of its citizens and visitors if they are not able to access and transport the supplies on time. Therefore, infrastructure will play a crucial role in ensuring supplies reach on time. Logistics and supplies management will therefore be a critical issue for the organizing committee, as well as other stakeholders who are keen to ensure a successful tournament.
Apart from food supplies, business activity is expected to grow exponentially during the tournament. A considerable number of the visitors, especially those who will be visiting the country for the excitement rather the games may be interested in other activities such as shopping. To avoid disappointments, it is imperative that business establish ways to keep stocks flowing in and having happy customers. Businesses in Qatar and the government can employ tools that ensure consistent supply of goods. One such tool is efficient customer response (ECR), which has its history from the 1990s in the United States.
The concept resulted from increased competition in the grocery industry due to recession. ECR is an industry body ensuring maximum responsiveness to business demands and minimizing costs in the supply chain (Fernie and Leigh 49). Through ECR, visitors and locals in Qatar will be served better and faster. A relationship between customers and trading partners ensures that they are served at a minimum cost. Advanced technology, infrastructure, business structures and competition calls for the most effective way of serving customers by delivering the right products, at the right time, and at the right costs.
For ECR to benefit the government, business people and visitors in Qatar, there are prerequisites that have to be in place to ensure its effectiveness and efficiency. The most important and main focus areas are product replenishment, category management and enabling technologies (Fernie and Leigh 49). Category management enhances ECR’s efficiency by addressing infrastructure concerns. ECR is only possible if there is an effective and efficient infrastructure system in place. Infrastructure determines how accessible goods and services are, as well as the level of interaction between consumers, manufacturers and the rest of the supply chain.
Category management gives ECR exceptional success by optimizing introductions, assortments and promotions. Efficient response is not just about timely delivery but also about ensuring quality deliveries in appropriate packaging. Optimizing assortments and promotions gives consumers quality and a variety to give each one of them exactly what they want.
The second prerequisite is product replenishment. Product replenishment focuses its attention on integrated supplies, automated store ordering, continuous replenishment and a synchronized production. It is also the element of ECR which ensures reliable operations through cross-docking and other available systems. Suppliers and consumers rely on these elements to have correct deliveries made at the right time and in correct quantities.
There are different paths identified in ECR from the supplier to the consumer. The aim of product replenishment is to integrate the different paths to a logistic chain which will create one effective and efficient route to ensure the consumer is constantly reached. Several logistical methods such as cross docking and order support systems makes it possible and fulfills the product replenishment prerequisite for ECR to work.
The last prerequisite is enabling technologies. They include electronic fund transfer, electronic data interchange, activity based costing and item coding, and database maintenance. Technologies such as the electronic data interchange allow everyone on the supply chain to minimize their inventories by reducing order processing time (Fernie and Leigh 49). They allow direct connection between different parties on the chain without need for physical interaction. Different parties can receive messages which were left while they were offline and this keeps the communication going.
Information technology has made it easier for the supply chain to communicate and deliver on time, which is the whole essence of ECR. Enabling technologies have made it easier to deal with logistical problems which become bigger as markets become more global. Database management makes it easy for suppliers to trace their products while electronic fund transfers makes payment convenient and safer. Other prerequisite include demand management and supply management. Demand management makes it possible to manage forecast demand while supply management is the process and method of modern buying (Fernie and Leigh 50).
CPFR model and how it complements ECR
Collaborative planning, forecasting and replenishment (CPFR) is one the quick response goals, an instrument that would be beneficial for Qatar due to the large number of consumers they will have in their country in 2022. “It is a program used to synchronize market fluctuations and the supply chain in a more real-time fashion” (Fernie and Leigh 45). It allows manufacturers and suppliers make accurate forecasts. By creating accurate sales forecasts and identifying exceptions for the forecasts, a business is able to make accurate orders.
CPFR compliments ECR by helping manufactures produce enough to meet demands. By allowing flow of information from the supplier and the warehouse to the manufacturer, there are enough products made and released on time to meet the customers’ demands. Suppliers are able to buy enough by using sales forecasts to ensure they don’t suffer shortages. This way, the supply chain is in constant flow and efficient customer response is enabled.
By ordering only what is needed, product replenishment is possible since the warehouse only stores what they need. It is an easy way to ensure quality is met since products don’t overstay in the warehouses as a result of too much surplus. The warehouses only handle what will be needed in an immediate future by the supplier. As a result, they have enough space to store more products which may have an immediate demand.
CPFR makes it possible to cost save and enhance profitability as desired in ECR. Preconditions required to facilitate CPFR also benefit ECR. For an effective CPFR, there is need for advanced IT systems, an important aspect in ECR. There has to be a structure which allows centralized decision making as well as a scale to justify costs incurred in the process. Such preconditions strengthen ECR’s foundation since it is aimed at minimizing costs of responses to customers saving them different costs in the end product, and yet it lacks the decision making aspect.
The other important precondition for CPFR is an integrated supply chain from the manufacturer to the consumer. Important considerations here include proper infrastructure and minimized hindrances for transit. They also include proper and consistent communication channels which demand for technology enablers. If properly installed, these requirements make customer response an easier task. Most of the processes in CPFR ensure timely and reliable order fulfillment.
CPFR further compliments ECR by providing checkpoints and organized procedures to help identify significant supply and demand challenges. Checkpoints are put in place to identify what can be improved and how to make the whole process more satisfactory to the customer. CPFR further breaks down demand and supply into forecasts, points of sales, order planning and future delivery requirements. It is then able to find solution to more specif concerns in ECR.
The process of executing CPFR involves production, shipment, delivery and stocking the final products for the consumer (Fernie and Leigh 54). As a result, there is a comprehensive address of the supply chain and easier to perfect every part of the link. Efficient customer response becomes easier to address when every step of the supply chain is functioning optimally. Both ECR and CPFR are goals of quick response (QR) but it is evident that they are so inter-linked that it may not be possible to achieve one without the other. Since ECR is a more comprehensive process, it makes it more important than CPFR in the quick response process. However, a well established CPFR system makes it much easier to achieve ECR as it provides systems in which ECR is founded on.
Managing key processes
“The best avenues for driving a business’ performance gains is managing the implementation of its processes” (Winser and Keah, 22). Identifying the key processes in any project is the first and most fundamental step for any developers planning to execute their strategy. “Management of key processes is only productive if the results will be aligned with the project’s strategic objectives” (Winser and Keah, 22). Key processes are easily identifiable by their level of impact on the success of a project. They are those processes whose success or failure has serious implications on a project’s goals and revenues. For Qatar to be successful in all the big projects expected to be complete by 2022, their implementation and management has to be given priority and has to be right. They should also be specific to the country’s unique policies, goals and approach (Wells, 20)
Key processes should not be too many in a project. “On average, typical projects will have ten to fifteen key processes” (Wells, 22). Some are external but most of them are internal, meaning the stakeholders have control over how they turn out. The first important step towards managing key processes is identifying the project’s baseline in regards to its current environment. The management must know how well the team plans to execute its key processes before even deciding how they want to go about it. The second step is identifying the most fundamental success factors for the process. These are factors that must be available if the process has to work out and give results. They include things such as technology requirements and availability, tools for measuring performance and the how the process will be aligned.
The other important factor in managing key processes is the organization and location of the processes. Key processes are many times in constant interaction with each other and therefore, they need to be located in a way that makes interaction possible (Keong 200). Today, project management and business models are constantly changing calling for very flexible locations of key processes. “The need for instant process execution in the current fast pace business environments calls for consolidation, standardization and management of cross-functional processes” (Winser and Keah 11). Since the country may have many similar processes being implemented at the same time, there is need for standardization to ensure high efficiency rate of execution.
A key step in managing major processes in any organization or region is automating them where possible and affordable (Keong 32). Automation reduces chances of human error and will save the country a lot of time. Many project managers will avoid automation due to the high costs involved without realizing that the investment will save them much more in future. At an age where consistency is key, automating key processes will allow the country to have consistent quality, develop a proper communication channels and keep stakeholders constantly and accurately updated.
Many times key processes in a project may be a new idea that requires high levels of expertise. In this case, Qatar will be involved in constructing stadiums and roads with features that have not been implemented before in the country. Training employees is therefore very critical in ensuring a successful implementation and management of key processes. Employees need to understand what the project’s goals are, what role their functions play in realizing them, and how as an individual an employee impacts the success of failure of a key process in the project. Involving employees in key processes ensures that every person in the project feels appreciated and puts their all in ensuring success. Every idea, whether small or big, should be respected in a project. After employees have submitted their suggestions, they should go through vetting and then the country develops them, allowing employees feel part of the process. Such initiatives will many times save Qatar a lot of money on research, as it is amazing how many good ideas employees can come up with when given a chance.
Another important step in key processes management is learning to be flexible and embrace change. Qatar must be able to identify those processes that are not working and easily redesign them. Inefficient processes will cost the country a lot of money and even drag the other processes. Once a project has baselined its processes, it should be able to identify those strategies that are either not working or are taking too long and costing it m much more than it can bear. For the mega-projects, such as developing the airports and the stadiums, or for processes that require a lot of investments, key processes can be implemented one at time. This way, the country will be able to bear the costs and management becomes easier with less processes being handled at one time.
Technology is important for effective management of key processes. “Technology influences management and workforce in organizations by analyzing production, resource impact, routine to non-routine operations, structure impact, industry impact and work impact as well” (Winser and Keah 34). It allows the managers together with the work force match the resources available with technology through different approaches. The management is able to run operations more easily by changing techniques and processes to better and modern ones.
Finally management of key processes would not be complete without putting in place performance measures. These measures should be a continuous process to help Qatar establish what is working and what is not at an early stage. They will help the country identify where to make improvements or put more investment. Performance measurements include scheduling operations and setting targets to ensure implementation of key processes is done on time.
For a project that is going to cost Qatar over $4 billion, facilities management plays a crucial role in ensuring success, managing resources and minimizing risks. Lack of a proper facilities management strategy may result in risks from different uncertainties such as natural calamities, legal liabilities, and deliberate attacks from an enemy and economic uncertainties, environmental bodies among many other causes. For most part, facilities management methods consist of several elements, performed in a specifically defined order. They include assessment or identification of threats in a business’ facilities, assessment of the business’ vulnerability, consequences and identifying ways to eliminate or reduce the threats that ma y arise from poor facilities management. A strategy must be set up to prioritize facilities management and minimize risks. Principals of facilities management include creation of value, addressing uncertainties, creating a systematic and structured strategy and creation of dynamic and responsive facilities management procedures.
Facilities management organizations’ primary objective is to offer solutions that help projects operate more efficiently, as well as helping project managers to implement solutions to different problems. Facilities management is primarily devoted to the maintenance of buildings and structures through fire protection and safety, risk assessment, control of substances hazardous to health, occupational safety and health, industrial hygiene and indoor air quality. It accomplishes this by managing some of these activities;
Fire protection as safety
Fire and safety and protection are important for Qatar for the following reasons;
- It will allow continuity of operations by preventing the interruption of key activities during the World Cup
- Property protection is ensured by preventing conflagrations and having insurance considerations
- Life is protected by ensuring fire safety standards and codes are in place
Effective facilities management will ensure fire protection and safety for Qatar 2022 by instilling smoke and heat detectors, sprinkler systems, dry risers, fire alarm systems and other gadgets that will enable the country manage any fire risks before they occur. Before all this is done, a qualified team must perform a fire risk assessment to establish the level of risk the country and the World Cup facilities are exposed to, as well as what needs to be improved.
Health and safety
Most of the facilities constructed in the region are expected to experience a lot of in and out traffic of people stopping by for different reasons. As a result, if safety is not taken care of, a big number of people and their lives are threatened. It is for this reason that health and safety must be a paramount part of the World Cup 2022. Considering this, the facilities management strategy must have in place a plan and strategy to ensure this is well addressed in the country. The country must take the necessary steps towards ensuring compliance with the state and local laws regarding safety. Among such regulations are the Occupational Safety and Health Administration (OSHA).
To manage health and safety, the program must help Qatar achieve industrial hygiene standards in their stadiums, hotels, lodgings, shopping malls, and other social facilities. Indoor and outdoor air quality for facilities that are expected to host over 400,000 people is important to keep people safe and ensure their health is not threatened. Another area that will need attention to ensure health and safety, is control of substances hazardous to health. This will include ensuring proper handling of food ingredients, cleaning chemicals, proper management of first aid kits and cabinets, and any other substance that could pose as a threat if not handled well.
Like any activity involving a large number of people, insecurity is bound to rampant if not handled well. One factor that fans, players and other visitors will consider before making a choice on whether to attend the World Cup or not, is their safety. The people need to be assured of their personal security, their cars’ security, and the security of the food. Intimate Facilities Management programs are supposed to identify elements that are crucial in ensuring security for such events. These elements are designed and implemented in different layers. These layers include environmental designs, personal authentication, electronic access controls and intrusion detectors to ensure appropriate response measures are in place.
A results-oriented facilities management program will assure security to the country and the people attending the event and their property, by installing obstacles that delay serious security threats and attackers, and frustrate the trivial ones. It will also ensure security by installing explosion protection measures such as bomb detectors, security lighting, surveillance cameras and alarms. When managing security,, a proper response strategy is crucial in stopping and minimizing damage. A security response strategy will therefore have priority when managing Qatar 2022 facilities. Putting in mind that no specific solution will satisfy the country’s broad class of security situations, there must be an analysis performed to establish all possible needs and come up with customized solutions to each of the security problems and needs. Among the solutions that the country has already established for the stadiums include manned guarding, intruder alert, Access Control and CCTV technology.
Operational procedures in any project deal with designing and overseeing project operations that address the management of goods and services. It is responsible for ensuring that the projects operations are running efficiently and effectively. Facilities management programs will help Qatar to handle its operations effectively by designing procedures that help save time, produce results and monitor progress. Among these operations include running the help desk that allows visitors access the place easily, inquire about parking regulations and to maneuver through the place.
Managing people and traffic play a key role on operational management by ensuring people have easy access to the inlet and the exit. The event management team needs to see to it that the parking and the ordering counters are designed in a way that they can accommodate disabled people. Different groups of people such as expectant mothers and those with small children must have their needs taken care of. The toilets for example have to be clean and ensure comfort by having separate toilets for people of different sexes and those with disabilities.
Cleanliness is paramount for an event that will involve a lot of food being served. Cleaning procedures and programs must meet the needs of the consumers. A key area in cleanliness is waste management, which should take into consideration the cost, environmental consequences and other factors. The organizing committee will have all the cleaning procedures and chemicals used in eating areas researched to ensure that they don’t pose any threat to food safety. Managing large volumes of food will be a big consideration when designing stores, freezers and the kitchens. It is important that food storage does not expose anyone to food poisoning or damage its quality.
Every project today is faced with the challenge of managing environmental issues. Facilities Management programs have specific procedures that ensure projects meet the national and local environmental regulations such as the Environmental Protection Agency (EPA). Buildings planning, layout and placement of structures all count in environmental management. Qatar should have procedures that ensure a daily inspection of waste management, water treatment and level of traffic are managed. Issues such as pest control, vending and car parking will also be addressed.
Maintenance systems ensure that all the investments a project has put in place are well maintained and give back the value. For a project expected to handle a lot of heating and cooling activities, facilities Management offers services such as researching and installing the best heating and cooling mechanisms for such a project. Key systems to be addressed include the air conditioning to ensure appropriate conditions for the fans and players.
Installing predictive and preventive maintenance measures to help manage damages before they escalate to unmanageable levels is an effective way of ensuring cost saving. For example, buildings with cracked walls will need to be fixed early enough before it’s too late, and before they offer an opportunity to people who are a threat to security. Corrective maintenance also ensures early repairs when they are still cost effective to perform. The parking lot and drive ways must be constantly checked to ensure the comfort of drivers. The surrounding such as the grass and gardens must also be well manicured and managed to keep the place appealing to the locals and the visitors.
Facilities Management programs will ensure this by building automation systems that help the World Cup facilities contractors detect defaults early enough. Fabric and decorations used in the chain of cafes have to match with the country’s class and quality. Other important factors in maintenance systems include reactive repairs, control measures and horticulture.
Periodic statutory inspections and testing
Statutory inspection and testing deals with work equipment, managing pressure systems, fixing wiring and electrical appliances and other emergency applications such as lighting. Facilities Management ensures that man-safe systems such as access to the roofs and cleaning windows in done in a way that doesn’t expose anyone to danger. There are laid down procedures for fixing wiring, handling portable appliances and handling emergency electrical operations such as lighting. On order for fire protection and other safety measures to bear fruits, regular inspection and testing is used to keep everything working and correcting what is not working on time. Qatar will use its experience to put in place measures that enable the World Cup 2022 project to reap the benefits of all its investments in safety.
Facilities Management will address and help the country deal with technical risks related to the professionalism of the project and affects it directly. These risks include incomplete or wrong designs and uncertainties over availability or delivery of materials. Managing technical risks will also include handling inadequate or inaccurate site assessment and wrong specifications and estimations. Other types of risks that facilities management will help manage include logistical risks, which would mainly be caused by lack of proper transportation infrastructure in the vicinity where some of the stadiums will be constructed. They include availability of resources and a timely delivery of materials.
Another significant risk that the region needs to manage in its facilities management program is construction risks. Construction risks include safety and natural uncertainties. Employees’ safety and well being, stability of the finished project and protection against natural risks such as strong winds and extreme temperatures are the major concerns in construction risks. All facilities must have structures that ensure it’s protected from extreme temperatures, winds and other natural and man-made disasters such as floods. Project developers have to ensure fire safety measures even before projects commence. Other examples of construction risks are poor industrial relations, weather implications and uncertain productivity of materials. All these are areas that facilities management helps control.
In conclusion, there are many facilities management processes applicable to the Qatar World Cup 2022. The first step is to put in place specific procedures and in-house regulations that deal with facilities safety measures. The project managers should also adopt standardization of facilities management processes, to ensure minimized risks and consistency. It is important that Qatar puts its developers into task, to ensure that their teams are well trained on facility management, risk management and safety. Training should involve intensive consultations from experts and from business that have managed to achieve excellence in facilities management. Some companies have many years of experience in facilities management and can help Qatar implement all processes and procedures discussed above.
Findings and analysis
Termini defines “project management as the discipline of planning, organizing, securing and managing resources to bring about successful completion of specific project goals and objectives” (10). The objectives of project management could vary with different projects but all serve the purpose of ensuring that the project runs smoothly and is completed on time. Project management is also an important tool when identifying risks and managing them. Identifying the key processes in a project is the first and most fundamental step for any team planning to execute their strategy. “The development phases in Qatar’s project include initiation, planning and design, executing, monitoring and controlling, and finally the closure of the project” (Marshall 4). Project management is only productive if the results will be aligned with its strategic objectives.
In the past, there have been incidences of mega-projects failing due to poor planning. The big dig project in the United States is one such project. “The Big Dig was a mega-project in Boston that rerouted the Central Artery (Interstate 93), the chief highway through the heart of the city, into a 3.5 mile tunnel” (Greiman 3). The project is still considered among the most expensive in the United States costing an approximated $22 billion if it was to be fully paid off in 2038, even though its initial costs were approximated to be 2.56 billion. It was marred by leaks, exaggerated and escalating costs, poor quality of materials, fraud, criminal arrests, and four losses of life. From such projects, Qatar can learn the value of effective planning and the value of professionalism in managing the big projects ahead of the 2022 World Cup tournament.
Qatar’s bid to host the World Cup was conceived in 2010 to promote the region as a business, sporting and tourism destination. It was initiated by the Kingdom of Qatar and their planning department. Planning for the World Cup has already began and some projects are already underway. Initial planning for the projects to be constructed includes performing an environmental impact survey, identifying archeological sites and how they would affect designs, doing soil-mix tests and testing the strength of soil, among others. Actual planning includes sourcing for labor, sourcing for raw materials, vetting suppliers and contractors, making financial budgets and establishing success measures. The project requires several mitigation projects such as construction of roads, an airport, a railway line, pedestrian ways, parks and bicycles paths to be completed before it is fully implemented.
Planning further includes getting the mandate to begin, briefing everyone who is involved, establish cases and contracts and defining the goals of the project. The project’s planning has involved determining the level of detail and developing the scope statement. At this stage, the team has already identified deliverable and broken down the work structure. It is also at this stage that a plan is being put in place to complete the deliverable and network all the projects activities. The cost currently is estimated at more than $4 billion. Supervision contract has awarded for some projects such as the airport and the major stadiums, while for others, tendering is still ongoing. Most of the projects are to be designed by foreign companies.There is a team set to develop the schedules and the budgets.
Execution will be done through the involvement of several contractors. Major contractors in the project included Germany and United States contractors, expected to work with Qatar. Notable projects to be completed include 12 stadiums, an international airport, a railway line, shopping malls and hotels. Major engineering tasks include building tunnels without much interruption on the existing elevated highways, constructing stadiums with new design structures, and installing new technologies to manage the high temperatures, among others.
Risk management is a significant concern for Qatar as it prepares to host the World Cup in 2022. Asimakopoulou defines risk management as the “identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control them” (34). Risks in Qatar’s plans to host the World Cup may arise from different uncertainties such as natural calamities, legal liabilities, deliberate attacks from an enemy and economic uncertainties, among many other causes all evident in previous projects. For most part, risk management methods consist of several elements, performed in a specifically defined order. They include assessment or identification of threats, assessment of the project’s vulnerability, consequences and identifying ways to eliminate or reduce the threats (Global Crisis Management Organization 39).
For Qatar, a strategy must be set up to prioritize risks minimization. Principals of risk management will include creation of value, addressing uncertainties, creating a systematic and structured strategy and creation of a dynamic and responsive management of change. Risks identified in the project include the following technical, financial, logistical and design, just to mention a few. Technical risks are those risks related to the professionalism of the project and affect it directly. In Qatar 2022 project, these risks may include incomplete or wrong designs, uncertainties over availability or delivery of materials, inadequate or inaccurate site assessments, and wrong specifications and estimations. Most of the materials to be used for construction projects are to be imported, exposing the team to the risk of late deliveries and other complication in case of wrong specifications.
World Cup 2022, the biggest project in Qatar so far, is bound to have its completion delayed if these challenges are not addressed. Materials sent with wrong specifications will took too long to be sent back to their country of origin for corrections. The end results will not only a delayed date of completion, but an incomplete and abandoned project. Debates arising in the past have revealed high levels of fears among stakeholders on the country’s ability to finish all the scheduled projects by the set date.
Logistical risks are a source of worry for Qatar as it attempts to build over 10 stadiums, an airport, new cities and roads in less than ten years. Logistical risks are mainly caused by lack of proper transportation infrastructure in a region (El-Sayegh 8). They include availability of resources and a timely delivery of materials. The labor market and availability of professionals can also pose as a major logistical threat. Qatar 2022 project is getting more complex as developers try to put up the best designs. It is also suffering more challenges as unprecedented concerns arise. As a result, high level of expertise will be required and lack of it or preparation for it will paralyze the project. Logistical risks also arise when construction equipments, labor, fuel and other spare parts are not delivered on time (Price Waterhouse Coopers 102), as may be with the current projects if logistics are not planned well. If construction does not start early, suppliers may not be able to keep up with changing schedules and time-frames of the project.
Financial risks are the biggest concern for Qatar so far. They affect the cost factor of a project. They include inflation, fluctuating tax rates, delayed payments, repatriation of funds and foreign exchange rates (Klemetti 6). Qatar 2022 is expected to cost over $4 billion and possibly more. This cost may be adjusted to a higher figure to cater for inflation, and could rise to more than $5 billion. The cost is expected to rise to if the current trend of inflation in European regions continue, since that is where most construction materials are supposed to come from. Due to the large amount of raw materials to be imported, foreign exchange rates will play a major role on the total cost of the project. A considerable percentage of the professionals involved in construction are foreigners and paying then in their own currencies could further affect the cost. The country’s economic growth currently is very healthy and it is expected that the trend will continue. This will save the country from a lot of risks that could arise if an otherwise trend were true.
The country is expected to face enormous construction risks as they prepare to be the first country in the gulf region to host the World Cup. Construction risks include safety and natural uncertainties. Employees’ safety and well being, stability of the finished project, and protection against natural risks such as strong winds, are the major concerns in construction risks. The country’s construction industry is so far plagued by health and safety challenges. Lives have already been lost due to safety irregularities and employees working under weather conditions that pose a health challenge. Project developers need to ensure safety measures even before projects commence. As the project progresses, it is evident that safety measures need to be adequately addressed, considering the amount of attention the project is attracting globally. Other construction risks identified in the project include poor industrial relations, lack of preparation for weather implications and uncertain productivity of materials.
Even though Qatar is a very politically stable country, political risks could still make it hard for projects to access expatriates and import the required materials. When leaders do not agree on major decisions, it is not easy to do any consistent work and the safety of the site and materials may be jeopardized. “Political risks may also bring about insistence on use of local professionals and materials, some of which may not fit the standard required by the project” (Coppola 14). Qatar enjoys a stable political environment and very friendly foreign trade policies at the time, a factor that has allowed developers to access the best materials and experts from all parts of the world. However, disagreements at the executive level on funding have been blamed for some of the delays.
Design risks are expected to be the most difficult to handle in Qatar. The country is committed to give fans and players a memorable experience by having stadiums and other constructions with new and unique designs from what has been done in the past by other hosts. “The biggest problem in the project is the means and methods used to address issues raised in the project’s designs and drawings, and the failure to properly account for subsurface conditions during the construction process” (World Football Insider 14). As the project progresses, it is evident that all the risks in the project have been under-estimated. There are many anticipated challenges and conditions as a result of doing construction in such a young and small county, and the overwhelming size of the projects.
Among the unplanned for surprises included ground-water conditions, large amounts of hazardous materials, unavailable materials and utilities, archeological discoveries, unprecedented environmental challenges, among many others. There are major safety and health concerns as the project progresses, mainly because of large volumes of hazardous materials and weak soil, which have not been well planned for. As a result, schedules and milestones may keep on changing and the project may lack consistency. Every change of plan and every artifact discovered requires approvals from different stakeholders.
The international codes Council (ICC) outlines what is expected by developers in order to ensure safety. Safety codes addressed include the International Building Code. In the process of implementing the big project, several safety problems have been identified. The team is highly blamed for lacking comprehensive preparation measures to mitigate any safety risks. The team is also blamed for ignoring those safety risks established in the early stages of the project. For example “there has been evidence on previous projects in the country with of leaks in the ceiling and wall fissures, extensive water damage to steel supports and fireproofing systems, and overloaded drainage systems” (Watt 34).
The project manager, together with his team, should address safety by planning for it from the tendering process. Contractors’ tenders should be assessed for their health, safety and welfare strategies, plans and stages. Designers and advisers should set up success measures and control systems that identify areas of concern and allow for corrective measures before the project develops further.
Quality of materials
One of the biggest reasons for one of the biggest failures in the history of construction, the Big Dig project in the US, was identified as poor quality of materials. According to The New York Times, “Massachusetts State Police searched for the offices of aggregate industries, the largest concrete supplier for the underground portions of the project, and found evidence of aggregate that did not meet the contract specifications” (1). Since the project stalled, there has been over 200 complaints filed against the project managers as a result of poor quality of material and violation of quality standards. From past histories of big projects, Qatar should pay attention to the quality of materials used in the diverse construction work going on the region currently.
Quality of materials can be achieved through working with proper materials specifications. Available techniques for managing quality include “total quality control, quality control by statistical methods, statistical quality control with sampling by attributes, and many others” (Clealand 116). Among the reasons why quality of materials could be low include corrupt developers who take such big projects as an opportunity to swindle money from the government. Ensuring proper vetting procedure are ensured is key in minimizing the chances of having developers who lack a passion for quality. It is also important that the construction companies seek authorization for any changes in the project from the concerned stakeholders.
To manage risks, there are enough risk management solutions that the project could utilize. The first step is to ensure that laws dealing with construction safety measures are fully adhered to. The entire project should also adopt standardization of construction processes, to ensure minimized risks and consistency. It is important that the government puts developers into task in future, to ensure that their teams are well trained on risk management and safety (Ghaemi 20). Such a measure will prevent the deaths of construction workers and any other catastrophic outcomes that could occur in future. Training should involve intensive consultations from experts and from countries that have managed to eliminate major construction risks in major developments. Such training is not only important for risk management but according to Craythorne “the knowledge obtained from a risk management strategy can assist with preparing the tender, selecting the resources and methods of construction, interpreting the contract and pricing works” (11).
The importance of project integration
For any project to succeed, project integration is critical. It is paramount that all the stakeholders be involved and consulted in major decisions. “Project integration should address the project’s charter, the importance of its stakeholders, significant milestones, and the project’s lifecycle” (Winser 18). The project plan should be comprehensive enough to allow easy takeover if there was any change in the project’s management. Project management methodologies should be applicable and realistic. Qatar has been blamed of planning for extremely technologically advanced project when there is not enough capacity for the team to do so. It is therefore the government’s responsibility to ensure that such fears and blames are not justified as a result of failed projects.
A project’s budget and costs must also be realistic enough to minimize financial hitches. Costs approximation should be done in full consideration of all the financial risks that may arise. These include inflation rates, exchange rates for imported materials, price changes for the supplies, labor availability, among others. The projects in Qatar could be faced with extreme escalating costs if international markets do not register good performances for the next ten years, a factor that could make it impossible for the country to keep up with.
The need for mutual goals and incentives
“Goals and incentives must be mutual and built into contracts throughout the project life cycle to ensure quality, safety, financial soundness, and a commitment to meeting budget and schedules” (Clealand 46). A project’s charter must fully identify quantifiable goals and objectives. Unrealistic goals makes it not only impossible for the stakeholders to anticipate challenges, it also makes it hard for employees to meet targets that are not very well defined. “The project’s inputs should be discussed with deliverable and success criteria in mind” (Turley 32).
Improvement and oversight
To ensure quality throughout the project, there is need to implement continuous improvement strategies. They allow a project manager to identify those areas which are failing and work towards improving them. Most failed projects in the past have done so due to too much rigidity and lacked room for adjustments to minimize costs. If the plan is too complex, it may be impossible to implement changes easily, and there will be more additions than deductions. As a result, the costs keep escalating and there are no appropriate measures to trim them. A project should ensure that for every stage, there are alternatives should there be any unprecedented difficulties.
The need for constant innovations
Good quality management techniques ensure constant product improvement and counter-measures for possible technicalities in the process. “Delivery processes should be constantly evaluated and improved in the light of their efficiency, effectiveness and flexibility” (Clealand 76). There should be realistic alternatives for those processes and stages that have failed or fail along the way. Control measures are designed to automatically give a guideline on the next best and realistic step for those which may have failed or proved too difficult to implement.
However, the magnitude of its contribution and the extent to which the economy benefits may differ. When considering the kind of investments to make in a country’s infrastructure system, policy makers have to consider more than the immediate economic benefits. They have to put into consideration broader developments in a region and how they can work together with a good infrastructure to benefit the economy. There are various economic benefits which arise from infrastructure development. It enhances employment accessibility, increases employees output as a result of easier operations, impacts property value and it increases productivity.
One way through which Qatar can improve its projects management processes is through utilizing the relevant technologies. For example, contractors can use the available tracking methods to trace raw materials on transit. That way, they are able to track the supplies from every part of the world. Deployment of such technologies ensures more streamlined communication between suppliers, transporters and the contractors. It also makes it possible for contractors to order for new materials on time in case of theft or lost items.
Another ways through which logistics and distribution processes can be managed is by using real time dynamic optimized models. Such models will allow the construction teams to respond to supply chain changes in a way that most of its traditional transportation methods would not handle. The project’s supply chain managers will be able to respond to challenges and changes in a timelier manner. Real time optimized models will help the developers to increase focus on performance management. It will also allow implementation of more sophisticated and effective reporting systems, allowing project managers to track and trace their transport operations. For the purpose of supplies management, it will be easier to track materials on transit and have accurate collection and delivery times.
Outsourcing is gaining a lot of preference in many big organizations or country’s involved in big projects. Outsourcing companies offer their clients warehousing, order management, payment processing and other logistics management processes. By offering logistical services to their clients, “more businesses are discovering the benefits of outsourcing their logistics management” (Winser and Keah 13). Qatar’s 2022 World Cup implementation team will be able to save a lot of time and money by outsourcing some of the processes such as supplies and logistics management. Key benefits of outsourcing include;
- The country will be able to save time and money since they don’t have to develop a logistics management process
- Outsourcing to an organization whose specialty is managing logistics will assure Qatar of quality and efficiency
- Since the projects will be dealing with just one company to manage all its logistics, it will be easier, convenient and time saving
- The country will save money that would have otherwise been used to purchase and upgrade logistics technologies, vehicles and human resources
- Qatar will be able to channel the money saved to other important initiatives
Proper management of logistics and other important processes require an efficient way of managing relationships with business, suppliers, distributors, transporters and involved personnel. As the Indian Institute of Materials Management explains, “the way a logistics company delivers its solutions has a direct impact on the company’s customers, and influences how they view the company” (1). Good businesses protect their reputation by delivering on time, making sure its clients have their stock available for customers, ensuring continuous improvement of services, and delivering all its promises. By having a wide range of products, the company is able to offer custom made solutions to individual businesses with specific problems. Establishing good relationships with such business will protect Qatar from possible inconveniences caused by working with new people every time a new project is initiated.
For a project that will buy materials from almost every major city in the world, relating well with its stakeholders and partners is crucial, as so is the need for an experienced logistics management company. The country has invested in advanced technology to manage its communication with suppliers and other related parties in efficient manner, one that allows it to be synchronized with all its partners all over the globe. Electronic Data Interchange can be used to links its warehouses, transporters and employees all over the country to make record keeping and stock taking easier.
In an age where the world is one big market, Qatar’s access to major markets in the world is not a major challenge if done with order and proper planning. Qatar is able to have products and materials required for construction manufactured in other countries such as China, for cheaper production cost, and have them delivered on time. An excellent example is the clothing industry where more than half the clothes available in Qatar stores are made in Asian countries and transported to the country. Workers’ uniforms, safety jackets and other clothing materials can be made in China for a much cheaper cost.
According to Arabian Business “the country has recognized the need to work with businesses internationally and providing this capability ensured that it not only picked up the best deals with international businesses, but also with other domestic suppliers” (13). The country has further partnered and purchased other transport businesses to allow efficient movement.
The cost of managing logistics weighs heavily on the government of Qatar, because it is passed on to them when goods reach at the port. The cost of developing a proper transportation network, though it is the responsibility of the government, affects all businesses in Qatar. Even though there are outstanding roads planned for development in Qatar, the contractors have to bear the cost of managing their fleet, fueling and hiring personnel.
Technology accounts for a big part of the project’s costs. According to the Indian Institute of Materials Management “technology is the backbone of any modern project” (1). Managing communication, information and large volumes of supplies and deliveries can only be possible through technology. Qatar and the contracted developers have to invest in real time dynamic optimized technologies to allow them manage information in real time. Warehousing and human resources are other significant costs for the project.
Qatar is going to make history by being the first country in the gulf region to host the World Cup. It’s also going to be among the smallest country to host the tournament. The country has the world’s largest per capita production of petroleum products. Its population has been on an upward trend for the last 30 years, a trend attributed to the region’s fast economic growth. According to Qatar’s ministry of municipality and urban planning, the population is expected to be over 3 million people by the time of the tournament. The growth is further attributed to western immigrations as a result of the region’s economy growth. By 2030, after the World Cup fever is completely gone, analysts expect the population to start decreasing again or grow very slowly. This is from the assumption that most projects in the region will be complete and investors might start migrating to other new markets. As economies mature, population growth rates in the corresponding regions tend to moderate.
The country’s energy industry further attracts a large number of foreigners looking to invest or work in the sector. It is estimated that almost half of foreign human resources are involved in building the regions energy infrastructure. The industry is now more active as the country plans to get a large percentage amount of the funds to fund the 2022 project from it. As a result, Qatar is now investing heavily on gas facilities which have attracted a lot foreign attention and investors. Being a young market in the oil industry, many foreign investors have had to bring their own professionals and personnel, a trend that offers Qatar more advantages. The large number of foreigners offers Qatar and business people in the region the much needed numbers in the markets.
Hosting 2022 has been viewed as an ambitious project for Qatar. The country’s infrastructure network is far from where it should be by 2012. For example, the city which is supposed to host the opening and closing ceremonies is still under construction. The country expects to have 12 stadiums constructed ready by 2022, none of which is completed.
However, Qatar is expected to get a lot of support from stakeholders. The most important stakeholders of this project are the people of Qatar. Qatar hopes to use the tournament to market itself as a tourism destination. If the country is able to achieve this, it will be able to diversify its sources of income and reduce dependence on the petroleum industry. The people of Qatar are bound to benefit from having a more beautiful and developed country. They are also the main beneficiaries of the current situation in the construction industry. The numbers of projects under construction today provide an incredible opportunity for experts and other employees in the industry.
Other significant stakeholders expected to play a major role and offer support in Qatar 2022 World Cup project are business people in the region. The country is expected to expand its hotel’s capacity by over 30% by the year 2022. Hotel and accommodation industries are expected to be the biggest beneficiaries of the tournament. Throughout the World Cup season, it is expected that there will be more than 400,000 visitors in Qatar at any particular time. During the final matches, it is expected that the number could be as high as 700,000. The hotel industry is expending and is expected to reap maximum benefits during the tournament. However, they face a challenge of ensuring that the facilities remain relevant after the tour is over.
More support is expected from sponsors and financial partners such as the banks and other external donors. The sponsors will expect a project worth their money, one that is sustainable and one with a high rate of return. The sponsors’ expectations will be met by ensuring a high quality work and a timely completion of the project. It will also be through giving them a project that will have a long life cycle. Environmentalist and naturalists are important stakeholders in the project. Through negotiations and consultations, the project managers should be able to come up with measures that minimize the project’s effects on the environment and other natural resources. Such measures include proper disposal of waste created during construction and installation of proper safety measures. It will also be through a proper site evaluation and environmental analysis, to ensure that no natural resources such as rivers and animals are interrupted.
The country is also expected to get a lot of support from other nations as it enjoys a good relationship with most American and European countries. Its international relations and policy has allowed it to build intimate ties with the countries that have experience in constructing mega-projects such as the United States. FIFA executive committee has also been very supportive of Qatar and is expected to work with the country by giving them advice on major issues arising from the tournament such as environmental challenges.
Funding is an issue of concern for the 2022 World Cup. From an analysis done by the Oxford Business Group, the country is capable of funding projects expected to facilitate a satisfactory hosting of the tournament (13). According to Central Intelligence Agency “Qatar has the world’s largest per capita production and proven reserves of both oil and natural gas and in 2010, the country had the world’s highest GDP per capita, while the economy grew by 19.40%, the fastest in the world” (2). The rapid growth is attributed to an increase in exports and production of petroleum products and the related industries. Such statistics prove the country’s ability to fund the more than $ 4 billion required to construct different facilities required for the World Cup, as well as other amounts needed to work on the infrastructure and development projects in the country such as the new international airport and a railway line.
Qatar’s standards of living further prove the county’s rate of growth and capability to manage the expenses that will come with the 2022 World Cup. Its standards of living have substantially improved in the last ten years. As the International Chambers of Commerce notes, the state has posted a surplus in its budget for eight consecutive years starting 2000 to 2008 (34). The situation seems to be getting better as the oil and gas account for half of Qatar’s budget and the industry continues to enjoy favorable investments from both locals and foreigners. It is now the second in the list of countries with highest per-capita income. As a result of this, the country today has a high standard of living while its citizens enjoy all amenities that people in modern states do.
Attracting employees from other regions may be a challenge for the country right now. However, high standards of living in the country make it easy for the region to attract foreign employees and professionals. Improved standards of living, availability of good job opportunities and good salaries have given Qatar a good name as a human resource importer. The quality of health care is also a motivating factor for those who want to work in the region. Modern facilities in the healthcare and fitness facilities make it a conducive place for professionals to work.
Even though the challenges are many, Qatar’s bid to host the 2022 World Cup has created a lot of excitement among those in the construction and project management industry. If the country is successful in hosting the tournament, it will be the first country to do so in the gulf region. It will also be a big accomplishment for a country that size to manage such an event. For a country its size, the world will be watching to see how well it can manage the projects. The biggest areas of interest in Qatar include technological innovations to manage the summer heat, environmental concerns, accommodation capacity of a country the size of Qatar, communication and trading activities.
One way through which the country is expected to impress in through new and advanced technological inventions. Looking at the plans devoted to some of the constructions such as the stadiums, it is obvious that Qatar’s architecture and design impress with magnificence, innovations and beauty. This has been made possible by consulting and contracting some of the best designers and consultant companies in the world. These include Albert Speer % Partner GmbH from Germany, Foster & Partners from the UK, Davis Langdon in Qatar, and Populous in the UK, just to mention a few.
Main services offered by these countries include lead consultancy, design and building, design management, interior design, construction management, architecture and engineering, and program management, among others. Areas that need most work are building, water, aviation, civil infrastructure and roads and transportation. Main industries expected to benefit from the tournament include the steel industry, concrete manufacturers, banking, the cement industry, architecture, design, financial consultants, and the labor markets, among others.
Weather the use of the innovative technologies is inevitable as the design issues predicted to be implemented require direct technological assistance. Projects that require re-construction include the Al-Gharrafa Stadium in Al-Rayyan, Khalifa International Satdium in Al-Rayyan, and Al-Rayyan Stadium in Al-Rayyan. The reconstruction of these stadiums is necessary as they do not meet FIFA requirements being in the present condition. There are also other projects which the country has to complete before 2011 to facilitate a successful World Cup. They include roads, shopping malls, and airports, among others.
New projects include construction of Doha Port Stadium, Al-Shamal Stadium, Al-Khor Stadium, Umm Slal Stadium, Education City Stadium, Al-Wakrah Stadium in Al-Wakrah, Qatar University Stadium in Doha, Sports City Stadium, and Lusail Iconic Stadium. A new deepwater port will be completed at a cost of $5.5 billion. Other new projects include roads, subways, hotels and other entertainment facilities. Private investors are also busy constructing accommodation facilities and social venues for the visitors and locals during the tournament.
So far, managing the heat during the tournament remains Qatar’s biggest challenge. Temperatures during summer in Qatar sometimes go to as high as 120 degrees Fahrenheit, a figure extremely inconveniencing and even harmful not only for team members but also for fans. Keeping in mind the climate peculiarities of the country, Qatar government has found a perfect solution to the problem. Most of the stadiums are going to have canopies which may be closed and the air-conditioning systems are going to work with the maximum efficiency. Skeptical consideration of such specific system shows that solar energy is able to heat water to 200 F as well as to cool it.
The other options for Qatar include moving the World Cup to winter, a decision that has received enormous resistance from other stakeholders in regional leagues. Qatar remains with no choice but to utilize technologies available to make the event as comfortable as possible and prepare it to a desired level. In the past, the gay community has engaged the FIFA executives in continued debates over their rights in the country during the event. Such issues are expected to raise a lot of debate and controversy during the in 2022. The issue of laws and regulations is of a major concern to players, fans and other stakeholders. Being an Arabian country, Qatar has specific relation to drinking alcohol in the public places and cloths wearing, especially for women. The problem with drinking in public may be easily solved by the creation of the special spaces, but the issue about cloths for women and other related questions have not been considered yet (“Qatar to host football World Cup in 2022” 8).
Challenges expected include availability of labor. “Qatar, geographically a mere speck on the world map, successfully marked itself as a viable venue for the 2022 football World Cup” (Watt 3). Another significant challenge for the region is cost. It is already evident that if not managed wisely, it could make Qatar’s plans to host the World Cup in 2022 impossible. Work on the Qatar-Bahrain connection has already stalled due to a new plan to add freight and passenger rail lines. A dispute over cost has also held the project at ransom for making it hard for developers to progress. Oxford Business Group has however done an analysis which proves that Qatar is able to fund the infrastructure required to have a successful World Cup. According to the report “the country is well-placed to fund the vast infrastructure program through oil and gas revenues” (13).
The region further needs to learn from others. Qatar needs to analyze find use for those structures in their plan. A good example of countries struggling to find use for facilities put up for the World Cup is South Africa. “The country struggled to find use for some of the World Cup facilities it built in 2010, with the stadiums and transport links connecting them to urban centers now underused” (The Times of India 3). However, Qatar officials seem to have figured this out and are confident that every cost being incurred in preparation for the World Cup is worth it. They have stressed that their plan and projects developed for the purpose of hosting the world cup will be critical investments in the long-term success of the tourism and logistics sectors, among others.
The risk of over-investing is not only in Qatar, but also in their neighboring countries. In a bid to capitalize on the World Cup being their region, Qatar’s neighbors have also announced large-scale infrastructure programs. A good example is the multi-billion dollar light and mainline rail projects to be developed in the United Emirates of Arab, Saudi Arabia, Kuwait and Oman. If these projects do not find useful purpose after the tournament, the countries could incur huge losses.
Other issues that need to be addressed comprehensively in Qatar is security. The world will be watching to see Qatar’s capability to ensure the safety of the visitors and locals. Transportation is a major concern for the stakeholders but seem plans to establish a good network seem to be progressing well. UK Euro clarifies the important of a good infrastructure network for Qatar by explain that “while the country’s transport scheme seems to be enjoying an aggressive head start with plans drafted years before the country went into bidding to host the cup, intense international scrutiny of its World Cup build-up means it can leave nothing to chance” (4).
Major projects to be constructed in preparation for the World Cup include the airport, the railway line and several road projects under development. As The Boston Channel report argues, “mega projects will always struggle with unforeseen events, massive regulatory requirements, technical complexities, community concerns, and a challenging political environment” (8). In recent years, a lot of attention has been focused on projects risk management. Research has revealed that the success of any project is very dependent on the management’s support for risk management processes. “Construction projects are characterized as very complex projects, where uncertainties come from various sources” (Coppola 222). Since they gather too many stakeholders, it becomes a more difficult to study and integrate the extensive network included in implementing them.
“Despite the lack of comprehensive health and safety statistics for many regions, there is a clear consensus that safety on construction sites is improving” (Global Crisis Management Organization 14). The Build Safe Initiative, an organization that collects and analysis data on construction safety, says that in many countries, safety has tremendously improved since 2008. Different standards and regulations such as the International Organization for Standardization (ISO) standards and the actuarial society’s standards are taken very seriously. The United State’s occupational safety and health law cover all safety, health and protection concerns. “The USA advocates for the use of the ‘CM at-risk’ approach to project management, which seeks to ensure that the contractor delivers the project within the Guaranteed Maximum Price (GMP)” (Site and Safe 9). The concerned authorities also regularly organize conferences targeting various professionals in the construction industry and developers are obligated to train their employees and teams on safety and other types of risk management.
From the Big Dig project, it is important to realize that during project management, key processes should not be too many. “On average, typical projects will have ten to fifteen key processes” (Termini 15). Factors that determine the success of a project may vary. Some are external but most of them are internal, meaning the project team has control over how they turn out. The first important step towards managing a key project is identifying its baseline in regards to the current environment in the industry. The team must know how well it plans to execute its key processes before even deciding how they want to go about it. The other important step is identifying the most fundamental success factors for the project. These are factors that must be available if the process has to work out and give results. They include things such as technology requirements and availability, tools for measuring performance and the how the process will be aligned.
The 2022 Qatar World Cup has already attracted a lot of attention from both the supporters and those opposed to it. The government and the community realize that the project will benefit the area and help them deal with energy shortages in future, due to diminishing oil reserves. The technology used in this project is well understood and some of the technologies being used have proved to be very efficient in the past. The projects have not been free of criticism both form the community and different organizations. Environmentalists and naturalists are opposed to the project, arguing environmental consequences. Such concerns call for a proper assessment of risks that the project may expose the community to, and have necessary measures put in place to deal with them.
Challenges expected to face the project include accessibility and availability of materials. A large number of materials used for construction will be sourced from outside the country. Importation logistics and regulations may pose as a challenge to the project and if not handled well, it may pose as a big risk to the project. Availability of professionals will also pose as a challenge and may cost the project much more than intended to access the best talent. If they are not available, some stages of the project may have to be delayed.
The most challenging part of the project will be permitting and entitlement by the relevant authorities. There are many agencies and authorities that have to be satisfied for the project to be approved. As a result, getting approval from all of them may prove a challenge and even delay the process. Having access to the different sites where stadiums are being constructed is a potential challenge to the project. Some of the cities expected to host some games are not even complete yet. Transporting the heavy and bulky materials to such a place will especially prove very hard. Other supplies such as food and water may also be hard to transport and may inconvenience the program.
Environmentalists argue that the project will have a negative visual impact on the national park since the power cables will not be buried. Such opposition may make it harder for the project be approved by the environmental authorities or may force the project to resort to more expensive options such as buried power cables which are approximated to cost up to 6 times more than pylons intended to be used in the project.
The biggest challenge for the project is weather conditions and wind storms regularly experienced in the proposed region. Wind storms could threaten safety and affect performance. It may also mean slowed work progress and sometimes the team may be forced to stop to allow proper conditions to resume. Some of the technologies such as the artificial clouds also tend to wear out faster due to extreme temperatures, resulting in higher maintenance costs.
“Partly due to its rapid growth, the construction industry in Qatar lacks maturity in several areas” (Winser 67). Managing risks at all levels of the 2022 projects is key in ensuring that the tournament’s development is beneficial to all the stakeholders. “To manage risks effectively, there is need for a professional and independent assessment of the risk exposure during the design, project development, installation and operational phases of technological assets” (Clealand 32). There are three types of risk; unanticipated events, probability of risk trigger occurring and scale of an unknown event.
|Poor selection of a location|| |
|Poor returns on investment|| |
|Wind storms which may destroy turbines|| |
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