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Dubailand

Mega and
Complex
Project
Critical Appraisal

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GROUP MEMBERS

ADEKUNLE OLORUNESAN 20206104 

ANJALY VARGHESE 20206686

OLUWATOBILOBA ESTHER TAIWO  20210754

ABIMBOLA OLUWATOSIN KODAOLU 20210978

OLUWAGBENGA IJIADE 20203462

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• Introduction
• Gap analysis comparative studies
• Sublimes that drive Mega project development
• Similarities
• Differences
• Characteristics of mega and complex project
• Critical evaluation of emerging themes
• Underlying root cause
• How to improve and enhance the Mega projects methods
• Why strategic project management are not necessarily used effectively in this Mega project
Table of Content • Portfolio management opportunities in Dubailand Mega project
• Programme management opportunity in Dubailand Mega project
• Analysis on how Strategic Risk Management approach could reduce the inbuilt (inherent) risk,
complexities and uncertainties in this Mega Project
• Stakeholders management approaches
• Communication management approaches
• Schedule management approaches
• Cost management approaches ( Analysis on capital control and capital efficiency)
• Value efficiency
• Conclusion
• References
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INTRODUCTION

This was estimated at $64.3 billion, aimed to become


the world largest and  biggest  entertaining tourist centre
in the world. It was to be built on 107 square miles in
barren Dubai desert comprising of 45 MCP and 200 Sub
– projects in 6 zones.

The reason for this Mega project is to move them from a


mono-economy and ease UAE dependency on oil
money and bring in a hefty income from
tourism (economic diversification). The project was
affected by global recession in 2008, a global financial
issue which led to its collapse. Inflation pushed the
budget cost from $64.3B to $ 91B. As of now, Dubai land
is forecasted to open for business in 2025.

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GAP ANALYSIS COMPARATIVE STUDIES

Cost Time Scope


Dubailand Cost was estimated Initially set to be completed in 2018 It was fixed with all partners and sponsors knowing
to be $64B, (15years) but has been shifted till exactly what they will be doing (theme-parks) at
2025 (22 years) what cost and time for deliverables

US O’Hare Estimated cost was Work on terminal 5 is schedule to It is an expansion to the terminal core, terminal 5
International $8.5B finish in 2022 and the other will will be expanded while terminal 2 will be
Airport finish in stages till 2028 completely rebuilt
Redevelopment

France Estimated cost $20B Work began in 2013 and it is A joint project with 35 nations to help in creating
International schedule to come online in 2025 energy (renewable) from fusion taking place inside
Thermonuclear (12 years) the sun. The core tokamak will contain plasma
Experimental created when particles are heated to over 150M
Reactor ITER degree Celsius.

Japan Chuo Estimated cost $46.4 Scheduled to be completed in 2027 A pioneer in HS rail since 1964, the development
Shinkansen  of the maglev HS rail reaching up to 500Km/H to
connect Tokyo to Nagoya and a further expansion
to connect to Osaka
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Gap Analysis continued…
Optimum Bias Sustainability Complexities

Dubailand The uniqueness bias of the project The project has a huge The complexities involved in the
was on a macro level. The optimum sustainability gene embedded project are many, from design of
bias was fair because the stakeholders within it. Dubai already a tourist these Mega theme parks to
did not over-promise and all they set nation (attracting 15M tourist) construction, technology to be
out to achieve exists and available. will attract more making the used to operate as well as for
Aggregating them creatively in a project self-sustaining maintenance.
mega-manner in a particular location economically, boosting several This requires specialised skill
further enhancing the national commercial activities, creating sets such as creative P3M
rebranding and identity. jobs almost indefinitely. (portfolio, programme and
project management)

US O’Hare The covid-19 pandemic disrupted lives It is a sustainable project due The complexities majorly
International Airport and hugely impacted the air travel to the impact it will have on identified are in the HSE while
Redevelopment ecosystem. Both global sporting host cities, jobs will be created, construction work is progressing.
events that will be hosted will definitely products and services will be Technology need of the project
increase air travel affirming the sold and render to commuters will be novel. Having tried it on
optimum bias as fair by the by SME e.g transport and small scale now to be
stakeholder. logistics further boosting the implemented on a grand scale
economy of the city. giving rise for uncertainty on how
02/04/2023 it will respond to the volume.
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Sublimes that drive Megaproject development.
(Flyvbjerg, B., 2017)

Type of sublime Characteristics 


Technological Technologists and engineers are enthralled by the prospect of pushing the boundaries of what is
possible in "longest-tallest-fastest" initiatives.

Political The ecstasy that politicians get from erecting monuments to themselves and their causes, as
well as the increased visibility that this brings to the public and media 

Economical The joy that businesspeople and labour unions experience when they make a lot of money and
create a lot of employment as a result of megaprojects, which includes money made for
contractors, construction and transportation employees, consultants, bankers, investors,
landowners, lawyers, and developers. 

Aesthetics The joy that designers and others who appreciate good design derive from constructing and
using something massive that is also iconic and attractive, such as the Golden Gate Bridge,
Barangaroo, Burg Khalifa, and Burg Al Arab, among others.

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MEGA and COMPLEX
projects

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Similarities

Considering the listed projects in


Huge budget usually measured in
the previous slide, all mega and
billion dollars, time to deliver
complex projects have the
usually long, and scope are often
following common denominator:
defined without flexibility.

The project management tools,


systems, and processes
The need to identify, engage,
requirement are very different
manage, and deliver value to
from the small and less complex
stakeholders, through the
project the high level of the P3M
realisation of beneficial change in
e.g portfolio and programme
alignment with strategic objectives
management, as well as project
is key in MCPs
management

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Differences

• The Mega and complex projects are all meeting diverse and different needs of their respective national
needs and stakeholders.
• Projects are unique endeavour in themselves and usually apparent in the strategic objectives it will be
meeting.
• Also cost variation, time variation and scope differs in most MCPs.
• Stakeholders are different in terms of interest and influence as well as their risk appetite and risk
threshold

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Some Mega and complex project characteristics are:
Nyarirangwe et al, 2019)

• Extensive physical size


• Huge budgets
• Long planning and implementation timeframes
• High media attention
• High social and political significance
• Involvement of multi-disciplinary professional team
• Complex activity interdependences
• High pace and require innovative approaches
• Complex iterative decision-making processes
• Diverse stakeholders
• Complex contractual frameworks and procurement processes
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Mega-project Country Description Cost Estimate

International Space Station USA, Russia, Japan, Considered as the most expensive $150 billion (as of
Canada and Europe single item ever built 2010)

South-to-North China Built to divert water from the Yangtze River $78 billion (as of
Water Transfer using three huge canals to bring it to the north 2014
Project of the country and considered to be three
times more expensive than the Three Gorges
Dam

California USA Designed to link San Francisco to Los $70 billion


High-Speed Rail Angeles over a distance of about 1,300 km

Dubailand UAE Mega theme park with the world’s largest hotel $64 billion
(6,500 rooms), sports
venues, eco-tourism, science attractions, and
a giant mall to open in
project will open in 2025 in Dubai

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CRITICAL
EVALUATION OF
EMERGING
THEMES

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Inadequate grasp of project stakeholders, interests and
Power connections. As the many parties involved strive
to engage with government authorities and comply with
regulations, conflicts, inefficiencies and delays  Manage the stakeholder by identifying
Stakeholder Engagement frequently 
their different driver's interests ,power,
and Management
Developed. culture, resources and expectations 

During project life cycle there was a lack of


communication participation and transparency with
external partners
During the project's life cycle, there

The most common cause of commercial partnership Maximise competition and design
 is lack of systematic awareness of interdependencies procurement systems with embedded
Supply Chain Integration
Of interdependencies across project life cycle which  flexibility to be adapted if project condition
and Coordination
Affect project at multiple level inter organizational, change.
 intra organizational and external

Denicol, J., Davies, A. and Krystallis, I., 2020


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STRENGTH:- Dubailand project will capture tourist's attraction
and challenges progress of developer's perception and
everchanging business model which is absent in economic
 tourism.
Where are the underlying
root cause, why it is still an WEAKNESS:- Dubailand project faces various risk that might
issue, problem and result in time and cost overheads adversely affecting the
deadlines and future prospects.
challenge, opportunities vs
threats, any OPPORTUNITIES:- Dubailand stands as a great choice for
inherent benefits and settling with reasonable prices and adequate resources for
entertainment and infotainment. Also, it is a great choice for
values? investors and businessmen. 

THREATS:- Project faces various risks such as inflation of cost ,


natural disasters, occupational risks for workers etc. Inflation may
lead to failure in meeting the financial plans and projections
created through optimum bias.

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• Global financial crisis of 2008-2009
• Lack of funds led to halt of different projects globally that period and
Dubailand was not an exception

Why is it still an issue?


• The project is still alive however some area got sold. 
• Constructions were resumed in 2013 and $55billion got raised
however this is nowhere sufficient.
• Theme park called Restless planet that was halted was demolished
later and turned to an IMG adventure park. Root cause
• F1-X project that was stopped is still unattended to
• Universal Studios Dubai got completed but was later deserted by
authorities
• The only active project that got completed and hosts events is Dubai
Miracle Garden.

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Underlying root cause in mega and
complex project (Pitagorsky,G.;2011)
Wishful Planning : Making plans optimistically thinking everything is going to go well instead
of thinking about the risks and reality.

Lack of Portfolio management: Engaging in projects and spending resources on it without


thinking about its requirement for the business 

Lack of accountability: Poor accountability from the stakeholder's failure to deliver at time

Absentee sponsors: Poor performance and leverage due to failures from the sponsors in
doing their functions.

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How to improve and • Adoption of appropriate stakeholder engagement methods, with a
focus on transparency and effectiveness that aligns with the project
enhance the Mega plans.
• Implementation of a sophisticated and efficient communication
Projects Management system.
methods • Identifying stakeholders and establishing common goals as well as
risk associated with each.
• Implementation of an effective PMO or P3M processes.
• Cost and resources management must align with the project standard.
• Acquisition and utilisation of cutting-edge, high-quality plant and gear,
including robotics and automation.
• Competent personnel for plant and machinery operation and maintenance
are available. 
• Effective supervision and monitoring using appropriate project
management approach
• Ensure that sufficient and high-quality materials are available.

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Why Strategic Project Management
are not necessarily used effectively
in this Mega Projects

• Misinterpretation of data
• Communication gap
• Lack of skill and vision 
• Lack of shared values for processes
• Motives for optimal bias differ.
• Strategic plans are not aligned with project plans.
• Inadequate horizontal hierarchy.

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PORTFOLIO MANAGEMENT
OPPORTUNITIES IN
DUBAILAND MEGA PROJECT
Project success depends on doing project the right way and doing the right projects. Using
both Centralised and Decentralised risk management approach Dubailand Mega Project
                 C O  E    would reap financial reward from Portfolio Management that helps in resource
allocation, prioritization of projects development and effective investment.

DUBAILAND An effective portfolio management in Dubailand will:


 Help to achieve and deliver the project's corporate purpose and strategic objectives.
 Help to deliver accurate and consistent Data over its entire life cycle (Data Integrity).
 Ensure that each projects is strategically aligned and delivered as at when due.
 Pick the right projects and eradicate/disregard  projects  that  are irrelevant  early.
45  45
 Sustainability
  Maximise profit from investment and value of the portfolio.
 Effective use of available resources and tools.

200
SUB PROJECTS

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PROGRAMME MANAGEMENT OPPORTUNITIES IN DUBAILAND

• This is a large-scale Megaproject in a complicated setting that will take


many years to conceive and construct.
COE • It includes a number of public and commercial enterprises, including
Universal Studios, Lego Land, Giant Ferry Wheels, Dubai Miracle Garden
and Dubai Sport City, Merlin Entertainment, Six Flags, and others. 

PORTFOLIO
• All these 45 projects and 200 sub projects are all – inclusive of
a programme which require the need for the  establishment of
a programme management to ascertain the effective use,
HS Rail DUBAILAND DISALINISATION distribution and allocation of  resources across all the projects in
order to achieve the desired end results.
• Programme Management will aid all these projects and sub
projects in achieving the set strategic  goals and objectives
45 • The establishment of Programme management will help in making
timely effective decision.
• Programme management aids in the selection of the most
200 appropriate initiatives and the accurate assessment of their
economic, social, and environmental implications (Flyvbjerg et al
2003).
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Analysis on how Strategic Risk Management approaches could
reduce the in-built (inherent) risk, complexities & uncertainties in
this Mega Project

Strategic Risk Management approaches could help reduce the inbuilt risk, complexities and uncertainties in
this Dubailand Mega Project through the following ways:
• Identify and appropriately ranking the risks and uncertainties involved using qualitative and quantitative
analysis approach.
strategic
• Help the management develop a risk management response strategy for each of the risks and uncertainties
identified.
• Risk Insurance: All the risks identified should be insured irrespective of their magnitude and propensity of
occurrence (Knewtson & Qi 2019).
• Continuity: Although the strategy has the likelihood of increasing the overall cost, but it gives Dubailand an
assurance that even if a major disaster occurs, the project will continue.
• Having these strategies not only reduces the probability of occurrence but also makes relevant stakeholders
aware and prepared in case they occur and would help them in monitoring the risks identifed..

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Stakeholders Management approaches in this Mega
project

Some Stakeholders identified in Dubai Land  project​


• Dubai Land services and partners
• Government partners
• Contractors and suppliers
• International organisation and partners  ie Lego Land,Merlin Entertainment,Six flag etc
• International and local workers
• International banks
• Real Estate partners

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Stakeholder management approach…. (Theoretical Framework Bal et al.,(2013))

Identify key Educate and


stakeholders embrace
stakeholder
Relate to
Put targets management and
stakeholders with
into action Monitor and sustainability
sustainability Identify and
support process concepts
principles classify project
with remedial stakeholders
actions

Measure their Prioritize


performance Stakeholders Manage Identify SM
stakeholders and approach and
sustainability by sustainable
Manage measuring targets concept to adopt
stakeholders

Analyse Engage key


stakeholders stakeholders

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COMMUNICATION MANAGEMENT APPROACH Project
(Billström and Cederqvist, ., 2012) Manager

• According to Dubailand project there are 45 mega Communication


projects and  200 sub projects. Sales
Manager
Manager
• Each project will be having definite timelines
and these deadlines lead to a stressful situations
• Hence an effective  and creative Quantity
communication should be in place. Site Technical checker
• PM' s  of each project creates Manager Officer
communication management approach to
ensure the timely delivery of projects. Quality
• Two types of communications: checker
Formal and Informal communication.
•  Formal communication is General Site
a style in which communications are Quality/Quantity
foreman Engineer controller
done according to the rules and ideas.
• Informal communication is defined as information
exchange between via different channels such
as face to face meetings, phone calls, portals Assistant surveyors
and emails. for quality and
quantity
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Schedule Management approaches in this Mega Project
Cost Management approaches in this
Mega Project (Analysis on Capital
Control & Capital Efficiency
• The PMI PMBOK standard defines cost management of construction
projects as the actions required for budget planning, assessment and
development, fundraising, cost financing, management, and control to
complete the project within the agreed budget.

• Project management is governed by a number of international standards


and methodologies, including PMI PMBOK, P2M, PRINCE2, and GOST.

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(Stevens, W.M., 1986)
Construction
business
management

Sales and marketing

Engineering and
Project Design
Management
Estimation and
budgeting

Purchasing
/procurement route

Contract
Administration

Field Construction

Finance and
Accounting
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PMBOK Guide, 2008
Project Cost Management

INPUTS
INPUTS Project management plan
INPUTS Activity cost estimates
Basis of estimates Work performance
Scope baseline
Resource calendars information
Project Schedule
Contracts Organizational process
Risk Register
asset
TOOLS AND TOOLS AND
TOOLS AND
TECHNIQUES TECHNIQUES
TECHNIQUES
Cost aggregation Earned value
Expert judgment
Reserve analysis management Forecasting
Analogous estimating
Expert judgment To-complete performance
Parametric estimating
Historical relationships index (TCPI)
Funding limit reconciliation Performance reviews
OUTPUTS
Variance analysis
Activity cost estimates
OUTPUTS OUTPUTS
Basis of estimates
Cost performance Work performance
Project document
baseline measurements
updates
Project funding Budget forecasts
requirements Organizational process
Project document updates assets updates
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ESTIMATED COST DETERMINE BUDGET COST CONTROL
Value Efficiency – Sustainable
Benefits and Value transition – Value
for Monies

• The value efficiency that shows sustainable benefits and value transition
presenting good value for money include a good portfolio and effective
change management. Defining the VfM criteria should be done at the
portfolio level that a specific project or programme will help to achieve,
since it must be in alignment with the strategic goal(s). The Whole Life Cost
(WLC) of a building/project encompasses all associated and relevant current and
future costs and benefits of a building/project that may occur over the course of
the building/entire project's life cycle.. (ISO 2008, Korytárová et al 2014)
• Value for money include the monetised and non-monetised impacts gotten
from the MCP and this can be measured using the cost-benefits analysis.
• The sustainable benefit in terms of economic, material used and their
source (local/foreign), renewable or reusable energy source, all these also
shows the value that can be derived from the benefits reflecting the VfM of
such MCPs through evaluation of cost-benefits analysis
• In project research and practise, project governance is a critical topic. It refers to
the procedures, protocols, and rules that the financing party must implement to
ensure that relevant and viable projects are selected and delivered in a timely
02/04/2023 manner (Volden, 2019) 32
In conclusion, the study went on to look into the o

Conclusion

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•A Guide to the Project Management Body of Knowledge
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•A Guide to the Project Management Body of Knowledge
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•Aiyetan, A.O. & Das, D.K. 2022, "Factors and Strategies for
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