Adopting a Program Management Approach to Maximize the Benefit of “Vertical Cities”

ctbuh.org/papers

Title: Adopting a Program Management Approach to Maximize the Benefit of “Vertical Cities”

Authors: Keith Brooks, Global Leader, ARCADIS Julio Maggi, Program Management Global Leader, ARCADIS Derek Roy, Commercial Director, ARCADIS Bryony Day, Program Manager, ARCADIS

Subjects: Construction Economics/Financial Security/Risk

Keywords: Construction Life Safety Megatall Project Management Risk

Publication Date: 2015

Original Publication: The Middle East: A Selection of Written Works on Iconic Towers and Global Place-Making

Paper Type: 1. Book chapter/Part chapter 2. Journal paper 3. Conference proceeding 4. Unpublished conference paper 5. Magazine article 6. Unpublished

Keith Brooks, Global Leader, Julio Maggi, Program Management Global Leader, Derek Roy, Commercial Director & Bryony Day, Program Manager, ARCADIS

Tall building construction can benefit from a Tall buildings are bigger, better, faster, and were the world’s tallest until it was eclipsed programmatic approach. By looking at the more prevalent than ever. Driven by rapid by Taipei 101 just six years later. While they overall development as a whole program of growth in Asia and the Middle East, the race may no longer be the tallest buildings in works, identifying the deliverables required among the world’s cities to build the tallest, the world, the towers successfully changed to achieve desired business outcomes, ultimate record-busting skyscraper on the the perception of Kuala Lumpur worldwide managing the interfaces with the surrounding planet is fast and furious. However, once (Bremner, 2007). These world class vertical infrastructure, and establishing robust planning built, these skyscrapers leave a legacy city buildings raise the bar for other buildings in and scheduling the bigger picture becomes beneath. Whether in the form of an open the city be they malls, office blocks, or hotels. clearer, as does the route to benefits realization. landscape for development around the Supertall buildings and surrounding Kingdom Tower in Saudi Arabia, or a city There is no doubt that “Supertall” and developments are unique projects facing prime for redevelopment in the shadow “Megatall” represent a new vision of vertical unique risks; risk management is at the core of the Petronas Towers in Kuala Lumpur, urbanization, but as the race for grandeur of this programmatic approach. Focusing on a programmatic approach to design and surges, so does the risk and disruption trends, forecasting, and actively managing and development can ensure this legacy is caused by our increasingly unstable and mitigating the risk from the outset will have overwhelmingly positive. rapidly changing planet. The unthinkable tangible, measurable, and beneficial impacts is no longer unthinkable. Some of these on the outcomes for the development and the Well-executed skyscrapers can be a real threats remain unforeseeable and outside wider city environment. economic-development driver. The Petronas of our control. The most effective way Twin Towers in Kuala Lumpur, built in 1998, to ensure successful and safe delivery in

Left: Dubai skyline with Burj Khalifa. (cc-by-sa) Jan Michael Pfeiffer

36 this unpredictable climate is by taking a identify opportunities in the development, transportation links. In the hot Arabian commercially led programmatic approach. or indeed the redevelopment, of the cities sunshine, a 1.5-kilometer walk from surrounding these vertical metropolises. the nearest metro station to the iconic By looking at the development as a landmark and adjoining Dubai Mall is a whole program of works, identifying the In countries like China, tall buildings are an result of poor planning and insufficient deliverables required to achieve desired effective way of housing large numbers of interface management. The distance may business outcomes, managing the interfaces people, as the population migrates from seem negligible, but in the height of the with the surrounding infrastructure, and the countryside to the cities. In the Middle summer, when temperatures can reach establishing robust planning and scheduling, East, tall buildings are more of a statement above 50°celsius, the walk is unbearable. The the bigger pictures becomes clearer. So of intent. The Burj Khalifa represents Dubai’s benefit of developing a city in an emerging too does the route to benefits realization. push to become a world city, and the costs market that has a relatively flexible landscape Supertall buildings and surrounding of its construction need to be set against that with an evolving public transport strategy developments are unique projects facing bigger picture (Langton, 2013). On its own the is to link the two together, promoting the unique risks. Minimal deviations from plan building represents valuable real estate, but use of the new metro and creating ease of are compounded and can have major the 828-meter-tall structure, which includes access. Taking a programmatic approach to implications on the overall performance of apartments and a luxury hotel, is not simply the whole development would have built the program. Performance management is an expensive marketing tool for the Emirates. this functionality in at an earlier stage. at the core of this programmatic approach identifying performance KPIs that capture The “wow” factor of being in the shadow The Triple Bottom Line key trends. Enable progress forecasting and of the tallest building on Earth has pushed A tall building is not only iconic in design but the active management of risk from the up land values all around the Burj, creating economically, socially, and environmentally outset will have tangible, measurable, and an economic ripple effect that benefits the impactful. But can a tall building ever be beneficial impacts on cost, schedule, quality, whole city. Emaar Properties, the developer sustainable? We are no longer in the age of and health and safety. behind the Burj, have made it the centerpiece the high-rise urban ghettos of the latter half of a new business and residential district, of the 20th century. Tall buildings can offer Location charging a premium for properties with clear unparalleled innovation and exhilaration The location of a vertical city can be a views of the skyscraper. Even if the Burj Khalifa with a flurry of technological advances that challenge and also a key opportunity. had failed to turn a profit, its presence has enable skyscrapers to be just as green if not When looking at the global landscape raised the surrounding property value enough greener than their low-rise counterparts (Ijeh, of vertical cities, over the past 50-60 to more than offset the difference. 2015). There is a balance required between years we have seen an eastward shift in creating a truly iconic development that the geographical makeup of the world’s Table 1 shows the average sale and rental attracts investment, tourism, and promotes tallest buildings, corresponding to the rates across selected developments of Dubai. a city brand, ultimately warranting higher economic emergence of these nations. It Among the list of developments, highest rental income, while building sustainably, is evident from the high-rise trends in the rates are achieved for properties in the environmentally, and economically. Middle East and Asia that these regions Downtown area. use architecture to demonstrate the The industry is becoming increasingly development and achievement of their Conversely, one notable oversight on aware of the costs and benefits of building nations. These dynamic structures also the Burj development is the public “green.” Knowledge in this area is advancing

OFFICE - SALE RATES (AED/FT²) RESIDENTIAL - SALE RATES (AED/FT²) RETAIL - RENTAL RATES (AED/FT²) Development Low High Low High Low High Premium Area (Burj Khalifa) Difference Downtown Dubai 1,750 2,350 1,800 4,800 180 325 Other Dubai Areas Difference Difference Difference Difference Difference Difference Dubai Marina 1,575 10.0% 1,900 19.1% 1,300 27.8% 2,775 42.2% 130 27.8% 250 23.1% Dubai International 1,700 2.9% 2,000 14.9% 1,650 8.3% 2,150 55.2% 165 8.3% 210 35.4% Financial Centre Jumeirah Lakes Towers 1,175 32.9% 1,450 38.3% 1,150 36.1% 1,650 65.6% 120 33.3% 180 44.6% Palm Jumeirah NA NA 1,400 22.2% 2,750 42.7% NA NA Table 1: Average sale and rental rates across selected developments of Dubai in 2015, sourced from CBRE. Source: ARCADIS

Opposite Top : The five principles of program quality assurance. Source: ARCADIS Opposite Bottom: The Kingdom Tower approach to health, safety, and environment. Source: ARCADIS

rapidly and the higher visibility, status, and analysis, mapping, and management of of work. The application of the standards can design quality of tall buildings means that the interdependence between individual be audited to assure compliance. they are often the forefront of research and activity and tasks is magnified. implementation of sustainable strategies. The Of specific importance in the Middle East adoption of LEED-type methods are helping The role of the Program Manager is to create is the need for behavioral leadership. The to develop the efficiency of individual the right ‘controls’ to inspire the team to Behavioral Management of Safety (or buildings as “products”, although many of deliver the required quality and innovation BMOS) integrates behavioral strategies these methods do not go far enough to that tall buildings demand, but within a and processes into health and safety account for operational use of the building controlled and risk assured delivery strategy. management systems. Working at all levels and its impact on the environment. Five principles of program quality assurance of a project or program, BMOS analysis are defined for use on the Kingdom Tower. promotes safer behavior and environmental The U.S. Green Building Council’s LEED conditions to deliver continuous system ranks buildings on factors such as Health and Safety Assurance improvement in health, safety, and business building materials, water efficiency, and Building tall represents many risks and as performance. A BMOS program creates indoor air quality. Based on some of these a result health and safety should always a systematic approach that defines a criteria, many tall buildings have been be foremost in any construction project. set of behaviours to reduce the risk of labelled “green” and some have attained Building a vertical city requires consideration work-related injuries. This is achieved by the council’s highest rating. Tall towers of the risks, as does any other construction collecting data on the frequency of safety should have much greater resilience and project, but there should also be a focus critical behaviours and providing feedback last long enough to justify their huge cost. on key areas such as working at height, and reinforcement to encourage positive However, post-occupancy factors, such as complex lifting operations, access and behaviour. The data is also used to identify energy consumption, can be less sustainably egress arrangements, perimeter working, root causes, facilitate problem solving, and virtuous. The behavior of residents and and fire and emergency preparedness. develop recommendations for continuous tenants of a sustainable facility plays an Mitigation measures for these key hazards improvement with particular emphasis on important role in reducing impact on the must constantly be reviewed, updated, and improving communication and awareness environment. These are the factors that are tailored to ensure that the risks of working at all levels. difficult to calculate during construction. on a high-rise development are being By looking at workspace strategy early in adequately managed via positive health, Focus on Design Innovation the process, systems can be designed that safety, and environment (HSE) strategies. The viability of any development is encourage people to engage in conservation dependent on costs verses revenue. and recycling. Defining sustainability and As an example the following eight key These factors get ever more complex what kinds of behaviors are expected fatality risks have been identified on when building tall. Typically, as the height or required of residents in a sustainable the Kingdom Tower in relation to the of a building increases so does the cost skyscraper is essential for their long-term construction methodology: of construction. Many of the challenges environmental viability. faced in the development, design, and • Lifting operations construction of tall buildings focus on Many key factors need to be taken into • Work at height finding innovative responses to mitigate risks consideration as early as possible to ensure associated with the key cost drivers, these • Shaft and riser works a safe and efficient building is delivered must be identified early. not only within time and to budget, but • Building perimeter works that also allows benefits to be realized and • Edge protection Buildings like the Kingdom Tower could business outcomes to be achieved. The • Fire remain the exception rather than the rule delivery of major buildings is becoming as cost is the major obstacle preventing • Electric shock ever more complex, driven by legislative developers going much beyond the one- change (sustainability), technological • Falling materials mile mark. It isn’t the engineering, but change (Building Information Modelling the economics that is holding back the - BIM), or the continuous fragmentation For each of these fatality risk areas prescriptive development of more tall buildings. The of the design/procure/construct process. risk control standards are then developed reason that many skyscraper schemes never This complexity is compounded for which are incorporated into the safe systems come to fruition is usually the business vertical cities where the systematic

38 “Supertall buildings and surrounding developments are unique projects facing unique risks. Minimal deviations from plan are compounded and can have major implications on the overall performance of the program. Performance management is at the core of this programmatic approach.“

plan. Every time you increase the height, the volume increases by several times more. The Burj Khalifa is a good example of how to mitigate having too much space to sell by keeping the building as slim as possible. This can be measured and monitored throughout the design process by using a programmatic approach and analyzing the building’s useable space to keep the design in line with the desired outcomes.

BIM and other virtual construction services TEAM Focus on individual capabilities and are a critical part of executing skyscrapers. the relationship between team members and organizations. The Using these techniques means more creation of high performing teams based upon the principles of efficiencies and accuracy in pre-construction collaboration, accountability and planning and strategies, and equally shared focus on outcomes. important, during construction. In addition to innovative methods for coordination PROCESS OUTCOMES Tall buildings demand specific focus of structural and mechanical engineering, Defining performance outcomes and on the deployment of granular control success factors from a commercial, processes at all levels of the project information can be extracted from the political and social perspective. tthhat integrate witithh one anotthher. IItt is important to establish a controls model to facilitate estimating, procurement, regime that balances reporting and clash detection, and field management. The forecasting techniques. 3D model can be used to identify and avoid safety hazards. The use of this technology can enhance our overall productivity, provide DELIVERY instant clarification, and offer important cost PRODUCT Applying a forensic approach to the mapping of granular tasks, interfaces Understanding and defining the and dependencies throughout the savings in high-rise construction. perperformancformance requirementsrequirements of the design/procure/constructt//operate product to ensure it is translated into cycle. Creating the time for creativity the delivery strategy. and innovation to overcome delivery Prefabrication is not a new concept, but challenges. architects and engineers are tuning their hats to the concept of prefabricated skyscrapers to promote innovation and Figure 1: The five principles of program quality assurance “lean construction.” Due to the repetitive nature of supertall construction, even Kingdom Tower Approach to Health, small improvements can have big effects if JEC integrated early enough. Simplifications of Safety, and Environment design, details, and construction methods can save a lot of time and money if Strategic • Implement a strategic/proactive ECHM managed effectively and efficiently at the approach to HSE Management front-end. However, innovations need to • ProvidProvidee leadershileadershipp aatt alalll levels be balanced with reliability. Fully exploring DAH • Ensure Accountability/Ownership ca l these innovative solutions from the start is i ac t fundamental to actively assessing, managing, T • HSE performance monitoring and mitigating the risks. SBG • Proviidde education at allll levels

On the Kingdom Tower, innovative piling rational • Set best practice expectations Op e techniques were implemented by using a Contractors 110-meter Kelly Bar, manufactured for drilling One Goal rigs. This removed the need for extension One Team pieces to be inserted during drilling

Bottom: Computerized drilling rigs used on Kingdom Tower. Source: ARCADIS Opposite: 3D Logistics Model for the Kingdom Tower. Source: ARCADIS

operations, and cut cycle times for depths down to 100-meter, a reduction of 50% – saving approximately 70 working days.

State of the art computerized drilling rigs were used, which bettered tolerance targets by 50%. On-site fabrication of all reinforcement cages ensured quality of fabrication and consistency of supply in order to maintain schedule. Environmental factors were also considered by recovering the drilling fluids, which were then stored in site tanks and recycled using dedicated temporary storage pond.

A key consideration in the design of a vertical transportation system in tall buildings is to reach the optimum balance between the quality and quantity of lift service provided the capital cost of the lifts themselves and the loss of revenue-earning, tenantable space taken up by the provision of lift cores and plant rooms. This becomes even more critical as buildings become taller than 50–60 stories. Regime KPI Outcome The type of vertical transportation system is Contractor Submittals with specific focus on: Duration to complete review Engineer performance often linked to the specific use of the building Design Drawings Approval status Contractor quality and may facilitate the requirement for sky Shop Drawings lobbies. Double decker lifts, a relatively new Materials technology, have been used in many high-rise Requests for Information Duration to answer RFI Engineer performance developments to provide efficient solution to Consultant performance minimize tower core area requirements and Non-Compliance Reports (NCRs) Number of NCRs issued Contractor performance meet passenger requirements. Number of NCRs closed Construction quality

Site Productivity Floor Cycle duration Contractor performance The challenge of moving people up and down such tall buildings is one of the Site Inspections Readiness for Inspection Contractor performance Approval status Construction quality reasons why the prospect of a mile-high building becoming a reality appeared Health & Safety Accident Frequency Rate Construction safety almost impossible until the unveiling of the Table 2: Kingdom Tower Program Management controls framework. Source: ARCADIS

40 Kingdom Tower design. The longest distance specific performance management regime For the Kingdom Tower specific areas of it is currently possible to travel in an elevator has been adopted to identify trends and focus have been: is 504 meters, up to 638 meters in the Burj forecast outcomes, as seen in Table 2. This is of Khalifa; however the Kingdom Tower will specific concern for tall buildings, where the Considerations for Permeamble Cladding contain 57 elevators and 10 escalators and compounded effect of delay to an individual Systems Analysis the highest elevator will rise 660 meters, task can have exponential consequences. Not all systems are equal when it comes with the world’s fastest double deck to onsite installation and coordination Elevators which ascend at 10.5 m/s from In addition to traditional schedule and with other trades. Analysis on tall buildings the lobby to the observatory level. This is cost reporting, performance data on brings a clear focus on hoisting, stocking made possible by using carbon-fiber rope the Kingdom Tower is captured on a and area requirements, all of which have technology (Kone Ultrarope). weekly basis and outcomes are presented an economic effect to the installed system. in weekly and monthly dashboards. Emphasis must be placed on buildability, It is challenging for elevators to go faster Performance issues are further analyzed the management of onsite work area because of the rapid change in air pressure and appropriate actions identified to requirements and the simplification of over such a distance. Early appraisal of options reverse negative trends. This micro- systems. Efficient and effective planning of and development of a strategy that meets management identifies root causes at a servicing, repair and replacement must be specific requirements of building design is more fundamental level and provides key considered along with appropriate “stack critical to avoid costly late design changes or insight into performance. effect” planning. delays caused by inefficient ways of working. Construction Logistics and Operational Site Logistics/Crane and Hoisting Scheme Performance Management Readiness Logistics planning is key to streamlining The adoption of quality controls processes Logistics planning is critical for construction material movement to workface and and approaches need to identify and speed. There is a bottleneck at the base of eliminating redundant or inefficient labour. forecast the root issues that may have a every building built where manpower and It is critical to engage with the design team negative effect on schedule, cost, quality materials enter and leave the building. This very early in the process to identify areas for and overall performance. These could be issue is magnified in the construction of tall material deliveries and ensure worker welfare human, personality or system issues which buildings where peak flows of resource need is meticulous planned. are slowing things down or preventing quick access to the vertical site. Adequate hoists implementation. If necessary, issues may must be installed and their use must be There is a significant cost associated with need to be micro-managed and micro- meticulously managed. cranes and lifting strategies. The Kingdom monitored until they are back on track. Tower uses “jump lifts” which were invented Experience in operational readiness has for the Sears Tower in Chicago. By utilizing Constant and clear communication of intent proven that it is essential to integrate the this system, hoisting is contained within throughout the team is essential to create a “opening and operation strategy” into the the core, eliminating the need to close up culture that is focused on the expectations design and construction schedule. Early curtain-wall sections out of sequence. This and outcomes. Early identification of the stakeholder engagement with the end technique is not only lower in cost, but it also key trends to be monitored and forecasting users and appropriate authorities is required means that the interior hoist is not affected KPIs will enable the analysis of progress and to meet and manage expectations and by external weather conditions. predict scenarios. On the Kingdom Tower, a avoid delays.

Bottom: An example of the monthly testing done to oversee the project management of the Kingdom Tower. Source: ARCADIS

Procurement Methodology and Timing the building is the main pacesetting trade, assembled offsite to simplify and streamline Tall buildings are unique, requiring inventive simplifying the core will save time and on-site installation. solutions that are at the cutting edge money by setting a faster leading pace. of the industry. Using manufacturers to Material and Tradesmen Availability help deliver these solutions can offer an Construction Quality Control and Assurance Early awareness of market constraints innovative buildability advantage. This Quality control and assurance is key to and capacities means these restrictions innovation, if properly procured, can be setting expectations, working within can be accommodated by adapting brought in during the design strategy tolerances and creating repeatable design solutions. Designing to promote without impacting competitive tendering. sequences. Construction quality can be competition is key and it is critical to secure This procurement process must be clearly assured by designing these into the details commitments from trade contractors and mapped out in advance with a specific and building in regular schedule checks. It material suppliers early. emphasis on requirements for design input, is critical to carry out performance testing proprietary products, phased procurement as early as possible, ensuring that shop Tolerance and Movement and site logistics. drawings are coordinated and that the right Tall buildings are designed for their mock-ups are being produced. completed configuration. However, Schedule and Trade Sequencing during construction a building may On tall buildings, there are a number of trades Manufacture/Offsite Pre-Assembly have higher degrees of loading than that have to work sequentially and vertically. Manufacturing offsite and using the finished product. It is more cost The most efficient approach is to plan the techniques for pre-assembly can save effective to design with the construction critical trades from floor to floor, trailing money and time and promote quality sequencing known, rather than build in trades at the same pace, creating optimum control. It is critical to assess the site excess capacity at additional expense vertical sequencing. This coordinated logistic and hoisting plans as this will that may never be utilized. Coordinating approach allows results in improved determine the extent of off-site assembly. cumulative trade tolerances and deflection production rates and better quality control. criteria, accommodating for lateral and The Kingdom Tower curtain walling design thermal movement, and planning for Design aspects can often inhibit the is a high performance system similar in differential movement can help to identify optimal pace, identifying this early means specification to the Burj Khalifa. The complex the construction sequence and allow the that adjustments can be made to improve system, which comprises over 33,000 curtain building to be designed accordingly. constructability. For example, the core of wall panels, is being manufactured and

42 “On the Kingdom Tower, a specific performance management regime has been adopted to identify trends and forecast outcomes. This is of specific concern for tall buildings, where the compounded effect of delay to an individual task can have exponential consequences.“

Interior Development Phasing/Tenant The application of sound Program scheduling of the development, with detailed Special Requirements Management principles when building an consideration of alternative methodologies. These can have a big impacts on MEP and iconic tall building provides the discipline, structural design requirements. Identifying organization, structure, and processes It is critically important to first understand them as early as possible and accommodating to manage and mitigate risk while also the business goals and objectives, rather for them within the design will eliminate risks creating the environment to drive design than hastily launching the delivery of to schedule, cost, and quality, removing the and construction innovation. The result is technical services. Program Management need for retrospective structural coordination the creation of exceptional buildings and can deliver these iconic skyscrapers and their and other costly changes. outcomes, the larger and more complex the surrounding cities safely, efficiently, and at challenges, the bigger the benefits. speed by providing a quality control and Commissioning and Occupancy assurance framework. The testing and commissioning strategy Tall buildings have challenged technology must be considered early, so the opening and itself and allowed us to build towers more Very small deviations from plan can have operation strategy can be integrated into the efficiently and sustainably, and to create a significant bottom line impact. It is not schedule. The construction schedule must be internal environments that are comfortable, enough to manage to time, cost, and driven by pre-commissioning and start early productive, and energy-efficient. The scope of work without understanding the with progressive sign offs. The coordination prevalent green movement has propelled critical interdependencies and risks unique and integration of life safety and shaft the design of high performing tall buildings to delivering vertical cities. Investing in a pressurization; flushing of chilled water system; to employ intelligent technologies and smart Program Management approach from the and system integration testing, validation, and materials. Optimizing a design for efficiencies beginning will undeniably ensure that not handover can limit or eliminate the cost of can shorten the construction schedule, easing only are the outputs achieved, but benefits temporary and/or retrofit work. The impact of the financing costs and reducing the risk of are realized as well. this is heightened on tall buildings due to the price rises during the construction phase. intricate and innovative nature of their designs. Greater savings can be made through phasing of works to allow works to be carried out Maximizing Benefits through concurrently and allow staggered opening, Program Management including the possibility of earlier income Program Management provides substantial streams. Maximizing buildability requires the measures of stability, clarity, and certainty. early, intensive interrogation, planning, and

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Bremner, B. (2007). “The Race for the Tallest Skyscraper”, Bloomberg Business Week 01 May. Available from: .

Ijeh, I. (2015). “Can Tall Buildings Ever Be Sustainable?”, Building Design Online 25 February. Available from: .

Langton, J. (2013). “Kingdom Tower, Burj Khalifa and the Era of the Megatall Buildings”, The National UAE 18 March. Available from: .