Sky Tower – the ‘impossible’ achieved by sound project management

Diagram 1: Business timeline. 1 Introduction 2 Starting with a concept What is the first thing you picture when you think of ? Chances are In 1996, the first part of Sky City in Auckland opened with much excitement and it is the Sky Tower. The huge pillar stretches into the sky and can be seen media frenzy. This complex included a convention centre and hotel. However, James Fletcher establishes a construction business in 1909 . He is joined by brothers William and Andrew. from almost every vantage point in the surrounding suburbs. An icon of New this was just the first part of the amazing centre – next door the Sky Tower was Zealand business – The Fletcher Construction Company Ltd (Fletcher) – built under construction. The client, Sky Tower Casino Ltd employed the engineering the Sky Tower, completing construction in 1997. firm, Beca Carter Hollings and Ferner to provide the structural co-ordination for John Fletcher joins the business. Fletcher Construction Fletcher Construction is a leading New Zealand construction company owned the project. It was designed by the architectural firm, Craig Craig Moller, with 108m high Designed to 1916 Co is formed. The company moves to Auckland. by Fletcher Building Ltd. James Fletcher started it early in the last century. Fletcher awarded the contract for building the entire complex including the communications mast withstand Over the next one hundred years, the business was responsible for building tower. Later, the same designers and contractors were responsible for the Sky 200km wind and many of New Zealand’s most loved landmarks, including the Auckland City Convention Centre and Grand Hotel. earthquakes 1929 The company completes the Auckland Civic Theatre and University Clock Tower, the Railway Station, Westpac Stadium and A large undertaking like this requires project management. Due to the scale the Dominion Museum in Wellington. both the original national museum and its replacement Te Papa. of planning and organisation required, Fletcher created a team led by a project Throughout the years, the company has managed to adapt to social and manager to see the project through. 1937 The company builds its first state house. economic changes. Very few businesses can boast such a long time in the marketplace. This success can be credited to involvement in a wide variety 3 The nature of the project of construction types. An emphasis on good value and sound quality has For such a vast construction job, a huge range of materials is required. Made Fletcher Holdings is floated, owning Fletcher Construction led to the company’s reputation. It is known for innovation, imagination and mainly of concrete; sandstone, steel, glass and aluminium were also used. Once 1940 and a number of building materials companies. flexibility and has also built lasting business relationships and networks. Observation deck constructed, it contained 15,000 cubic metres of concrete and 2,000 tonnes of Over the years, the company expanded overseas, particularly into the South reinforcing steel. Three glass Pacific. In this area, the company has unrivalled experience and expertise, 1 million visitors a To deliver the complex job, Fletcher engaged a large number of sub- 1945 The company expands to Samoa. James Fletcher is knighted. making it a leader throughout the region. year can see 82km elevators take contractors. Comprising many supervisors, teams and workers, they brought on a clear day only 40 seconds One of the company’s best-known projects, the Sky Tower in Auckland, a wide range of skills to the project. They provided support in areas such as to get to the Jim Fletcher (James’ son) becomes chairman of took two and a half years to complete. Built at a cost of $NZ 69 million, it mechanics, electrics, plumbing and technology. 1972 is the tallest freestanding structure in the Southern Hemisphere. The tower observation levels Fletcher Holdings. Whilst these workers are all experts in their field, an overall manager was has two restaurant levels, including one restaurant that revolves to take in required in order to ensure everyone was working together. This person is the breathtaking view, a café and two observation decks. From the main called the project manager. A project manager operates like the conductor of observation deck, you can get a 360-degree view. Some of the sections have The tower is as 1974 Sir James Fletcher Snr dies. an orchestra. The supervisors, teams and workers who are doing the work are 226m tall glass floors to give a dizzying view of how far up you are. The tower also tall as 37 buses the same as the members of the orchestra. The plans for the construction of features the Sky Jump, a 192-metre bungee jump that allows the jumpers to end on end the Sky Tower perform the same function as the score of music the orchestra Jim Fletcher knighted. Ltd formed. Jim’s descend at a rate of 85km per hour. is following. When the supervisors, teams and workers do the right thing in 1980 son, Hugh becomes CEO of Fletcher Challenge. The company buys businesses in Hawaii, Seattle and San Francisco. the right place at the right time, they make the building a success. When the It weighs orchestra plays the right notes at the right time, it makes the music sound good. 12m wide Shaft 21 million kilos Without the project manager, the workers may not know if they are doing the reinforced which is the same 1997 Hugh Fletcher retires. right thing. If the orchestra was without the conductor, then some members concrete shaft as 6,000 elephants might not play in time. Project management uses set 1998 Fletcher Challenge is broken up. methodologies to achieve the overall goal. There are 1,267 A methodology is a set of inter-related steps. It would take phases, activities and tasks that make Eight legs provide about 29 minutes 2000 Fletcher Building buys several Australian companies. up the project process from the start the base support to walk to the through to completion. Each phase of the project produces a major deliverable that observation deck Legs The company has successful investments in the USA, contributes towards achieving project 2006 Malaysia, Hong Kong and the Pacific Islands. Their net objectives. The end of each phase is a profit is $NZ 379 million. It took 2 years and logical break in the project and revolves 9 months to build around a key decision point. Phases consist of a number of activities that are groups Fletcher Construction continues to build a wide range of retail, 2007 commercial and educational buildings in NZ and overseas. of related tasks. Each group of tasks is a Foundations logical sequence of steps that will achieve Underground go down 15m phase or project objectives. The Sky Tower base support ‘legs’ loom out of the Sky City forecourt.

For extensionFor activities extension and activities questions and on questions Case Studies on Case Studiesedition visit www.afrbiz.com.auwww.afrbiz.com.au & &www.bizcs.co.nz www.bizcs.co.nz• Downloads• Downloads • Company info• Company • Current info Case • Current Studies Case Studies Diagram 2: Stages of Project Planning. 5 The responsibilities of the project manager 6 Logistical challenges in project management The project manager has some key responsibilities. The cornerstones of project If the initial planning of a project is thorough, then many potential obstacles will Client creates a concept. Sky City decides to create a complex for management are quality, programme and budget. The project manager is already be identified. This allows alternative solutions to be found in advance. entertainment in Auckland. responsible for managing resources to ensure that the project is finished to However, every project will have its own logistical and unforeseen challenges the required specifications, on time and within budget. The Sky Tower was for the project manager. Effective risk management is essential to minimise completed and opened six months ahead of schedule. This is a remarkable problems, delays and unbudgeted expenses. effort considering the size of the project and confirms Fletcher’s reputation for Architectural firms present design options to the client. With Sky Tower being so tall and therefore visible throughout Auckland, there completing projects ahead of deadline. The project manager is responsible for was much debate about whether it was being built straight. To be structurally The client chooses its preferred architect with help from specialist scheduling the individual tasks and activities within each phase of the project consultants. Sky City chooses Craig Craig Moller. sound the tower had to built exactly as designed. To achieve a vertical structure and ensuring these deliver as agreed. The failure of one task to deliver on time the latest technology was used to find the precise centre point of the tower. can have a knock-on effect on the entire schedule. Lasers positioned at the bottom of the tower then shone up to provide a grid The project must also be finished (as far as possible) withinbudget . The Sky pattern. Finally, seven global satellites confirmed the exact position of the tower. Firms present budgets to the client. Tower’s original estimated cost was $NZ 59 million. The final cost was $NZ 69 “How on earth will you get that crane down?”* Firework extravaganza. The client chooses its preferred engineering company with help million because of changes that the client made to the scope of the project. from specialist consultants. Sky City chooses Beca Carter Hollings Helping clients to save money or get maximum value from their budget is and Ferner. important. Fletcher does this by suggesting different approaches and engaging outside firms to work with them to come up with more cost-effective solutions. GLOSSARY Throughout the project, costs are monitored to ensure that the pre-determined Budget A list of all planned expenses and revenues. budget can be met. Any changes that will affect the original price must be Compliance To act in accordance with the requests of another party or legal Firms present budgets to the client. agreed. This allows the client and the construction company to ensure that and regulatory requirements. The client chooses their preferred builder with help from specialist investors in their companies receive an adequate return on investment. consultants. Sky City chooses The Fletcher Construction Company Ltd. Corporate governance The system by which companies are directed and Co-ordinating the many different departments is one of the hands-on managed. It influences how the objectives are set, monitored and assessed responsibilities that the project manager has. Getting the best from workers while optimising performance and creating accountability. requires positive relationships. Fletcher places great importance on employing, Health and Safety at Work Legislation concerned with protecting the safety, The construction company chooses the project manager for training and retaining loyal and skilled employees and has built up valued health and welfare of people engaged in work or employment. partnerships with suppliers and subcontractors. the tower. Investors Individuals or firms who outlay a sum of money to be used in such Fletcher choose Mr Andrew Gartshaw. The quality of the finished product is of particular importance to the client. a way that a profit or increase in capital may be expected. The project manager and the quality controller implement both internal and Methodology A set of inter-related phases, activities and tasks that make external quality checks. Independent firms employed to carry out tests and up the project process. on-site monitoring of processes may do the external checks. These can help to Objectives Measurable goals or outcomes. Firms present budgets for their services to the construction identify or solve potential problems before they become too costly. company. Policy A set of rules to guide decisions and actions. A project manager must know the risks involved in the project and ensure The construction company chooses its subcontractors. Procedures Protocols or a set of guidelines or rules for use in various compliance with legal and regulatory requirements. Fletcher works within the Fletcher chooses its subcontractors. These include Hills Flooring circumstances. laws laid down by the government to ensure Health and Safety at Work. In Ltd, Hynds Pipe Systems Ltd and Woods Glass. A process to ensure a project meets with the client’s addition, the company, through its corporate governance structure, has its own Project management Some of the floors of the tower were constructed on the ground and then lifted expectations of quality, cost and time. policies and procedures to keep workers safe on site. It also emphasises the by crane to the tower connection point. Others were constructed up in the air, responsibility that individuals have to ensure that they take care of themselves Project manager A leader who plans, budgets, co-ordinates, monitors and working from an anchoring point within the tower core. To do this, Warren Green and their co-workers. This approach has been successful – one measure controls the workers and firms involved in a project. Other consultants and laboratories are brought in to give advice. designed and tested a pioneering tower crane. A working model allowed the being the fact that there were no serious accidents during the building of the Quality Controller The person responsible for ensuring quality at every Auckland regional and city councils and specialists give advice on team to test its characteristics on the ground. The crane used its own climbing Sky Tower. stage of the production process. the project. mechanism and completed the mast construction. At the end of the project, the Resources Materials, labour, technology and machinery. dismantling of the crane posed its own challenge. Finally, a series of temporary Diagram 3: Business Organisation Chart. cranes positioned mid-way up the tower core brought the crane down. Scheduling Co-ordinating the multiple related tasks and objectives of a project into a timeline, specifying the order and allotted time for each part. The role of the project manager All these challenges highlight the need to have someone with a broad skill 4 Sub-contractors Individuals or businesses that sign a contract to perform Sky City set at the helm. Project managers must be adept at change, exhibit strong Project management is used for almost any type of project. In the case of the part or all of the obligations of another’s contract. leadership and communication skills and be able to bring a team together to Sky Tower, just one manager, Andrew Gartshaw, oversaw the construction from work collaboratively. They must exhibit great attention to detail while always Tender A process by which one can seek prices and terms for a particular start to finish. He in turn reported to the overall project manager for the Sky City keeping in mind the main goals and objectives of the project. project (such as a construction job) to be carried out under a contract. project, Warren Hollings. Fletcher Construction The role of the project manager has several components. 7 Conclusion Phase 1 – Initiation: The project manager must define the project’s goal. Project Manager Creating an icon as unique as the Sky Tower required the ability to respond to Phase 2 – Planning: The work needed to reach the goal must be identified. Questions & Extension Activities for challenging situations. Many demands were made on the builders, architects and Phase 3 – Execution: The project manager must lead the support teams whilst engineers. The geography, the climate and the requirements of the client meant Fletcher Construction are on controlling what is happening. This requires close monitoring of the Fletcher Sub- Suppliers External that innovative solutions were paramount. The role of project management, from workers and resources. Supervisors contractors Authorities www.afrbiz.com.au & www.bizcs.co.nz initial planning through executing and monitoring of the project until completion Phase 4 – Completion: The project manager is involved in seeing that the was central to its success. As a testament to those involved in its creation, tens of project is finished in a satisfactory way. thousands of people visit and enjoy the Sky Tower. Fletcher Construction Teams You will also find links to the The project manager must keep in mind the objectives of the client at all times. By building the tower in the sky, Fletcher Construction helped to create an iconic At the end of the project, the client, in this case Sky City, must be satisfied. architectural structure that demonstrated New Zealand expertise to the world. Fletcher Construction website New Zealand Business Case Studies Ltd. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor client can be held responsible forWhilst every errors or omissions in this Case Study. effort has been made to ensure accuracy of information, New Zealand Business Case Studies Ltd.

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