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 Unpublished conference paper 5.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 Unpublished © Council on Tall Buildings and Urban Habitat / Keith Brooks; Julio Maggi; Derek Roy; Bryony Day Adopting a Program Management Approach to Maximize the Benefit of “Vertical Cities” 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 37 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