Construction of the Empire State Building

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Project Risk Management|
Course Project Part II Construction of the Empire State Building| PM 595|
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10/9/2011|

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Table of Contents
Introduction……………………………………………………………………...3 Sources of Construction Project Risks………………………………………….3 Timeline Risk………………………………………………………….… 3 Cost Risk……………………………………………………………….…4 Design Issues…………………………………………………………..….5 Force majeure………………………………………………………….....5 Systems to address construction project risk…………………………………...6 Technology…………………………………………………………….….6

People…………………………………………………………………...…7
Planning……………………………………………………………………7 Catastrophic failure fault tree…………………………………………………....9
Discussion of fault tree……………………………………………………9
Design Frame Structure………………………………………………….10
Steel Frame…………………………………………………………….….10
Shear Wall Design………………………………………………………..11
Concrete Core……………………………………………………………..12
Hiring of Unqualified Personnel………………………………..……….13
Faulty Equipment Used…………………………………….………….…13 Schedule & Scope……………………………………………...………….13 Qualitative Risk Analysis………………………………………..…………….…15 Risk Management Plan Table…………………………………………………...15 Conclusion……………..………………………………………………………….17 References………………………………………………………………………...18 Introduction

Despite the nation struggling with the Great Depression, the Empire State Building was intended to end the competition for tallest building in the 1930’s. Not only was the 1453-foot, 103-story structure built in just over 13 months, the construction company that took on the overwhelming job allegedly began with nothing on hand; no equipment or supplies that would be sufficient for such an enormous undertaking. The design of the building changed 16 times during the planning phase, but approximately 3000 workers managed to complete the structure well within budget and on schedule. The building was constructed using approximately 60,000 tons of steel, over 10 million bricks, 200,000 cubic feet of limestone and granite, and over 750 tons of stainless steel and aluminum (8). When the project was completed it cost over 40 million dollars. Sources of Construction Project Risks

Timeline
The timeline risk is when the construction may not be completed on time. This is one of the most common risks that have a very high probability. Delays in construction can be caused by many factors. The timeline risk may result in cost overruns and sometimes can have catastrophic impacts. Delays could be caused by one or more of the following: * Owners and his team

* Contractor and his team
* Nature, i.e., caused by force majeure type
* Changes in bylaws or statutes

In the case of the Empire State Building one of the biggest risks identified is that the owner wanted this enormous project completed within 18 months as he was in competition race with other owners in constructing the tallest building in history. The risks now became enormous as project and construction managers not only had to manage this project to high quality standards and meet budget, but the project also required meeting an extremely tight timeline as the race to the tallest building was at stake. When completed the building was completed ahead of schedule as the project lasted 1 year and 45 days, which was well within the time allowed (9).

Costs
The cost overrun is a risk on a construction project that is not uncommon. By definition a cost overrun, also known as a cost increase or budget overrun, is an unexpected cost incurred in excess of a budgeted amount due to an under-estimation of the actual cost during budgeting (10). Cost projections in construction projects are based on some assumptions like raw material and labor cost increases. There is very high probability that these assumptions may not come true. Cost risk could be catastrophic as it may completely stop the project as the construction company could go bankrupt. The entire Empire State Building was constructed under...
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