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Burj Khalifa
1599891
School of Civil Engineering, University of Birmingham
Hasnyan Haider
Construction Management, Engineering Production and Risk Management
Completed date: 24/01/2016

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ABSTRACT/SUMMARY
Burj Khalifa also known as the Burj Dubai is the centre jewel of Dubai, located within the
UAE this building is the current tallest structure, holding more than one world record. As
such, a project to construct this structure would be plagued with numerous risks from the
early stages of concept all the way till the delivery phase. The risks involved within such a
complex project would have required an extraordinary level of management.
This report looks into the processes in which this project would have had to have taken to
manage the risks. From the risk identification stage, the risk assessment phase to the risk
responses. For the purpose of the word limit how ever only the main design phase risks and
construction phase risks would be evaluated.
It was found that the original plans and targets regards to time and cost had all been exceeded
and not accomplished. The cost was overrun by nearly $700 million and the time exceeded
another nine months from the original completion date. So was this project still a success and
were the risks managed.
It was concluded that this project was still a success due to the increase of the net value in
early years. Even though most risks was planned out and predicted many were left
unforeseen. However this is neither here nor there as the risks which affected the end product
could not have been predicted or prepared for in advance, due to these factors not being in the
control of any of the 60 contractors nor the client.

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LIST OF CONTENT
LIST OF FIGURES...................................................................................................................... 4
LIST OF TABLES ....................................................................................................................... 4
1.0 INTRODUCTION .................................................................................................................. 5
1.1 The Construction industry and Risk.................................................................................. 5
1.2 The Project........................................................................................................................ 5
1.3 Details and Data of the Project.......................................................................................... 5
1.4 What are the Main Risks of the Project............................................................................. 6
2.0 RISK MANAGEMENT REQUIREMENTS OF A CONSTRUCTION PROJECT/SUB-PROJECT
TO BE ANALYSED .................................................................................................................... 6
2.1 What is Risk Management and its Requirements .............................................................. 6
2.2 How does it work............................................................................................................... 6
2.2 Key Factor of Risk Management....................................................................................... 7
2.3 Risk Drivers....................................................................................................................... 7
3.0 RISK INFORMATION AND DATA COLLECTION ............................................................... 7
3.1 Risk Management Process.................................................................................................8
4.0 RISK IDENTIFICATION........................................................................................................8
4.1 Hazard Identification ........................................................................................................9
4.2 Risk Identification tools and techniques .......................................................................... 10
4.2.1 Risk Check list for Construction Sector....................................................................... 11
5.0 RISK ANALYSIS................................................................................................................. 13
5.1 Risk assessment............................................................................................................... 14
6.0 OUTPUT ANALYSIS AND DISCUSSION........................................................................... 16
7.0 RECOMMENDATION OF THE IMPROVEMENT ............................................................... 17
8.0 FUTURE WORK.................................................................................................................. 17
9.0 CONCLUSIONS.................................................................................................................. 17
10.0 REFERENCES................................................................................................................... 19

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LIST OF FIGURES
Figure 1.1: Risk Management Process
Figure 1.2: Risk Matrix
Figure 1.3: Risk Response
LIST OF TABLES
Table 1.1: Risk identification techniques
Table 1.2: Risk Checklist
Table 1.3: Risk Matrix

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1.0 INTRODUCTION
1.1 The Construction industry and Risk
The construction industry is a complex and unique industry compared to others, it’s filled
with uncertainties. It is one of the largest industry within the UK and worldwide and with
such a vast industry comes many issues. With each project there are its own unique risks, the
entirety of construction projects are plagued with such risks.
A risk is identified within construction as a possible exposure to loss with regards to the
project. It is impossible to neutralise all risks to make a risk free project so the best option is
to manage the risks. (Surety Learn, 2014)
For a projects successful outcome, management techniques are put in place and one of the
commonly used management techniques for large projects is risk management, this is risk
planning, risk identification, risk analysis and risk response and monitoring.
1.2 The Project
This report will use a specific project to discuss and outline what construction project risks
management systems are, using risk analysis techniques and methods to analyse risks. The
project selected is the ‘Burj Khalifa’ also known as the ‘Burj Dubai. This jewel of Dubai
situated in the UAE is currently the world’s tallest building. This is living proof of the
advancements made in Dubai, not only a record holder but an incomparable feat of
engineering. Mr Mohamed Alabbar, Chairman, Emaar Properties, said: "Burj Khalifa goes
beyond its imposing physical specifications. In Burj Khalifa, we see the triumph of Dubai's
vision of attaining the seemingly impossible and setting new benchmarks. (Emaar Psjc, 2015)
1.3 Details and Data of the Project
This building has around 160 storeys and is estimated to be at 828 meters tall. With the rough
estimation cost of 1.5 billion USD. Constructed over four years from 2006 to 2010 this
structure produced two entire floors every week. The owners being Emaar properties who
were also the main contractor had at least 60 different contractors working on this project
with an estimate of 1000 people per day working on the facility (Provident Real Estate Dubai
2015). With large complex buildings there is a high chance of it not following the original
plan and this project was no exception. The original budget was $876 million which later
increased to $1.5 billion. The final design of the building ended up being 100 meters taller
than the original plan and finally the expected 47 months delivery for this project increased
by another nine months.
This then tells us that the Burj Kahlifa’s quality time and cost objectives were altered and not
met. But how can such a project avoid missing objectives, did they manage the risks properly
and efficiently; this report will look into the risk management process for this project to see if

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the original objectives could have been met. (Jaggi, V.J. Singh, Y.S. Daley, T.D. and
Kaur,K.K., 2013)
1.4 What are the Main Risks of the Project
With one of the world largest construction project with a world record of the current tallest
building the risks involved are unprecedented. As such within this report only the design risk
factors will be analysed and discussed.
The main risks with the design of this project are all surround the height factor. Contractors
and workers working at height, materials being delivered at height and most of all nature at
height. Such as the wind load and heat radiation from the sun.
2.0 RISK MANAGEMENT REQUIREMENTS OF A CONSTRUCTION
PROJECT/SUB-PROJECT TO BE ANALYSED
2.1 What is Risk Management and its Requirements
There are many projects which fail to meet deadlines and end up over running, projects which
exceed initial budgets and also projects which do not meet there purpose or specific quality.
Objectives such as time, cost and quality are affected by the projects risks and uncertainties.
A well risk managed project would enable a more successful outcome for the project.
Within a project the contractors or any member within the supply chain of the project should
all aim to eliminate or at least manage the risks form within the project. A risk management
system therefore is a technique used to help the performance of the project by managing the
risks relating time cost and quality.
Risk management will focus on the future of the project to try and improve actions and
decisions to help the outcome of projects.
2.2 How does it work
Risk management works through a systematic process of steps, the first step is to identify
what could be a risk within the project, and this is risk identification. For example for the
Burj Kahlifa this could be working at heights. Then you must quantifying the risk by
understanding its affects through techniques such as risk analysis and risk assessment. So
how dangerous is it working at such extreme heights as 828 meters. From here the next step
is to develop a management response to the risk through risk response. Once again for
working at heights it could be to put in a safety system to reduce the risk of falling like
harnesses. Finally the last step is to provide risk control and an emergence plan.

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2.2 Key Factor of Risk Management
 Risk management success rates relies on a number of factors these are:
 Leadership commitment
 Building a Team
 Questioning, why?
 Don’t Reinvent the Wheel
 First Define the work then explore the risk
 The Assessment Tool
 Risk Metrics
 Risk Assessment
All these key factors play a role in the successful outcome of risk management, if these are all
implicated, this would prove more beneficial. (Easton J.E, 2012)
2.3 Risk Drivers
Risk drivers for a project are normally external or internal factors which drive the project
towards risk. These then influence the risk to materialise and take place. For the Bujr Khalifa
the idea of the project was to design the world’s tallest building therefore the risk of height
came into factor. But the driver for the design to achieve the record of being the world’s
tallest was the key risk driver. (Manigent, 2012)
3.0 RISK INFORMATION AND DATA COLLECTION
The Burj Khalifa, one of the world’s greatest engineering achievement, was not constructed
and managed without any risks. There were many risks with this project from as early as the
initial design phase, had it not been for the technological breakthroughs of our time this
project would not have been completed. This project did not only have major risks in terms of
design but in terms of quality and time.
As the design objective was to create the world’s tallest building, nature would have been the
biggest risks, such as the wind load at heights and the heat levels from the sun. How they
would tackle these risks would be added to the buildings design. Not only did they want this
to be the world’s tallest as it was built in Dubai the world’s fastest growing city and the
worlds regional capital it had to be done to the upmost highest level of quality and done
quickly to keep up to pace with Dubai’s fast growing economy. This then leaves a daunting
project to be completed, where in most projects there would be one main objective in this
there was three.
However this all came at a price, to achieve the end product the client Emaar properties paid
an estimate of 1.5 billion USD to achieve all the goals.

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3.1 Risk Management Process
As mentioned before you must go through each individual step for a successful outcome for
the projects risk management.
(Data Science, 2015)
Figure 1.1: Risk management process
4.0 RISK IDENTIFICATION
When it comes to projects as large as the Burj Khalifa, if a risk is not identified early within
the process then this may prove problematic for the construction and later use of the building.
The building may not even meet its requirements and aims such as the quality and time of
completion.
For project risk management the risk identification is the most important process as it is the
first step to understanding all the risks for the project. The purpose of risk management is to
decrease the likelihood of negative impacts on the project and to do this you must first
identify the source of the impact. (Rawi R.M.R, 2014)
Within risk management once the risks have been established they must then be categorised
so they can be understood better. This enables for a better planning process of the risks later
and may also then be used for future references.
For the Burj Khalifa there are just too many different risk profiles that can be categorised
however for the purpose of this report I will be relating them to the main risks involving the

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design phase and construction phase of the project. Examples of the risks that can fit these
categories are as stated below:
Design Phase
 Change of design effect on budget and time
 Wind load of tall buildings
 The effect of gravity on tall buildings
 Location of the building
 Effects of the Sun
 Internal travel/transport within the building
 Materials and their durability
Construction Phase
 Transport of materials to such heights
 Workers working at height
 Objects falling from height
 Vast number of people hard to manage
 Escape route from height
 Risk of collapse
 Workers exposed to sun radiation at height
 Scaffolding failure
 Danger of site machinery
4.1 Hazard Identification
For a project which has implemented risk management it may be useful to not only identify
the risks but to identify the hazards as well. Hazards are normally sources which can cause
the project to fail.
To identify a hazard you must first understand what is required for the projects objectives
from here to create a planned path to achieve these objectives. Once this is complete you
would normally go along the path to see if you could anticipate any possible hazards from
appearing which may affect the path. There are many techniques which can be used to help
identify hazards, the more popular ones are brain storming, checklists, Hazop (Hazard and
operability) and FMEA (Failure Mode and Effect Analysis).
The types of hazards are:
 Financial hazards
 Legal hazards
 Political hazards
 Social hazards
 Environmental hazards
 Communication hazards

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 Geographical hazards
 Geotechnical hazards
 Design hazards
 Technological hazards
 Construction hazards
 Demand/product hazards
(Dr Min An, 2015)
4.2 Risk Identification tools and techniques
The risk identification stages within construction management, people argue to be the most
important phase. So identifying the risks for the project is an important task and to implement
this phase there are many different techniques or tools in which you could use to do so. The
table below states the different methods and techniques available for construction projects:
Table 1.1: Risk identification techniques
(ISGIP Project Documents, 2015)
As you can see the technique ‘check list is one of the most used and more preferred technique
used. For construction projects a risk checklist for the construction phase will consist of:

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4.2.1 Risk Check list for Construction Sector
Table 1.2: Risk checklist

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(ISGIP Project Documents, 2015)
5.0 RISK ANALYSIS
If the risk identification is said to be the most important step in risk management then the risk
assessment is defiantly the most significant. This step within the risk management process is
where you start assessing the risks that have been identified. You can check the consequences
of the risk the severity and the possibility of the risk through risk assessment. This is
achieved through the use of techniques such as a risk matrix a cash flow or a fault tree
analysis (FTA) and even through an event tree analysis (ETA).
Risk assessment can be a ‘very straightforward process based on judgement requiring no
specialist skills or complicated techniques’. (Clarizen Success, 2013). One of the more
popular techniques used today for risk assessment is the risk matrix. The Risk Matrix is also
popularly known as the Probability and Impact Matrix. The Risk Matrix is used as a
Qualitative Risk Analysis in the Risk Management process. It is a very effective tool that
could be used successfully to raise awareness and increase visibility of risks, so that
significant decisions on certain risks can be made in context. A risk is “rated” for its
Probability and Impact on a scale to understand where on the Risk Matrix it lies. As shown
below:

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(Chittoor A.C, 2013)
Figure 1.2: Risk matrix
5.1 Risk assessment
For the Burj Khalifa project a risk matrix can be used. There are three stages for risk matrix
as following:
Step1: Consequence analysis
This stage is to assign the value to each hazard or risk from the risk identification as show in
the table below:
Description Weighting Value
Catastrophic D (4)
Hazardous effect C (3)
Major effect B (2)
Minor effect A (1)
Step2: Probability of occurrence
In this next stage you must determine the probability of the risk or hazard occurring on a
scale from 1 to 5 as shown below:
Description Scale
Frequent 5
Reasonably probable 4
Remote 3
Extremely remote 2
Extremely improbable 1

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Step3: Risk matrix
Last stage is to assign the risk from the risk identification into the risk matrix. For the Burj
Khalifa the risk can be classified in the risk matrix as illustrated below; (C=Consequence,
P=Probability, R=Risk Level).
Table1.3: Risk matrix
Ref Hazard/Risk Effect to
Time
/Quality
/Cost/
Safety
C P R
A Wind load at height Q/C D 4 H/R
B Gravity Pressure at height Q/C D 4 H/R
C Weather of location (Sand Storms) Q/T B 4 L/R
D Sun Radiation T/Q D 5 E/R
E Change of Design Q/T D 3 H/R
F Economic Decline Q/C C 2 L/R
G Government Interference C/T C 2 L/R
H Falling from height S D 2 M/R
I Objects falling from height S C 3 M/R
J Manual labour of materials cause harm to
workers
S B 2 L/R
K Scaffold failure S C 2 L/R
L Risk of building infrastructure collapse S/C D 1 Min/R
M Crane Collapse S/C D 2 M/R
N Errors of measurements for plans Q/C D 2 M/R
O Allergic to cement powder S A 1 M/R
Low Risk Moderate Risk High Risk Extreme Risk
D
Extreme Risk
Minimum
Risk
Low Risk
C
Moderate Risk High Risk
A , B
Extreme Risk
Minimum
Risk
Low Risk
K
Moderate Risk
I
High Risk
E
High Risk
Minimum
Risk
Low Risk
J
Low Risk
F,G
Moderate Risk
H, N, O
High Risk
Minimum
Risk
O
Minimum
Risk
Low Risk Moderate Risk
M
High Risk
Impact
Probability

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As you can see in the tables above there are four hazards which are in the high and extreme
risk area, meaning these are very crucial to the project and there should be a plan
implemented to tackle these hazards. Then you have five hazards in the moderate risk areas
which may not be high but are still very important and every project manager should be
aware of these hazards with plans to solve them in case they occur. Then with this project
there is five hazards in the low risk area which may not impact the project as much but still
should have some awareness. Finally there is one hazard in the minimum risk area which can
be dealt with if it occurs.
6.0 OUTPUT ANALYSIS AND DISCUSSION
As you proceed after the risk assessment and have identified each risk and their individual
severity the final step is for the risk response process.
(Perkins, 2016)
Figure 1.3: Risk response
Risk response is the vital final stage to risk management, in this process you take measures to
either terminate, mitigate, transfer, exploit or tolerate the risk. This then reduces the amount
of risk each contractor has to control and manage. The best advice for a project as complex as
the Burj Khalifa would be to transfer the risk to whomever can manage it. This then enables
for the most optimal management and response for this risk.

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7.0 RECOMMENDATION OF THE IMPROVEMENT
For such a project as the Burj Khalifa there can be many areas in which improvement can be
implemented due to the size of the project. As they missed their budget by nearly $700
million the first area in which recommendation for improvement can be applied is budget cost
planning. Pre cost planning for materials and design alterations, should be taken into
consideration for projects as large as this. A design alteration can make a huge impact. A case
study did also reveal that the increase of the initial budget was mainly due to alterations made
to the designs.
Another area in which improvement could have been integrated is for the Project managers to
plan for unforeseen events which could occur. Such as government influences, this is because
the final delivery date was missed by nine months because the project was closed down for
four months due to the government and also the decline in the property market which affected
the main clients Emaar properties.
Finally a major improvement which is mainly used for risk management is risk training for
the workers of the project within the construction phase. This is an effective tool where all
the key stake holders and workers on site would be trained and informed about the risks and
their impacts so they will be able to react appropriately in case of occurrence, this is called
risk training.
With this project the initial budget plan was exceeded due to design alterations, if the design
team had initially foreseen the implications of their design the cost forecast could have
predicted the change before hand and saved millions for the project.
8.0 FUTURE WORK
With many projects risk management is an effective management tool which comes with
many benefits for even small projects all the way to the biggest such as the Burj Khalifa.
Through the risk management process you can identify all the risks/hazards within an
organisations project from the concept phase all the way to the delivery. From the
identification the severity and consequences are then known through risk matrix and other
tool for risk assessment, which is vital information for any project due to the fact that the
information received from this process will identify all the major risks which could prove
hazardous for the project as it may cause the project to fail.
This technique then improves the success rate of the project and can allow for a more
efficient project with better methods to obtain the main overall objectives for the project.
9.0 CONCLUSIONS
Burj Kahlifa’s complexity was not that of an ordinary project, it was one of the largest
projects of our time and true engineering break through. Without the technological
breakthroughs of our time we would not have seen the completion of this building. The
entirety of the project defies much logic to previous building projects before our time. So of

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course with such an enormous project costing around $1.5 billion with over 60 different main
contractors and over 1000 people on site per day with 24 hours a day construction the
slightest error could turn out to be a major problem. There was a ridiculously large amount of
risks and not all could have been foreseen and managed thus the extension of time and over
run of costs. However seeing as the net value of the building has already increased more than
predicted by 10% this project is still seen as a success.
Therefore this shows us that even though some risks may be managed depending on the
project you may not be able to manage them all but this does not mean your project will fail.
Risk management is vital to any large complex build but can also be very beneficial for small
projects.

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10.0 REFERENCES
1. Surety Learn (2014) ‘A Quick Introduction to Construction Risks and Contracting
Practices’. Available at: http://suretylearn.org/wp-
content/uploads/2014/01/M8_SuretyLearn-Construction-Risks-2013.pdf (Accessed:
19 January 2016)
2. Emaar Pjsc (2015) ‘Burj Khalifa’. Available at: http://www.burjkhalifa.ae/en/the-
tower/vision.aspx (Accessed on 19 January 2016)
3. Provident Real Estate Dubai (2015) ‘Constructing Tallest Building in The World –
Burj Khalifa – Documentary’. Available at:
https://www.youtube.com/watch?v=P7lWOkXuO8Q (Accessed on 20 January 2015)
4. Manigent (2012) ‘The Difference Between Business Drivers and Risk Drivers’.
Available at: http://manigent.com/the-difference-between-business-drivers-and-risk-
drivers/ (Accessed on 20 January 2016)
5. Easton, J.E (2012) ‘8 Key Factors in a Successful Risk Management Program
Implementation’, Medgate, 8 (2), pp.22
6. Data Science (2015) ‘Risk Management’. Available
at:http://www.datasciencespa.com/?page_id=110 (Accessed on 22 January 2016)
7. Rawi, R.M.R. (2014) ‘Project Risk Identification For New Project Manager’,
Available at: http://www.projecttimes.com/articles/project-risk-identification-for-
new-project-manager.html (Accessed on 22 January 2016)
8. ISGIP Project Documents (2015) ‘Risk Assessment Checklist for Construction
Sector’. Available at:
http://www.hesapro.org/files/checklist%20for%20risk%20assessment%20in%20const
ruction%20sector.pdf (Accessed on 22 January 2016)
9. Dr Min An, (2015) ‘Constrction Project Risk Management’. Available at:
https://canvas.bham.ac.uk/courses/13763/files/2281973?module_item_id=419519
(Accessed on 22 January 2016)
10. Clarizen Success (2013) ‘Risk Management – Useful Tools and Techniques’.
Available at:
https://success.clarizen.com/hc/communities/public/questions/203996208-Risk-
Management-Useful-Tools-and-Techniques (Accessed on 23 January 2016)
11. Chittoor, A.C. (2013) ‘The Risk Matrix’. Available at:
http://network.projectmanagers.net/profiles/blogs/what-is-a-risk-matrix (Accessed on
23 January 2016)
12. Jaggi, V.J. Singh, Y.S. Daley, T.D. and Kaur,K.K. (2013) ‘Burj Khakifa’. Available
at: http://www.slideshare.net/jaggv42/burj-khalifa-it-pmp-project (Accessed on 23
January 2016)
13. Perkins, D.L.P (2016) ‘Eleven Steps to Smart Risk Management, Value
Enhancement’. Available at:http://www.thebusinessowner.com/business-
guidance/risk-management/2008/11/eleven-steps-to-smart-risk-management-value-
enhancement (Accessed on 23 January 2016)