Subject category:
Economics, Politics and Business Environment
Originally published in:
2016
Version: 10-Jun-2016
Length: 6 pages
Data source: Field research
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Abstract
This case study includes the management of mega project of Centaurus Mall planned and executed in the governance of Pervez Musharraf, The Pak Gulf Construction private limited was the main stakeholders in this mega construction who have shared in both Pakistan and KSA (Kingdom of Saudi Arabia) universally known as reputable builders. The project was well defined planned and executed with splendid energy but on the 9th September 2008, Pakistan Peoples Party overtook the governance of Pervez Musharraf and Zardari government came to power in 2008 when the global economies experienced the worst economic recession since the great depression of the 30s. At the same time, the economic managers fail to arrest the sharp increase in consumer prices that grew by 80 per cent in a short span of five years. While the Musharraf regime posted 6 per cent to 8 per cent economic growth rates, the Zardari government couldn’t muster even a 4 per cent GDP growth. At that time extreme hurricane of inflation hit the Centaurus Mall project with its severity that was unable to handle and stop. This case study reveals the aspect of time value of money and BRM done by Pak gulf construction Pvt after the 200 per cent cost overrun of the project. The case is also enlightening the budget compensation and profit acquisition achieved by the sponsors in spite of 200 per cent cost overrun.
Location:
Industry:
Size:
USD350 million
Other setting(s):
2005 to 2011
About
Abstract
This case study includes the management of mega project of Centaurus Mall planned and executed in the governance of Pervez Musharraf, The Pak Gulf Construction private limited was the main stakeholders in this mega construction who have shared in both Pakistan and KSA (Kingdom of Saudi Arabia) universally known as reputable builders. The project was well defined planned and executed with splendid energy but on the 9th September 2008, Pakistan Peoples Party overtook the governance of Pervez Musharraf and Zardari government came to power in 2008 when the global economies experienced the worst economic recession since the great depression of the 30s. At the same time, the economic managers fail to arrest the sharp increase in consumer prices that grew by 80 per cent in a short span of five years. While the Musharraf regime posted 6 per cent to 8 per cent economic growth rates, the Zardari government couldn’t muster even a 4 per cent GDP growth. At that time extreme hurricane of inflation hit the Centaurus Mall project with its severity that was unable to handle and stop. This case study reveals the aspect of time value of money and BRM done by Pak gulf construction Pvt after the 200 per cent cost overrun of the project. The case is also enlightening the budget compensation and profit acquisition achieved by the sponsors in spite of 200 per cent cost overrun.
Settings
Location:
Industry:
Size:
USD350 million
Other setting(s):
2005 to 2011