Project Management: Building Hudson Yards

Running head: PROJECT MANAGEMENT
Case Study: Building Hudson Yards
Name of the Student:
Name of the University:

1PROJECT MANAGEMENT
Table of Contents
Part A: Project Overview.................................................................................................................2
1. Overall budget.........................................................................................................................2
2. Social and economic rationale.................................................................................................2
3. Key statistics............................................................................................................................3
3.1 Scope and size....................................................................................................................3
3.2 Budget and estimated cost.................................................................................................3
3.3 Time required completing the project................................................................................5
3.4 Key construction elements and phases..............................................................................5
3.5 Environmental costs or benefits.........................................................................................6
4. Funding mechanisms...............................................................................................................7
5. Key stakeholders......................................................................................................................7
Part B: Risk Analysis.......................................................................................................................7
1. Qualitative and quantitative measures of risks........................................................................7
2. Risk matrix.............................................................................................................................12
Part C: Risk mitigation plan..........................................................................................................13
References......................................................................................................................................19

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Part A: Project Overview
1. Overall budget
The estimated budget of the “BUILDING HUDSON YARDS” is US$20 billion.
2. Social and economic rationale
Hudson Yards has changed city’s iconic skyline and it is the nation’s largest private
development and a key significant construction project in New York. Development of Hudson
Yards will create 23.000 construction jobs and add society cost-effectively as well as
communally (Hudsonyardsnewyork.com 2019). The constriction of building is performed as
environment friendly way so that it can gain social benefits of the green building. It provides an
effective means to achieve wide range of the global goals like addressing the climatic changes,
creating sustainable buildings along with driving the economic growth. The social benefits of
Hudson Yards Building are enhanced health along with welfare of living along with functioning
with them. It will reduce negative environmental impacts and create positive impact on climate
along with natural environment.
The economic impact of 28-acre Hudson Yards development is that once it is operational,
the development work will contribute to approximately $19 billion annually to gross domestic
product (GDP) of New York City. It is accounted for 2.5% of GDP of New York. The project
work is contributed to approximately $500 million annually in the city taxes. Hudson yards is a
contributor of city’s economy plus it is progressed an economic engine for city as well as region.
New York will generate tax benefits, provides GDP and creates job opportunities for people of

3PROJECT MANAGEMENT
this city (Hudsonyardsnewyork.com 2019). There is significant economic impact of venture into
the transportation infrastructure on expansion of Manhattan’s West Side.
3. Key statistics
3.1 Scope and size
The scope of this project is new construction of Hudson Yards Building which is
constructed 28-acres over the rail yard, two platforms bridge over thirty active train tracks, 3 rail
tunnels as well as new gateway tunnel. The scope of this new construction includes adaptive
reuse, addition and expansion, interiors work, restoration and renovation. There is architectural
design as well as structural engineering services for Hudson Yards which is a mixed use tower
with development of tallest residential buildings. The size of this project is 1,055,000 square feet
(Hudsonyardsnewyork.com 2019).
3.2 Budget and estimated cost
In order to estimate the cost of this project plan, three values are required to estimate such
as:
Net present value (NPV): It is difference among the present value of the cash inflows as
well as outflows over the time period (Verzuh 2015).
NPV =∑
t=0
n CFt
(1+ K )t
Internal rate of return (IRR): It is the metric which is being used into the capital
budgeting to estimate profitability of the potential investments.

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0 = ∑
t =0
n CFt
(1+ IRR)t
Payback period (PB): It is the amount of time which it is taken to recover the cost of the
total project investment. Shorter payback period is attractive towards investments (Larson and
Gray 2017).
PB = Year before cost recovery + Remaining cost ¿ recover ¿
Cash flow during the year
Cost of capital 12%
Year 0 1 2
Net cash flow (40,000,000,000) 96,000,000,000
(57,200,000,000
)
PV factor 100% 100% 100%
PV of net cash flow (40,000,000,000) 96,000,000,000
(57,200,000,000
)
Cumulative PV (40,000,000,000) 56,000,000,000
(1,200,000,000
)
Net present value (1,200,000,000)
IRR (Internal Rate of
Return) 10%
0.42

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3.3 Time required completing the project
The project work is started at March, 2014. Through the construction of the trains are
remained operational and new No.7 extension of subway at Hudson Yards is completed in the
year 2015. The estimated time to complete the project is year 2019. The project status of this
work is on the boards or in-progress.
3.4 Key construction elements and phases
Key project phases Sub-phases
Site proposal
Select a site for the rail platform construction
Follow building codes and regulations
Size and space considerations
Final drawings and specifications
Bidding process
Planning phase
Development of schedule
Estimate and reserve the project resources
Planning the modes of communication with the
project stakeholders
Determine unidentified project risks
Outline the project scope and project expectations
Building of rail alignment
Rail foundation