Analysis of contract types | Construction

It consists of the Guest Rooms, Restaurant, Swimming Pools, Dance Studios, Health and Fitness Centre, Conference and Meeting Rooms. On the other hand, Electricity Power Supply System, Electrical Low Voltage System, Fire Services System, Central Air-conditioning System, Plumbing & Drainage System, Passenger Services Lifts with cargo lift services and Building structural finishing and furnishing were re-structured and re-designed respectively into three nos. of hotels.

Cause of reconstruction

As three nos. of the Cinnamon Grand hotels were found destroyed by the adverse weather and several storms in August 2012, the reconstruction work was required with consent of the Hotel Management Board.

Background information (Cond’t)

Profile of Consultant firm

We are a consultancy service company namely ES Architect & Consultant Service Company Limited, which has been established in United Kingdom since 1976. Our business covers consultancy service, construction work, renovation work, facilities & property management, leasing agency, interior design and various engineering etc. Our professional team involves competent person such as registered professional, structural and geotechnical engineer etc. Recently, we are appointed to manage the reconstruction work for a hotel called Cinnamon Hotel.

Subsequently, we undertake to carry out the aforesaid reconstruction work according to requirement of the client as hotel’s landlord. Re-open business time of the hotels will be anticipated implemented from 1st March 2013 and completed on or before 1st April 2014. To facilitate and ensure that the potential guests could enjoy their journey in the hotels after the reconstruction work in phase 1, we propose divide the work into two phases. The Roofs, Guest rooms, Restaurant and Swimming pools will be scheduled in phase 1. The Dance studios, Health and Fitness centre, Conference and Meeting rooms will be scheduled in phase 2. In order to create the prestigious and retain heritage style with traditional England design in the hotel at the town, grand design is highly required. Details information of the concerned facilities is listed below;

Background information (Cond’t)

Schedule of project in Phase 1

Three ply waterproof design for three nos. of the roofs per one block of the hotel will be proposed, its lifecycle will anticipate fifteen years to replace approximately and repair cost will anticipate fifty hundred pounds per year;

Roman design for the whole block (include external wall), lobbies and twenty nos. of the general guest rooms, Rococo design for twenty nos. of the general guest rooms and traditional England design for ten nos. of the president suite rooms will be proposed. Total guest rooms nos. is fifty per one block of the hotels;

Continental with open kitchen design and three teams local cook lead by a chef for three nos. of the restaurant per one block of the hotels will be proposed;

Alfresco & indoor swimming pool with spa, massage and steam services, which is provide the thermostat system for six nos. swimming pools per one block of the hotels will be proposed.

Schedule of project in Phase 2

Diversity with musical system will be set-up in the dance studios per one block of the hotel will be proposed;

Professional tutors will be arranged in the health and fitness centre per one block of the hotels will be proposed;

High technology multimedia system and audio-visual with record system will be set-up in the conference and meeting rooms per one block of the hotels will be proposed.

Objectives

Client’s Requirement

In view of the above arrangement of reconstruction work for three nos. of the hotels, our client is concerned with the work commencement date and completion date, which must be regarded as the first priority because the peak travel season is coming soon. Therefore, the schedule of reconstruction work should cope with the demand in order to raise the competitive predominance in the same district. Also, other major concern is no in-house experience and insufficient staff to conduct the above reconstruction work in order to avoid any nuisance and contingency occurrence emerge in the phase one and two involve cost, time and quality control. To cope with the above potential risk avoidance, we would establish clear statement for scope of work, terms & conditions and penalty for liquidated damage to potential contractors. Especially, we would strictly to supervise and monitoring the service provision after the phase one project to let the potential guests enjoy their journey in the hotels.

Budget by Client

The client has sufficient cash flow to disburse the above reconstruction work cost in approximately at £ $120,000,000.00 (120 Million).

Recommendation

Type of contract

After collecting and ponder the above information with more concern, we decide to propose Design and Build contract method to our client. This method can not only to solve the technical issue deficient from client but also to avoid any variation order incurred in the future (such as budget to limit). In addition, design, materials and method suggestion of three nos. of the hotels have special ways to handle, quote instance, engrave technique for beam of Roman design in the whole block, external wall, lobbies, guest rooms, spa, massage and steam tanks with room facilities which are need to high technology and special order to complete. Design and Build contract method is highly required. In order to enhance knowledge for advantage and disadvantage for the Design and Build to our client, details are listed as below:.

Analysis

Advantage and Disadvantage of type of contract

Integrating both the design and build phases

Advantage of Design and Build: Deduction of the Costs, Time, and Mistakes

These design and build contractors are specialists in appointing both design and construction experts and making the process much easier for the property owner. For example, there is no need to hire variety of the contractors to carry out all aspects of the building project and arrangements with other subcontractors;

Individual responsible party – it is efficient to avoid conflict and confuse any communication between the various parties involvement;

Costs saving – Under a responsible party, it is more efficient due to avoidable duplication of manpower and both the design and building processes in the same company, the information between the two coincides. That means the cost of reconstruction work will be well controlled within budget because there is less possibility of miscommunication when the same design contractor is managing the two phases. Since the company is aware of the whole budget limitation, she is able to quickly and accurately determine if particular changes would put the reconstruction work over budget.

Advantage and Disadvantage of type of contract (Cond’t)

Time Saving – The Design and Build process could eliminate other the competitive bidding process that often adds to the project completion time. Furthermore, if the design and construction portion occur at the same time, it would save lead time during the course of the reconstruction work;

Improved Risk Management – Every aspect of the project has been carefully developed through the collaboration of the contractor, designer, builder, and client. Each party involved is aware of what they’re responsible for and has coordinated their efforts with one another. The process becomes more efficient to reduce the amount of risk involved;

Increased Quality Control – On the one hand, under a responsible party for every steps of the process promotes the more cohesive approach to the remodel. One party orchestrating each aspect of the remodel assures that the standards are met throughout and the goal is more accurately communicated On the other hand, one of the significant reasons that the client’s tend to prefer adopting of the Design and Build contractors because of their ability to handle everything “in house”. This is very appealing to clients because it means that no one will cut corners with quality of materials or labor. It is also very beneficial to have the same contractor work for the project from start to finish.

Advantage and Disadvantage of type of contract (Cond’t)

Disadvantage of Design and Build:

In the past, the design phase and the build phase were separated. Firstly, the building is designed by architects. Secondly, contractors analyze the architectural design and bid on the amount that it will cost to construct the project. Thirdly, once the bid amount is agreed upon, construction takes place. When the two phases are separated, it often leads to problems. It is not uncommon for the client to become unhappy when the design conflicts with what can be built. In order to eliminate this issue, you can now use design build contractors which integrate both the design and build phase together.

Conclusion

Construction project delivery is changing before our eyes. Design-build – once known as only one of alternative project delivery – may now be the most preferred method. 1 [G. William Quatman (2003) ‘The Architect’s Guide to Design-Build Services’]. After collecting the above information and the requirements from our client, the Design and Build contracting methodology for transportation projects represents a significant change in the way projects, which are managed and delivered by transportation agencies. An important aspect of the Design and Build contracting methodology is developing collaboration and the business relationship between the project engineering/architect and construction contractor. The interaction of the construction contractor with the designer working as a team represents a culture shift from the traditional design and construction project team work together to resolve project design and constructability issues to deliver a quality product in an efficient manner.

There is need to perform quickly on the projects, as it is in emergency – the owners put the teams together to get the work completion. The complicated problems are always solved the more efficiently and with optimal solutions through collaboration. Collaboration occurs throughout a Design and Build project, not only within the Design and Build / construction team, but also with the owners.

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