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You requires to reconstruct the three hotels to a better than existing hotel quality in the south east of the UK. you only have experienced in the renovation of building but don't have experience for reconstruction. Base on our experience, we will introduction and analysis 4 suitable procurement route, and we will propose on the most appropriate procurement route for the reconstruction project. Firstly you have obtain finance from the Commercial Bank about Â£120 million, so you will highly concerned for the project programme and overrun the project budget. It is important element when procurement route. Secondary you required all the sites demolition some of part existing structures those are not structurally sound enough to retain and reconstruction. And the quality for the hotel is very important for you, like quality of structure must withstand the severe storm, and for design quality need to be better than past project. Also the three hotel buildings are need follow two phases:
Phase 1- You planned start date on site is 1st Mar 2014, and the completion date critical, must handover by 28th Feb 2015 and some part of the hotel re-open to business scheduled on 1st Apr 2015 including:
Artistic Green Roofs
Swimming pools with bar counter
Phase 2, will raise the opportunities for health and well-being of the visitors through new facilities including:
Dance studios (Can be provide for the wedding or company part for those member)
Health and fitness centre including gym room and spa room
Conference and meeting rooms
Thirdly is, cause of you don't have an in-house executive to take charge of the project, so will not be actively involved in design and construction, however the risk avoidance/ allocation is also most important. Like during reconstruction the phase 2 must provide a good service to the hotel guests while the construction is going on.
Available Procurement Route and selection criteria
We will analysis and compare the different type of suitable procurement route and propose the best procurement route for client choose, base on our professional experience.
1. Traditional Procurement Route
Traditional Procurement Route is probably the most commonly used method of procurement and suitable for all clients and all different type different functions of project, and the project time and cost is predictability and certainty.
You need provides brief and project cost plus the tender document and appoint one consultant team on behalf of you and we will advise on aspect associated with design, control the project progress and stage payments which must be paid by you. Also we provide tender document including full set of design drawing, consisting of specifications and drawings, and you also need to appoint one main contractor to follow the design construct the whole project by the contract complete date and agreed price.
So follow this type of route, you can be fixed project cost and project complete date. If the project design got any variation order or the project complete date delay, you and the contractor can clear the responsibility base on your contract document.
This type of route is low-risk option for you also is more suitable for you, because you want to minimise the cost risk (project cost) and time cost (project construction time), but will increase the risk when during the design phase is rushed, where unreasonable time targets are set or where the tender document are not fully completed but for this project you have more than one year (present to 1st April 2014) to finish the project design, and also we will give professional suggest during the design stage to help you to minimise the risk for design fault
2. Design & Build Procurement Route
This method of route is also probably the most commonly used method of procurement and suitable for all the client and inexperience client and those don't want to close involvement in design stage. This method is always using for simple buildings (hotel, hospital, office, etc) or the fast track project.
The design and build procurement route different with traditional method is the main contractor is take responsibility for project design and construction. You only need to provide the tender document with an initial design outline. After the contractor will developed design and completed project by the fixed price.
Evan though the most of contracts are lump sum contract, the cost risk is still low. The contractor will usually fix the time and be complete the project in the fix time, so the time risk also low. But for the design and quality risk is high, course the main contractor is base on your outline design to develop, than the final design and the quality may not able to meet you requirement.
Even for this type of route is low cost risk (have lump sum basis), you are difficult to define the various order with the main contractor, so we are not suitable you to use this type of route.
3. Management Contracting
The Management Contracting procurement route is suitable for fast track project, complex buildings and a developing brief, but not suitable for the inexperienced clients or before the project starting already certainty the project cost and those clients want to pass all risk to the contactor.
Normally you need appointed the management contractor early in the design process, base on their experience can be used to improve the cost and buildability of proposals as they develop. Get tenders for the works are let competitive basis on lump sum, firm-price contracts by the management contractor to subcontractors and specialists in appropriate works packages .Use this type of route can saving the time in overall project duration is because the design and construction start overlap. The management contractor is fully responsibility for the project delay and all the project defect. But the project duration is consequence of package selection will increase the time risk, and the actual cost is unknown until get the last package also will increase the cost risk.
4. Construction Management
The construction management procurement route is similar concept with the management contracting route, but still got different with the management contracting route. The contractors are contracted directly to you and you appoint a construction manager at early stage to advise the employer on a fee basis. Construction manager will manages the project process for you.
This method of route is suitable for the experienced clients and not a priorrity where the cost is certainty. Also suitable for the fast track project and complex buildings
The actual cost is also unknown until get the last package, the cost risk will increase. Cause don't have a single organisation to responsible for the project time completion so will increase the project time risk also.
So based on our experience to suggestion and consider the basic issues for selecting the procurement route like client resources, cost, time, quality, project function and risk, we propose and suggest you to choose the Traditional Procurement Route for your reconstruction project. Cause you focus on your project cost and timing, than this type of route also can fix the project cost and project complete time, and also you got enough time give us to follow your requirement design your hotel and also can match your requirement to start the business strategy.