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Construction Procurement is making decision on a variety on the project current needs to make sure that the project can be completely finished on time, within budget and matching client expects quality. Procurement rout can help the concerned organization to understand their roles and relationship to achieve the construction project get possible high profit and possible best quality. It can help client to select a suitable construction organization (main contractor, sub-contractor etc). The procurement also can help the construction organization to provide at the best possible cost to meet the client required quality, quantity and time
Client's Requirement and Project Information
Now Cinnamon Grand Hotel considers to reconstruction their 3 existing hotel in the South East of UK. Even though Cinnamon Grand have a lot of experience for building renovation, Client do not have enough experience and unable to devote sufficient time to provide effective advice during building design stage. Therefore, the risk management need help client to reduce the risk level when select the procurement route. So for design risk, Client need have a professional construction organasition to cover or share the design responsibility. Due to no experience for re-construction building, Client has high risk for the timing, costing and quality.
The project budget is most important element when procurement route selection. Project Budget must be control within £12 million.
Cinnamon Grand want built a better quality than their existing hotel quality. Now mostly hotel gust like choose luxury hotel when their travel. And client want get long term profit from this reconstruction hotel. So base on Cinnamon Grand's business strategy and design requirement, we suggest that can build a luxury hotel. The luxury hotel can including:
High Class Restaurant
Swimming pool and Children Play Garden.
Studios. The dance studios can provide wedding and company party service. This service can get additional profit.
Dance & Health and fitness centre (like Gym room and spa room)
Conference and meeting room
Sky garden on the roof
Due to local weather condition and Client Business planning, the project only have 12 months including design stage and construction stage(Plan start date on 1st March 2014, Handover date on 28th February 2015). Cinnamon Grand require that the main function area (roof garden, high class restaurant, swimming pool & Jacuzzi and guest room) need re-open within short period (Plan scheduled on 1st April 2015).
Propose Procurement Route 
Base on Client condition and requirement, we will analysis and compare 4 different types of suitable procurement route for this project. And we will recommend one best suitable procurement rout.
1. Traditional Procurement Route
Traditional procurement route is suitable all condition of Client and all different function of building. Client should provide project brief, and project budget. Client should appoint a consultant for design and cost control. The building design stage should be completely finished before or during call tender. Main contractor no responsibility for the design faults, so they can claim variation order and extend of time for solving any design error and change. The project budget will be known after the design completely. Client need provide contract document for the appointed main contractor. Contract document need including full set of design drawing, design specification and tender decrement.
This type of route is low cost risk and time risk (construction time), because the contract need remark the complete date and contract sum. The contract normally is lump sum contract, the client and main contractor can adjust. Even though, the project completely time and cost is fixed, but the Design stage maybe will spend a lot of time and money to complete the detail drawing for the project.
Using this procurement route, this project can be finished within planned project duration (within 12 months) and budget (below £12 million). Easy define the variation order and responsibility for project delay, is major advantage of this route.
2. Design & Build Procurement Route
Lack of construction experience client, inexperience client or do not want close involvement client can consider this procurement route. Using Design & Built Procurement Route, Cinnamon Grand no need involve this project design stage. In pre-contract stage, Client only need provide outlet design and requirement for tender. Cinnamon Grand only need deal with a single main contractor, the main contractor has fully responsibility for building design and construction. After Client award this project to main contractor, the main contractor can construction at same time with design stage. This route can reduce total project duration (compare to traditional route).
Even though this route has high design and quality risk, the client still can control the 2 risk on project. Before the contractor has finished and constructed their proposed design, Client need prepare a concept design for the contractor. Client can control the project design and material selection to get a best design suitability and capacity within budget. When demolition of existing structures, client can provide outlet design to some main contractor. After appoint main contractor, they can do some detail design before the planned start date. This solution can help Client to avoid project delay risk.
Design & Built Procurement rout is mostly using simple building (like hotel, hospital, school and so on).
3. Management contracting Procurement Route -
Management contracting Procurement Route is suitable for having construction experience client and fast tracking & complex project. The client need give effective advice on the design programming and buildability. The design stage will charge by consultant and main contractor before the design has completed. After Client approve the design proposal, the contractor can as soon as possible to start construction stage.
The contract can sign by management contractor and work subcontractor. The contract sum has a fee basis but final cost still can be changed. Building design can be change by late minutes, so the project actual cost only can be known after last work packages confirmed. Client, designer and contractor have a good communication. But due to each individual work packages sign to different sub-contractor or supplier, the individual sub-contractor or supplier maybe lack of co-ordination and integrations. If have bad communication between each package works, project process will be delayed. Need provide a good project planning schedule by the management contractor (or construction managers)..
Normally the project will completely on time, and building quality and design can match client requirement and expectation. The Management contractor has fully responsibility for project delay and any defect. If this project has any delay and defect, the client still can only deal with the management contractor to solve problem.
4. Construction Management Procurement Route
This route is mostly same with Management Contracting Procurement Route. But still have some condition is different. For contract sum, Client will be advised by appointed construction manager. After that, Client will deal with different sub-contractor. Contract sum have a fee basis, cannot be negated.
The contractor manages only need concentrate to the design stage and will be expected to co-ordinate the design and construction programmers, to ensure the trade package can be considered. Client need involve in whole project programmers (including design and construction stage). Client need give the construction management and sub-contractor directly decision for the project.
Normally the project also will be finished on time, and building quality and design can match client requirement and expectation. But Contract does not have single organisition for quality and timing responsibility. If have any delay and defect, the client need deal with different work package subcontractor.
Cinnamon Grand do not have any experience for reconstruction hotel, Client should better to skip in Project design stage to reduce any design risk.
So base on our professional experience and consider project duration of time, cost, quality, building function and client's condition , we propose Cinnamon Grand choose the Design & Built Procurement route for this reconstruction project.
We hope this proposal can match your requirement.