Analysis Of The Key Procurement Issues

Analysis Of The Key Procurement Issues

We refer to your management in taking the opportunity to rebuild three of the Cinnamon Grand hotels in South East of the UK to a better quality and facilities than before they were destroyed by the bad weather and storm

The rebuild hotels are requiring being in line with the clients policy on architectural significance and aesthetics of the building The quality of the building is thus a major factor to be considered As the hotels are situated in the prime location construction is proved to be a challenge in terms of time factor and accessibility of work

In phase 1 the completion date is critical as the building require to handover by 28th February 2015 and the operation of the hotels for roofs guest rooms restaurant and swimming pools will be made possible Time is an essence and a procurement route of saving overall design and construction time is priority Time saving will enable the client to operate the business on time or earlier therefore reducing the time of closing down business The planned construction start date at the site is 1st March 2014 and the planned reopening date is schedule on 1st April 2015Hence the actual construction period is last than a year

In phase 2 new facilities such as dance studios health and fitness centre conference and meeting rooms will be constructed for the enhancement of the health and wellbeing of the hotel visitors The Interfacing works such as the integration of the services from phase 1 to phase 2 and the new construction works for phase 2 while the hotels is in operation requires good controls and management skills for the complexity of the work

In consideration of some of the very important points of the above we have looked into carefully on selecting the most appropriate route to achieve the time quality and cost of project success

Analysis of the key procurement issues

When selecting the procurement routes the following key issues are considered

Factors outside the control of the project team

Client resources

Cost issues

Project characteristics

Quality and performance

Risk management

The need to accommodate changes variation


The client has managed to obtain a substantial finance so as to ensure that the dignity of the building and the services are not compromised from the reconstruction Hence the reconstruction quality of the building will not be hinder by much financial difficulty but the project will have to work strictly within the budget require to prevent cost over run

The client despite been in the market for their experienced at renovation of buildings do not have an inhouse executive who is either experience enough or is able to devote his time for this project Therefore it is important to choose a procurement route to avoid the risk and at the same time with the experience of client and their contact select those contractors whom have the expertise of working with them previously This will also help in resolving of quality and design issues

As Cinnamon is highly concerned about project delays and overrun of cost price certainty at the outset is of great important Procurement route which enable the client to know the total financial commitment of the project early will provide the solution to this matter The procurement route can also have guaranteed maximum price to affirm to this

Time and cost is of most important because of the opening of the hotels for business The selected procurement route must be able to reduce the time for design and construction This can be done by selecting a procurement route that enables the design and construction to perform concurrently Thereby shorten the overall project duration Shortening the period of project completion allows the client to operate the hotels and back to business at an earlier date

As the clients requirement in terms of architectural and aesthetics of the building to be in line with their policy and also to improve on the quality facilities of the new buildings

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