Appraisal Of Procurement Routes Construction Essay

Appraisal Of Procurement Routes Construction Essay

There are several procurement methods available to meet the Clients need In order to select the appropriate route Clients objectives and priorities must be considered An understanding of the characteristics of the different routes is required before a recommendation is made to the Client and these characteristics are described in this report

Introduction

Not all types of procurement route are suitable for particular project as Client objectives and priorities vary The objectives and priorities of the Client need to be matched to a procurement route To do this effectively it is important that the characteristics of the routes are understood by Client before a procurement method is selected

Scenario Analysis

The Client owned a huge hotel chain Cinnamon Grand in UK Their objective is to provide comfortable accommodation across the UK and to maintain their rich heritage therefore they are very concern of the hotel buildings outlook Cinnamon Grand have a strategy of renovating the neglected historical buildings and bringing them back to their original appearance By doing so the hotel management board is experienced at renovation of buildings over the years

In August 2012 the hotel management board decided to reconstruct the three hotels located in the prime locations in the South East of the UK which are destroyed by the adverse weather Quality is one of the key procurement issues that the Client has to consider In this case quality of the buildings is very important to the Client as their reputation was founded on quality of accommodation and service therefore the Client is willing to take this reconstruction project as an opportunity to improve the quality of buildings and facilities provided as compared to what they were before the severe storms and they will be using similar design solutions adopted for previous hotel buildings Cinnamon Grand is use to dealing with construction of hotel buildings however Cinnamon grand do not have an experienced inhouse executive who is able to devote sufficient time to advise the reconstruction project Therefore risk avoidanceallocation must be taken into consideration

In order to meet the clients policy on architectural significance and aesthetics of the buildings Cinnamon Grand have to invest a great amount of money time and effort to ensure that the reconstruction is always sensitive and does not compromise the dignity of the buildings and services provided The Client has decided to obtain an estimated amount of pound120 million from a Commercial bank The Client is very concerned about the possible project delays and overrun of budgeted cost therefore price certainty is most important The final price is required to be known at the outset Under the current economic climate value for money is also a key consideration

The reconstruction of the three hotels will be undertaken in two phases In phase 1 the planned start date on site is 1st March 2014 and is required to handover by 28th February 2015 Due to the opportunity cost of closing down business the completion date is critical As such roofs guest rooms restaurant and swimming pools must be completed in order for them to reopen to business which is planned to be scheduled on 1st April 2015 to meet the summer crowd Therefore time is also a key procurement issue to consider

In phase 2 dance studios health and fitness centre and conference and meeting rooms will be newly constructed to enhance opportunities for health and wellbeing of the visitors During this phase the hotel guests must be well taken care of while the construction is going on And also conference and meeting rooms require high technology multimedia facilities with air conditioning this will be a complexity issue to be considered

After analysing the client we understand that the client is under private sector with experience Please refer to the diagram below

understanding client box diagram

Appraisal of Procurement Routes

Having a procurement s

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