Project Planning And Development For Construction Of Regency Plaza Hotels And Condominiums

Part A: Project Contracts

According to Kubba (2010), the project planning and development had been largely helpful for the implication of the innovative and effective work completion. The project plan would be effectively implied with the formation of the project case study of ‘Construction of Regency Plaza Hotels and Condominiums’. The project management for construction projects would be required for the integration of the smart work alignment and development (Gorse & Emmitt, 2009). The following assignment would include the listing of the project contract management, project planning, controlling communication, and closure for the mentioned project. The document would support the successful transfer of the information to the required stakeholders.

Part A: Project Contracts

Legal benefits and Challenges of different types of contracts

The project contracts are helpful for developing the bond of work-fee between two or more parties (Forgues & Koskela, 2009). The participating parties would agree to deliver product/service to the other party in exchange of monetary benefits. The contract would also enable the stabilization of the advanced work alignment for the project of Construction of Regency Plaza Hotels and Condominiums. The contract management for the organization had been supported by the utilization of the contracts like Stipulated or lump-sum contract, Cost of work plus fee contract, Cost of work plus fee with guaranteed maximum price (GMP) contract, Construction management (CM) contract, and Design-build or design-and-construct (D&C) contract (Chen & Jin, 2012). These contracts have helped in gaining legal benefits along with some challenges as explained below.

Contract Type Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Legal benefits	Challenges
Stipulated or lump-sum contract	Single fixed price bid for all activities of project scope Contractor would bear the risk associated with the project Reducing the construction cost expense	Proposition of Unbalanced bids Changes required for the scope and design deployment Compensation requirement for early completion
Cost of work plus fee contract	It is budget friendly for the contractor Cost can be reimbursed as the work is aligned Limitation on the money expended by the contractor	Requirement of justification for each of the costs No track of the indirect costs is another issue Pre-decided profit would limit the scope for gaining more profit from the project
Cost of work plus fee with guaranteed maximum price (GMP) contract	Ease is procuring the contracts for the project Easy accumulation of the funds for the project Incentive option available for work completion	No mechanism for calculating the losses to the contractor Losing the contract due to high pricing
Construction management (CM) contract	Inclusion of the responsibility for the expertise of entire management The contract is continuous irrespective of the project manger	Confidentiality Disputes are common in this contract Difficulty in management of the conflicts in the project
Design-build or design-and-construct (D&C) contract	Single Point Responsibility Improved efficiency due to design and construction expertise Few Changes are required as the implementation is simplified Increased Flexibility	Owner Involvement is reduced Extra cost of risk and contingencies plan Limited qualified designer and builders Larger and complex in nature

Mitigation of Challenges 

Contract Type	Challenges	Mitigation of the Challenges
Stipulated or lump-sum contract	Proposition of Unbalanced bids Changes required for the scope and design deployment Compensation requirement for early completion	Implication of the fair bid recognition should be implied Negotiable Compensation method should be followed
Cost of work plus fee contract	Requirement of justification for each of the costs No track of the indirect costs is another issue Pre-decided profit would limit the scope for gaining more profit from the project	Cost management plan should be developed Detail cost (both direct and indirect) should be used Limited profit acquisition should be used
Cost of work plus fee with guaranteed maximum price (GMP) contract	No mechanism for calculating the losses to the contractor Losing the contract due to high pricing	Contingency planning for the monetary losses Optimized costing should be used
Construction management (CM) contract	Confidentiality Disputes are common in this contract Difficulty in management of the conflicts in the project	Negotiation should be followed for contract development
Design-build or design-and-construct (D&C) contract	Owner Involvement is reduced Extra cost of risk and contingencies plan Limited qualified designer and builders Larger and complex in nature	Effective communication strategies should be used Training should be provided to the people Complex project management should be used

Selection and Justification of the Design-Build-Contract

The contract of Design-Build-Contract should be used for the completion of the activities of the Construction of Regency Plaza Hotels and Condominiums project. The design bid build contract would allow the flexibility of the works for managing the change requirements, and implication of the smart work development and implication management (Carden & Boyd, 2012). The construction of the hotel rooms and condominiums would require inclusion of the design principles and construction of the facility.

Since, the project comprise of designing and constructing the building, floor, condominiums, and parking, the utilization of the design and build contract would be helpful for compiling work development. The single point responsibility in the design bid build contract would allow the manager/contractor to get the complete authorization over the project activities (Lester, 2014). The contract would help in improving the efficiency due to design and construction expertise for the construction project. Moreover, only few changes are required as the implementation is simplified using the contract which can be implemented due to the fact of increased flexibility.

Legal benefits and Challenges of different types of contracts

Project Pre-Planning

Identified Challenges and Mitigation Strategies of Project

The identified challenges for the Construction of Regency Plaza Hotels and Condominiums project and their mitigation strategies are given below,

Project Phase	Challenges	Type	Mitigation Strategy
Planning	Delay in building permit approval is a major issue that result in forming the major problems in completion of the project	Operational	Time Management Plan aligned with Project Baseline
Construction	Many minute changes in conceptual design had been resulting in forming change requirements for the project	Design	Change management plan should be used for effective change implication
Construction	Delay in construction of condominiums would result in causing loss to the organization	Operational	Time Management Plan aligned with Project Baseline
Construction	Rift between contractors (of hotel and condominiums) for worker distribution as the number of workers have reduced to 250 and the amount of work required for construction of hotel and condominiums is huge	Human	Effective Communication plan should be used for analyzing the requirements of both the contractor and hiring more workers for completion of the project on time
Finish	Unable to meet the punch list as the smaller items of the hotel and condominiums are not being equipped	Procurement	Continuous improvement plan steps should be followed for defining the works of the punch list

Approach for on-time delivery of project

As per the study of Levy (2010), the development of the project schedule and cost baseline report would be helpful for defining the estimated cost and time requirements for the Construction of Regency Plaza Hotels and Condominiums project. The on-time delivery of the project would include the formation of the task checklist so that the implication of the effective work alignment would be implied. The checklist development would enable the utilization of the monitoring of the project completion. The following approach should be used,

Step 1- Using MS-Project for making schedule for the project (for example: it would help in defining all activities of the project)

Step 2- Developing Task Checklist with expected durations (for example: it would help in keeping track of the project progress)

Step 3- Development of resource management and risk management plan

Step 4- Consider all contingency plan for the project

Step 5- Monitoring the project performance

Step 6- Change Management should be included

Step 7- Evaluation of the progress

Organization of Project cost

The project of Construction of Regency Plaza Hotels and Condominiums was set for the budget of $157m. The construction of the condominiums would be effectively implied with the implication of the resource usage. The project cost would be divided into human resource usage, Cost of material usage, contingency cost, and fixed cost (Olawale & Sun, 2010). The following is the budget management plan for the project,

Particulars	Standard rate	Duration/Units	Cost	Total
Human Resources
Project Manager	$450.00	250	$112,500.00
Designer for Hotel	$300.00	130	$39,000.00
Designer for Condominiums	$300.00	150	$45,000.00
Contractor for Hotel	$350.00	300	$105,000.00
Contractor for Condominiums	$350.00	350	$122,500.00
Workers (250 workers)	$110.00	1300	$35,750,000.00
Painter	$250.00	200	$50,000.00
Carpenter	$250.00	280	$70,000.00
Sub Total				$36,294,000.00
Material Resources			$0.00
Construction Materials	$150,000.00	250	$37,500,000.00
Equipment and Appliances	$130,000.00	400	$52,000,000.00
Others	$15,000.00	200	$3,000,000.00
Sub Total				$92,500,000.00
Fixed Cost
Electricity	$250,000.00	1	$250,000.00
Water utility	$200,000.00	1	$200,000.00
Transportation	$75,000.00	4	$300,000.00
Health and Safety	$100,000.00	5	$500,000.00
Sub Total				$1,250,000.00
Contingency			$20,807,040.00
Total Budget				$150,851,040.00

The project schedule has been developed using the MS-Project as a scheduling tool and the work breakdown structure identification can be done from the schedule developed below,

WBS	Task Name	Duration	Start	Finish
0	Construction of Regency Plaza Hotels and Condominiums	370 days	Mon 12/5/05	Fri 5/4/07
1	Planning	61 days	Mon 12/5/05	Mon 2/27/06
1.1	Requirement Analysis	10 days	Mon 12/5/05	Fri 12/16/05
1.2	Bidding Process	15 days	Mon 12/19/05	Fri 1/6/06
1.3	Hiring of Team Members	10 days	Mon 1/9/06	Fri 1/20/06
1.4	Proposal	10 days	Mon 1/23/06	Fri 2/3/06
1.5	Building Permit Approval	15 days	Mon 2/6/06	Fri 2/24/06
1.6	Initial Meeting	1 day	Mon 2/27/06	Mon 2/27/06
1.7	Kick off	0 days	Mon 2/27/06	Mon 2/27/06
2	Construction	247 days	Tue 2/28/06	Wed 2/7/07
2.1	Conceptual Design	17 days	Tue 2/28/06	Wed 3/22/06
2.2	Detailed Design	24 days	Thu 3/23/06	Tue 4/25/06
2.3	Floor Works	35 days	Wed 4/26/06	Tue 6/13/06
2.4	Steel and Concrete Works	40 days	Wed 6/14/06	Tue 8/8/06
2.5	22 storey construction	50 days	Wed 8/9/06	Tue 10/17/06
2.6	96 Condominiums were built	60 days	Wed 8/9/06	Tue 10/31/06
2.7	Underground Parking were built	30 days	Wed 11/1/06	Tue 12/12/06
2.8	Hotel Room Division was built	16 days	Wed 12/13/06	Wed 1/3/07
2.9	Installation of equipment and devices at rooms and condominiums	20 days	Thu 1/4/07	Wed 1/31/07
2.10	Monitoring the facilities	5 days	Thu 2/1/07	Wed 2/7/07
2.11	Completed	0 days	Wed 2/7/07	Wed 2/7/07
3	Finish	62 days	Thu 2/8/07	Fri 5/4/07
3.1	Interior and External Paints	20 days	Thu 2/8/07	Wed 3/7/07
3.2	Finalize the works	8 days	Thu 3/8/07	Mon 3/19/07
3.3	Drapes and Pillow works	10 days	Tue 3/20/07	Mon 4/2/07
3.4	Counter Tops	5 days	Tue 4/3/07	Mon 4/9/07
3.5	Finish Plumbing and Electric	12 days	Tue 4/10/07	Wed 4/25/07
3.6	Complete Punch List	7 days	Thu 4/26/07	Fri 5/4/07
3.7	Closed	0 days	Fri 5/4/07	Fri 5/4/07

The first column has shown the WBS id for each of the activity which can be used for the development of the WBD diagram as below The specific work packages has been explained below,

Work Package	Description	Activities Involved	Milestone
Planning	Initial analysis, documentation, and planning would be done in this phase	Requirement Analysis, Bidding Process, Hiring of Team Members, Proposal, Building Permit Approval, and Initial Meeting	Kick off
Construction	Constructing the hotel, Condominiums, and parking lot	Conceptual Design, Detailed Design, Floor Works, Steel and Concrete Works, 22 storeys construction, 96 Condominiums were built, Underground Parking were built, Hotel Room Division was built, Installation of equipment and devices at rooms and condominiums, and Monitoring the facilities	Completed
Finish	Final Closure of the project with last activities	Interior and External Paints, Finalize the works, Drapes and Pillow works, Counter Tops, Finish Plumbing and Electric, and Complete Punch List	Closed

Controlling Communication 

Communication Management Plan

The communication management plan would include the following steps for the project of Construction of Regency Plaza Hotels and Condominium,

Method of Communication	Sender	Receiver	Frequency	Information
Emails	Project client/manager	Project manager/team	Once	Change Request, Progress
Documents/Reports	Project team/manager	Project manager/client	Weekly	Project Issues, Progress, and Completion
Meetings	Project client/manager	Project manager/team	Once	Project Requirements

Addressing Project Stakeholder Expectations

The project stakeholder expectations would be addresses by the help of stakeholder engagement matrix,

Stakeholder	Interest	Power	Impact
Client (owner of regency plaza)	Project output meeting all scope items and quality	High	High
End User (renter/buyers of hotel rooms/condominium)	Use of the end product of project	Low	Low
Investors	Returns of the project investment	High	High
Project manager	Completion of the works	Low	High

The details of the project completion would be effectively implied with the formation of the development strategies (Levy, 2010). The analysis would be developed effectively for developing successful work alignment.

Contract Type

Role of Project Elements

Elements	Role
Schedule	Project Timeline for execution of the activities
Cost	Ensuring the usage of the resources
Quality	Ensuring the construction quality is met
Risk	Management of the risk factors

Lesson Learnt

The study had helped in understanding the importance of contract management, documentation, project planning, communication processes, and project closure. The use of MS-Project software for developing the project schedule, Gantt chart, and Network diagram had been effectively implied for taking care of the project completion. The study of the contracts for identifying the benefits of Stipulated or lump-sum contract, Cost of work plus fee contract, Cost of work plus fee with guaranteed maximum price (GMP) contract, Construction management (CM) contract, and Design-build or design-and-construct (D&C) contract.

Conclusion 

The study had helped in understanding the importance of contract management, documentation, project planning, communication processes, and project closure. The project of ‘Construction of Regency Plaza Hotels and Condominiums’ had been used for the analysis of the importance of the project management principles and techniques for effective construction management. The use of MS-Project software for developing the project schedule, Gantt chart, and Network diagram had been effectively implied for taking care of the project completion.

It had allowed the significant management of processes and defining the explicit management of the works. The study of the contracts for identifying the benefits of Stipulated or lump-sum contract, Cost of work plus fee contract, Cost of work plus fee with guaranteed maximum price (GMP) contract, Construction management (CM) contract, and Design-build or design-and-construct (D&C) contract. The pre-planning phase had evaluated the various possible issues and the challenges needed to address using the project management tools.

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