Introduction
Value is the art of striking a balance between client satisfaction and the consumption of resources, which entails the optimal use of resources to reach the desired goals. Value management, therefore, is the hands-on, innovative problem-solving service. It entails the use of a detailed, multi-disciplinary tactic to reveal the client’s value system using the functional analysis to uncover the correlation between time, cost, and quality. The sole focus of value management is the anticipated outcome of the project. Value management and risk management are fundamental components of a project and should be employed in all the stages of a project.
Value engineering, on the other hand, is the process of attaining the best value design consistent with the strategic aims at the least possible cost without compromising quality. The RIBA Plan of Work (PoW) 2013 arranges the processes of informing, planning, building, sustaining, running, and using building projects into several main phases by specifying the undertakings and productivities needed at each stage. This plan comprises eight stages, the first of which is the strategic definition. This report looks at the employment of the first stage of the RIBA PoW 2013 framework in the management and delivery of a 400 bedroom 4 to 5-star hotel to be constructed in Dubai’s city center.
Project Exemptions
The strategic definition phase of the RIBA PoW 2013 framework is the first stage where a project is tactically evaluated and demarcated before the creation of an exhaustive brief. It entails the identification of the customer’s business case, strategic brief, and other essential project requirements. It also considers the procurement plan and establishes the project program and plan to determine the sustainability of the project. This stage is relevant in the milieu of workability when a streamlined space plan is more apposite than a new building. The uniqueness of this stage lies in the identification of potential issues early enough and seek ways of mitigating them so that they are not addressed in the construction stages of the project.
Analysis of Key Issues
Before beginning a project, it is vital to explore potential issues that may arise. The construction of a 5 star hotel with 400 rooms in Dubai’s city center may be met by several key issues that may be classified as political, economic, technical, and cultural issues.
Political
Sharia laws in Dubai, as well as processes and bureaucracies for work permit and visa solicitation, may slow down the project process. There are local regulations that necessitate the application for construction or entry permits. Also, construction activities in free economic zone (FEZ) require exclusive authorizations that are issued solely under the FEZ.
Foreign companies seeking to be awarded tenders in Dubai need to form collaborations with local companies to be eligible for the construction work. The local company must have a minimum of 51% stake in the joint undertaking, which gives them the mandate to implement major decisions in instances of conflicts. Such decisions are difficult to revoke, which may cause unnecessary delays in the project work.
Economic
Dubai’s economy is relatively stable due to its vast oil exports. The state has also diversified its economy by venturing into tourism and construction. Therefore, the hotel project does not anticipate any economic issues in terms of the returns from the final project after completion. However, the implementation of the project may meet some financial problems. Dubai has many small contractors whose capital is less than a million Dirhams, which impedes them from completing middle-sized and large-scale projects effectively (Ren, Atout & Jones 2008). These contractors often suffer from market fluctuations, and using them may lead to unnecessary delays due to financial constrictions.
Technical
Some of the technical issues anticipated include the quality of the hotel, the environmental effect of the construction. Numerous large scale building projects have taken off in Dubai in recent years. These buildings are of high quality in terms of the workmanship and construction materials. They also depict a glamorous lifestyle. Therefore, building a five-star hotel in Dubai’s city center needs to come up with a design that will fit in and even compete with the ritzy buildings already in place. Failure to get a competent contractor will lead to the construction of substandard buildings that may fail to meet the expected standards. The local construction industry in Dubai is not competent enough to meet these quality challenges.
Environmental effects may cause project delays due to poor estimation of the time needed. Using independent contractors entails bringing in individuals who are not accustomed to the Gulf weather, particularly during the summer, which may hamper productivity and the progress of the project. Dubai’s numerous water desalination plants have led to a large carbon footprint, which is deleterious to the environment. Therefore, measures are in place to ensure the use of environmentally friendly fuels and sources of energy.
Cultural
The use of an international workforce brings together team members of different nationalities. As a result, there are varying traditions, laws, customs, and religious convictions. For example, there may be diversity in religious holidays such as holy Friday among Muslims, Sundays among Christians and frequent holidays and carnivals among Indians (Ren, Atout & Jones 2008). A team comprising all these members may lead to conflict and unnecessary delays in the project.
The lingo of communication in Dubai is Arabic, which may not be understood by the international contractors who prefer to use their native language without the use of a certified translator. Therefore, language barrier issues may arise and compromise the quality and progress of construction work.
Promoting one’s family and friends by sending them business is a component of Arab culture. However, it may interfere with the quality of work if the client insists on awarding the construction contract to his or her relatives even if they are not competent to implement the project.
Stakeholder Analysis
The hotel project has five main stakeholders. The owner of the building, the contractors, the intended clientele who are going to use the building, hotel staff, and the local authorities. The owner of the building is the major stakeholder in the project because he commits his financial resources and time to the planning and execution of the project. The contractor is another important stakeholder because he commits to the execution of the project and bears the financial risks associated with the project. The anticipated clientele will determine the success or failure of the project depending on their perceptions of the complete hotel. Thus, it will be mandatory to ensure that the complete project will be attractive enough to attract and retain the customers. The hotel staff will be responsible for the maintenance of the hotel once it is complete to ensure that value for money spent is attained. Their efficacy will be influenced by the quality of building materials used in the construction. Therefore, high quality materials that can be easily cleaned and maintained should be used to build the hotel. The local authorities will ensure that the construction will be carried out according to the building regulations in place and that all concerned parties have the required clearance. Therefore, it will be vital to adhere to all regulations to avoid unnecessary delays and legal tussles.
Project Timeline
Time is of utmost important in the project because the hotel is a business venture that needs to be constructed in the shortest time possible so that the owner can realize profits. In addition, the expected outcome is a high-end hotel, which means that high quality of the final product is essential. To qualify as a four or five-star hotel, the building needs to meet several criteria. The procurement process should consider the costs, time and quality of the project. In addition, the procurement route should reduce the client’s risk and let the contractor take responsibility for the design of the project. In this case, the most suitable procurement route for the project would be design and build.
In this approach, the main contractor will be commissioned to elaborate the design and execute the actual construction. The client will pick a contractor based on the amount of fee, overheads, preliminaries and profits they present for the construction of the hotel. The contractor will be held responsible for the entire hotel design, which should be stated overtly in the contract. The client will state their requirements and provide a scheme design with which to develop details. In this case, the client’s specifications will be a four or five-star hotel with 400 rooms. The design and build approach will provide the client with certainty on the project cost.
The project is expected to start in January 2016 and is estimated to take one year to complete.
The above functional diagram illustrates the basic functions and secondary functions of the hotel project. Basic functions describe the traits, which from the user’s perspective are the prime reasons for the existence of the product. The basic functions are arranged from top to bottom from the most important ones and include the provision of accommodation, feeding people, hosting events, meeting demands and providing relaxation. Secondary purposes are those meant to facilitate the operations of the primary functions. The availability of spacious rooms, attached bathrooms, and ample parking are meant to smoothen the provision of accommodation. Similarly, a restaurant and bar are meant to provide food and drinks to the customers. The availability of conference halls is expected to facilitate the holding of events in the hotel. The provision to cater for children and the disabled is expected to meet certain demands of the population that are not met in most hotels. Customers are expected to relax and spend their leisure time swimming, shopping, being entertained or keeping fit in the gym.
Solutions to Key Issues
To mitigate the problem of substandard building regarding workmanship and glamor, the client should look for a competent contractor with vast experience in the construction of high-end buildings. Due to the constraints within the local construction industry, the client may have to source for an international contractor. The contractor should provide evidence of his works to confirm the quality of his work. International contractors have adequate financial resources at their disposal and are not affected by market fluctuations.
The client should look into the local regulatory requirements for the construction of the hotel and seek clearance beforehand to avoid unnecessary delays. Eligible local contractors should look for a reputable international contractor with whom to form a partnership. Such a move is likely to minimize conflicts between them hence ensure the smooth progress of the project.
The work plans provided by the client as well as the contractors should be cross-checked by experienced planners and adjusted to incorporate hot season acclimatization to avert overoptimistic programs. Before construction, the contractor may need to plan everything carefully to ensure that the construction process conserves the environment.
International contractors without Arabic proficiency should employ the services of a qualified interpreter to avoid cases of language barrier and communication breakdown. The client should put the desired quality of the hotel before family interests and choose the most qualified contractor.
Recommendation
The client’s project is feasible if precautionary measures are taken to avoid the anticipated setbacks early enough. The most important step is looking for a competent international contractor that will work with the local contractor according to the government regulations to execute the project within the stipulated time.
Conclusion
Dubai is deemed the most desired place in the Middle East to carry out business. In the recent years, the country has had numerous construction projects leading to the development of several high-class buildings. However, the actual construction process does not just entail adhering to corporate policies and stipulations. The country is deeply rooted in Islam where cultural norms influence every operation from the timing and manner in which businesses are carried out. Therefore, success is based on understanding these differences. The strategic phase of the RIBA Plan of Work enables the identification of potential problems in the planning stage of a project and ways of circumventing them.
Reference
Ren, Z, Atout, M & Jones, J 2008, ‘Root causes of construction project delays in Dubai,’ in A Dainty (ed), Proceedings 24th annual ARCOM conference, Association of Researchers in Construction Management, Cardiff, UK, pp. 749-757.