Assessment of Risks on Design Management Aspects in Luxury Hotel Development Projects

Each building project has a unique process. Thus, requirements for planning, construction, and service systems of most modern buildings are really complex, and taking control of the process becomes a continuing issue for management, as the pressures to satisfy these diverse requirements are often conflicting.
The hotel that was being studied in this case has many complex issues which required comprehensive incorporation with a great diversity of technological inputs and diverse requirements from clients to adapt the market needs. This is the first issue for the design management team to focus on & build their competency.

Ms. Tran Thi Thien Trang made a case study which main objectives were to find out the risks or obstacles in a hotel construction projects and to conduct a risk mitigation to improve the situation. In order to achieve her main objectives, the following sub-objectives needed to accomplish: (1) to identify the risk factors by averaging different views of project experts, PM, CM, DM for the hotel project through project phases impacted by design management aspects; and (2) propose mitigation for the major project risks averaged by different views of PM, CM, DM and literature review.

General conclusion for the risk identified of this case study

This research found out series of consequences caused from management aspects to the project. Mitigation for the shown obstacles are systematized under scheme by necessary activities remarked in each stage. With appropriate project coordination, stake holder requirement and adequate management tools will lead to the success of the project.

Causes of the risks discussed are mostly come from:
1. Lack of the process for controlling project program, un-stable program, restrain schedule

2. Defining scope and client/operator requirement.

3. Inadequate in contract review, procedures and strategy in tender

4. Organization between construction and design management team with other department
and lead to negative results to project

5. Obstacles caused to next stages to be run.

6. Project delay from sub-key project mile stone to potential delay in final completion date.

7. Reworks are often occurred due to the project condition of management, which in turn lead to cost overrun,

8. Project quality would be potential affected since design deliverables under expected.

Design management responsibilities and scope of work

The list below shows the design management responsibilities and scope of works. Based on this, it is clear that design management team is one of the most important key departments in a project that contribute much to reducing project risks impacted by design factors as well as improve project quality in general. These responsibilities are as follows:

1. DM prepares coordinating schedule with required inputs, outputs, its milestones to ensure clear project targets and programs.

2. DM establishes tools to control design quality and to manage project requirement coming from owner, operators and other.

3. DM identifies additional consultants, pre-selection, evaluation and final selection (such as kitchen and laundry, lighting, SPA specialists or any other required consultants...) to ensure required inputs for project on time.

4. DM reviews consultant contracts to ensure required scope of services in lined with project program and DM reviews contractor contracts to ensure arranged scope of work reflected on design document to be bound in contracts, to ensure contractor service or their deliverable/ offers met project requirement.

5. DM sets up target dates for design output and to ensure the timely submission of the design so as to obtain expected project milestones and in line with intended purposes.

6. DM sets up program required operators, owners and third parties review and approval to ensure designs complies with requirements and design can be moved to next stage.

7. DM reviews with clients and design consultants to clarify required code and standard for project, in compliance with government.

8. DM manages and coordinates all issues on design aspects in during project phases so as to ensure design quality, project budget, project schedule in lined with project program contracted with owner and operators.

9. DM coordinates design during phases and with cost estimation to ensure design within budget, and DM evaluates and prepares MEMOs, letters for phase completion record to owner.

10. DM develops/ monitors/ controls drawing schedules in coordination with the design consultants.

11. DM establishes design procedures with associated flowcharts, forms and reports during phases.

12. DM develops/ monitors and controls drawing schedules in coordination with the design consultants.

13. DM effectively communicates & coordinates with various designs to ensure conformity of designs as well as minimize conflict among designs.

14. DM chairs design review workshops and meetings.

15. DM verifies design development against the agreed brief to ensure designs met project, owner / operators objectives.

16. DM verifies design deliverables with contract, with owner and operator requirement.

17. DM organizes value-engineering workshops.

18. DM prepares scope of work of contractor to ensure design consultants providing comprehensive design information for tender purpose.

19. DM prepares tender document to call contract together with relevant parties.

20. DM evaluates tender submission by coordinate with experts in the project.

21. DM reviews shop drawings together with CM, then works with design consultant and owner, operator to ensure latest design come to site for executing on time.

22. DM prepares plan for solving and updating changes to construction works, changes management during construction stage.

23. DM controls also the proper coordination between the Architect, the C&S and the Engineering Consultants and others.

24. DM manages design information filing well in a system.

25. DM is a center to manage, to coordinate with all design consultants, owners, operators, independent checkers, QS department and construction management team to ensure quality for project optimized in term of design impacts.

Her thesis abstract is copied and posted below.
Abstract

Project outputs are in lined with client’s expectation in term of time, cost and quality, which is one of the targets of a project and the competitive factors among organizations. On PMC aspect, how to sail successfully the wind for obtaining objectives is a critical point that I focus to study. My research is based on surveys about the project risks on design management aspect impacted by planning stage and been causes for other next stages. Risk assessment is studied together with theory application for reducing the consequences of poor performance; What to be prepared, done shall be systemized as a well being prepared for future projects (Risk management) and a contribution to improve overall project management performance through project phases.

The Le Meridien Saigon Hotel is the case for this thesis, it is located in heart of the center of Ho Chi Minh city, invested by TP& 990 co. Ltd and operated by Starwood organization with Le Meridien brand name, a mix project with 5 star international hotel and office grade A. Thus, it seems challenge for management!

‘Do the right thing at beginning stage’.