Downtown East Project Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Downtown East Project Case Solution

Proposed Procurement and Construction Method

The proposed procurement and construction method for Downtown East Project involves the usage of traditional or general contracting. In general contracting, the design is provided by the client and the contractor has to build the project as per the given requirements by the client. The method is preferred for Downtown project, because it’s a large-scale project with special design and quality requirement by the management of the project. The specialty in design requires the management to layout design specifications and then hire a contractor for the development. Another key benefit of preferring this method is that the company has a fixed capital budget for the refurbishment of the project, and in traditional procurement method; the prices of for the project becomes certain with the accomplishment of the project. (Johansson, 2018).

As the project requires refurbishment according to the customer’s shifting trends; the company needs to have its control over the design and in the overall construction of the project, and general contracting allows the company to have its control over the design and quality of the project. Further, general contracting is suitable for projects with large duration's and the refurbishment plan is also a long-term plan of five years. Additionally, the risk inherent in the procurement and construction is shared by the contractor and the client, thereby keeping both the parties involved in well establishment of projects like Downtown. Lastly, it is a tried and a tested method by the market so it meets the requirement of the refurbishment project with a $200 million cost.

Contract Provisions and Implications

As the construction of the Downtown project is outsourced to an independent contractor, the management will be facing different issues in its construction which involves the delays in lead times, quality of the raw materials, cost of the raw materials, pricing of the projects, flexibility in design, suspension of work from the contractor, timely completion of the project in 5 years within the given 5 years period, warranties of the constructed facility etc. (The Business Round-table, 1982). The client has to lay out all the provisions in the contract, in order to keep the risks low and divided between the contractors by using the general contracting procurement method otherwise the company will be bearing losses if the provision were not set by keeping all above considerations in the contact. The key provisions, to be included in a contract in order to mitigate or to keep the risk levels low, are

Fixed construction price specification so that the contractor builds up the whole facility within the given budget.
The costs related to force majeure, which is a provision requiring the contractor to pay for the costs, increase by the uncertain situations e.g. labor strikes etc.
Indemnification provision which keeps the client safe form any damages caused by the contractor.
Provision for the enforcement of labor laws, i.e. the third party will pay for the costs caused by the labor laws violations during the construction.
Payment for consequential and liquidated-damages will be specified in the provisions.
Delays and the lead times for each step in the overall construction will be specified so that project goes in accordance to the client’s
Conditions for the termination of the contract by the contractor and possible costs burden specification will be mentioned.

Sustainability Statement

In order to keep the environment protected from the emissions or substances leading to pollution's; the company aims to refurbish the Downtown by using different renewable and low carbon technologies. The main aim of using a low carbon and renewable technologies in the refurbishment project is to optimize the usage, size and structure of the material used in the project refurbishment.

The company understands the usage of energy and materials in the project and it aims to minimize the heat losses, emissions by adopting low carbon emissions and renewable material sources in implementation of each step of the refurbishment project. The key technologies that the company would prefer in reducing the carbon emission from the construction involves the usage of blended cements, SMBs i.e. Stabilized mud blocks, rammed earth walls, fly ash blocks, low energy roofing and floor systems and energy efficient HVAC systems, in order to protect the environment and to reduce the emissions caused by the construction. (Reddy, 2009).

Communication Strategy and ProjectOrganization

In order to keep all the stakeholders of the project, informed and clear about each and every prospect of the refurbishment project a formal communication plan will be formulated for the timely, efficient and environmentally sustainable refurbishment of the Downtown project. The key points for an effective communication strategy will include the following consideration:

Identification of the project requirements and needs to hire a contractor or in-house development.
Identification of all the potential stakeholders of the refurbishment project e.g. the management, the contractor, the customers, the suppliers, the labors, the governing bodies or agencies etc.
To identify the expectations and interests of all the stakeholders involved in the project.
Usage or communication channels in accordance to each stakeholder time, means and availability, i.e. personal meet ups, calls or emails etc.
Clearly specifying the project details, including: the project name, project start time, project completion time, lead times on weekly or monthly basis, project manager and owner details, project budget details, the project’s main objective, the key interests of the stakeholders, a timeline showing the deadlines for each period, member responsible for communication at each refurbishment level, the targeted audience, communication medium and the key message points(Wiley, 2017).
Keeping a project management software in order to keep the communication process updated about the ongoing tasks, challenges, costs, possible delays and damages rising in the construction flow of the project. Having an updated-software will enable the management to keep track of all the possible updates and task designations towards the contractors and maintaining a smooth communication network with all stakeholder of the Downtown refurbishment project.
Lastly, to maintain the respect and genuineness in the entire communication process to meet the ethical standards and norms of the society.

Conclusion

It has been concluded that the construction company should understand the usage of energy and materials in the project, and it aims to minimize the heat losses, emissions by adopting low carbon emissions and renewable material sources in the implementation of each step of the refurbishment project. While the client has to lay out all the provisions in the contract, in order to keep the risks low and divided between the contractors by using the general contracting procurement method, otherwise the company will be bearing losses if the provision were not set by keeping all the aforementioned-aspects under considerations, in the contact........................

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Downtown East Project Harvard Case Solution & Analysis