International Construction

The questions relate to a proposal for a
proposed
new concert hall to be designed and built in
Bucharest, Romania. The project has an estimated value of US$300 million which includes, design
fees
, construction
,
and taxes; it
excludes
land cost
. The
G
eneral
Mayor of Bucharest is keen to have
an iconic structure which reflects Romania’s culture
, and will be seen as an exciting and innovative
building
. The project is to be part
–
funded through a loan from the Europe
an Bank for Reco
nstruction
and Development (EBRD)
up to 50% of the total cost
; t
he rest of the project will
be financed by the
Romanian government.
The proposal is
to hold a design competition for international and Romanian companies for the
design and delivery of the concert hall. The rules of the competition explicitly state that the design
should
include a design
–
led consortium for design
–
led construction
OR
a de
sign and build delivery of
the project.
The competition documents stipulate that innovative technology should be used in the
design and production of the project.
The review panel will comprise 8 people, including the
General
Mayor of Bucharest, a governme
nt minister
, 4 local architects, and 2
international judges.
The concert hall must be finished to the highest possible
quality and design
standard
s
. A
coustics are
very important. I
t is anticipated that the plot of land designated for the concert hall and ancillary
buildings will attract devel
opers seeking to build hotels and other leisure facilities.
The
funding is
based on
plans for
the
regeneration
of the
area
in which the concert hall is located
.
Romania has strict rules on foreign ownership of local companies. The
government’s requirement
of
any competition submissions
is
that
it shoul
d
include provision
work and skills training for the local
workforce
.
The Romanian Ministry of Environment and Water Management is making efforts to
a) It can be submitted any time before the deadline. Any submission after the deadline
will carry a penalty mark.
b
) The assignment will be marked and count 100% towards the overall value of the
international construction module mark.
align the Romanian environmental standards with the European standards.
No local cons
truction
companies are of sufficient size to undertake this project.
Answer ALL question
s
, each has 25% allocation.
State any assumptions you make in answering the question
s.
1.
What are the advantages and disadvantages to both the client and the project delivery teams
for the design and delivery of the project
of having eit
her
:
a) a design
–
led consortium
,
or
;
b) a
design and build arrangement
2.
The competition
rules
state that the evaluation will be
weighted and based
upon
:
innovative
and environmentally friendly design (
3
0%);
construction cost (
6
0%); training
and skills tra
nsfer
(5
%
)
;
and
speed of delivery (5%)
.
Assuming you are proposing to bid for the project as a design
–
and
–
build contractor based in Germany, describe
the factors to be taken into account when
preparing and submitting the entry for the competition.
3.
The EBRD have established high ethical standards for
any project on which they will be lending
money. Discuss the ethical principles
by
which the design team and the construction team must
abide
and some of the challenges they will face
.
4.
T
he client
is considering
having single
–
project insurance to cover both design and production.
What would be the
advantages and disadvantages
to the client of such an
approa
ch?