Project 1

First Class Private Hospital with JCI standard in District 1 of HCMC with 80,000 square
meter of floor area.
Total Project Cost: 200 M USD (Including medical equipment)
o Land price = 50 M USD
o Building = 80 M USD
o Medical equipment = 70 M USD
o Information system = 10 M USD
Target customer: High-income local + Professional Expatriate
Owners construction management capability: There is 2 highly experienced project
managers (20 yrs of construction experience in hotel construction)
Contractor Market: There are only 2 major local contractors with sufficient capacity at
this level. There are another 3 medium-size contractors with potential capacity (80%
confidence level)
Currently feasibility study is completed and decision to invest is made by the Board of
Director of the owner.
Opening date is scheduled at 1 December 2014. However, construction must be
completed 6 months earlier for testing of the whole system.
Project 2
Mass housing project: 15 condominium buildings located in sub-urban of HCMC. Each
building has 6 floors with 8,000 square meter of floor area.
Total Project Cost: 100 M USD
o Land price = 30 M USD
o Building = 50 M USD
o Infrastructure + landscape = 20 M SUD
Target customer: Medium to low income people
Owners construction management capability: There are 2 highly experienced project
managers and 10 young engineers & architects.
Contractor Market: There are 10 contractors with sufficient capacity at this level. But
they are some doubts about their financial stabilities & capacities.
Currently the necessary permissions from public authorities are awarded. Preliminary
design is done, but there is no detailed design yet.
The condominium will not be fully furnished; room will be delivered to customer with
standard architectural work (flooring, wall painting and necessary accessories, but no
furniture, interior works).
Existing land area is now natural terrain such as forest and lakes. Necessary utilities
(electricity and water system are available)
The project will be undertaken as 3 phases (5 buildings each) with total duration of 5
years. Decision to invest in phase 2 and 3 will depend on success of the earlier phase.
Project 3
Business hotel (3 stars): 20 stories with 400 standard fully-furnished rooms in central of
HCMC. There are only 2 types of room: 100 Single room (25 sq.m.), 300 Double & Twin
room (30 sq.m.) with standard furniture of 3 star business hotel.
Total Project Cost: 35 M USD
o Land price = 15 M USD
o Building with fully furnished = 20 M USD
Target customer: Businessman and medium-class tourists
Owners construction management capability: Owner is totally new to construction.
There are no experienced personnel for construction within the company.
Contractor Market: There are many contractors able to handle this type of project. There
is no special craftsmanship work required in this project. However, owner is really
serious on quality of workmanship.
Currently the necessary permissions from public authorities are awarded. Preliminary
design is done, but there is no detailed design yet.
This hotel will be under an international business hotel chain, so there are so many
conditions, regulations and rules issued by the chain management company that will
influence designs of the hotel.
There are many potential change orders from the owner especially on architectural and
interior works, as the hotel market in HCMC is so competitive and dynamic.
Opening date is expected to be on 1 January 2013.
Discussions:
As a Senior Vice President, you are assigned by the CEO to analyze the situation and propose
the most appropriate project delivery system. Pls discuss among your team members and
report:
1. The most appropriate Project delivery system (project organization, contract type,
contractor selection approach) with reasons.
2. What are the risks arising from the system you choose?