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1. Name: Ng Soo Din
Student ID: 15033832
Course: Construction Project Management
Principle
Course Code: UBLM79-15-M
Module: Jan 2016

2. Term of reference
This report have been ordered by the private development company which is Redrose
Development Ltd (RDL) for a mixed development project. The purpose of this report is cover
the strategy phase of the project cycle. The project is now at the inception stage and the
needs for this project have just been revealed by Bristol City Council. The construction will
start in a year from now and plans of developing the development is still underway at the
present. The development is to include a new nine-storey 150-room hotel, ancillary
gymnasium (1,400m2
), Conference/Banqueting facilities (1,200m2
) and a multi-storey car
park (250 spaces). The developer is expecting to achieve a BREEAM rating of Excellent for
this development.
Abstract
This report is to set out the context and how to manage the key project issues and evaluating
their interconnection with client objectives, stakeholder and theory. The report contain
funding and optimum value, project timescale and sequences, risk management,
organisation and communication strategy and stakeholder management. The choices made
in the context is then rationalise and justify based on academic, technical and case studies
references. The project is a good project to proceed based on the analysis conducted. This
report only shows preliminary analysis and the info shall then be updated whenever new info
is obtained.

3. Table of Contents
1.0 Introduction.......................................................................................................................................5
2.0 Funding and optimum value.......................................................................................................... 7
3.0 Project timescale and sequence...................................................................................................9
4.0 Risk Management......................................................................................................................... 10
4.1 Risk register............................................................................................................................... 10
5.0 Organization and communication strategy................................................................................11
5.1 Responsibility assignment matrix........................................................................................... 11
5.2 Communication plan.................................................................................................................11
6.0 Stakeholder management............................................................................................................13
6.1 Stakeholder engagement plan................................................................................................ 13
7.0 Conclusion......................................................................................................................................14
References............................................................................................................................................15
Bibliography.......................................................................................................................................... 16
List of Figure
Figure 1 Site plan (Source: CAD drawing).................................................................................. 5
Figure 2 Site plan (Source: Google map).................................................................................... 6
Figure 3 Size of redevelopment (source: Digimap)....................................................................7

5. 1.0 Introduction
Bristol City Council have revealed a major redevelopment project of the city centre north-
eastern quarter. Redrose Development Ltd (RDL) have undertaken this redevelopment. The
redevelopment site contain a Hewlett Packard building and is to be demolished this year.
The site is a brownfield site which have evidence of some crypts uncovered, bordering a
housing development, a Ministry of Defense (MOD) complex, a canal and University of the
West of England (UWE). The unused land to the south of the site is also designated for
future development of a stadium by UWE/ Bristol Rovers Football Club (BRFC) joint venture.
RDL currently now marketing the development of the new hotel as Holiday Inn. Presently, the
plans are being developed and all the necessary permissions are to be arranged to be able
to start construction a year from now. The site shall contain a nine-storey150-room hotel,
ancillary Gymnasium (1,400m2
), Conference/Banqueting facilities (1,200m2
) and a multi-
storey car park (250 spaces). RDL have the intention to achieve a BREEAM rating of
Excellent for this project.
The location plan for the redevelopment is as shown in the following figure 1 & 2.
Figure 1 Site plan (Source: CAD drawing)

6. Figure 2 Site plan (Source: Google map)
This report shall covers the development of a strategy to realise the redevelopment project.
Key project issues shall be identified and method shall be provided on how to manage these
issues. The choices made shall then be rationalise and justified in the following context.
1. Funding and optimum value
2. Project timescale and sequences
3. Risk management
4. Organisation and communication strategy
5. Stakeholder management

7. 2.0 Funding and optimum value
To find out if the project is feasible and beneficial to RDL, a cost-benefit analysis will be
required to be conducted. Through this method, RDL will then be able to proceed with the
project with full knowledge of knowing the funding required and the revenue that they would
obtained through the development. The first process of this section is to find out the required
budget that is needed for the redevelopment.
The information obtained on the redevelopment site is that there’s an old HP building that
needs to be taken down and some crypts that have been uncovered. This is a site constrain
and the additional work will then be needed to be included in the required budget. The cost of
the land too would then be needed to be included as of other services such as BREEAM
assessment, survey work, development work, contract and etc. The figure 3 show the size of
the redevelopment site obtained through Digimap.
Figure 3 Size of redevelopment (source: Digimap)
The size of the site is found to be 4 hectare and the cost per hectare is determined to be
£1,965,000 per hectare from the Government land value February 2015 publication. Hoarding,
archaeology and site survey cost estimate were determined through the Environment agency
document of Cost estimate for managed realigned – summary of evidence (2015). The cost
of demolishing the old HP building is then determined from The Homes and Communities
Agency document on Guidance’s on dereliction, demolishment and remediation cost (2015).
The rate of inflation is also determine from the Bank of England Inflation report 2016 which is
2%. The cost of the building for the hotel, gymnasium, conference and carpark is then

8. obtained through BCIS and finally a constituents for the developer’s fund can then be
developed. Since only the number of carpark space is provided, the area required is
determine through the Environment agency parking standard. Through providing appropriate
rates for other works such as contractor profit and etc, the fund required by the developer is
then determine to be approximate £40 million. This £40 million represent the developers
Capex (Capital Expenditure).
The appraisal of whole life cycle costing (WLC) is often associated with value for money and
this analysis involve the cost between capital expenditure (CAPEX) and operating and
maintenance cost (OPEX) (Fewings, 2013). This would analysis would be done through NPV
assessment. Based on Wei’s (2014) journal on renewal cycle of the material for used in Hotel,
the duration of the NPV shall then be determine until a period 15 years. 15 years is the
period where all the materials and building requires services, maintenance or full
replacement. The HM treasury green book (2003) have specified that a discount rate of 3.5%
to be used on such assessment. The expected revenue for the redevelopment is then
determine through appropriate scenario and cost through several official online website such
as Holiday Inn, Pure Gym and etc. Finally with both the whole life cost and revenue the
benefit to cost ratio is then determine to be 2.3 which is above the value of 1 making this a
beneficial project.
Once the project have been deem to be beneficial to RDL, funding option is then required to
be determine. From the revenue assessed, the development would have earn enough to pay
out its costing by the 6th
operating year. RDL can have the option to have the public bank
fund most of its development and pay the rest of the required funding themselves. The option
stated would be to obtain a £35 million loan at an interest of up to 3% - 5% per annum
(Designing Building UK and MortageCafe) and pay the remaining themselves. The option
seems reasonable and with the additional interest rate added to the operating cost, the
redevelopment would at the latest start earning profit by the 7th
operating year.

9. 3.0 Project timescale and sequence
Burke, 2013 commented that planning steps are outlined as a sequence of discrete
operations and in practice, other factor may influence the sequence of the planning. There
will most certainly be a number of iteration, compromise and trade-off before achieving the
optimum plan. The Barchart may be one of the most basic and efficient way of means of
communicating the schedule information but there are more tool and techniques that would
enable better project planning. No matter which tool or techniques used, the most important
aspect of planning is to enable project participant to easily walk through the sequencing of
the project’s work. The most important timeline in a project timescale and sequence is the
Critical Path Method (CPM). This particular path is where all the critical component would
need to be carried out if not the project would encounter delay.
The timescale and sequence attached in the appendix is but a basic template for this project.
Additional detail and information such as slab, beam and column timescale of the hotel would
then be needed to be added into the timescale. However, consideration on the sequence and
the component have been considered and produce.

10. 4.0 Risk Management
To enhance a client’s value meant that ensuring that risk is minimised or at least planned
and managed (Fewings, 2013). To manage and deal with such risks, a risk register and
management strategy is required to be made. Risk and value management are interrelated
task that should be carried out in parallel (OGC, 2007).In such table, the risk should be
describe and its consequences in respect to time, cost and quality is to be quantified. Then,
the risk impact and likelihood is then determine for the project and finally the total risk score
can then be determine. Based on the risk score, the risk response and the frequency of
reporting the risk is then determine. In addition to that, depending on how the risk impact the
project and likelihood of the risk, a suggested CAPEX range, annual OPEX and programme
range is then provided for the risk.
4.1 Risk register
It should be noted that the process of developing the risk register and managing does not
ends when the risk register have been developed. Risk management is a continues process
from the inception stages which the risk register and its management strategy have been
developed until the completion of the actual building and into the facilities management of the
building if requires. It is a process in which risk is constantly being identified, analyse and
response being developed. The risk registry developed which can be found in the appendix
is only but a few of which the risk that the developer should be aware. The list would then
requires the constant updates by all parties involves so that risk is constantly being identified
not for the sake of reducing the cost but to enhance the value of the project.

11. 5.0 Organization and communication strategy
Design Building, 2016 stated procurement is the process of purchasing goods or services.
There are several procurement route which are traditional contract, design and build,
management contract, PFI and etc. To select the most suitable procurement route, several
consideration in needed to be included such as the speed, cost, quality, risk, project
constraint, financing and etc. For this particular project, it is advisable to for RDL to select the
management contracting as the procurement route due to the request of having BREEAM
rating of excellent. This meant that the quality the construction needs to be assured and
contracting management provides that. In additionally to that, the construction also requires
to be conducted next year and management contracting provides that too. The appendix
show the basic organization structure and the choice of procurement route through the
benefit of each procurement route.
5.1 Responsibility assignment matrix
Balaji, 2016 commented that it is very important for all stakeholders to understand the
responsibilities and accountabilities of each person in project management. Bigger teams
with cross-department and inter-organizational collaboration, it’s important to create a more
formal process to keep track of responsibilities. The important tools for tracking roles and
responsibilities is the responsibility assignment matrix (RACI matrix). With the RACI matrix
establish, it enable RDL to know if some team member are assigned with too many or too
few responsibilities, keep everybody on the same page, keep all the necessary people in the
loop and reduces miscommunications and helps in developing a simple communication. The
appendix shows the project responsibilities task matrix with all the team member for this
project.
5.2 Communication plan
As describe by Bonk, 1999, a communication plan is an important part of an organization
daily operations. This communication plan clarifies the organization priorities, target
audiences, resources and staff assignments. The goals of such communication plans is to
develop and implement a communication plan for an enhanced visibilities and crisis
management, generating positive media coverage, increasing the awareness and
involvement of specific targeted groups of individuals, changing attitudes and teaching new
skills to client and staff, generating support from public, policy makers and clients for
community and encouraging financial contributions. The communication plans developed in
the appendix shows a guideline on the targeted audience, frequency of the communication,
purpose of the communication and issued by who. Based on the case study of the Village
school, co-ordination was a key to success in a project. To achieve the greatest benefit for

12. RDL, the delivery team and contractor would need to buy in to the project vision and work as
a cohesive unit.

13. 6.0 Stakeholder management
Chinyio, 2010 have describe stakeholder as an individual with a stake in a project which can
harm, have their right affected or can even be beneficial to the project. The process of
stakeholder management involve the identification of the stakeholder, understanding,
analysing, educating and managing the stakeholder. Stakeholder different from project to
project by having different direction of influence on the project. There are six different
direction of influence a stakeholder can possess and they can possess multiple direction of
influence. The direction of influence would affect how much power and proximity of the
stakeholder may have towards the project. Then another measurement for the stakeholder is
needed which is the rating of urgency. This is rated in two format which is value and action.
In value, the stakeholder is measured in how much stake they have in the project and in
action, they are measure in how likelihood stakeholder are to take action. Finally, an index of
the stakeholder is obtained through the addition of all the value and a ranking of importance
can be determine. With the ranking determine, the level of engagement with each of the
stakeholder can then be decided to either consult, empower, collaborate or involve.
6.1 Stakeholder engagement plan
The appendix show the stakeholder management produce for this project. With the
identification of the stakeholder, RDL is then able to identify which stakeholder have higher
priorities and requires their engagement to empower the projects. A stakeholder engagement
plan is also developed to show the level of engagement requires together with the
stakeholder, the approaches used and anticipated effect. Stakeholder should ideally be
informed and engaged with the construction project because they are the one who are
actively supporting the project objectives and outcome. The stakeholder engagement shows
how well they understand the project challenges and strategies used on the project. The
engagement with stakeholder is important from the case studies obtain on the London 2012
construction project. The purpose is to limit disturbance to the construction by minimizing
community impact. The ODA have set 10 communities commitment and some of these
commitment can be incorporated into the project such as:
1. Operate free construction hotline 24 hours a day
2. Communicate to the local resident on the progress
3. Be a responsible neighbour and encourage the staff on site to be respectful
4. Manage and minimise the impact of construction
5. Promote local employee for site project
6. Provide and promote local employment and training opportunities
7. Recycle, reduce and reuse material on site
8. Manage the noise production of the sites.

14. 7.0 Conclusion
Preliminary report show that the project is viable to proceed with a cost to benefit ratio of
above 1. The basic strategy for this scheme have been developed, detailing how such
redevelopment can be achieve. The context is set out and key issues of the project is
address by evaluating their interconnection with RDL objectives, stakeholder and theory. The
context is then rationalise and justified in this report. Recommendation on the context made
is that this report only outlines the basic requirement to project with the report. Additional
information will be needed to be input when such info or issues is made known.

15. References
APM Project Management (2013) The Village School, A special Educational Needs School
EC Harris LLP [online]. Available from:
https://www.apm.org.uk/sites/default/files/The%20Village%20School%2C%20A%20Special%
20Educational%20Needs%20School%2C%20EC%20Harris%20LLP.pdf [Accessed 29 April
2016]
Balaji, V (2016) Understanding Responsibility Assignment Matrix (RACI Matrix) [online].
Available from: http://project-management.com/understanding-responsibility-assignment-
matrix-raci-matrix/ [Accessed 29 April 2016]
Bank of England (2016) Inflation Report [online]. Available from:
http://www.bankofengland.co.uk/publications/Documents/inflationreport/2016/feb.pdf
[Accessed 29 April 2016]
Bonk, K., Griggs, H., & Tynes, E. (1999), The Jossey-Bass guide to strategic communication
for nonprofits, San Francisco. Jossey-Bass Publishers.
Burke, R. (2013) Project Management: Planning and Control Techniques. Chichester: Wiley.
Chinyio, E. & Olomolaiye, P. (2010), Construction stakeholder management, Wiley-Blackwell,
Chichester.
Department for communities and local government (2015) Land value estimates for policy
appraisal [online]. Available from:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/407155/Febru
ary_2015_Land_value_publication_FINAL.pdf [Accessed 29 April 2016]
Designing Building Wiki (2016) Construction Loan [online]. Available from:
http://www.designingbuildings.co.uk/wiki/Construction_loan [Accessed 29 April 2016]
Designing Building Wiki (2016) Procurement route [online]. Available from:
http://www.designingbuildings.co.uk/wiki/Procurement_route [Accessed 29 April 2016]
Environment Agency (2015) Cost estimate for manged realignment-summary evidence
[online]. Available from:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/411179/Cost_
estimation_for_managed_realignment.pdf [Accessed 29 April 2016]
Environment Agency (no date) Parking standard [online]. Available from:
http://www.planningni.gov.uk/downloads/parking-standards.pdf [Accessed 29 April 2016]
Fewings, P. (2013) Construction Project Management: An Integrated Approach, 2nd edition.
Abing-don: Taylor and Francis.

16. Giogia, S (2012) Learning legacy [online]. Available from:
http://learninglegacy.independent.gov.uk/documents/pdfs/equality-inclusion-employment-
and-skills/426301-ll-public-partic-comm-engage-aw.pdf [Accessed 29 April 2016]
HM Treasury (2003) The Green Book: Appraisal and Evaluation in Central Government
[online]. Available from:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220541/green
_book_complete.pdf [Accessed 29 April 2016]
Homes & Communities Agency (2015) Guidance on dereliction, demolition and remediation
costs [online]. Available from:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414378/HCA_
Remediation_Cost_Guidance_2015.pdf [Accessed 29 April 2016]
MortageCafe (no date) Property Development Finance [online]. Available from:
http://www.85percent.co.uk/development-finance/ [Accessed 29 April 2016]
OGC (2007) Risk and value management [online]. Available from:
http://webarchive.nationalarchives.gov.uk/20110601212617/http://www.ogc.gov.uk/document
s/CP0064AEGuide4.pdf [Accessed 29 April 2016]
Wei, Z. and Amin, A. (2014). A study of the renewal cycle of hotel building elements in
malaysia. Edp Sciences. 11 (SHS Web of Conferences), p. 01008.
Bibliography
Harris, F., McCaffer, R., and Edum-Fotwe, F. (2013) Modern Construction Management, 7th
edition. Chichester: Wiley-Blackwell.
HM Treasury (2004) The Orange Book: Management of Risk – Principle and concept [online].
Available from:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220647/orang
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