International Construction

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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

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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

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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?