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PM5114 MANAGING COMPLEX PROJECTS

INDIVIDUAL ASSIGNMENT - 40 of 100 Marks

Hypothetical Scenario

Retrofitting Works to MBS Tower 3

You are the external Project Management Consultant working for MBS Singapore.

Background Information and Status of Works as at 31 August 2024

The retrofitting and upgrading works for Tower 3 were awarded to three different contractors: Contractor

A (CA), Contractor B (CB), and Contractor C (CC).

Contractor A (CA)

CA is one of MBS’s best-performing regular contractors for upgrading works. CA was awarded the Package 1 contract, which includes the Sky Park Retrofitting Works and the complete refurbishment of 150 rooms from Level 41 to Level 55. CA’s contract price for the refurbishment works was 15% higher than the other contractors because these rooms are the premium rooms usually reserved for VVIPs, even though the design and specifications are the same for all the 550 rooms.

Contractor B (CB)

CB is also a regular contractor for MBS. CB is an above-average contractor but is known to be claim- conscious. CB was awarded the contract  because their final offer was the most competitive. CB was awarded Package 2 for the complete refurbishment of 200 rooms from Level 21 to 40. Their works were delayed during the initial stage due to the  late  handover caused  by  an extended stay  by a group of celebrities. Subsequent activities for  Levels 26 to 30 were also delayed due to a sprinkler  pipe  burst incident, which caused extensive damage to a few rooms. This incident is the subject of an insurance claim by MBS. Due to these delays, the works for Levels 31 to 35 were postponed indefinitely. CB has notified MBS of its intent to claim for an extension of time, off-site storage costs, standby costs, and additional costs and expenses due to the delays.

Contractor C (CC)

CC is a  newly  registered contractor with  MBS.  Its works were generally  acceptable and on schedule. However, there were delays in the handover of Level 10 due to its failure to complete the rectification of the punch list.

Issues

The Senior Management (SM) of MBS wants the 50 rooms from Levels 31 to 35 to be completed as soon as possible. The SM does not allow works to be carried out during the year-end holidays from December 2024 to February 2025. The SM also wants to maintain a minimum of 70% saleable rooms at anytime to sustain its high occupancy rate and continuous inflow of guests.

The in-house Project Manager has provided a recovery plan to the SM.

The Head Office in the US wants your independent advice on:

Questions

1.           Re-scheduling the delivery of the 50 rooms from Levels 31 to 35 while maintaining a minimum of 70% saleable rooms at anyone time and avoiding the year-end holidays from December 2024 to February 2025.                                          (10 Marks)

2.           MBS’s contractual risks and exposures if the above 50 rooms are awarded to CA.           (10 Marks)

3.           Your advice to MBS regarding the handling of the insurance claim for the incident caused by CB and their notification of intent to claim for an extension of time, off-site storage costs, standby costs, and additional costs and expenses due to the delays for the Package B contract. (10 Marks)

4.           The  possibility of crashing the completion schedule of the outstanding 50 rooms to 2 months. (10 Marks)

In your answers, you are expected to:

For Question 1, demonstrate how MBS can maintain 70% saleable rooms at anyone time while avoiding the holiday season from December 2024 to February 2025.

For Question 2, assume that the SIA Lump Sum contract is used and identify the contractual risks provided under the contract.

For Question 3, assume that the insurances are purchased by MBS, all notices were served timely, and the SIA Lump Sum contract is used.

For Question 4, assume that the scope of works required is that for the refurbishment of a 5-star hotel, including demolition, co-ordination,  installation of complete FF&E, and all works relating to the corridors and lift lobbies.

State all other assumptions made.

  


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