VERY RICH CONSORTIUM

PROJECT BRIEF

Project Number: 2007/1/8/V

Project Name: Construction of a 3-star hotel to house national and international

visitors to Durban at affordable rates.

Project Duration: 24 months

Main Contractor: GRINHO Construction

Domestic
Subcontractors: Orion Electrical CC
Desert Plumbers and Boiler Specialists
Woody Carpentry and Joinery
Coastal Piles CC
MC Waterproofers CC
TGH Steel
Cool Breeze A/C

Project Description

The client has approached us with an intention to build a 3-star hotel on the Durban
beachfront. They aim to build the hotel in time for the World Cup™2010. This will add
value to the Durban beachfront in the form of tourism. Key factors the client wants to be
integrated into the project are sustainability and an environmentally friendly approach.

Background

Very Rich consortium, the client, has approached us to manage the construction of a hotel
at the Durban beachfront. The client has arranged finance for themselves and at present
the total building costs stand at R85 million. They have acquired (from Durban 2010
Development Company) and prepared the site for construction activities. Furthermore,
Ethekwini Municipality has been approached and the necessary planning permission has
been obtained.

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In addition to these activities, the local community has been engaged by the client and
we, at RMM Projects CC, have been urged to incorporate the local community in terms
of employment during construction and the client will then engage them again during use
and maintenance of the completed facility. The quality of the completed hotel is to be a
competent facility of a certain functional standard.

The anticipated start date of the project is 1st August 2007 and the end date is 1st August
2009.

Project Objectives

Of the four core elements which define the deliverable objectives of a project i.e. scope,
time, cost, quality, the client has identified time as the most dominant. This means there
will have to be a careful monitoring of durations to make sure the project stays on track.
This will be achieved by mixing up and playing with resources available. The use of fast-
track construction will be utilized. That means that an innovative and speedy construction
technology system will be programmed into the project. For instance, the internal finishes
at a given level will begin after the completion of two levels. The occupational health and
safety of the workforce will still be the primary concern and will be monitored carefully.
However, the cost and quality will still play an important role as these must be factored
into the project as well. Furthermore, as the columns and slabs come up, so will the
brickwork.

Very Rich Consortium had initially wanted to build a 5-star hotel, but after an intensive
study of the market realized that accommodation that caters for a less affluent market was
not that abundant. They then decided on a 3-star hotel of good quality, with the option to
upgrade to 5-star after the completion of the World Cup™2010. This would have been
after their brand had been marketed well nationally and internationally. They also wanted
time to market the brand well before the start of the World Cup™2010, as they were
aware that World Cup inspectors would come to South Africa April 2009 and research
accommodation, transportation, etc. These would then be placed in an international
database that would be available for fans in September 2009. This would then place their
(Very Rich Consortium's) hotel facility in good stead to get a good return on investment
in the short term and the long term.

Placing time as the most dominant constraint does have some heavy impacts on the
project overall. It will likely increase cost of the project and might also affect quality.
However, the client needs both these elements to be factored in to a good degree i.e. the
quality must not be adversely affected and the cost must not sky-rocket. Cost is just as
important as time, as the estimated cost of R85million would not have been enough to be
build the 5-star hotel initially envisaged. A 5-star hotel, at the present cost of materials
and other resources would have cost in the region of R200million.

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Finally, the scope of the project was intended to include sustainability and an
environmentally friendly approach to construction. Since the facility was to be built on
the beachfront, it could upset the local ecosystem due to the huge energy demands and
waste material associated with construction. So an environmental impact assessment
(EIA) had to be carried out before construction and a plan on how to deal with waste,
noise, etc would be handled had to be formulated. This would be completed and
submitted before construction activities began.

Environmental Impact Assessment

This was carried out before the implementation stage (construction) began and set out
standards of work and/or practice to be implemented during the construction stage.
Hence, approval was necessary and held up the commencement of the project. This
including but was not limited to dumping, noise reduction, etc. The full documented EIA
is available under code 2007/1/8/V/EIA/1.

Procurement System

A feasibility study was carried out in terms of 5 key areas. These were:-

1. Objectives and desired outcomes of the client

This involved the client clearly restating his objectives and needs in terms of
functionality of the building, etc. The building had to be sustainable and
functional to the standards of a 3-star hotel.

2. Economic feasibility

This involved basically the value the completed facility would bring to the client,
demand and other macroeconomic and microeconomic factors that would affect
construction. On a microeconomic level, the hotel had to be able to sustain itself
in times of low bookings after the World Cup™2010 and on a macroeconomic
level, it had to be able to attract national and international tourists i.e. demand
from this sector had to be high.

3. Marketing feasibility

This involved questions of how the completed hotel would be marketed to the
public during and after construction. It would be marketed as a 3-star hotel,

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 catering for national and international tourists before and during the World
Cup™2010. After the World Cup™2010, the brand would be known well and
according to how successful the project was and the state of the economy,
alterations would be to make the hotel into a 5-star facility.

4. Physical feasibility

The site is by the beach front, so issues of topography, climate, underground

factors, services and accessibility had to be looked into before construction
activities begun.

5. Financial feasibility

This involved questions of what the final cost of the completed facility would be.
At the present time, before the construction activities begin, the economy is stable
and is forecasted to improve for the better. However, the client would be well
advised to arrange contingency finance or we at RMM Projects CC, could arrange
finance through OLD MUTUAL financial services and set up a contingency fund.

After the release of the feasibility study and the stating of the objectives, the client was
advised to adopt the Project Management System. The client wanted to be involved in
the project as a "consultant". That is, they wanted to maintain a say in design but at the
same time did not have the time and resources to stay actively involved in the project.

The client was advised that this system was ideal in that it catered for the above
requirement and that it is also ideal where time is essential over cost. General
characteristics of this system are that it allows for early start (fast tracking) projects; it
has a high degree of flexibility for delays and variations and it is advantageous where the
project is of a high value and complex, as it is in this case. However, the cost can increase
due to variations on site and the client has been advised to have a contingency budget of a
minimum of R15million to cater for this.

OHS and Fire safety

Occupational health and safety will play a major role in the construction of the hotel and
must be fully incorporated into the construction programme. There will be regular
inspections on site and reports will be sent back to the municipality and RMM Projects
CC. If the OHS is deemed to be unsatisfactory, work will be stalled until the situation is
corrected.

Fire safety is of the utmost importance as well during construction and as part of the
general finish of the hotel. The completed hotel is to have a structural steel fire staircase
on one of the outside elevations of the hotel.

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Project Details

The hotel will be at the beachfront. The construction area of the hotel is 11 200m². Its
morphology is basically a rectangle of 140m x 80m. It is anticipated that since the soil
here is of an unstable nature, complex work will have to be undertaken in terms of piling
and dewatering the site. The geotechnical report also confirms this. The piling will be
undertaken by a specialist subcontractor who will take care of the excavation and placing
of the piles. Piles will be 700mm x 700mm. The 200mm pile caps will be placed by the
main contractor. The 150mm raft floor slab will be cast on top of pile caps and raft
thickening. The raft foundation is there to allow for movement, as the site is by the ocean
and there is a lot of tectonic movement.

The completed hotel will have 5 levels, including a basement for parking. It will be made
up of Coromaxi 140mm non-facing bricks for the external walls and Coromaxi 90mm
non-facing bricks for the internal walls. All external sides of walls will be plastered and
painted with a suitable paint, depending on the room. The building will have expansion
joints. What is now to follow is a run down of the general look of the hotel, including
rooms, materials and finishes level by level.

Basement Level

Floor slab is concrete cast in-situ reinforced slab 150mm thick, and will be power floated
for purposes of vehicle traffic. Slab cast with damp proof membrane for waterproofing
purposes. Parking lanes will be painted onto the power float, and will be demarcated
according to general, penthouse parking, guests and VIP. Walls will be Coromaxi
140mm Non-facing bricks. On the face of the sides of the excavation, concrete blocks
will be put up and sprayed with mastic asphalt for dewatering purposes. Damp proof
course will also be placed to further improve waterproofing. The brick walls will go up
against the mastic asphalt. Walls will be plastered and painted (cream white) on the
internal visible face of the basement.

There will be a ramp leading to basement parking, with a boom gate access and a semi-
permanent guard post. The ramp will also be the only means of ventilation. The basement
will be lit by 20 fluorescent lights and all electricity will be controlled by a main switch
board. There will be concrete cast insitu columns placed to support the top slab, with
beams running across. The columns will be bagged.

There will be a lift and a staircase going to the lobby level (ground level). The staircase is
to be screeded and finished with a granolithic finish, and steel handrails and steel
balustrade will placed together with the staircase.

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Lobby Level (Ground Level)

The lobby level will incorporate a reception area, waiting area and lounge, staff rooms
(male and female), baggage room, laundry room and a boiler room. There will also be 1
lift that will go all the way up to the 6 th floor from the basement. The main entrance to the
building will be by means of an aluminium shop front, glazed with clear float glass.
Access will be by means of motion detection device. On the outside of the main entrance
to the building, Corobrik pavers will be used. In the corridor, towards the back, there is a
fire escape door. Ceiling in corridor is frame and panelled suspended ceiling. Fire
services are provided in the corridors and the bar.

Reception area:

This will incorporate a built in reception counter. There will be a built in shelf for letters
and storage of keys, marked room by room with aluminium numbering digits. The entire
reception area will have terrazzo tiles. The skirting will be 19 x 79mm meranti skirting
and beading. There will be a plasterboard frame and panel suspended ceiling,
incorporating rounded lights and air conditioning services.

Staff rooms (male and female):

There are two separate rooms, male and female staff rooms. There is a meranti dado rail
in each and it is equipped with coat hooks. The walls are plastered and painted and the
skirting is a meranti 19 x 70mm with beading. Floor covering is vinyl tiles. There is a
built in bench along the wall. Door frame is steel and door is facing to flush panel door
(both painted). Windows are painted galvanized steel frames glazed with obscure glass.
There are 2 large mirrors. The ceiling will be power floated and painted.

Boiler room:

There will be 9 boilers, one for each floor. Wall to be bagged and painted with
waterproof PVA. Floor finish is screed with granolithic finish & vinyl skirting used.
Boilers placed on concrete bases. Door frame is galvanized steel painted with waterproof
PVA, and door is semi-solid core flush panel door also painted with waterproof PVA.
Soffit of slab to be power floated and painted. Galvanized steel frame glazed with clear
float glass.

Service and baggage room:

There will be built in cupboards and shelves for baggage and tagging of bags. Floor is to
be screeded and finished with vinyl tiles. Meranti skirting is to be used and beading.

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Timber door frame and facing to flush panel door is to be used (both painted). Room is to
be plastered and painted cream white. Steel window frames used and glazed with clear
float glass. Soffit of slab is power floated and painted cream white.

Laundry room:

Timber door frame with facing to flush panel door (both painted). The floor is screeded
and finished with ceramic floor tiles. Vinyl skirting is used. There is cable trunking for
electrical installations present. Room is plastered and painted with waterproof paint.
Underside of soffit of slab is power floated and painted cream white. Window frames are
aluminium, top hung, and glazed with clear float glass. Room has water service pipes for
washing machines and dryers. There are also 2 sinks with taps for washing.

First Floor Level

The first floor has a bar, a restaurant with a kitchen, ladies & gents toilets, a lift area and
a staircase. The corridor on this floor is screeded and tiled with terrazzo tiles. The skirting
and beading used is meranti. The walls are plastered and painted with cream PVA. There
is a frame and panelled suspended ceiling incorporating lights, A/C. Fire services are
provided in the corridor and a fire escape door. There is also a picture rail fixed to the
wall.

Bar:

Bar will have built-in hardwood counter, with built-in shelves for alcohol display. Wall to
wall carpeting will be incorporated with navy blue carpet, aluminium skirting and
carpeting up to dado level. Dado will be Meranti dado rail going through entire room.
Wall will be plaster and painted cream white. Entrance to bar will be hardwood double
swivel bar door, with timber frame. Bar will incorporate a kitchen for small meals.
Kitchen will have built in 2 stoves, metal storage boxes, built in cupboards and 4 sinks
for washing of dishes. Kitchen wall will be plaster and painted white PVA. Door to
kitchen is painted single swivel bar door, incorporated with kick plates and push plates on
both sides. The door frame is timber for this door & is painted. There will be fire escape
door going out of the kitchen, door frame is steel. There will also be a toilet just outside
the bar entrance, which will be described below. The window frames are aluminium
window frames glazed with clear float glass. Bar will have frame and panelled suspended
ceiling. There are air conditioning ducts present.

Toilets (Male & Female):

There will be a facing panel door for male and female toilets, door frame is timber (both
frame & door painted). There will be two of each toilets on this level. Male toilet will
have 5 toilets (WC and Bidets) and 3 urinals. The 5 toilets will be separated by means of
drywall partitions. The doors of each toilet will be hollow core flush panel door, with a
timber door lining (both painted). The floor finish will be ceramic floor tiles on top of a

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screeded surface. Vinyl skirting will be used. The walls will be tiled with white glazed
tiles up to dado level. The rest of the wall will be finished with plaster and paint (white
PVA). There will be 3 wash hand basins and two large mirrors. The windows will be
steel window frame, glazed with obscure glass. There will be 5 windows here. The
female toilet is the same without, the urinals. Each toilet will incorporate a toilet roll
holder made of white glazed tile. The ceiling is to be the normal soffit, power floated and
painted with white PVA.

Restaurant:

The entrance is a glass double door, with handle rails. Door frame is aluminium. The
floor is screeded and tiled with diamond quartzite tiles. The skirting and beading is
meranti. The walls are plastered and painted with a cream PVA. There are picture rails
with hooks. There is a built in counter. There are aluminium window frames, glazed with
clear float glass. There is a decorative suspended ceiling incorporating lighting, A/C. The
kitchen door frames are galvanized steel, and the door is a double swivel bar door with
kick and push plates. The kitchen floor is screeded, and tiled with ceramic tiles. The
skirting is vinyl. There are built in stoves, built in metal storage boxes. The wall is
plastered and painted. The ceiling soffit is power floated and painted. There is a fire exit
door, F.L.B door, with a steel frame. Both are painted.

Second Floor to Third Floor Level

Bedrooms have door that is facing to flush panel door with timber frame. The floor is
screeded and finished with wall to wall carpeting. An aluminium skirting is used.
Window frame is aluminium, glazed with clear float glass. There is a picture rail on the
wall and wall is plastered and painted with cream paint. There is a bathroom in each
room with a toilet, wash hand basin, bathtub and shower. Shower has glass shower door.
The bathroom has white glazed tiles and the shower floor has mosaic tiles. Bathroom
door is hollow core flush panel door with coat hook at the back.

Third floor has lift motor and has a pulley wire installed for the lift. There are also lift
doors and lift sundries installed on both floors.

Roof

Roof has parapet wall with waterproofing incorporated including a fillet and a drainage
gutter going to bottom floor. Parapet wall finished with coping.

External

There is a structural steel staircase on the outside of the building. These are fire escape
stairs. The building is plastered and painted with blue external paint and there are
Corobrik pavers at the entrance of the building.

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CONTROL PROCEDURES

For this project to be performed to plan there will have to be controls put in place. Firstly,
all participants will have to be identified and confirm their roles in the project. This will
be the most important part. Participants must be assigned duties so that they are obliged
to assume a sense of responsibility. This must happen after the project has been approved.
Then after the initial confirmation, there must be a reconfirmation of their assigned roles
and their undertaking that they are able to do the work.

This will be followed by an announcement of when work is expected to begin and end
and the amount of resources that are expected to be used including time. The project
charter will then go through a process of continuous review, as participants will meet to
find out successes and failures throughout the project life cycle. This will also form part
of the team development phase. This is critical to the success of the project. Not only
must participants meet on a regular basis, but they must development strong and trusting
relationships with their fellow members. It is also very important that everyone remains
informed about the project and is reminded about its main objective.

We will then use tracking systems to monitor the performance of the project. These will
be in terms of:-

 Schedule achievement

 Personnel resource use

 Financial expenditures

Schedule achievement

Are we meeting our project objectives on time and within budget? These are the sort of
questions we will be asking of ourselves. We will monitor the worthiness of the project
life cycle and monitor each assignment successes and failures. If there are problems,
corrective action will have to be taken. So it is imperative that schedule performance data
is collected i.e. is the work being done correlating to the times on our Gantt chart. If these
objectives are not being met, then we might have to adapt. This is another important
aspect project tracking i.e. the management of change. It is important that change is
factored into the project as whole, as it can and usually does happen.

Personnel resource use

Labour is an important aspect of any construction project. Labour must be kept informed
as well, as they are part of the participants. They must be motivated as well. Furthermore,
there must be a system of recording labour hours to be used in this project and future
projects of a similar nature.

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Financial expenditures

There must be a way system in place for tracking financial expenditures. This is vital as
well for future planning.

MANUAL AND AUTOMATED TOOLS

We, here at RMM Projects CC have chosen to use Microsoft® Project 2003 as our
preferred planning tool. This is an in integrated project management package. But it is
important to recognize that planning software is not project management. One might use
the most advanced planning software, but you cannot guarantee that it will be used
properly and its targeted audience might not understand it. So project management must
be supplemented with sound human to human interaction; its about building
relationships.

Having said that, planning software has many advantages. The relative ease at which a
package can assign project team roles and responsibilities is unquestionable. It also
develops and displays schedules well and a whole lot of other advantages which will be
listed below:-

Other Advantages

 Easily displays personnel needed and their required level of effort

 Displays funds and other nonhuman resource budgets
 Keeps records of activity performance and milestone achievement
 Keeps records of financial commitments and expenditures
 Keeps records of the work hours that people charge to the project
 Easy to prepare presentations of project progress and accomplishments
 Decreases time taken planning
 Easy monitoring of project activities

Disadvantages

 Not easily available to people

 Expensive
 Time taken to install
 Requires some technical know how to use

Manual planning tool on the other hand do have advantages, but their major shortcoming
is any inability to store and retrieve information. There is also another disadvantage of
the time taken to use these tools. However they do have advantages over and above
software. These are that with manual tool, its about making decisions, not analyzing
information. It is also about creating long and sustainable interpersonal relationships.
Computers cannot foster trusting relationships between people.

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RISKS & CONSTRAINTS

There are many projects that could hinder the success of this project. These include
flooding by the beach because of an act of God, a labour strike, weather. These should be
taken into consideration during the planning process.

Constraints to the project are builders 2 week holiday in December. This will lengthen
project duration. The curing of concrete is also of concern. It is 21 days, but eventually
we might have to fast track it and say 14 days as time is our biggest constraint. There
are some other constraints to the project like cost of project and the waiting periods for
approvals.

LESSONS LEARNED

The most important thing to know during the planning stage is that there will be a change
and corrective measures will need to be taken or else the plan will have to be changed. It
is also important to note that the tasks of allocating resources during the planning stage
should be left to competent and experienced individuals. Under allocating or over
allocating will affect project duration and leave labour demotivated, as they have failed to
meet a deadline.

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