NAMIBIA UNIVERSITY OF

SCIENCE AND
TECHNOLOGY
TQS511 ASSIGNMENT 1_QUESTION 1

MR A BRITZ

MAY 16, 2023

PAULINA SHIIMI
220123438
 The procurement of a new hotel in Windhoek

Contents
1. Introduction...................................................................................................................................2
2. Importance of a well-defined project brief....................................................................................2
3. Importance of carrying out a feasibility study:..............................................................................2
4. Cost planning procedures to ensure project cost remains within budget:....................................2
5. Introduction to risk and procurement:..........................................................................................3
6. The most suitable procurement route:..........................................................................................3
7. Conclusion:....................................................................................................................................3
8. Recommendation..........................................................................................................................4
9. References.....................................................................................................................................4

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 1. Introduction
The procurement of a new hotel development in Windhoek is a significant undertaking for any
client, especially for a first time-developer. In order to ensure that the project is successful, it is
important to focus on cost certainty and quality. This report will provide advice on how to proceed
with the procurement of the hotel development, focusing on the importance of a well-defined
project brief, carrying out a feasibility study, cost planning procedures, and the most suitable
procurement route for the project.

2. Importance of a well-defined project brief

A well-defined project brief is critical to the success of any construction project. It sets out the
objectives, requirements, and constraints of the project, providing clarity for everyone involved in
the project. A project brief should include information about the site. It should also include any
specific requirements, such as sustainability targets or design guidelines.

By having a well-defined project brief, you can ensure that everyone involved in the project is
aligned and working towards the same objectives. It can also help to minimize misunderstandings,
delays, and cost overruns by providing a clear roadmap for the project.

3. Importance of carrying out a feasibility study:

Before proceeding with the development of the new hotel in Windhoek, it is essential to carry out a
feasibility study. A feasibility study is an assessment of the viability of the project, taking into
account factors such as market demand, site constraints, and financial considerations.

A feasibility study will help to identify potential risks and opportunities associated with the project,
enabling you to make informed decisions. For example, if the feasibility study reveals that there is
low demand for hotels in the area, you may decide to reconsider the project. Alternatively, if the
feasibility study reveals that there is high demand, you may decide to proceed with the project but
with a deferent design or target market in mind.

4. Cost planning procedures to ensure project cost remains within

budget:
Cost planning is a crucial aspect of any construction project, especially if cost certainty is a priority.
Cost planning involves estimating the cost of the project and developing a budget to ensure that the
project remains within the allocated funds.

To ensure that the project cost remains within the budget, it is essential to use cost planning
procedures such as value engineering and life cycle costing. Value engineering involves finding ways
to reduce the cost of the project without compromising on quality of functionality. Life cycle costing
involves assessing the cost of the project over its lifetime, taking into account factors such as
maintenance and operation costs.

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 5. Introduction to risk and procurement:
Risk management is an important aspect of any construction project. It involves identifying,
assessing, and mitigating potential risks that may impact the project. Risks may include unforeseen
site conditions, changes in market demand, or regulatory changes.

Procurement is the process of acquiring goods and services for the project. Procurement involves
identifying the most appropriate suppliers or contractors, negotiating contracts, and managing the
procurement process.

6. The most suitable procurement route:

The most suitable procurement route for the hotel development project is Design and Build. This
procurement route involves the client engaging a contactor to design and construct the project. The
process begins with the development of the project brief, followed by the contractor’s design of the
project. The contractor is responsible for the construction of the project, as well as managing all
subcontractors and suppliers.

Advantages of the Design and Build procurement route include:

 A single point of responsibility, which simplifies the project management process for the
client.
 Cost certainty as the contractor is responsible for delivering the project within the agreed
budget.
 Faster project delivery, as the design and construction phases can overlap.
 Greater flexibility, as changes can be made to the design during the construction process.

The disadvantages of the design and build procurement route include:

 The client may have less control over the design of the project, as the contractor is
responsible for the design.
 Quality may be compromised if the contractor focuses on solely on meeting the budget and
timeline.
 Potential for disputes, as the contractor may seek to recover any losses incurred due to
design changes or unexpected site conditions.

7. Conclusion:
In conclusion, a well-defined project brief, feasibility study, effective cost planning procedures, and
risk and procurement management are well essential aspects of ensuring a successful development
project. By prioritizing cost certainty and quality throughout the project lifecycle, you can ensure
that your first development project in Windhoek meets its objectives and provides a solid foundation
for future developments.

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 8. Recommendation
Based on the importance of a well-defined project brief, carrying out a feasibility study, cost
planning procedures, risk management, and procurement. I recommend that you proceed with your
hotel development in Windhoek by first creating a comprehensive project brief. You should then
carry out a feasibility study to determine the viability of the project. Once the feasibility study is
complete, you should develop a detailed cost plan and identify potential risks. Finally, I recommend
that you should use the Design and Build procurement route as it is the most suitable for your
project.

If you have any further questions or require additional information, please do not hesitate to contact
me.

9. References
1. Project Management Institute. (2017). A guide to the project management body of
knowledge (PMBOK Guide) (6th ed.).
2. Ashworth, A. (2012). Cost Management of Construction Projects. Routledge.