Integrating design feasibility and financing in building construction projects : a case study of furama resort and spa project on Phu Quoc Island | |
| Author | Ngo Minh Hoang |
| Call Number | AIT Proj. no.MPM-CM-23-02 |
| Subject(s) | Feasibility studies--Vietnam--Case studies Construction projects--Finance--Vietnam--Case studies |
| Note | A project submitted in partial fulfillment of the requirements for the degree of Master of Science (Professional) in Construction Engineering and Infrastructure Management |
| Publisher | Asian Institute of Technology |
| Abstract | The success of a construction project is heavily dependent on the design and cost estimation phases, as they are crucial in determining the project's outcome. Nevertheless, they are not the primary concern that investors take into account prior to making a decision regarding a project. The feasibility study is typically regarded as the initial stage of a project, preceding the involvement of architects and designers. The feasibility study is typically initiated well in advance of the design phase, requiring investors to rely on planning indicators provided by authorities and guidance from advisors to accurately estimate project costs. Consequently, as the design attains sufficient clarity for cost estimation, the construction expenses frequently surpass the budget outlined in the feasibility study. This issue commonly arises in projects that are intricate in design and necessitate a high degree of aesthetic appeal, such as luxury hotels, high-end residential complexes, and similar undertakings, as opposed to more standard projects like residential buildings and infrastructure. The planning indicators do not account for the expenses associated with completing the architectural block massing index. Compared to other forms of real estate investment, hospitality properties such as hotels, resorts, and condotels present unique challenges in managing design and construction costs. This is primarily due to the need to meet high aesthetic standards and ensure superior finishing quality, as well as the significant investment required. One type of hospitality, namely resorts, presents a paradox wherein it is possible to meet all demands without incurring exorbitant costs for design and construction. When discussing resorts, our typical associations involve structures or artwork that are visually pleasing, opulent, and provide a pleasurable experience. The resort design incorporates a synthesis of the aforementioned criteria. From an investor's perspective, challenges also arise. This paper concerns the identification of an optimal point that balances budget constraints with construction costs while satisfying all relevant criteria. One approach to a more integrated construction delivery process is the concept of ‘designing to target cost’ of which the first examples of application within a lean construction framework have recently been seen. This study also introduces the main principles of the design to target cost method and discusses the applicability of this approach to construction. The low degree of organizational and technical continuity from one construction project to the next limits the applicability of the design for target cost approach when compared to its origin in product development of mass manufactured artefacts. The approach can, however, be applied as a way of substantially involving the production organization from the earliest phases of schematic design and thus contribute to enhanced value and reduced waste for the overall project delivery as well as for the many assignments of which it is ultimately composed. It can be argued that design to target cost may also provide a frame for developing the supply chain towards better coordination and collaboration. Thus methods of design to target cost may serve to facilitate the development of a more integrated supply chain. |
| Year | 2023 |
| Type | Project |
| School | School of Engineering and Technology |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (Professional Master) (MPM-CM) |
| Chairperson(s) | Hadikusumo, Bonaventura H. W.,; |
| Examination Committee(s) | Chotchai Charoenngam;Sakul Pochanart; |
| Degree | Project (M. Sc.) - Asian Institute of Technology, 2023 |