Marketplace

New Construction Hotels

Even though nearly the entire world is going through a decline in new construction projects, the new construction of hotels is one area that seems to be bucking the trend. With the anticipation that global travel will continue to climb, the new construction of hotels--large and small, luxury and economy--is growing at an impressive rate.

The new construction of hotels are projects that are awarded to a general contractor, who is providing construction services, through a bid method. In some cases, the lowest bid--or the lowest price offered by a contractor--is the only thing the client is interested in; all other details are not relevant. But, depending on the construction process used or the desires of the client, a construction bid project can be more complicated.

The traditional method to a new construction of hotels project is to use the design/bid/build approach, where an architect or engineer oversees the project. They handle the design, produce construction drawings, oversee bids and contracts and the building process itself. The links between the architect, the client and the main contractor are direct. The contractor can win a project through the lowest blind bid or through the construction manager at-risk method, where the contractor guarantees to deliver the project within a guaranteed maximum price. Instead of simply serving as construction manager, the contractor also serves as a consultant to the owner during the design and development processes.

The design-build method has been increasing in popularity over the past decade. In design-build, the owner doesn't hire an architect to design the project, then seeks bids from a contractor. In this case, the owner solicits bids from a architect/contractor teams, who develop their own designs and include complete design and construction costs in their bids. This is different from the traditional process, where the architect completes the design before the contractors put in their bids. Some supporters say design-build makes for a simplified construction bid project, while opponents claim the method will likely lead to cost overruns since there is reduced oversight.

In the management procurement method, the owner holds the greatest amount of control. Instead of hiring an architect to handle the project in construction, or hiring a consortium, the owner oversees every part of the process. They hire the architect, the construction manager and, in many cases, the subcontractors. Proponents of this method believe it speeds up new construction and increases flexibility throughout the construction bid project process.

Leave a Comment

Roughneck Definition

Roughneck Definition Exxonmobil

ExxonMobil is an American gas, and oil company. It became a company in late 1999 when two oil companies merged into one. Exxon and Mobil. The company descended from the former Standard Oil company founded by John D Rockefeller. The merger of Exxon and Mobil to...

read entire definition