Construction Management of The Venetian Macao Resort Hotel

Construction Management
of
The Venetian Macao Resort Hotel
Presentation at Macau Construction Association Seminar
on
Opportunities and sustainability of construction in Macau
22 November 2007
Why is Macau booming??
Gambling in Macau
• Gambling in Macau legalized in 1847
• First casino monopoly franchise granted in 1937
• In 1962 government granted STDM the monopoly rights
over all forms of gambling
• This licence was extended in 1986 for 15 years but then
expired in 2001
Gambling in Macau
• In 2002 the government signed concession contracts
with two gaming companies:
— Wynn Resort Ltd
— Galaxy Casino (with sub - concession to Venetian)
• Venetian broke ground in September 2002 for the
construction of Sands casino
Gambling in Macau
•
In 2003 Macau had 14 casinos
•
Now it has 27
•
Until Sands opened in 2004, Casino Lisboa was the biggest
casino in Macau
•
Open 24 hours per day, no entry fee
•
Compared to western casinos the atmosphere had been
unglamorous with the emphasis on serious betting
•
In 2004 the opening of Sands brought a new style to Macau
•
The shaping of a new Macau began
Macau Challenges Las Vegas
•
2006 Gaming Revenue of US$6.69 billion
•
A total of 38.9 million visitors in year
2006
•
133,000 Hotel rooms (110,000 on the
Strip) today
•
Average length of stay 3.5 days
•
2006 Gaming Revenue of US$7.2 billion
•
A total of 22.0 million visitors in year
2006 (projected to grow to 38 million by
year 2010)
•
15,000 Hotel rooms today
•
Average length of stay 1.2 days
The Venetian Macao Resort Hotel
Project overview
The Cotai Strip
Macao Special Administrative Region
The Cotai Strip TM
The Cotai Strip™ Phase I
• 7 resort hotel complexes
• 20,000 guest rooms
• Over 1 Million sq ft of casino
space
5
2
• Over 2 Million sq ft of meeting /
convention space
6
3
• Up to 2.5 – 3 Million sq ft of
Master-planned retail space
connected by all-weather airconditioned moving walkways
• 2,500 vacation suites
• 25,000 seats for live entertainment
7
8
Cotai Development
Progress at end August 2007
Macau Infrastructure
• New Ferry Terminal: A second port to
bring international exhibitors, visitors
and delegates directly to the Strip
New Ferry
Terminal
Airport
• Macau International Airport Expansion:
Additional 5 parking spaces to bring
business people from China’s major cities
of Beijing, Shanghai and Taipei as well as
international businessmen from Malaysia,
Singapore, Thailand, Korea and Japan
directly to the Strip
• Light Rapid Transit System: Integrated
Rail System to move visitors and workers
to and from the Strip
• Technology investment at border crossing
Project in Perspective
Las Vegas Sands Macau
Project in Perspective
HK International Airport
Project in Perspective
98 Boeing 747 Jumbo Jets
Project Zones
Energy 2
3 Expo
Events
5 Bus
Congress
4 Hotel
5 Pool Deck
1
Podium
5 Lagoon
Venetian Macau: Anchor Property of The Cotai Strip™
•
3,000 suites
•
1.2 Million sq ft of convention and
meeting space
•
1 Million sq ft Grand Canal Shoppes
•
546,000 sq ft casino with 750 tables and
4,000 slots
•
Over 20 restaurants
•
1,800-seat showroom
•
15,000-seat stadium
•
Outdoor recreation areas and
numerous other amenities
Podium
Zone 1
Podium LG1 (Car parks & B.O.H.)
LG1 (B.O.H. Area)
Food Preparation Area
Office
Main Casino
Main Casino
Wow Space
Wow Space
The Great Hall
Connection Atrium to Upper Level
Link to Retail
Grand Canal
Las Vegas
Reference
Photo
Grand Canal
North Canal – Retail Mall
St. Mark`s Square
Expo, Congress, Theatre & Events Centre
Zone 2 - 3
Zone 2 & 3 Overall Plan
Energy Centre
Congress
Expo
Theatre
Events Centre
Events Centre L1
Events Centre
Stage Area
Events Centre
Concourse
Events Centre Seating Configurations
Basketball
Table Tennis
Ice Floor
End Stage
Wrestling
Boxing
Congress & Energy Centre L1 & L3
Congress Hall
Front Entrance
Expo L1 & L3
Expo Hall
Hotel - Zone 4
32 floors
4 day cycle
Las Vegas Hotel Tower
Las Vegas Venetian Hotel Tower
Hotel Tower
External Facade
™ Replica Palaces
™ 50,000 pieces of GRC
Replica palace – The Doges Palace
The Campanile Tower
Construction Management
Traditional Procurement Diagram
Owner
Q.S
E&M
Engineer
Structural
Engineer
Architect
Owner’s Rep /
Administrator
Main
Contractor
Design
Co-ordination
Sub-contractor
Sub-contractor
Sub-contractor
Construction Management Diagram (MTC Route)
Owner
Cost
Consultant
Structural
Engineer
E&M
Engineer
Design
Co-ordination
Architect
Construction
Manager
Owner’s Rep /
Administrator
Major Trade
Contractor
Trade
Contractor
Selected
Sub-Contractor
Trade
Contractor
Construction Manager’s Role
•
No contractual relationship with trade contractors
•
Breakdown of project into packages with design team
•
Administrator under trade contracts (architect co-signs
certificates)
•
Co-ordinates and manages all design and construction with
a view to project completing to overall programme and to
project cost plan
Construction Manager’s Role
•
No vested interest in design or construction
•
CM does not guarantee the work of trade contractors or
design team
•
CM does not guarantee completion to programme or to any
particular sum
•
Genuine consultant - negligence based responsibility
Trade Contract - Features
•
Mixture of main contract and sub-contract
•
Contract features:
•
Contract with Owner
•
Paid direct by Owner
•
Administered by Owner’s representative (Construction
Manager)
•
Architect’s Role is different
Trade Contract - Features
•
Contract features:
•
Flexible start on site
•
Periods, not dates, for completion
•
Work and coordinate with others on site
•
No liquidated damages (genuine pre-estimate of loss is
next to impossible)
Advantages of Construction Management
1.
Speed
•
Quick start and fast track procurement
•
Useful where scope of project uncertain – allows design
development
Advantages of Construction Management
2.
Greater Owner Control
•
No main contract risk premium
•
Greater control over individual elements of projects
•
Variations can be incorporated more specifically and
cheaply
Advantages of Construction Management
3.
Less Adversarial
•
CM part of the Owner’s professional team
•
Encourages co-operation and trust
•
Better cash flow
Disadvantages of Construction Management
1.
Price Risk
•
No overall price certainty
Disadvantages of Construction Management
2.
Time for Completion and Delay
•
No single point of accountability for timely
completion of project
•
General damages for delay – costly and time
consuming to pursue
•
Typically smaller organisations as trade
contractors – less able to pay damages
Disadvantages of Construction Management
3.
Performance of Works Risk
•
No single point of
accountability for
performance of works
Disadvantages of Construction Management
4.
Alternative Management
Structures
•
Sophisticated management
structure – increased
administrative burden and
costs
•
Funders not as familiar with
structure
Role of the Construction
Manager on Venetian projects in
Macau
CM role - General
•
The Construction Manager works with the Owners as
an extension to the Owner’s in-house project team in
respect of the Development, reviewing matters with
him and the Design Team at a strategic level.
CM role - General
The general role of the Construction Manager is to:
• Encourage good working relationships
• Ensure that everybody is given the opportunity to
contribute their expertise
• Co-ordinate all consultation with third parties
• Lead the management of the Development and the
works of all the Trade Contractors and administer all
Trade Contracts;
CM role - General
• Keep complete and accurate records of the
Development;
• Provide a monthly progress report to the owner
• Perform other duties as may reasonably be required by
the Owner
• Attend all meetings as requested by the Owner
• Provide information to any interested parties as directed
by the Owner.
CM role - Specific duties
• The following specific roles are undertaken by the
Construction manager:
• Design management, including monitoring of the
production of the design in relation to the procurement
and construction schedules, initiating value management
and value engineering exercises, coordination of shop
drawing production.
CM Role – Specific duties
• Cost planning, including assisting the cost consultant to
prepare, monitor, review and adjust the cost plan for the
Development in line with the Owner’s brief.
• Programming, including the provision of construction
strategies, programmes, schedules and the like to
demonstrate the planned intentions regarding the timing
of the Development and for use as control documents
against which to manage and report the progress of the
development.
CM role – Specific duties
• Management of the working environment with regard
to third parties, surveys, government authorities, safety,
industrial relations, common services, site establishment
and organization including access, security, cleanliness,
logistics and materials handling, fire control, temporary
utilities, site accommodation and welfare.
• Procurement of all trade contracts within budget on
behalf of the Owner through a process of
prequalification, tendering, evaluation and award.
CM role – Specific duties
• Managing construction work, including progress
monitoring, testing, inspection and commissioning,
operation of a quality management procedure
appropriate to the needs of the Development
management of interfaces, issuing instructions,
managing insurance related issues, issuing certificates
of completion.
• Managing the works of future occupiers and operators
and associated access.
CM role – Specific duties
• Cost control, including the preparation of cost reports
and cash flows, management of change control,
preparation of estimates, reviewing contractor’s payment
applications, claims, final accounts and contra charges.
• Maintaining records and establishing an EDMS
system, collating O&M manuals, preparation of
submission documents.
Progress Photo – 30 September 2004
Reclamation Works
•
•
•
•
•
•
Reclamation started:
Reclamation completed:
Total quantity of sand:
Av. daily sand delivery:
Total site area (plots 1,2,3):
Total areas phase 1 Cotai:
22 July 04
17 May 05
3.0M m3 (3.92M yd3)
10,000 m3 (13,050 yd2)
399,100 m2 (98.5 acres)
614,500 m2 (151.6 acres)
Reclamation Works
Bored Piling Works
•
•
•
•
•
•
Commenced bored piling:
Completed bored piling:
Total number of bored piles:
Diameter:
Average length:
Total length of bored pile:
22 October 04
04 May 05
116
2.3 -3.0m (7-10 ft.)
65m (213ft)
7.54km (4.7 miles)
10.01.2005
Bored Piling Works
Driven Piling Works
•
•
•
•
•
Commenced driven piling:
Completed driven piling:
Total number of driven piles:
Average pile length:
Total length of driven piles:
16 Feb 05
19 August 05
13,500 (4 sections/pile)
45m (147 ft)
638km (398 miles)
09.06.2005
Driven Piling Works
Superstructure Works
•
Superstructure works commenced:
23 May 05
•
Superstructure substantially complete:
17 Nov 06
•
MEP works start:
22 Nov 05
03.10.2005
Progress at end December 2005
Progress at end February 2006
February 2006
Progress at end April 2006
Progress at end July 2006
Progress at end November 2006
Progress December 2006
Progress at end February 2007
Progress at end April 2007
Progress at end August 2007
Main Entrance
VIP Motor Court
The Entrance Collonade
Murals
The Rotunda
Facts and Figures
Materials
• Concrete placed 675,000 m3
• Peak figures
— Max. daily
— Max. weekly
3,041m3
14,919m3
• Rebar
80,000 tonnes
• Structural steel
25,000 tonnes
Plant
• 22 tower cranes
• 4 cranes could lift 25 tons @ 60m
• 40+ crawler cranes
• 40+ piling rigs
• 650+ scissor lifts and aerial platforms
Logistics
• Site logistics team established
• Co-ordinate the requirements of all contractors
— Transport
— Storage
— Waste removal
• Up to 1,500 truck movements /day
Equipment
• 119 lifts
• 58 escalators
• 12 sets of chillers (48,000 tons of cooling)
Labour
• Peak construction labour force around 11,000
• Macau, Hong Kong, PRC and some other countries
• Imported via government granted quota system
administered by Hsin Chong
Procurement
• Tender events schedule derived from the master
construction programme
• 205 trade contracts awarded mostly through competitive
tendering
• Construction Monthly spend around US$ 80m-100m for
the last 12 months
Grand Opening 28 August 2007
Thank You