CMA5000 Preconstruction Planning Report Assignment

Introduction

Manchester based Arkwright House, which is a property of architectural integrity that has been assigned the Grade II listed status, is on the precipice of converting to a contemporary 4 star hotel after the latest remodeling exercise. Proposed as an office block in classicist style this eight-storied building was the object of AIC’s attention; due to the historicist approach chosen, as well as because of the great demand for the space in such area. For instance, this report provides a strategic plan of analyzing and planning for pre-construction that outlines the basic steps to take to make the project a success right from procurement of construction materials, process of estimating costs and even risk management among others.

The project of reshaping Arkwright House is interesting as well as complex by its nature. The main idea was focusing on the premise that its plain and non-ornamental architecture should remain a tradition without sacrificing the incorporation of modern features for the hotel building. It is particularly crucial in the aspect of completing pre-construction planning, as it lays groundwork for the subsequent steps in cost control, time management as well as design. It also aims at identifying the procurement model most appropriate for this complicated redevelopment, inclusive of a cost plan based on information given by BCIS Online Suite and RLB Intelligence.

However, it also examines site constraints and opportunities, planning permissions, sustainability aspect and risks which are crucial before the project is designed to fit the current standards besides reflecting the building’s history. As the demand for luxurious lodgings increases in Manchester and the city aims at sustainable cities’ development, the project is strategic.

The purpose of this report is to provide a standard plan containing the idea and recommendations for remodeling of the Arkwright House which the project should follow based on data analysis in terms of cost, law provisions, and organizational adjustment. With a view to retaining its historical significance and implementing contemporary hospitality features, the Arkwright House project is in the right direction of becoming one of the iconic symbols of Manchester’s skyline of the future.

Procurement Strategy

It is necessary to develop an effective procurement plan for the procurement of refurbishment contractors to achieve the goal of completing the building conversion of a listed building into a 4-star hotel successfully (Brook, 2025). This implies that the strategy has to factor out cost, time, quality and risk factors. In comparison with the other strategies, Design and Build (D&B) is chosen as the most appropriate method of delivery with help of Two-Stage Tendering, due to the project characteristics and building’s historical background.

Choosing the Right Procurement Approach

In the Design and Build (D&B) system, the design and construction of the project are undertaken by the same contractor. In particular, the proposed method has the following benefits for Arkwright House:

• Coordinated Decision Making: Since one entity is in charge of both aspects, design and construction, it helps to eliminate the usual confusion. This is true more so when redesigning a historical building that has unique features that cannot be altered when designing the hotel interiors.
• Cost effectiveness: Simultaneous design and construction phases help minimize the overall period in between these phases, which is important in eliminating wasted time and, therefore, more time to generate income.
• Cost Stability: One point contract means, vendor is unable to charge extra fees other than specified in the design, thus has low risks to consumer.
• Contracting: The one who designs it is also the one who delivers it; it drives the contractor to solve problems and develop better solutions meeting the performance and quality objectives.

Due to the unpredictable mechanical, electrical and containment related issues that may well surface during the refurbishment of a building such as Arkwright House, the D & B approach is well applicable in this kind of projects. To avoid such dangers, construction specialization is introduced at an early stage while in development.

Tendering Strategy: Two-Stage Tendering

To support the D&B approach, the following tendering strategy, the Two-Stage Tendering procedure, should be adopted (Raman, 2021). The involvement of the contractors in the design development phase of the project is supported through this method but at the same time, affordability is not compromised.

• Stage 1: Involves the initial appointment of the contractor where a design and only an approximate cost have been prepared beforehand. This involves the contractor working closely with the design team to review the design features to be built, warning signs and proposing solutions to the design team to incorporate.
• Stage 2: When all details of the design are defined and costs are determined, a fixed-price contract is signed, providing cost only when construction is made.

This is particularly suitable in refurbishment projects whereby the actual construction environment is unknown at the planning phase — thus early contractor information can be used in order to avoid redesigns, which could be costly or lead to project delay.

Key Tender Documents

A comprehensive breakdown of the tender package is very vital since it reduces ambiguity and increases the level of understanding of the functions of the tender package. Essential documents include:

• Employer’s Requirements (ERs): Outlines function brief, aesthetic guidelines, environmental objectives, and historical classification of the building as the Grade II listed structure.
• Preliminary Design Drawings: As the name suggests, these are designs that give a general idea on the cost of the project, probable contractors, and the room for creativity.
• Pricing Document: Provides a clear segregation of cost as per Substructure, Superstructure, Finishes and M & E services.
• Legal Considerations: The main form of procurement is the JCT Design and Build Contract with variations made covering the following areas; heritage and risk management between the client and the contractor.

E-Procurement and Digital Tools

The application of advanced and sophisticated digital procurement tools will improve the tendering process with regards to the degree of transparency efficiency and accuracy.

• Online Procurement System: Expedites communication, bid evaluations and handling of documents, cuts down overhead cost of procurement as well as compliance with procurement rules.
• Building Information Modelling (BIM): Essential for a heritage project like Arkwright House, BIM facilitates collaborative design development, clash detection, and real-time cost monitoring (Harris, 2022). It can give clear understanding of how modern hotel would look like with some parts of historical items intermixed; It also saves time and money from making changes on site.

Balancing Risk and Flexibility

As is the case with most construction projects, refurbishing of a Grade II listed property is a risky venture and hence the procurement system has to identify major risks such as

• Design and Build advantages: An early contractor involvement means that such things as asbestos and other structural problems that were not seen during the planning stage will be discovered early enough.
• Flexibility in Design changes: In the course of design development, it is possible to approve changes without recourse to separate agreements for every adjustment — preserving the project’s pace.
• Cost Overruns: The fixed-price agreement at Stage 2 means that the client will not be confronted with increased prices during construction, while a contingency allowance is included in the price schedule.
• Heritage requirements: Only working with professionals that are knowledgeable about previous refurbishments helps assure that the project complies with local authorities for heritage and the guidelines provided are possible from Historic England to start with.

The Design and Build together with a Two-Stage Tendering enables us to achieve high value at a competitive price for the Arkwright House refurbishment through cost certainty, speed, quality, risk management. The fact that the architecture and design as well as construction have to go hand in hand for the project to meet both the requirements of historic and aesthetic significance as well as the modern functional necessities makes this approach logical it imperative.

Through establishing e-procurement platforms and BIM technology it becomes transparent, fast, and provides an insight, which is much required for dealing with the challenges of renovating a Grade II listed building (Sarki et al., 2022). With this strategy in place, Arkwright House will be properly positioned for the delivery of the planned hotel business as a modern, sophisticated 4-star hotel that seeks to maintain historical character whilst contributing to the development of Manchester hotel industry.

Cost Estimation

Cost control in the refurbishment of Arkwright House is crucial to today’s construction project since it enables the accomplishment of the project at an assumed budget while concurrently satisfying the quality and performance requirements (Alleweldt et al., 2021). The cost analysis in this work provides a detailed description of costs based on market conditions and costs rebased to 1Q/2025 for Manchester area. This section will also provide an interpretation of that data in relation to conversion of the building to Arkwright House 4 star hotel.

Total Project Cost Overview

The total value of the contract for the Arkwright House is worth £23,392,723 with £2,519 per square meters of the 9,290 square meters of the construction. It comprised all important cost factors, preliminary, contingent costs and cost of design.

Elemental Cost Breakdown

Element	Total Cost (£)	Cost per m² (£)	% of Total
Substructure	£298,121	£31	1%
Superstructure	£8,042,763	£866	34%
Finishes	£1,405,751	£151	6%
Fittings & Furnishings	£161,149	£17	1%
Services (M&E)	£7,874,951	£848	34%
External Works	£1,082,491	£117	5%
Preliminaries	£3,330,400	£359	14%
Contingencies	£902,134	£97	4%
Design Fees	£294,964	£31	1%

The superstructure and M&E services take the largest share with 68% of the overall cost. This is consistent with unique structural enhancement and techniques of modern construction as they relate to a hotel’s functionality including; Elevator infrastructure, heating/cooling, fire protection among others.

BCIS report

Refurbishment-Specific Considerations

Arkright house being a Grade II listed, there are other costs associated with the constraints that are inherent with such buildings. Key cost impacts include:

• Structural reinforcement: Steel frame, curtain walling and new concrete floors show the imperatives of strengthening and remodeling of the building that originally was built sometime in the 1930’s. This is supported by the £8M cost of superstructure as indicated above.
• Services: The £7.87M services cost include new contemporary ventilation, climate control, and lifts to be efficient to run 4-star hotel.
• Finishes and Furnishments: Contrary to fittings, finishes and furnishments are still low at £1.4M for finishes, and £161k for furnishing It is however likely to cost more when one decides to use luxury finishes. High-end materials, smart room systems, and boutique-style décor need additional budgeting.

Preliminaries and Contingencies

The £3.3M preliminaries (14% of the total cost) cover site setup, logistics, and project management overheads. It is suitable for a building site in the middle of a city that will be surrounded by restrictions in traffic access, noise control, and restrictions of a heritage site (Smith, 2021).

The £902K or 4% is used to cater for any additional costs — cost which are unexpected such as possible structural problems, existence of asbestos, or defects that may exist in the building due to its antiquity. A higher contingency (5-7%) may be used in order to cover additional risks.

Adjustments for Hotel Conversion

Even though the cost structure of the current building is mainly influenced by the fact that the building served as an office with a subsequent refurbishment, several new cost levels arise in case of hotel conversion:

• Furniture and fixtures: Expect some brightening of this section with boutique-like interior design, en suite bathrooms, hi-tech gadgets, and awesome finishing.
• M&E Works: technical systems, specialty lighting, mechanical systems for the lobby redesign, restaurant space, fitness area, and back side functions.
• Sustainability Measures: In accordance with the contemporary energy criteria and Manchester’s priorities in sustainable development, additional costs of isolation, efficient systems, and possibly BREEAM accreditation may occur.

Some extra investment of 10-15 % onto the current total, bringing the project to £26-27М, to may be needed to account for these enhancements peculiar for hotels only.

Arkwright House refurbishment is a considerable capital-intensive project, not only does it cost 23.39 million Pounds in total but it demands an approximate 2,519 Pounds per each square meters of the building. Among all the elements, construction superstructure and M&E services remain the most costly items because of the requirements of a modern high rise building that is being converted for hotel use (Crowther and Ajayi, 2021). Even though the current methodologies give a good starting point, there are several adjustments for high-end finishing, guest facilities, and sustainability features. Taking into account the 10-15% added, the project is more realistic to have at the £26-27M pounds, all the while preserving the historical building of Arkwright House and converting it into a first-class 4-star hotel.

Planning & Approvals

The transformation of Arkwright House, which is a Grade II listed building used as an office block into a 4 star hotel also involves meeting many formalities and procedures (Tariq and Gardezi, 2023. This section discusses planning activities and exemption while undertaking the project, legal approval, and other measures that should be followed during project implementation while respecting the historical structure.

Planning Permission and Listed Building Consent

Since the site where Arkwright House is located has a Grade II listed status, it is crucial to seek Listed Building Consent from the Manchester City Council following the Planning (Listed Buildings and Conservation Areas) Act 1990. This approval guarantees some of the unique characteristics of architectural designs like façade, Lobby design, and structural frame to be fulfilled during the refurbishment process.

At the same time, the permission for the change of use of the commercial offices to hotel accommodation should be sought and obtained at full. This requires submission of:

• Architectural plans and design proposals
• Heritage impact assessments
• Sustainability reports
• Transport and noise impact studies

Concerning Manchester’s urban development goals, energy efficiency, and water, and modern, low-carbon materials’ usage will find approval.

Building Regulations Compliance

The project must have to follow the building Regulations 2010 so that it would make pleasant safe and accessible and also efficient in energy. Key considerations include:

• Fire safety measures — fire resistance, fire extinguishing equipment, and evacuation plan
• Stability — checking of additions and reinforcements to conform to current loading capacities
• Facilities — ramps, lifts, and adapted rooms for the better conformity to the Equality Act 2010
• Energy conservation — skilled in insulation various ways, appropriate heating and ventilation systems, and proficient energy control systems.

Environmental and Sustainability Approvals

Since Manchester has placed significant emphasis on making the developments of the city more sustainable, it is important that BREEAM certification or a similar accreditation is achieved. It also helps in making certain that the refurbished Arkwright House is a facility with optimum effectiveness in terms of environmental performance, energy use, and emission and waste minimization.

Risk Management

Risk Category	Description	Likelihood	Impact	Mitigation Strategy
Structural & Heritage	Hidden defects (e.g., asbestos, weakened structures)	High	High	Conduct early structural surveys and intrusive investigations. Engage heritage specialists to ensure compliance with conservation standards.
Regulatory & Planning	Delays or refusals in planning permission or Listed Building Consent	Medium	High	Engage planning consultants early, maintain flexible design, and ensure proposals meet heritage and sustainability requirements.
Cost Overruns	Price inflation, unforeseen design changes, labor shortages	High	High	Use fixed-price contracts, source materials locally, and integrate BIM for accurate cost modeling.
Supply Chain Disruption	Material shortages or delivery delays impacting timeline	Medium	Medium	Develop a diversified supplier base, prioritize local suppliers, and pre-order critical materials.
Health & Safety	Accidents on-site or public safety risks due to urban location	Low	High	Implement a robust Construction Management Plan, ensure compliance with Health and Safety regulations, and conduct regular risk assessments.
Environmental Risks	Failure to meet sustainability standards or environmental regulations	Medium	Medium	Integrate energy-efficient systems, prioritize sustainable materials, and aim for BREEAM certification.

In the case of the Arkwright House refurbishment, there are risks that are deemed to influence the costs, time and quality of work done on the project running from June to August. Other concerns include structural and heritage that is a priority because of the building’s Grade II listing. As far as structure surveys, defects that have appeared during construction work, collaboration with qualified heritage consultants, and correspondence with access to conservation guidelines are concerned they should all be done at the beginning of the project implementation.

Regulatory and planning risks are monitored in the project to incorporate late Listed Building Consent by engaging early consultants and lox design and implementing adaptable changes. Inflation and related issues, availability of materials and labor gaps are controlled through fixed price contracts, local procurement, and use of BIM techniques for cost control. Health and safety concern risks are managed through a proper Construction Management plan, continual risk assessment and compliance to laws on health and safety (Jia et al., 2022). Further, sustainability instructs applications for energy management solutions, energy-efficient system implementations and BREEAM certifications to mitigate environmental risks strategically and proactively for the efficient and legal building’s operations in the long run.

Conclusion & Recommendations

The proposal of converting Arkwright House into a modern 4 star hotel in Manchester offers the Reconstructionist a chance to make a modern hotel in line with the structures of Manchester’s history. In order to unlock early contractor innovation, cost, and efficiency – key to delivery requirements to refurbish a Grade II listed building – the decision to develop a Design and Build (D&B) procurement using Two-Stage Tendering is advised. As for the cost breakdown totaling £23.39m which include a contingency of between 10-15%, the cost that has been estimated for this development when utilised in the budgeting process takes into consideration not only high-end finishes, the provision of enhanced services and sustainability solutions.

To reduce the risk on the success of the project, the following recommendations should be made:

• Initial Involvement of Consultants: Work with heritage consultants as early as possible so that you avoid having to make wrong alterations that will entail expenditure and may slow down the processes of gaining planning approvals.
• Contingency Budgeting: to have an allowance of 5-7% for any possible structural problems or change of regulation.
• Local Sourcing: Ensure that the source of the supplies and materials needed in production is sourced locally so that there is no disruption and high costs due to imports.
• Increase Sustainability Features: The company should strive to attain the BREEAM certification to ensure that it operates sustainably, considering the environment in Manchester.
• Leverage Digital Tools: Utilize Building Information Modelling (BIM) and e-procurement platforms for enhanced project coordination and cost control.

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