Hotel Development - Construction Period

This is almost always a very stressful and challenging period

I n Thailand, working with construction companies is almost always a big challenge and it can be very costly if not handled properly.
Yes, developers hire a project manager to look after this work. However, trust us, without the ongoing input of the owner or owner representative things do not move as it should.
It is very important to choose the right company with a solid background from the early beginning through a Professional bidding process and check the construction companies financial status and references as well.
Weekly recorded and focused meetings with all stakeholders are a must to save costs, stay on the time-line and to make decision to reduce costs or address unforeseen (or man-made) circumstances.
It is also important to ensure the developer does not end up in a hostile situation with the construction company as it is not unusual to have the walk out from the project and it will be very costly and time consuming to find another company to finish the project.

  • WHY: To save costs
  • BENEFIT: Little delay in construction

Duration:

The importance is surly to select 2-3 good construction companies and go through a professional bidding process.
Besides that, the construction company must have good experience in building hotel or resort properties of your expected quality, must have a solid workforce, be able to provide a bank guarantee and agree on time frame and conditions.

In Asia, when talking about medium size developments, often, the main contractors does not have any asset and workforce etc. They only secure the contract and use sub-contractors to build and develop which put the owner/developer at very high risk.

Cost

Construction cost per square meter in Thailand varies from province to province and especially on islands the cost will be higher.
Basically you should compare the cost of square meter excluding and including M&E in your comparisons.
The real money you can save will be in interior and choice of materials.

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