Proposal for Professional Project Services

STERLING PROJECT MANAGEMENT

Samahita Residences
Villa Construction
Project Management
Process

Contents

Villa Construction Project Management

CONTENTS OF THE DOCUMENT
1.0 Executive Summary
2.0

Design Phase (Pre-Construction)

3.0

Construction Phase

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Section

1.0
Villa Construction Project Management
EXECUTIVE SUMMARY

Following correct Project Management process will ensure the design and construction
of your villa to be a relatively smooth process resulting in a well built, quality finished
home, completed within a year to a pre determined budget.
This document details the Project Mangement process and procedures implemented
and executed by Sterling Project Management during the build process from concept
design through to construction.
Once the land has been procured and funds established with the purpose to build a
villa, the Project Manager should be engaged to facilitate and manage the entire
process including but not limited to the following :

Concept to construction co-ordination of Architectural, Structural, Mechanical,

Electrical and Sanitary design.
Preparation of specifications.
Facilitate design and procurement of Build Permit from the Local Authority called
the Thesabaan.
Tendering, pricing and cost analysis.
Procurement of Contractor.
Preparation of construction contract intended to mitigate the owners risk.
Quality Control and Construction Management of onsite processes and material
installation.
Contract Management and Cost Control
Programme Management
Practical Completion, Final Handover and Warranty period..

The Project Management process can be divided into two phases:

1. Design Phase (Pre-Construction)
2. Construction Phase

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Section

2.0
Villa Construction Project Management
DESIGN PHASE (PRE- CONSTRUCTION)
At the beginning of the design phase, if you do not already have your own architect or
design team, we recommended engagement of Rarin Design as they have been
integral to the planning and establishment of the development, have already designed
several villas, and have a long established working relationship ourselves and the
Developers of Samahita. We can manage the appointment directly or introduce Rarin
Design if you prefer.
The design phase comprises five main areas:
1. Concept design
2. Build permission design and Build Permit application & approval
3. Co-ordination and completion of full design
4. Tendering, pricing and cost analysis
5. Contractor selection and contract signing.

1. Concept Design
This is the first stage where the Owner decides on the size and style of villa and
the Architect produces some basic floor plan layouts. Once the layout is agreed,
the Architect can then produce some 3D coloured perspectives which show
elevations of the villa on the land. The time to develop and agree a concept
design could be from 2-4 weeks. The Architect will make the concept floor plans
gratis, but will require engagement of services to complete the coloured concept
perspectives and all services thereinafter.
In normal circumstances a topographical survey would be required to determine
the land contours before commencement of the villa design, however at
Samahita a survey of all the plots has already been carried out by the
Developer.

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2. Build Permit Design, Application and Approval

Prior to commencement of construction, a Build Permit must be procured from
the local planning authority, called the Thesabaan. The villa design must comply
to the local planning regulations such as; boundary set back, building height limit
and floor space to land coverage ratio. Other documents will also be required for
the Build Permit submission such as; power of attorney, land owners consent
form, chanote land title deed papers and company papers. The cost of the Build
Permit is between 25,000 50,000 baht, depending on the size of the villa and
location, and the approval process time is about 3-4 weeks or faster if you pay a
higher fee. After the concept design is agreed, it takes about 3 weeks for the
Build Permit design drawings to be prepared.
3. Co-ordination & Completion of Full Design for Construction
There are many design components to complete the full construction set of plans
for the villa which when completed must be checked for design conflicts,
buildability, conforming to Local Authority guidelines and conforming to
specification. The construction drawings include design elements for the
following:

Architectural design including furniture and landscape drawings

Structural engineer

Electrical system

Water and waste system

Air conditioning system

TV system

Telephone and internet system

Audio visual system if required.

At Samahita, the Developers wish for all villas to be constructed using

sustainable and renewable resources, so they have included in the land
purchase document the following Green initiatives to be incorporated into the
design:

Solar hot water system

Rain water collection and roof gutters

Natural roof materials (wood shingle or similar style & colour)

Earth tone colours to exterior of building

Energy saving light bulbs

Recycled wood products where possible

Non-chlorine swimming pool system such as saline pool

Low flush water saving toilets

Cross ventilation incorporated into design.

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4. Tendering, Pricing & Cost Analysis

Standard practice to price the villa would be to tender it to a selection of
Contractors and then choose one based on the best price, capability and quality
of workmanship. The standard of Contractor differs greatly on Samui, so
important considerations are to select a Contractor capable of finishing the villa
in the time agreed, to the quality desired and at a fair price, which should include
everything necessary for the function of the villa. The capable Contractors are
not necessarily the least expensive, but they are often better value than the
cheapest Contractors as they generally complete the project on time and budget.
At Samahita, we have been through the tender process for the Developers own
villa and others. This resulted in Samui Villas and Homes being selected as the
Contractor, who then successfully completed the Developers villa to a high
standard and on time. They were not the lowest bidder in the tender process, but
they were the lowest compared to what are deemed the most competent
Contractors, and after cost analysis of all tender BOQ submissions, they
represented the best value, therefore they were considered the best choice and
subsequently selected as the preferred Contractor for the project.
Samui Villas & Homes have agreed to fix their pricing for other owners wishing
to build at some later date, therefore this eliminates the need to tender to other
Contractors, unless the Owner specifically requests this, or has their own
Contractor in mind, in which case we are happy to assist with the process.
The pricing of the villa is a straight forward and transparent process. The
contractor measures and quantifies all elements of the villa, then applies the
agreed project rates for material and labour, plus a percentage for their profit
and overhead, resulting in the formation of a Bill of Quantities. As Project
Managers, we check each line in the BOQ to make sure the correct rates have
been included, we check that the measured quantities are correct, plus check for
exclusions, qualifications, omissions and errors.
5. Contractor Selection & Contract Signing
Once the Contractor has been interviewed, selected and the price agreed, a
construction Contract between the Contractor and Owner is to be made and
signed by both parties. The Contract is based on Internationally recognized
Forms of Contract with additional information specific to Thailand added. The
Contract is designed to give maximum protection to the Owner and will include
risk offsetting components such as:

Agreed maximum lump sum price

Price based on design drawings and not BOQ

Fixed start and completion dates

Liquidated damages should completion be delayed or prolonged

Retention monies deducted from each payment

Payment procedure and schedule

Monthly progress payments based on work complete

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Practical completion

Warranties and defects liability period

Construction can commence once the Contract has been signed and a
mobilization payment of 15% of contract value is paid to Contractor. The
mobilization payment is like a loan, as each month it gets paid back by the
Contractor as a proportion of the work complete.
Design Phase Schedule & Costs
The length of the design phase from time of agreeing the concept to signing of
contracts is 3-4 months and can be broken down into the following:

Agree concept layout :- 2-4 weeks

Complete concept perspectives and elevations:- 1-2 weeks

Complete build permit drawings and documentation:- 2-3 weeks

Build Permit approval:- 2 weeks

Complete tender/construction drawings:- 2 weeks (concurrent with build permit

approval time)

Price and prepare BOQ:- 2-3 weeks

Cost analysis and contractor negotiation:- 1-2 weeks

Preparation and signing of contracts:- 1 week

Indicative costs to expect for the design phase:

Architectural Fees:- 300,000 baht 350,000 baht (depends on size of villa and
includes all structural and MPE design)

Build Permit Application (Thesabaan Fee):- 25,000 baht 50,000 baht

(depending on size, style and elevation of villa)

Project Management Fees:- 30,000 baht per month

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Section

3.0
Villa Construction Project Management
CONSTRUCTION PHASE
The Construction Phase can be subdivided into several main segments:
1.
2.
3.
4.
5.

Site Establishment
Construction Management
Contract Management & Cost Control
Programme Management
Final Completion and Handover

1. Site Establishment
Construction can start about a week after the contracts are signed and mobilisation
payment made to the Contractor. Site Establishment and set out is the first step of
the Construction Phase and includes but is not limited to the following activities:
Boundary survey to establish correct position of chanote markers and
verify location of boundaries.
Set out villa footprint in relation to the boundary setback and determine the
floor levels.
Survey and setout of foundations.
Connection to temporary power and water.
Establish site office, amenities, materials store any temporary
accommodation.

2. Construction Management
Construction Management can be described as Quality Control of the construction
and is achieved through dual management of the site works and document control:
i.

On site supervision & inspection of materials:

o General inspection of works for compliance to specification &
standards
o Pre-pour inspections before concrete placement
o Hold points for inspection of MPE services prior to covering/closing
o Material sample approval prior to installation
o Site meetings

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ii.

Documents Control:
o Drawing distribution register
o Site instructions and summary register
o Non-conformance reports
o Corrective action reports
o Request for Information (RFI)
o Diary notes

3. Contract Management & Cost Control

Contract Management or Contract Administration is the management of the terms
and conditions of the Construction Contract to ensure compliance by the Contractor,
as well as documenting and agreeing any changes that may arise during its
execution. Costs are controlled by the management of processes such as:
o
o
o
o
o

Cost planning and budgeting

Monthly evaluation of contractor progress claims
Issue of Payment Certificate
Variation appraisal and approval
Facilitate any subcontractor and/or supplier payments

The Contractor will make monthly progress claims based on the work which has
been completed, so there is little risk of the Contractor defaulting, having been over
paid. In addition, for each monthly claim a proportion of the mobilization payment is
deducted, plus 5% retention is deducted. Half the retention is paid back on Practical
Completion and the remaining half is paid back at the end of the 12 months defect
liability period.

4. Programme Management
This includes the preparation & management of the project schedule, time control
and the evaluation of any extension of time claims.
The schedule can be split into structural work and architectural finishing work. The
structure can take 3-4 months to complete, depending on size of villa, slope of the
land and access for materials, the structural work sequence goes as follows:
o
o
o
o
o
o
o
o
o

Excavation of foundations and swimming pool

Formwork, Reinforcement and Concrete to footings and pool
FRC stub columns
FRC ground floor beams
FRC ground floor slab
FRC columns from ground floor to first floor
FRC first floor beams and slab
FRC first floor to roof columns and roof beams
Structural steel roof framing

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Samahita has a lot of rock, therefore there is the potential that some excavation in
rock may be necessary, this could result in some additional cost and extension of
time, because rock is considered a latent ground condition.
Once the structure is complete, work will commence to the architectural finishing.
First the block walls are built and rendered, this activity can overlap with the
structural work in multi level buildings. Then the following tasks are completed:
o
o
o
o
o
o
o
o
o
o
o
o
o

Install electrical conduits and cable

Install sanitary pipe work
Install windows and doors
Install ceilings
Floor finishing
Bathroom wall tiling
Wall finishing
External and internal painting
Installation of electrical outlets and lighting
Installation of bathroom sanitary ware
Built in furniture
Kitchen installation
Final paint and touch up

5. Final Completion & Handover

At the completion of the project, a certificate of Practical Completion will be issued
for the owner to sign, this signifies that the building is fit for purpose and that the 12
month defects liability period can commence. In the weeks prior to completion, a
register of defects and incomplete works is prepared and the work rectified,
however this is not the final list of defects as the building is under warranty for 12
months, therefore the contractor is contractually obliged to return and rectify any
problem within that 12 months. The structure is under warranty for 5 years. Testing
and commissioning of the electrical, plumbing and air conditioning systems is the
final activity prior to completion.

Construction Phase Schedule and Costs

The time to build a villa will change according to the size and location, however
construction time is generally 6-9 months for a smaller 2-3 bedroom villa and 9-12
months for larger 4-6 bedroom villas. The inclusion of built-in furniture such as
wardrobes, beds, cabinets etc. will add about 5-6 weeks to the schedule, as it is built
insitu in the villa, therefore the contractor cant complete his final finishing until after the
furniture is built.
Smaller villas can be 200-300 sqm in area and larger villas can be 500 sqm and over
including internal/external area plus swimming pool. The cost of construction depends
on the villa size, quality of specified finishing materials & fixtures, plus location either on
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steep hillside or flatter ground, however as a guide the cost range is approximately THB
21,000/sqm to THB 25,000/sqm.
Not included in the Contractors contract price is the kitchen & appliances, furniture
(loose & built-in), landscaping, curtains and blinds, connection to internet and
telephone, audiovisual such as subscription to satellite TV.
Project Management fees for the construction phase are 60,000 baht per month.

Conclusion & Recommendation

Building a second home in a foreign country is a big investment and can be a daunting
task if you are not sure of the design and construction process.
Engaging a professional Project Manger to assist with the overall planning, coordination
and control of the project from inception to completion will ensure the Owners
requirements are met in order to produce a functionally and financially viable villa that
will be completed on time within authorized cost and to the required quality standards.
Sterling Project Management will help you get it right the first time, ensuring the project
is brought to a successful conclusion.

Should there be any questions to any of the information above, please do not hesitate
to call Shane from Sterling Project Management on mobile phone 0848 496 255 or
email at shane@sterling-thailand.com.

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