The name of the project is Olympic Hotel and Resort. The project is to be constr

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The name of the project is Olympic Hotel and Resort. The project is to be constructed on the
Olympic Peninsula in Washington State. The project is also nicknamed the Olympic Hotel, or
simply hotel for convenience in this question. The client is Resorts International, Inc., a national
hotel chain which has considerable construction experience. They prefer negotiated open-book
construction projects which utilize a guaranteed maximum price (GMP) contract. They always
audit the contractor’s books. The client forms an independent limited liability company for each
hotel. In this case the ownership of the Olympic Hotel is Northwest Resorts, LLC (NWR).
The hotel is located on a 10-acre site. The site has been prepared by a previous horizontal developer
and civil construction contractor. The building is five stories tall. The first floor includes hotel
reception, administration, an exercise room, and back of house areas such as laundry and
housekeeping. In addition, the hotel has first-floor conference rooms and is targeting businesses
and professional associations looking for a weekend or week-long retreat.
The first-floor swimming pool design was not finalized at the time the GMP was executed but is
anticipated to be change ordered into the project before completion. The first-floor restaurant space
is also currently shelled and is being marketed to outside restaurant chains for lease and
management.
Floors two through five house all of the hotel rooms, 30 on each floor, with a central hall. Rooms
face either west towards the Pacific Ocean or east towards the Olympic Rain Forest National Park.
There are two elevators. There is an additional above-grade, but separate two-story parking garage
which will serve 150 cars which is scheduled to be built concurrent with the hotel. The first floor
of the hotel is to be constructed of cast-in-place (CIP) concrete formed with rough boards which
will provide it with a cedar plank architectural finish. The top four floors are wood-framed with
cedar siding which blend in with the natural surroundings. Structural steel is used throughout for
the main columns and girders. The architect, Gateway Design, has extensive hospitality and Pacific
Northwest experience. The general contractor (GC) for the project was chosen on a competitive
proposal basis. The client chose Evergreen Construction Company (ECC) whose main office is
located in Seattle, Washington, approximately three hours from the project site. ECC has an
extensive hotel resume. The contractor’s GMP estimate is approximately $24.5 million, which
includes a 5% fee. The jobsite general conditions estimate is developed from a detailed estimate
and totals just less than 7% of the construction contract value. The architect has prepared the
drawings and specifications to allow the client to achieve a Leadership in Energy and
Environmental Design (LEED) silver certification, if they so choose, which requires additional documentation and support from the construction team.
Based on the scenario presented above,
Make whatever assumptions are necessary.
1) Who will you include in the pre-construction planning team? Name the participants.
2) Which are the signs that a project may be experiencing financial difficulties?

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