Introduction
A redevelopment plan, though a costly venture, is done when the benefits outweigh the drawbacks (Hardie, et al., 2012). However, there are various considerations put in place to ensure that the project is in line with the safety requirements as well as the regulatory requirements put in place by the law. As per the redevelopment of the bank, the main concern is to increase the office space because of the increase in the economy around the locality. The building remains the headquarters of the bank but more to this, there is a likelihood of the increased occupancy of the building. Therefore, the redevelopment will need to ensure that there is a proper and sustainable use of the space around the CBD.Moreover, during the reconstruction and the redevelopment stage, the bank needs temporary headquarters and a space to continue with its activities and this can basically be ensured by proper planning prior to the redevelopment phase.
One major aspect of the redevelopment is the mutual agreement between the bank and the company. There is bound to be mutual gain between the two organizations with each contributing a substantial share in the redevelopment. Agreements, as well as contracts, stipulate the various roles that each of the shareholders in the plan will play (Turner, 2008). As per the bank, the costs incurred will be on the on the architectural designing of the building, with the other costs and planning done by the property development team. The remaining part will be played by the construction company. Finally, when all is said and done, the bank will retain the rights associated with the new building with the other parties playing, minor, but significant roles in the building ownership. All this is entrained in this report: the redevelopment entities and the necessary recommendations that may be associated with this agreement.
 
Contracts in the redevelopment
To begin with, there are various factors that need to be taken into consideration for the redevelopment of the property. However, because am in the position of a commercial manager in the construction company, which basically means the position that overlooks the construction management process, all this will fall under my wing. The design phase is one of the most underlooked, but yet the most important phase in the construction, or the redevelopment of any structural outfit. The bank manager has outlined and selected the company of his choosing on the architectural plans of the building. The plans need to be viable in the aspect of space as well as the costs to be incurred (Envision Eugene Technical Resource Group, 2011).in this regard, an architectural plan that does not comply with the safety standards, as well as the structural functioning of the building, is basically a waste of resources (Lowe & Leiringer, 2008). Therefore, the plans brought forth should have an opinion of the contractors and as a matter of fact, the property development team in it. All this is to make sure that the workability of the plans is relatively easy and the costs incurred are not that exorbitant. This process basically requires bidding but as in our case, this is already done selectively.
The architectural planning stage is an intricate one where there is the need for contractual agreement (Lowe & Leiringer, 2008). In the agreement between the bank owner and the architectural firm, some of the things that need to be discussed, and thereafter put on paper include: a decrease in the risk factor associated with the proposed structural drawings (O’Brien, 2008), the control over the performance (Jonas & McCarthy, 2009), costs and the standards of the building (Miller, 2008), the viability of the plans in relation to a changing work environment (Dewar, 2007) and generally value for the money put into the project.
In line with my work position as the commercial manager of the construction company, the aspect of bidding falls under my wing. There are basically two types of bidding processes that any construction process entails: a closed bid and a closed bid (IACCM, 2013). Since the redevelopment is, to a large extent, part of our plans, the bidding needs not to be done. Closed bids are reserved for projects which are basically privately owned (Ryall & Sampson, 2009). The bank manager has been selective in the bidding process in which case he has selected our particular company for this specific job. As a matter of fact, the bidding process has been reduced to just an agreement between the bank manager and the managing director. Moreover, there is no selection of the type of the work contractor based on the type of agreement. The contractor, as well as the client, are all under one umbrella of our organization.
Considering that there is no selection of the contractor on the basis of the type of contract, we as the company have the right to practice the work ethics on the basis of the best value selection (Schildkret, 2008). In this, the bank manager has delegated all the responsibilities of the redevelopment process on the property management by basically combining the qualification requirements and the best price.
Both the property redevelopment branch and the construction branch are under one roof and as such, the work is an internal affair. Our expertise in the construction, as well as the redevelopment, plays a significant role in this task. Therefore, in line with the architectural drawings and the construction process, our main aim is to ensure that there is a proper and appropriate, economically viable, redevelopment phase. The company will have to focus on minimizing the costs of construction but at the same time ensuring that the building is up to the best standards and regulations of building construction (Beaume, et al., 2009).
There are four payment criteria for any redevelopment phase: Cost-free plus, guaranteed max price, lump sum and unit price (Lowe, 2013).Since our main redevelopment agenda is to ensure that the building is completed within the shortest duration of time, we will have to examine the three payment criteria for proper selection. The first criteria of cost-plus-fee basically are very beneficial to the contractor. What this basically means is that the client will have to part with some amount of money, basically a percentage of the total, in addition to the contract stipulations (IACCM, 2013). However, since the client and the contractor fall all under one roof, there is the aspect of all the money remaining in the organization and as such, might modify the basic contract stipulations.
The second type of contract is the guaranteed maximum price which is, more or less, like the cost-plus-fee, but the payment fee is fixed and as such cannot go beyond a certain limit, as agreed by both parties.Unit price contract is the type of contract in which both the contractor and the client agree when the price of construction cannot be determined easily. On this regard, the client stipulates the units that should provide a maximum expenditure for the construction. Finally, there is the lump sum payment contract where the client pays the full amount of money required by the contractor (Lowe, 2013). The contract basically does not consider the success or failure of the project. Furthermore, there is no consideration on whether the cash brought forth will fully cover the completion of the project.
As outlined above and with the proper consultation between the two branches of the organization, the most likely contract of payment that is to be employed for the success of the project is the unit price.The client, the redevelopment branch, and, the construction branch will have to agree on the unit prices of the construction process which in turn will limit the expenditure while at the same time ensuring economic feasibility. As a matter of fact, the construction branch may as well stipulate the unit prices of the construction to ensure that the most appropriate design methodology is employed.
The redevelopment aspect will furthermore require a business model for the project. There are basically two models in the construction industry that outline the construction process: design, bid, build and design-build. As in our case, the most appropriate contract will be the design-build. The contract provides the platform for the redevelopment of the building when the designer and the builder fall under one roof (Lowe, 2013). As a matter of fact, the contract provides a more efficient and date sensitive redevelopment strategy for the project. The design and the redevelopment of the building g can furthermore happen at the same time.
The phases of the redevelopment
There are essential principles that will need to be employed for the redevelopment phase. All these principles serve as the guide throughout the redevelopment process and as such, neglecting them may lead to a delayed completion date or wastage of resources. There are basically five phases that make up the project management and as such, the commercial manager should ensure that are all ingrained in the redevelopment or construction process.
Feasibility of the project is a major principle determining factor. In this, there is a need for the evaluation of the bank’s proposed redevelopment plans. Furthermore, all the stakeholders in the redevelopment plan will need to be consulted to ensure that there is no infringement on any of the agreements. When all is agreed upon, we will need to create a project initiation document.
 
The second phase mainly involves planning. The planning phase mainly outlines the goals that are to be achieved by each member of the redevelopment team. However, all this is the duty of the project manager who basically outlines the plans and afterward creates a project management plan. This documents guide the redevelopment plan and outline the control and the execution of each team member (Sommer & Loch, 2009). Other documents that may be involved in this stage include the project statement and the project documentation, the structure of work breakdown, communication strategies and the plans for risk reduction.
As per the planning, the business statement and objectives basically try to establish the various milestones to be achieved during the redevelopment process (IACCM, 2013). It is a very useful tool that will guide the everyday working and provide the platform for creativity and innovation. The document furthermore outlines what is to be included in the work breakdown structure. In this, the work breakdown structure is to ensure that the whole process is broken down into various chunks that can easily be managed. The third document-communication plan-outlines the proper methodology to be used in communication between the various parties involved in the redevelopment plan. It ensures that everyone in the project is reading from the same page, therefore, preventing any sort of miscommunication or misunderstanding. Finally, the risk management plan is drafted to ensure that the managers are able to identify certain risks and provide measures that will avert them. Some of the risks that may be associated with the redevelopment may include changing economics, inadequate resources, increasing expenditure, time risks among others.
 
The third stage in the redevelopment is the execution. Basically, the execution phase is the stage that gives the green light for the commencement of the project. Therefore, the activities that will be involved in this stage include; execution of the various tasks, modification of the plans as well as the schedule, setting up of the tracking system among others. Moreover, this stage works hand in hand with the performance and monitoring stage (Rose, et al., 2014). The latter stage monitors the progress of the project and ensures that all is in line with the time schedule and the milestones.
Finally, there is the phase that identifies the completion of the project. The main aim of this stage is to create a project report that serves to identify all the remarkable achievements and underachievers of the project (Shinn, 2008). Furthermore, this stage allows the team to perform a budgetary analysis of the project and identifies all that did not get accomplished. In the redevelopment of the bank, this will be a vital piece of information that will be delivered to the bank manager upon completion of the project.
 
Recommendations
As indicated above, contracts play a vital role in the progress of any activity that entails two or more parties. As in our case, there should be a contractual agreement between the bank manager and the redevelopment branch of the organization. By doing so, any future misunderstanding and disagreements will be averted. Furthermore, the contract will provide a blueprint for the mutual redevelopment work done by both the bank and the property development team.
 

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