RENGENCY PLAZACASE STUDYLE MINH DUC17 April 201517 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 1REGENCY PLAZA RECAP- This was the first attempt of RHG in building luxurycondominiums The financial target was to earn $134.4Mgross and $26Mnet profits.- The project was targeted toward wealthy couples- Senior management at RHG had been highly committed totheir strategy of allowing buyers to customize theircondominium units.2RHG HAD A CLEAR BUSINESS OPPORTUNITY, STRATEGY AND VARIOUS GOALS TO ACHIEVE IN THIS PROJECTLe Minh Duc _ IDEAS Vietnamese interviews 17 Apr 2015PROJECT MANAGER'S ROLE3BUYERSKris H.PMRHGR. FarleyConsultantKDSProject ArchitectOBrian & SinclairRetaining ArchitectKellyContractorPMS ROLE(for condominium units)1. Managing DESIGN2. Managing CONSTRUCTION3. Managing MARKETINGCOST, TIME AND QUALITYLe Minh Duc _ IDEAS Vietnamese interviews 17 Apr 2015DESGN PROCESS17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 4Floor plate was definedTo decide on number, size and mix of condominium unitsTo coordinate buyers changes with base designKris agreed with KDS to build 96 units disregarding the advice of FarleyLong process to obtain the quotation and passive communication increase the delay risk substantiallyRHGs Financial Goals RHGs Business StrategyWithout addressing considerations that mayaffect the overall project values and sales rateMARKETNG PROCESS17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 5Communication with buyers about possible changes via a series of lettersBuyers could customize their units to a greaterextend increasing difficulties in design &construction process.Kris limited her own ability to anticipate buyers changes increasing risk of delay and out-of-consequence jobsTo sell a package of appliances and finishesRely on word-of-mouth marketRisky, only work well if the feedback from buyers is positive.PROPOSED ACTON- To define all objectives and direct all the efforts towards thosegoals- To involve Farley to address the considerations of design process- To setup a process with clear deadlines that would allow changesto be made before critical parts were finished- To anticipate customers needs- Not to rely heavily on word-of-mouth marketing.17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 6THE DESIGN AND MARKETING PROCESS COULD HAVE BEEN SETUP MORE EFFECTIVELYMLLER'S REQUESTED CHANGESThe Millers Susan R. P. Grogan RHG#1 Extremely dissatisfiedNo extra costNo delayDamage RHGs strategy# 2Happy: should the cost is acceptableDelay the constructionCostlyUnclear: who pay the extra cost due to delay# 3The change is possible but cost could be very highNo delayHigh risk of conflictsDifficult to manage# 4 Trouble with paymentsNo extra costNo delayReduce RHGs control# 5Higher units are more expensive/ Extra cost for the Millers (to pay Susan)Minimal extra costNo delayLess disruptive to the whole project17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 7KRS HOGDKNS' DECSON- Hogdkins could offer the higher units to the Millers at the samepriceoPositive on word-of-mouth marketing (Risks of similar requests)oPositive impact on overall project managementCONSTRUCTION IMPLICATIONS- The buyers changes were not included in the construction contract- Construction was started before addressing all the considerations17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 8The Millers Susan R. P. Grogan RHG# 5Higher units are more expensive/ Extra cost for SusanMinimal extra costNo delayLess disruptive to the whole projectTHE FLOOR LAYOUT17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 9~ 140 m2~100 m2~ 140 m2~125 m2~125 m2~ 140 m2- Price ranges from high to low- Enough for 2 3 bed rooms- Save cost and timeSAMPLE LAYOUT17 Apr 2015 Le Minh Duc _ IDEAS Vietnamese interviews 10Public Garden