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PROPOSAL FOR

CONSTRUCTION MANAGEMENT SERVICES

TO

PT PANCARAN KREASI ADIPRIMA (MAYAPADA PROPERTY)

INDONESIA

FOR

HOLIDAY INN SANUR

BALI ISLAND, INDONESIA

INDONESIA, 27 FEBRUARY 2018

PROPOSAL NO: P-IDN-JAK-18-011-1

PREPARED BY:
PT ARCHETYPE CONSTRUCTION CONSULTANTS INDONESIA
Menara 165, 12th Floor
Jl. TB Simatupang Kav. 1
Cilandak Timur
Jakarta Selatan (12560)
T: +62-021 2951 6348

www.archetype-group.com

Proposal No P-IDN-JAK-18-011-1 Page 1 of 22

 HOTEL HOLIDAY INN SANUR

TABLE OF CONTENTS

PROJECT UNDERSTANDING ....................................................................................................................................3

CONSTRUCTION MANAGEMENT SCOPE OF SERVICES .............................................................................................4
PRE-CONSTRUCTION PHASE ............................................................................................................................................. 4
CONSTRUCTION PHASE.................................................................................................................................................... 4
PROPOSED ORGANIZATION CHART........................................................................................................................8
MANPOWER DEPLOYMENT SCHEDULE ...................................................................................................................9
SERVICES FEE ........................................................................................................................................................ 10
1. SERVICES FEES ................................................................................................................................................... 10
2. PAYMENT SCHEDULES ......................................................................................................................................... 10
3. GENERAL TERMS AND CONDITIONS ........................................................................................................................ 10
4. INCENTIVE CLAUSE FOR VALUE ENGINEERING ........................................................................................................... 12
VALIDITY OF THIS PROPOSAL ................................................................................................................................ 13
APPENDICES ......................................................................................................................................................... 14
1. VALUE ENGINEERING SCOPE OF SERVICES................................................................................................................ 14

Proposal No P-IDN-JAK-18-011-1 Page 2 of 22

 HOTEL HOLIDAY INN SANUR

PROJECT UNDERSTANDING

PT PANCARAN KREASI ADIPRIMA (hereafter the “Client”) would like to build a project named HOTEL
HOLIDAY INN SANUR, Indonesia (hereafter the “Project”).

1. Project Information
 Name of project : Hotel Holiday Inn Sanur
 Location : Sanur, Bali, Indonesia
 Function :
o Hotel operator : Intercontinental Hotel Group (IHG)
o Number of floors : 5 Floors
o Number of rooms : 126 keys
o Room size : approximately 26 sqm
o Facilities : restaurants, swimming pool, gym, and function rooms
o Number of basement : 1 level
 Consultants appointed :
o Architect : Airmas Asri
o MEP : Metakom
o Civil & Structure : Ketira Engineering
o Interior Design : HBA
 Total GFA : 9,200 sqm (approximately)
 Estimated investment cost : n/a

2. Project Schedule

As per client’s Master Schedule, construction is expected to start on April 2018 and to be
completed within 2 years (24 months).

3. Client Request

The Client would like Archetype to revise its quotation for the following services for the Project:

 Construction Management (CM)

In this context, Archetype is pleased to submit the below quotation for the required services.

Proposal No P-IDN-JAK-18-011-1 Page 3 of 22

 HOTEL HOLIDAY INN SANUR

CONSTRUCTION MANAGEMENT SCOPE OF SERVICES

Construction Management aims at delivering the Construction Works to the Client within agreed duration,
accident free and in compliance with quality specifications.
The Construction Manager will therefore organize, schedule, mobilize, and coordinate on site the
contractors selected by the Project Manager and the Client. During the construction works, he inspects,
monitors such contractors in order to achieve project targets.
The key areas of management are as follows:

Pre-Construction Phase

Risks, Constraints’ reviews and strategy

At Project Start up, The Construction Manager, in coordination with other parties, perform risk review to
identify all the risks, events, which may impact the course of the Project in relation with the Construction.
The Risk Register will list all agreed preventive actions and monitor their impact. Such impacts will then
be included within the Project Schedule and Budget. He will therefore:
 Participate in the Project Manager’s Risk Management.
 Review of Master Planning, and issue the construction Master planning.
 Review Contractor Tenders / Contract to ensure construction requirements for planning, quality and
safety are in line with Project requirements.

Construction Phase

Organization
 Monitor and coordinate the general construction program.
 Co-ordinate the Contractors mobilization and Safety Induction with regards to the project
requirements and time schedules.
 Monitor & Control the construction processes.
 Update the Periodic Risk Analysis and monitor the necessary prevention actions and their potential
impacts.

Planning
 Review Construction Programmes in accordance with WBS as issued by the Project Manager.
 Perform Weekly Progress Measurement and reports.
 Follow-up the lists of main equipment/material supply (orders), both for the direct supply of the Client
and for the contractors.
 Report on deviations pertaining to the Construction Programmes and delivery schedules.

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 HOTEL HOLIDAY INN SANUR

Safety Coordination
 Issue the Project Safety Requirement, review the Contractor’s Safety plan, and inspect the Contractors
Safety Organization.
 Perform Hazard assessment on the Project and Monitor the prevention action program.
 Inspect the Construction works and manage the Safety Non-Conformities.
 Chair the Safety Committee on a monthly basis to review the Safety implementation and issue a Safety
Report to the Project Manager.

Quality Management
 Issue the Project Quality Plan, review the Contractors Quality Plan and inspect the Contractors Quality
Organization.
 Review the Method statement, and approve the Inspection Test Plan prepared by the Contractors.
 Manage the inspections of Construction Works; manage the acceptance records and Non-
Conformities.
 Audit the quality of Manufacturers and perform various inspections in accordance with the Contract
conditions.
 Coordinate with all necessary material and samples submittal, as submitted by the Contractors for
approval by other consultants, appointed by the Client.

Contractor Payments
 Report on any time implication due to changes or variations and gain approval from the Project
Manager prior to the implementation of the change or variation on site.
 Assist the Project Manager or the Quantity Surveyor with the preparation of the Contractors interim
payment applications and Contractual Claims.
 Assist the Project Manager or Quantity Surveyor in resolving contractual disputes.

Testing & Commissioning and Taking Over

 Review commissioning procedures and Prepare Commissioning Manual.
 Monitor and coordinate engineering services commissioning.
 Monitor and control delivery of Operation and Maintenance Manuals.
 Coordinate the As-Built drawings prepared by the Contractor.
 Coordinate collection of all the hand-over documentation as required from the Contractor.
 Assist the Project Manager in preparing all relevant completion certificates.

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CLARIFICATIONS

The commencement date for the performance of the services will be from the signature of Letter of Award
or Contract and Archetype’s receipt of the mobilization fee mentioned in chapter “Services Fees”
hereunder.

- Archetype has considered that the Client is responsible for:

 Design Coordination and Management of the drawings up to ‘For Construction’ status.
 Maintaining regular relationships with local authorities. Archetype will be available to assist
for necessary meetings or presentations with the local authorities.
 Obtaining construction licenses, firefighting permits, environment permits and all other
necessary legal procedures or pay fees associated with the applications for permits and
licenses. Archetype shall ensure that all files necessary for applying to such licenses or permits
are prepared for the Client.
 Handling customs clearances procedures for imported equipment and goods.
 Handling FF&E sourcing and procurement.
 Quantity survey.
- The fees proposed by Archetype hereinafter are based on the normal working time which is from 8
am to 5 pm Monday to Friday, from 8 am to 12 pm on Saturday. Overtime fee is inclusive if there is
inspection or concrete pour that is required outside of the normal working time. Otherwise,
Archetype reserved the right to charge additional fee to the client (i.e. overtime due to repeated
inspection or accelerated work requested by the Client).
- Archetype has considered that project staff are entitled to 2 days leave per month for each foreign
employee and 1 day leave per month (or minimum applicable by local laws) for each local employee,
and not subject to any fee deduction. Schedule of the field break will be agreed later by the Project
Manager/Project Director.
- The Client shall provide free of charge for the exclusive use of Archetype: sufficient office space
(120m2) fully Air Conditioned, with furniture, computers, electricity, water, internet, telephones,
printing and photocopying facilities. The internet at project site should have minimum download
speed (10 Mbps) & upload speed (5Mbps) with a stable line. Consumptions to be at Client expenses.
- The site office shall be for the sole use of Archetype Team.
- The Client shall provide free of charge serviced Toilet to Archetype within 30m of the office and at
the same level).
- The Client shall provide and pay all costs for Site Security.
- For Senior Project Staff trips outside Jabodetabek the client shall reimburse at cost the following (see
also 3. General terms and conditions below):
o Plane tickets.
o Local transportation.
o Subsistence: Food and mineral water (daily allowance of 20 USD per day).

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 HOTEL HOLIDAY INN SANUR

o Accommodation (For Directors and Managers shall be 4 star minimum).

- The proposed fee including allowances (transportation, accommodation, food) for Site Staff
during construction period.
- All Quantity Survey activities (Bill of Quantity, Tender Preparation, Tender Organization, Tender
Evaluation, Contract negotiation, Contract management, Contractor Payment Claim) which are
managed by Client or Consultant appointed by Client.
- Archetype shall not be held liable for any part of the works which has been performed whether
wholly or partially up to the time of Archetype’s services commencement; and/or for associated
any error, default, omission, consequence, penalty, damages and/or the like in any form(s). For
avoidance of doubt, a specific report on the status of the works shall be done for such purpose
upon Archetype’s receipt of the mobilization fee as provided in the payment schedule herein.
- Client to provide car and driver for Senior Project Staff (one car and driver to be shared).

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 HOTEL HOLIDAY INN SANUR

PROPOSED ORGANIZATION CHART

Proposal No P-IDN-JAK-18-011-1 Page 8 of 22

 HOTEL HOLIDAY INN SANUR

MANPOWER DEPLOYMENT SCHEDULE

Notes: This manpower deployment schedule is used only as a guide and does not form part of contractual agreement.

Apr-18 Mei-18 Jun-18 Jul-18 Agu-18 Sep-18 Okt-18 Nov-18 Des-18 Jan-19 Feb-19 Mar-19 Apr-19 Mei-19 Jun-19 Jul-19 Agu-19 Sep-19 Okt-19 Nov-19 Des-19 Jan-20 Feb-20 Mar-20
PLANNING SUMMARY
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24
Procurement
Groundworks
Arch & Structure
ID Works
MEP
T&C / Handover phase

Total
Manpower Deployment Plan M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 man-
months
CONSTRUCTION MANAGEMENT
Sr Project Manager E 25% 25% 25% 25% 25% 25% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 2.4
Doc. Controller/Project Asst. I 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 24.0
Construction Manager I 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 24.0
Civil/Structural Supervisor I 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 18.0
Finishing Supervisor I 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 20.0
M&E Supervisor I 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 20.0
Total 3.25 3.25 3.25 3.25 5.25 5.25 5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 4.05 4.05 4.05 4.05 4.05 4.05 108.4

Proposal No P-IDN-JAK-18-011-1 Page 9 of 22

 HOTEL HOLIDAY INN SANUR

SERVICES FEE
1. Services Fees

Archetype will carry out the services described here-above for the fee of:

 CM Scope : 3,544,000,000 IDR

 Total site allowance (24 months) : 243,800,000 IDR
 Total Fee : 3,787,800,000 IDR

This fee is excluding the value added tax (VAT) but including the withholding income tax (PPh), and shall be
made by T/T to the bank account as designated by the Project Director/ Project Manager:

VAT shall be added in each time of invoice issuance and payment.

Please note: Value Engineering services is included in this proposal (no additional fee – based on
percentage sharing of Net Saving); detail is provided in Page 12 and in Appendix 1. In this exercise, we
would target to reduce costs in the region of 5% for each package budget (Civil/Structure and Mechanical
& Electrical).

2. Payment Schedules

The services provided by Archetype will be paid by the Client on the basis of percentage of the Services fees
specified in the chapter 1 here-above according to the following schedules:

Amount Sub-total
Milestone Months
(%) (%)

Mobilization fee upon: 20% 20%

Contract/LOA signature

Manmonth Basis payment 24 80%

Total 100%

3. General Terms and Conditions

1. Our fees proposal assumes an inflation not exceed 6% year over year. Shall this rate be higher; the
balance of our fees would have to be adjusted proportionally.
2. Travel costs shall be reimbursed at cost based on invoices/receipts. Local or International travel
shall be economy class with reputable airlines. Would travel exceed 6 hours’ flight, business ticket
will be provided. Hotels shall be 4 stars minimum for Director and Managers position.
3. The Client shall pay the mobilization fee of the 1st payment above within seven (7) days from the
date that the Letter of Award or Contract is signed. Other payments for the Services Fee shall be

Proposal No P-IDN-JAK-18-011-1 Page 10 of 22

 HOTEL HOLIDAY INN SANUR

paid within seven (7) days from receipt of the Payment Request that will be submitted in
accordance with the above schedule. The Client shall pay 2% of the sum overdue, per month, in
case of delay.
4. Monthly payment (including site allowances) shall be invoiced on the 3rd day of each month.
5. Payments shall be made in IDR.
6. The proposed fees exclude expenses for:
o Costs involved with obtaining Administrative approvals.
o Duplicating & Printing beyond the above indicated number of copies.
o Translation of drawings and documents into Indonesian (if required).
o Travelling, Accommodation and Subsistence Expenses outside of Indonesia (except as
mentioned in “Clarifications” section above
o Progress Photographs, Video Conferencing and Special Electronic Data Transfer.
o International calls, mails and messengers.
o Permit and approval fees required during the Project.
o On site or laboratory quality control testing if necessary.
o Any other services not specifically included in this proposal.
o Direct involvement in any litigation or arbitration in respect of claims or contractual disputes
between the consultants and Client or the Contractors and the Client.
- This proposal is based on Construction Supervision period of 24 months.
- In case of extension of the scope of services and/or the period of service required by the Client,
monthly rate will be charged and paid by the Client. The party responsible for the delay will bear
the cost of the fee for extended services/scope.
- Any additional works required will be charged against the following daily charge rates, excluding
taxes:
Position of staff Status Daily rate-IDR
Sr Project Manager E 8,420,000
Doc. Controller/Project Asst. I 660,000
Construction Manager I 2,350,000
Civil/Structural Supervisor I 1,110,000
Finishing Supervisor I 1,110,000
M&E Supervisor I 1,110,000

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 HOTEL HOLIDAY INN SANUR

4. Incentive Clause for Value Engineering

Archetype shall use its best efforts to ensure that the actual construction cost of the project is below the
preliminary construction budget.
Should Archetype be successful in reducing the actual construction cost below the preliminary construction
budget, he will be compensated in the sum of twenty-five percent (25%) of the actual net savings on the
construction budget, and such compensation would be paid by the Client to Archetype no later than thirty
(30) days after completion of the Services.

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 HOTEL HOLIDAY INN SANUR

VALIDITY OF THIS PROPOSAL

This proposal is valid for a period of 30 days from the date specified in its first page. After that we reserve
the right to review the terms and conditions if necessary.

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 HOTEL HOLIDAY INN SANUR

APPENDICES
1. Value Engineering Scope of Services

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 HOTEL HOLIDAY INN SANUR

VALUE ENGINEERING
SCOPE OF SERVICE

1. Value Engineering (VE)

The VE shall include study of design documents, cost data, and other information furnished as the
basis of the design. The VE study shall develop alternate designs to achieve the required mission(s)
or function(s) at the lowest overall cost consistent with performance for structures, structure or
facility sitting, site development, equipment, electrical and materials or methods. The study
includes examination of high cost including anticipated construction time and conservation of
energy. Design details and analysis will be considered and alternatives developed as appropriate.
The VE team shall consider the latest technology in development of alternatives to achieve
maximum results for energy conservation, functional use, and first cost (construction) savings.

1.1 The VE Study

VE is an organized effort directed at analyzing the function of construction, operations, systems,

equipment, facilities, procedures, methods, and supplies for the purpose of achieving the required
function at the lowest cost consistent with the requirements for performance, reliability, quality,
and maintainability. No action should be labeled "Value Engineering" and included in the VE study
unless the action includes identifying the function, using creativity to develop multiple alternatives,
and selecting the alternative that will perform the required function at the lowest total cost
considering performance, reliability, quality, and maintainability.

1.2 The VE Detailed Scope

1.2.2 For Structural Engineering review

- Review the applied standard – code for input data

- Review the list of applied standard & Software
- Review calculation report
- Review Drawings:
a. Structure plan (framing, reinforcement and slabs)
b. Size and quantity of beam, Colum and slab
- Construction method proposal

1.2.3 For M&E Engineering review

- Review the applied standard – code for Input data
- Review the list of applied standard

Proposal No P-IDN-JAK-18-011-1 Page 15 of 22

 HOTEL HOLIDAY INN SANUR

- Review drawings:
a. Electric diagram; Light control system; Electric equipment; Video phone
system.
b. Air condition system; Gas system; water supply diagram; equipment list,
pipe’s size

1.3 Estimated of Recovery Costs from VE Services

The Value Engineering approach would aim to make savings to the Civil/Structural Design and MEP
packages that would not compromise the performance of the project. We have quickly performed
a review of the provided designs and have identified areas where we would look to improve the
design. We would target to reduce costs in the region of 5% for each package budget (meaning 5%
reduction for Civil/Structural budget, and 5% reduction for MEP budget).

These savings cannot be guaranteed but, at this point they remain our most promising option to
cover the additional costs on the project through the Civil and Structural design related issues.

1.4 VE Report

The results of the study shall be prepared and submitted to Client. Back-up data and detailed
estimates shall be included. Report will include as a minimum:

- Transmittal letter.
- Cover Sheet.
- Table of Contents.
- Summary of the existing and proposed alternative design systems with an
indication if the change is minor of major and a recommendation highlighting the
most efficient way to accomplish each change.
- Provide detailed description of proposed changes with advantages and
disadvantages of each proposed changes in relation to the existing design. The
proposed changes will take into consideration first cost savings, operations and
maintenance costs, workability, performance and energy savings.
- Appropriate sketch drawings or drawing mark up for each proposed change
showing the comparison between the existing conditions and proposed
alternatives.
- Estimates comparing the existing design with each proposed alternative.
- Results and conclusions.

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 HOTEL HOLIDAY INN SANUR

- Recommendations including comments on the feasibility of implementation of

each proposal. A separate summary tabulation will be included in the front of the
report.
- List of possible design conflicts.

We would also recommend in addition to the above scope an option that Archetype conducts a
workshop with the Team that includes the Client, Project Management team and the original design
team in order to present the full findings of the VE study.

2. Re-Design Services (fee for this will be confirmed upon approved VE Report)

- Preparation of construction design drawings of all parts that reflected all items of
approved VE report.
- Preparation of new cost estimation based on redesign drawings

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 HOTEL HOLIDAY INN SANUR

CLARIFICATIONS

 The commencement date for the performance of the services will be from the signature of Letter
of Award or Contract and Archetype’s receipt of the mobilization fee mentioned in chapter
“Services Fees” hereunder.
 Archetype shall prepare and provide a VE Presentation for the Project at the location required by
Client.
 The Client may approve or reject, in whole or in part, any of the proposed VE changes.
 All approved or adopted Value Engineered changes will be incorporated into the Project design by
the appropriate original designers.

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PROJECT SCHEDULE
The duration for the services described here above can be estimated as follows:
(W=Week)

For Re-design:

Schedule for re-design services will be confirmed upon receipt of the full original set of AutoCAD drawings
from Client and upon agreement of the VE items to be incorporated as the outcome from Stage 1 of this
VE scope.

Notes:

- 1 week = 5 working days (excluding Saturdays, Sundays and public holidays).

- The duration above does not include time for the Client or for the competent authorities to evaluate
Archetype’s documents.
- This schedule is necessary time for the first full submission of drawings and documents. Time for
modifications of the drawings and documents shall be discussed later in Contract performance
phase.

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 HOTEL HOLIDAY INN SANUR

DOCUMENTS & INFORMATION

TO BE PROVIDED TO ARCHETYPE

The Client shall provide Archetype with the necessary data, documents and information relating to the
Project, including but not limited to:

 AutoCAD design drawings and documents;

 Design Report;
 All Design calculations and any appropriate software models and files used in the design;
 Revit models if available;
 Specifications;
 Current Cost estimation and/or Bill of Quantities
 Any related reports or investigations regarding all services, soil investigations, foundation load
testing, existing connections or reports on the survey of the existing construction and connections
to the local authority system.

The Client shall retain the services of other consultancy companies for the execution of these surveys in
order to allow Archetype to make use of data.

The Client remains fully responsible for the provision of exact and accurate surveys and hereby releases
Archetype from any responsibility in relation with the results of these surveys.

In case the documents and information provided by the Client contains errors, omissions or inaccurate
information, Archetype would be entitled to fee and or time variations if, as a result of the use of these
documents and information, Archetype has to redo any part of his work.

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PROCESS OF VALUE ENGINEERING

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SERVICES FEE

1. Services Fee

Archetype will carry out the services described here-above at the fee excluding all kinds of tax as follows:

- twenty five percent (25%) of the actual net savings on the construction budget should Archetype
be successful in reducing the actual construction cost below the preliminary construction budget.

The proposed fees exclude Travels and accommodation costs for the trips outside Vietnam if required,
which are to be charged at cost.
Fee for Re-Design services based on approved VE Report will be confirmed after Client approves the VE
Report.

VAT shall be added in each time of invoice issuance and payment.

Proposal No P-IDN-JAK-18-011-1 Page 22 of 22