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4. Shangri-La Hotel Group with headquarters in Hong Kong, are planning to procure design and construction for a new US$ 100 million five star international

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4. Shangri-La Hotel Group with headquarters in Hong Kong, are planning to procure design and construction for a new US$ 100 million five star international standard hotel project in Addis Ababa, Ethiopia. This is their first international hotel in Africa. They are concerned that local Ethiopian contractors are of insufficient size and experience to deliver such a complex and high quality project. A London based architectural practice, Zaha Hadid Architects, has undertaken the concept design, which is very futuristic. The intention is to novate the designer to a design and build contractor. A Chinese contractor with an annual turnover of US$20 billion has expressed interest to negotiate a fixed price design and build contract to undertake the work in joint venture with a local Ethiopian contractor, who has an annual turnover of US$20 million. Describe the issues to be considered when procuring the project from the Shangri- La Group perspective of appointing the Chinese and Ethiopian joint venture team

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