Best Practices: Project Documentation and Construction Management
Project Management Documentation
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Transcript of Project Management Documentation
Team:
Residential Construction Project
Team Leader: Ana Christina Zamudio
Dianes Suarez
Austin Gaylord
Michelle Hackmann
Robert Suarez
4-25-2016
MAN-4583
Progress Report 5
TABLE OF CONTENTS
PROJECT SCOPE STATEMENT --------------------------------------------------------------------------2
ASSUMPTIONS ----------------------------------------------------------------------------------------------3
STAKEHOLDER ANALYSIS AND COMMUNICATION PLAN -----------------------------------5
COMMUNICATION PLAN --------------------------------------------------------------------------------6
WORK BREAKDOWN STRUCTURE AND DICTIONARY -----------------------------------------7
ACTIVITY DURATION ESTIMATES, PREDECESSORS, AND COST ESTIMATES ---------11
ACTIVITY COST ESTIMATES --------------------------------------------------------------------------12
PROJECT NETWORK DIAGRAM AND CRITICAL PATH-----------------------------------------13
PROJECT SCHEDULE-------------------------------------------------------------------------------------15
TIME PHASED BUDGET----------------------------------------------------------------------------------16
RISK REGISTER AND RESPONSE STRATEGIES---------------------------------------------------18
RISK REGISTER, ANALYSIS, AND RESPONSES---------------------------------------------------22
CHANGE MANAGEMENT AND PROBLEM REPORTING PROCEDURES--------------------25
PROCUREMENT PLAN AND PROCUREMENT DOCUMENT ---------------------------------28
PHOTOS ------------------------------------------------------------------------------------------------------35
Project Scope Statement
Project Objective: The deliverable will be to complete construction of an unfinished residential home not to exceed $200,000.00 in 4 months to the original design specifications.
Project Priorities:
⋅ Time cannot be compromised. Timely or early completion is required and nonnegotiable. ⋅ Performance really needs to deliver. Since construction was originally failed completion,
excellent quality must be enhanced ⋅ Considering any uncertainty that could happen during construction, budget changes are
acceptable but not desirable. Deliverables:
⋅ 2800 sqft. home with 3.5 bath, 4 bedrooms, and finished 3 car garage ⋅ Large kitchen with granite countertops, island, and appliances ⋅ Walk-in closets, game/bonus room, and basic landscape
Requirements:
⋅ Home must meet Orange County building, electric, and plumbing codes. ⋅ Must comply with HOA regulations. ⋅ Home will have 58 HERS Index rating. ⋅ Insulation must be R-11 to R-28 for walls. ⋅ Ceiling insulation will be R-38. ⋅ Insulation for floor must be R-25.
External Milestones:
⋅ Interior infrastructure to be completed by May 20, 2016 ⋅ Exterior infrastructure to be completed by July 1, 2016 ⋅ Home exterior to be completed by July 15, 2016 ⋅ Project completion date will be July 15, 2016
Time Performance Cost
Constrain X
Enhance X
Accept X
Assumptions
● The project will start May 2, 2016 and will last 53 days.
● The work week is assumed to be Monday – Friday from 8:00AM – 6:00PM.
● The construction will be assumed to be finished to original contractor design
specifications.
● Assuming that there will be no adjustments to the basic landscape.
● The house will come unfurnished, but will have basic lighting, flat white paint, and will
come with standard shelving in designated areas.
● The contractor has the right to subcontract services and will be responsible for organizing
subcontracted work.
● Assuming that there are no delays in delivery of materials and that they arrive in good
condition, the project should expect no overall delay.
● Assuming that there are enough workers available to complete activities, there should not
be delays in the project.
● Assuming that there are no adverse conditions such as storms, thunderstorms, or
hurricanes, the work activities should not be delayed.
● Assuming that there is enough money to be distributed in time for each activity, there
should not be any delays.
● If there is a solicited change to the project, the change order should be in writing and
must be approved. Team D.R.A.M.A. will analyze the impact and feasibility of such
changes prior to an approval process.
● The schedule constraints that may delay the project is any approaching holiday where
there is no work performed.
● It is assumed that the established schedule remains the same over the lifetime of the
project.
● The labor costs are determined by data collected from the Labor Department. It is
assumed that the rates for the construction industry will remain steady in accordance with
predictions for the fiscal year.
● The schedule has been created under the assumption that Team D.R.A.M.A. has
employed an efficient labor force able to diminish waste of materials.
● Assuming that the project begins as scheduled, Team D.R.A.M.A. will write a weekly
report documenting the labor output, costs incurred, and level of performance in
accordance with the project scope.
● Team D.R.A.M.A. assumes that all the stakeholders listed on the Communication
Management Plan will be kept informed through formal or informal communication
during the lifetime of the project.
● Assuming that any risk grade of A or B happens, the duration, cost, and/or performance
may change.
● It is assumed that the companies to whom risks are transferred will take responsibility as
soon as they are required to allows the project to continue smoothly.
● Team D.R.A.M.A. assumes that with participation of different stakeholders in the
identification of risks, there are a significant number of risks identified including the most
serious risks.
● It is assumed that the contingency reserve allocated to cover for any risks that may arise
will be sufficient.
● The team will assume that the accepted risks (i.e. the occurrence of severe weather) may
cause changes on the schedule, cost, and/or scope of the project.
● Team D.R.A.M.A. assumes that the cost for the outsourcing stucco tasks would not
exceed the estimated budget of approximately $12,000.
● Team D.R.A.M.A. assumes that the seller has the capacity to perform at an optimum
level.
● Team D.R.A.M.A. assumes that the seller has the adequate equipment and staff to
perform the outsourced task on schedule.
● Team D.R.A.M.A. assumes that the seller will comply with the agreed specifications on
the contract.
● Team D.R.A.M.A. assumes that the seller is competent and financially stable, so the
seller would not go out of business.
● Team D.R.A.M.A. assumes that the Residential Construction Project will not fall behind
the schedule.
● Team D.R.A.M.A. assumes that by July 5, 2016, the residential will be ready for
painting.
● Team D.R.A.M.A. assumes that the risks for the outsourcing procurement will be
covered with a clause for payment based on performance.
● Team D.R.A.M.A. assumes that risks are volatile; therefore, risks may change the grade
of seriousness during the execution of the project, other risks may disappear, or new risks
may arise.
● Team D.R.A.M.A. assumes that the workforce employed to complete the project will
have all the require protection gear.
● Team D.R.A.M.A. assumes that an emergency plan including the address of the nearest
hospital will be kept at hand in case any accidents occurred.
● Team D.R.A.M.A. assumes that the personnel doing the outsourced work for stucco will
be insurance under their company contracted.
Stakeholder Analysis and Communication Plan
Team D.R.A.M.A. has identified 8 stakeholders whose input and/or approval is directly
tied to the success of the residential construction project. The table below lists the stakeholders
as follows: Realtor, Orange County, the Project Team, the Neighborhood, the potential
Homeowner(s), the Outside Contractor, the Finance and Insurance Institution, and the
Environment. These findings will allow the Project Team to continually manage those who have
a stake and/or interest in the project, as well as those who will be affected by its completion. The
stakeholders will be communicated with per the chart below, in order of importance of
communication and interest in the project.
STAKEHOLDER ANALYSIS
Stakeholder Register Power/Influence Interest/Impact Requirements
Realtor High High
Finished home, ready to sell for
profit
Orange County High Low
Compliance to regulations and
property tax. Also subject to
inspections
Project Managers High High
Deliver a finished project of good
quality. Networking/building
reputation. Get paid
Neighborhood High High
Quality home. Comply with HOA
regulations. Be environmentally
friendly.
Potential Homeowner Low Low/Medium
Quality home. Safe. Home value
is high. Environmentally friendly.
Outside Contractor Low High
Meetings or requirements.
Comply with other stakeholders.
Get it done in a timely manner.
Get paid.
Finance/Insurance
Institution Low Low Get paid
Environment High High
Safe (no hazardous materials).
Sustainability.
COMMUNICATION PLAN
Stakeholder Communication
Type
Timing/
Frequency
Origin Target
Audience
Mode
Realtor Process of the
construction in
general
Weekly/
Bi-Weekly
Project Office
Manager
Realtor/PM Email:
Weekly in
Person: Bi-
Weekly
Orange County Compliance
checks/
Inspections
As Needed
(contingent on
the process)
Orange County
Office
Manager
Orange
County/PM
In Person/At
OC Office
Neighborhood HOA
regulations,
project
commencement
and end
Beginning
once and end
once
HOA Office
Manager
Community/
PM
In Person
Outside
Contractor
Specifications,
time, cost,
project updates
Daily until
completion of
contract
On-Site
Supervisor
Outside
Contractors/
PM
In Person
DRAMA
Company
Construction
process,
compliance,
accomplishment
issues, risk
Daily Robert,
Dianes, Ana,
Michelle,
Austin
Boss/PM In Person,
Email, Phone,
Google Drive,
Webcourses
Work Breakdown Structure and Dictionary
Team D.R.A.M.A. has created a work breakdown structure which depicts the work
packages needed to complete the final deliverable. This chart represents the final plan that team
D.R.A.M.A. will follow when initiating the project. Below is the work breakdown structure chart
and the dictionary describing the activities for each package with the estimated duration.
WBS CHART
1 Residential Construction
Project
Description: This work package is broken down into two phases:
Interior and Exterior.
Duration: 53 Days
1.1 Interior Description: This work package is broken into two phases:
Interior and Exterior Infrastructure.
Duration: 43 Days
1.1.1 Interior
Infrastructure
Description: This work package includes all the activities that go
behind the drywall such as plumbing.
Duration: 15 Days
1.1.1.1 Plumbing Description: This work package includes the installation of the
entire plumbing system in the house. Activities include rough in
plumbing, setting plumbing and fixtures, installing toilets and
tubs, and testing.
Rough in plumbing includes the layout of the plumbing system
from the first floor to the second floor and the installation of the
water heater. Setting plumbing and fixtures includes the final installation of
the plumbing system and the attachment of this system to the
corresponding fixtures such as shut-off valves. Installing toilets and tubs comprises all activities for the
installation of the fiberglass tubs, walk-in shower, and toilets. Testing includes the inspection and testing conducted by the
Orange County office.
Duration: 5 Days
1.1.1.2 Electricity Description: This work package includes the installation of the
electrical wiring, breakers, and a breaker box. Activities include
rough in electricity, setting switches and outlets and testing. Rough in Electricity includes the layout of the electrical system
in the residence. Setting Switches and Outlets includes the installation of all
switches and outlets throughout the residence. Testing includes the inspection and testing conducted by the
Orange County office.
Duration: 5 Days
1.1.1.3 HVAC Description: This work package includes the installation of the
heating, ventilation, and the air conditioning for the residence.
Activities include Installing Outdoor and Indoor HVAC Units,
Vent Set-Up and Duct Work, and Testing.
Installing Outdoor and Indoor HVAC Units includes the
installation of the outer unit, connection to the electrical outlet
and to the inside unit and installation of the inner unit,
connection to the electrical outlet and to the outer unit.
Vent Set-Up and Duct Work includes the installation of the
vents and ducts throughout the residence.
Testing includes the inspection and testing conducted by the
Orange County office.
Duration: 3 Days
1.1.1.4 Insulation Description: This work package includes the installment of
insulation throughout the residence. Activities include Insulating
Walls, Ceiling and Floor.
Insulating Walls includes the preparation of surfaces for the
installment of insulation of walls throughout the residence.
Insulating Ceiling includes the preparation of surfaces for the
installment of insulation of ceiling throughout the residence. Insulating Floor includes the preparation of surfaces for the
installment of insulation between the first and second floor.
Duration: 2 Days
1.1.2 Exterior
Infrastructure
Description: This work package includes the activities needed to
complete the exterior infrastructure.
Duration: 10 Days
1.1.2.1 Drywall Description: This work package includes the installation of
drywall throughout the home. This also includes measuring and
cutting of openings in panels for electrical outlets, windows,
vents, plumbing, or other fixtures. Activities include Laying
Sheets, Installing Trims, Applying Plaster, and Applying
Texture. Lay Sheets includes the measurement and marking of surfaces
inside the home in order to lay the sheets. Install Trims includes the installation of trim edges from
wallboard to maintain even joints throughout the residence. Apply Plaster includes the application of a chemical bond and
then, an even application of plaster on the drywalls.
Apply Texture includes the application of walls and ceiling
texture.
Duration: 7 Days
1.1.2.2 Flooring Description: This work package includes the installation of tiles
in the first-floor bathrooms and the installation of laminate on
the second floor. Activities include Laying Tiles, Laying
Laminate and Installing Baseboards. Laying Tiles includes the measurement, cutting, and installation
of tiles. Laying Laminate includes the measurement, cutting, and
installation of laminate on the second floor including stairs. Installing Baseboards includes the measurement, cutting, and
installation of baseboards on the first and second floor.
Duration: 12 Days
1.1.2.3 Install Cabinets Description: This work package includes the measurement,
layout, and installation of cabinets in the kitchen and bathrooms.
Duration: 4 Days
1.1.2.4 Install Counters Description: This work package includes the measurement and
installation of countertops in the kitchen and bathrooms, as well
as installation of sinks. Measurement and drilling of the holes
for the installations of faucets and sink is included. The
installation of a sink and a garbage disposal in the kitchen and a
sink in the laundry room is also part of this work package.
Duration: 1 Day
1.1.2.5 Install Doors Description: This work package includes the measurement and
installation of 18 doors throughout the residence.
Duration: 2 Days
1.1.2.6 Install Shelving Description: This work package includes the measurement,
cutting, and installation of shelving in the pantry, laundry room,
and bedroom closets.
Duration: 1 Day
1.1.2.7 Install Hardware Description: This work package includes the installation of
doorknobs, faucet in the laundry, kitchen, and bathrooms. Also
includes the installation of light fixtures throughout the
residence. This includes the front entrance and backyard.
Duration: 2 Days
1.1.2.8 Install Appliances Description: This work package includes the placement of a
refrigerator, microwave, stove, dishwasher, dryer, and washer.
Duration: 1 Day
1.2 Exterior Description: This work package covers the activities in the
exterior of the residence.
Duration: 10 Days
1.2.1 Apply Stucco Description: This work package includes the application of
cement plaster on the exterior of the residence. This also
includes stacked stone application. Stacked Stone application includes the measurement, cutting,
and installation of stacked stones at the entrance of the
residence.
Duration: 1 Day
1.2.2 Install Garage Doors Description: This work package includes the measurement,
cutting, and installation of hinges, rails, doors, and electrical
motor.
Duration: 1 Day
1.2.3 Paint Description: This work package includes painting the interior
and exterior following the color specification from the previous
builder. For the interior, the application of a flat base paint on
walls and ceiling is done throughout the residence.
Duration: 4 Days
1.2.8 Landscape Description: This work package includes the layout of palm
trees, shrubs, and grass, set up of irrigation system, roof drains
and laying pavers.
Irrigation System Set-Up includes the mapping, measurement,
cutting, digging, and installation of the sprinkler system. Laying Pavers includes the measurement, cutting, and
installation of pavement in the driveway, entrance to the
residence, and on the patio. Roof Drains includes the measurement, cutting, and installation
of roof drains and gutters in the residence.
Duration: 4 Days
Activity Duration Estimates, Predecessors, and Cost Estimates
Each work package must have estimated time duration as well as set predecessors in the
project. Time estimates help the project team to roughly examine how long the project will take.
The preceding activities are important to note because it helps the project manager to understand
the sequence of activities in order to properly monitor and control the project. Team D.R.A.M.A.
has also included both the number and letter ID for our work packages. The letter ID is used in
the Project Network Diagram to help it flow easily.
ID Work Package
Duration
(days) Predecessors
1.1.1.1 (A) Plumbing 5 N/A
1.1.1.2 (B) Electricity 5 1.1.1.1 (A)
1.1.1.3 (C) HVAC 3 1.1.1.2 (B)
1.1.1.4 (D) Insulation (Foam) 2 1.1.1.3 (C)
1.1.2.1 (E) Drywall 7 1.1.1.4 (D)
1.1.2.2 (F) Flooring 12 1.1.2.1 (E)
1.1.2.3 (G) Install Cabinets 4 1.1.2.2 (F)
1.1.2.4 (H) Install Counters 1 1.1.2.2 (F)
1.1.2.5 (I) Install Doors 2 1.1.2.2 (F)
1.1.2.6 (J) Install Shelving 1 1.1.2.3 (G)
1.1.2.7 (K) Install Hardware 2 1.1.2.3, 1.1.2.4,
1.1.2.5, 1.1.2.6 (G, H,
I, J)
1.1.2.8 (L) Install Appliances 1 1.1.2.7 (K)
1.2.1 (M) Apply Stucco 1 N/A
1.2.2 (N) Garage Doors 1 1.1.2.8, 1.2.1 (L, M)
1.2.3 (O) Paint 4 1.2.2 (N)
1.2.4 (P) Install Landscape 4 1.2.3 (O)
Totals - 53 -
ACTIVITY COST ESTIMATES
CONTINGENCY BUDGET FOR OVERALL PROJECT
Project Network Diagram and Critical Path
The Project Network Diagram includes the work packages and their predecessors. This
simple concept also identifies the critical path, which is the shortest time it will take to complete
the project. Project managers can refer to the Project Network Diagram at any point in the
executing, monitoring or controlling phases in order to make sure that the project is on schedule
and progressing as according to plan.
Key: 1 Residential Construction Project
A- 1.1.1.1 Plumbing
B- 1.1.1.2 Electricity C- 1.1.1.3 HVAC
D- 1.1.1.4 Insulation
E- 1.1.2.1 Drywall
F- 1.1.2.2 Flooring
G- 1.1.2.3 Cabinets
H- 1.1.2.4 Countertops
I- 1.1.2.5 Install Doors
J- 1.1.2.6 Shelving
K- 1.1.2.7 Hardware
L- 1.1.2.8 Appliances
M- 1.2.1 Stucco N- 1.2.2 Garage Doors
O- 1.2.3 Paint
P- 1.2.4 Landscape
The critical path team D.R.A.M.A. has identified for our residential construction project
is the installation of Plumbing (A), Electricity (B), HVAC (C), Insulation (D), Drywall (E),
Flooring (F), Cabinets (G), Shelving (J), Hardware (K), Appliances (L), installation of Garage
Doors (N), Painting (O), and Landscaping (P).
The variables that make up the critical path represent the shortest time to completion of
the project, and the project cannot be completed until all of the work packages have been
completed. The total estimated time duration of the critical path is 53 days. These tasks cannot be
adjusted in the schedule without compromising cost or quality.
The only other relevant path in the AON network was the concurrent installation of
stucco (M) during the opening phases of the project (during the time plumbing and electricity is
being installed). However, because it lacks many of the critical work packages comprising the
completion of the inside of the house, the time required to complete the activity was negligible at
best when compared with the other paths.
Project Schedule
The following Gantt chart schedule includes all the activity costs, time, and resources
needed to complete this project. The working hours are projected to be from Monday to Friday
from 8:00 A.M. – 5:00 P.M. with one hour allocated for a lunch break during the workday. There
are two non-working days, Memorial Day- May 30, and Independence Day- July 4, which are
properly excluded from the schedule.
Time Phased Budget
The following tables display the distribution of total funds on a weekly basis. However,
the funds will actually be distributed equally on a daily basis; the data for the exact distribution
has been compiled on a standard spreadsheet using Microsoft Excel. The spreadsheet has been
attached to this progress report for further review.
$118,471.00
Additionally, the following chart displays the cumulative baseline budget on a weekly
basis. The cumulative expenditures flow at intervals of weeks. After the completion of the
project, this information can be used to measure the planned costs with the actual spending or
planned value (PV) to find the Earned Value (EV).
Risk Register and Response Strategies
Risk identification will be prepared by the project team, appropriate stakeholders, and
will include an evaluation of internal risks such as technical, budget, and project priorities; and
external risks such as weather, market, and unemployment rates. The components that will be
used to gather detailed information are the project deliverables, assumptions made throughout
the project, constraints and limitations, WBS, estimates, and resource plan. A Risk Management
Log will be generated and updated as needed and will be stored electronically in the project
Resources located at the Residential Construction DRAMA file.
The method implemented to identify risks has been brainstorming, assisted meeting with
the project sponsor and relevant stakeholders, and information provided by Project Manager
Robert Suarez. Robert Suarez provided the Risk Breakdown Structure containing the internal and
external categories to assist in the identification risks.
Risk analysis is the process of scrutinizing the identified risks to find out the root cause
and effects to the project. Each risks have been qualified from serious which are top risks that
need immediate response and not serious risks that can be ignored. The different ways that these
identified risks can affect the Project success are by delaying the project, reducing the output
quality, and increasing costs.
Qualitative Risk Analysis
Risks have been prioritized depending on the probability of occurrence and the impact.
Imp
act
H
M
L
L M H
Probability
Probability x Impact
● Impact: High – Risk that has the potential to greatly impact project cost, project schedule
or performance.
● Medium – Risk that has the potential to slightly impact project cost, project schedule or
performance.
● Low – Risk that has relatively little impact on cost, schedule or performance.
● Probability: High – Greater than <70%> probability of occurrence
● Medium – Between <30%> and <70%> probability of occurrence
● Low – Below <30%> probability of occurrence
Risks that falls into the yellow and red zones will demand priorities and response to
mitigate them plus a risks contingency plan. The identified and analyzed risks have been
evaluated to determine the likelihood of a risk or threat being realized and the seriousness, or
impact, should the risk occur. Risks will be graded as A, B, C, D or N according to the following
matrix:
Likeli
hood
Seriousness
Low Medium High EXTREME
Low N D C A
Medium D C B A
High C B A A
'Likelihood' refers to the possibility of a potential risk occurring measured in qualitative values
as Low (L), Medium (M), High (H) or Extreme.
'Seriousness' is a qualitative measure of negative impact to express the overall loss of value
from a project if the threat emerges, based on the extent of the damage. It is generally ranked as
Low (L), Medium (M), High (H) or Extreme).
These ratings will be used to determine the likelihood and seriousness of each risk on the Risk
Register table.
Each risk will be assigned a response. The approaches that Team D.R.A.M.A. will utilize to
address and respond to risks are:
• Avoid – remove the risk by eliminating the root cause.
• Mitigate – Find ways to reduce the probability or the impact of the risk.
• Accept – Nothing will be done.
• Transfer – Transfer the risk another party for example buying insurance and outsourcing.
Recommended actions for grades of risk
Grade Risk mitigation actions
A Mitigation actions, to reduce the likelihood and seriousness, to be identified
and implemented as soon as the project commences as a priority.
B Mitigation actions, to reduce the likelihood and seriousness, to be identified
and appropriate actions implemented during project execution.
C Mitigation actions, to reduce the likelihood and seriousness, to be identified
and costed for possible action if funds permit.
D To be noted - no action is needed unless grading increases over time.
N To be noted - no action is needed unless grading increases over time.
Depending on the analysis for seriousness and likelihood, the response for risks under these
grades will be as follows:
The mitigation strategy will be implemented by the team D.R.A.M.A. to prevent the risk
from happening or reduce its impact and probability of occurring. The mitigation strategy will be
prescribed on risks with grades from A to C.
Risk Management Plan requires constant adjustments as situations changes. Risks will be
tracked by the team D.R.A.M.A. during the project, and any findings will be reported to the
individual responsible for the risk as states the Risk Register. The risks with grade A and B will
be monitor in a weekly basis by the project team and will be reported each week to the project
manager in a status report.
The Risk Register will be accessible to the team members, staff working on the project,
and the Project Manager in a document separated from this Risk Management Plan. By keeping
the Risk Register at hand, all individual working on Residential Construction Project would have
access to the list of risks and their respective owner.
There will be monthly Project Status Reports created by the Team D.R.A.M.A.
addressing the Project sponsor and Senior Managers at the head square company to update Risk
Register for any recommendation on risks with grade from A to C.
The Risk Management Plan and the Risk Register will be provided to the Project Sponsor
and Senior Management with the purpose of continuous review of the project risks and the
proposed responses. The Senior Management will review the grade A and C project risks on a
monthly basis via updated information provided in the Project Status Reports and will provide
advice and direction to the Project Manager and Team D.R.A.M.A. The Senior Management will
also be provided with an updated Risk Register for consideration, as required, when additional
threats emerge or the likelihood or potential impact of a previously identified risk changes.
The Project Manager will be responsible for:
● Development and implementation of a Project Risk Management Plan;
● Setting regular risk management sessions so that risks can be reviewed and new risks
identified;
● Assessment of identified risks and developing strategies to manage those risks for each
phase of the project, as they are identified;
● Ensure that risks given an A grading are closely monitored; and
● Providing regular Status Reports to the Senior Management noting any ‘A’ grade risks
and specifying any changes to the risks identified during each phase of the project and the
strategies adopted to manage them.
All members of the Team D.R.A.M.A. will be responsible for assisting the Project
Manager in the risk management process. This includes the identification, analysis and
evaluation of risks and continual monitoring throughout the project life cycle. All members will
have assigned responsibility on risks and their names will appear on the Risk Register. All
members must be accessible during the throughout the project, so they can quickly respond if the
risks to which they are responsible occurs.
RISK REGISTER, ANALYSIS, AND RESPONSES
CHANGE MANAGEMENT AND PROBLEM REPORTING PROCEDURES Throughout the project, team D.R.A.M.A. will plan, coordinate, monitor, and implement
any pertinent change that could affect the completion of the Residential Construction Project.
The objective is to keep control on changes made to avoid any disruption to the project.
All changes should be submitted on time by filling a Change Request Form. The team
D.R.A.M.A. will analyze the impact of such changes, and the results should be reviewed by the
Project Manager before formal submission.
Team D.R.A.M.A., the project manager, and all relevant stakeholders will have access to
the Change Request process. After the submission of a change request, the Senior Management,
and the project sponsor will make the final decision based on their business analysis.
The following designations will be assigned to the requested change to inform of its
status:
Open- Changes has been received and accepted.
In progress- change has been assigned.
Approved- The change has been approved and sent to be evaluated by the Team
D.R.A.M.A. and is ready to be scheduled.
Rejected- The change has been rejected and will be returned to the requester with a
justification and recommendation.
Canceled- The change request has been canceled.
Additionally, in order to maintain all events monitored and controlled, team D.R.A.M.A. will
facilitate a Problem Report Form to be utilized when problems arise and the solution is not
known. Reporting problems that may affect the completion of the project is an important strategy
for team D.R.A.M.A. This would allow for the inputs from Senior Management and the project
sponsor.
The Change Request Form and the Problem Report Form has been added to this Risk
Management Plan.
Procurement Plan and Procurement Document
Team D.R.A.M.A. has identified one node on the network diagram that may be
outsourced to increase project effectiveness. This node (Stucco) will be outsourced to allow for
project priority focus to be completely shifted toward the completion of the critical path. The
Project Team is outsourcing stucco to maximize the overall quality of the project by allowing the
team to focus on the mitigation of risks measured against the critical path and related activities.
Specified below is the procurement contract outlined by the Project Team for the purposes of
outsourcing stucco.
PROCUREMENT MANAGEMENT PLAN
Team D.R.A.M.A., the sponsor of the Residential Construction Project, and Senior
Management have approved the Stucco Outsourcing by sending a Request for Proposal (RFP) to
the next top eight sellers
Florida Construction, LLC
31 Sand Cape Street
Orlando, FL
QP Plastering
60 Anno Ave
Orlando, FL
Mr. BJ Serving Orlando
3500 Aloha Street
Winter Park, FL
R W Painting, Inc.
1 Lancelot Street
Casselberry, FL
Griffin Painting and Stucco, Inc.
80 Dollied
Oviedo, FL
S.C. of Florida, Inc.
40 Palm St
Oviedo, FL
Construction Concrete, Inc.
32 Winter Drive
Winter Park, FL
Stucco, Inc.
Clarion Rd Apopka, FL
This is a competitive process. The sellers must send their proposal before May 20, 2016.
A conference will be held on May 9, 2016, at 10:00 a.m. at D.R.A.M.A. company. The good
faith, adaptability, and compromise ability will be discussed at the negotiation stage that will be
held at the Team D.R.A.M.A. office through round tables meeting with the selected seller.
The sellers will be asked to include on their proposal their recommendation on the performance
metrics for the quality at an exceptional level for the application of stucco. The sellers must
include a list of the cost for this project. The company awarded with the job will have the
opportunity to negotiate other alternatives and solutions.
MAKE OR BUY ANALYSIS Team D.R.A.M.A. has analyzed the benefits and costs of outsourcing the Stucco Installation
task and the benefits and costs of doing the job utilizing the resources from Team D.R.A.M.A.’s
company as previously planned. Team D.R.A.M.A. have concluded that:
1. The outsource decision would allow the project to utilize the skills of the sellers who
have mastered this task. The previous Team D.R.A.M.A.’s plan for the allocation of
resources in the stucco application had scheduled ten workers who are not specialized to
perform this task at the level that the Project Sponsor requires.
2. The Stucco Installation is a short term task meaning that the price is not a burden for the
project budget and thus, favoring the outsourcing decision.
3. Team D.R.A.M.A. considers a critical objective to deliver high quality to the Project
Sponsor. The only way to obtain this objective is to outsource the task in question since
the team does not have the capacity or capability at this moment to execute this particular
task to the level that the sponsor requires.
4. Installing stucco is a complex task that requires exceptional skills and specialization
SCOPE
Name Description Constraints
(time)
Constraints
(requirements) Contract type
Stucco
Installation
The service of stucco
installation to a two-story
house of 2800 square
foot. 3/8 in. (9.5mm)
minimum thickness.
Cement-based stucco
finish. The installation of
stucco must also include
bonding agent and acrylic
primer to seal the stucco.
Must be done
July 5, 2016.
Installation should comply
with ASTM C1063
regulation.
Strict compliance with
Building Code
Conform to all OSHA
standards and regulations
FPC
RESPONSIBILITIES AND AUTHORITIES
Name and role Responsibilities Limitation
Robert Suarez- Project
Manager
Request goods or service
through standardized
documentation, allowing
sufficient time
Sign purchase orders up to
limit
Set up schedule for service
Co-sign purchase orders
Maintain communication
with stakeholders and Team
D.R.A.M.A.
$12,000
Dianes Suarez Oversite performance
Austin Gaylord Liaison with relative task
Michelle Hackmann Liaison with relative task
Ana Zamudio Liaison with relevant task
CONTRACT TYPES The types of contract and the terms and conditions to be used for the project. Fixed price
contract - Fixed Price Incentive Fee Contract – The contract will be based on mutual agreements
on the offer and acceptance of such offer. The fee will be based on the capacity of the seller to
perform the tasks by reducing the costs and eventually increasing the seller’s profit; performance
must be exceptional. If performance suffers, then, the seller would not get a higher profit.
Team D.R.A.M.A. will negotiate a down payment of 25% of the total negotiated price to
start working. At the end of the job, 75% will be pay based on performance. This is a term
contract. The seller is required to perform the task at an exceptional level, and when the task is
completed, the final payment will be made plus the fee for performing exceptionally and for
cutting costs. The maximum price allocated to this task is $12,000. Team D.R.A.M.A. will agree
to negotiate a 70/30 share of profit.
PROCUREMENT CONSTRAINS Time: The Stucco Installation task has a long lead of time; however, there are other tasks
on the critical path, for example, painting and landscaping, that must be completed after the
stucco has been applied. The cost cannot exceed $12,000.
DECISION CRITERIA
The selection criteria would be based on a hurdle model which means that to advance in
the competency, the sellers must past the first stage. The sellers who present an exceptional
proposal will get to the final competition. Below are the scoring tables where sellers will be
evaluated.
SELLER PERFORMANCE MEASUREMENT The seller will be evaluated during and after completion of the Stucco Installation. Team
D.R.A.M.A. will conduct a performance analysis to determine if the outcome has been satisfactorily
achieved, and how much deviation has the seller allowed.
A subject matter expert will evaluate the job done to determine the level of quality based on
the commercial standards for the construction industry.
Photos
Kitchen
Family Room
Master Suite
Master Bathroom
First Floor
Second Floor