Project 2

1. Project Charter: Sao Paulo, Brazil Store Opening

Background

Terrapin Construction Supply, Inc. (TCS) is based in Frederick, Maryland and the company wants to compete with Lowe’s, Home Depot, Ace, and True Value in the home improvement and building supply market. The purpose of the project is to execute a business plan to assist TCS with expanding their business opportunities in Sao Paulo, Brazil. The expansion includes designing and constructing a new retail store with a size limitation of 100,000 square feet that will stock 40,000 different products from over 3,000 vendors globally along with a garden center and a 200 space parking lot. This project provides an opportunity for TCS to maximize their profits by offering affordable products to the citizens and business owners in Sao Paulo, Brazil. However, TCS is not known in Brazil so our challenge is to deliver and maximize our marketing and promotional efforts through social media avenues of approach via the internet to include the radio, newspaper, television, and community programs. TCS plans to collaborate with local government and businesses to promote the revitalization of residential neighborhoods. The benefit of collaborating and participating in community programs will enhance TCS reputable name and assist the company with building a positive relationship with our customers and government officials in Sao Paulo, Brazil. This project is going to be beneficial to the Brazilian citizens and business owners because TCS is offering quality products at an affordable price plus TCS is providing a convenience to purchase home improvement and building supplies along with garden products locally. Additionally, this project is going to benefit the government by the creating tax obligations as a result of building the new store and providing jobs for the citizens in Sao Paulo, Brazil.

Goals

· Complete the 10 month project on schedule by November 30, 2021 by adhering to our project milestones beginning with the project contract execution on March 1, 2021 followed by the project kick off meeting on March 5, 2021. Then, we are going to ensure we meet our remaining scheduled milestones dates to conclude our achievement of the grand store opening on November 23, 2021.

· Complete the project without exceeding the allocated management reserve of 15% for construction or the allocated reserve of 5% reserve for outfitting & inventory and staffing & training to help ensure the project does not exceed the overall budget with contingencies totaling $8,352,810.00.

Scope

The size of the store is 100,000 square feet (the main store is 80,000 square feet and the garden center is 20,000 square feet) with the offering of 40,000 different products for purchase. We are going to hire 130 employees. We are going to stock the store with 10 product groups (lumber, hardware, plumbing, doors, paint, flooring, lighting, appliances, garden, and cleaning supplies). In consideration of the size of the construction project, we will follow the proper guidelines for quality assurance to ensure we are producing quality work. The following scope of work is as follows.

Design the new store building, garage, parking lots, and landscaping

Obtain required licenses and permits

Prepare the site and lay the foundation

Construct the new store building and finish the interior

Construct the garage and garden center

Outfit the store with shelves, fixtures, and IT Systems

Pave the parking lots and landscape the exterior of the store

Stock the store with inventory

Staff, hire, and train store personnel

Key Stakeholders

TO DO ----- Insert Ngozi’s key stakeholders

Client	Terrapin Construction Supply, Inc.
Sponsor	Latoya Green
Project Manager	Kelly Doe
Project Team Members	Dana Pineda, Henry Thompson, Louis Arguello, Maximo Carbonell, Ngozi Onyewu, and Twyla Marshall

Project Milestones

Start date is March 1, 2021

End date is November 30, 2021

· Execute contract on March 1, 2021 – Completion date is March 1, 2021

· Project kickoff meeting on March 5, 2021 – Completion date is March 5, 2021

· Start site conditions on March 9, 2021 – Completion date is March 31, 2021

· Start architect and engineering design on April 1, 2021 – Completion date of 50% design is May 19, 2021

· Start conceptual design presentation on May 20, 2021 – Completion date is July 8, 2021

· Stakeholders meeting on July 8, 2021 – Completion date is July 8, 2021

· Start required licenses & permits on July 29, 2021 – Completion date is July 9, 2021

· Start to prepare site & lay foundation on July 19, 2021 – Completion date for staking & grading site is July 27, 2021

· Start underground utility work on July 26, 2021 – Completion date is July 29, 2021

· Start foundation for footers and slab on July 30, 2021 – Completion date is August 12, 2021

· Start construction for building (exterior) on August 13, 2021 – Completion date is September 22, 2021

· Start garage & garden center construction on August 26, 2021 – Substantially complete on September 10, 2021

· Start shelves & fixtures assembly on September 23, 2021 – Substantially complete on October 4, 2021

· Start IT System installation on September 9, 2021 – Completion date is September 15, 2021

· Start pavement and flatwork on September 1, 2021 – Substantially complete on September 28, 2021

· Start landscaping on September 29, 2021 – Substantially complete on October 8, 2021

· Start inventory on July 12, 2021 – Completion date is November 23, 2021

· Start training for staff and personnel on August 19, 2021 – Completion date is November 22, 2021

· Store opening on November 23, 2021

Project Budget

The total project budget with contingencies is $8,352,810.00. The budget is divided into three sections: (1) construction budget ($5,064,507), (2) outfitting and inventory budget ($3,023,103.00), and (3) staffing & training budget ($265,200.00). There is a 10% contingency incorporated in the budget for all three sections to compensate for the cost of delays due to unexpected problems discovered during construction like material substitutions, exchange rate fluctuations, and delivery delays. Also, the project has incorporated a management reserve of 15% for construction cost and 5% reserve for outfitting & inventory, and staffing & training sections.

Constraints, Assumptions, Risks, and Dependencies

Constraints	Total budget cost with contingency $8,352,810.00 Time management (i.e. unexpected weather delays) Unacceptable work by unqualified contractors
Assumptions	Fluctuation in the exchange rate Contract delays Resource limitations & substitute products
Risks & Dependencies	Exchange rate Extreme weather COVID restrictions Permit delays Unqualified contractors Theft as a result of high crime rate Utility connectivity Loss of power Socio-political environment and labor laws Customs and regulatory guidelines

Approved by:

_____________________ _____________________ _____________________

Chief Operating Officer Chief Financial Officer Project Manager