Project 2
Prof. Reinford
TeamChester_Project2_PMP_MaximoRev1.docxProject Management Plan: Sao Paulo, Brazil Store Opening
Professor: Elena Zavialova___________________ Date: 02/02/2021__________________________
Course Name and Section: MBA 670 1121 (2211)_
Team members:
Dana Pineda__________________________
Henry Thompson_______________________
Louis Arguello__________________________
Maximo Carbonell______________________
Ngozi Onyewu_________________________
Twyla Marshall________________________
1. Introduction
· Purpose Of Project Management Plan
[State the project's purpose and reference and include your project charter as an appendix.]
Terrapin Construction Supply, Inc. (TCS) is expanding operations in the home improvement and building supply market. The company is based in Frederick, Maryland and is positioning the company to compete against well-known companies such as Lowe’s, Home Depot, Ace, and True Value in the international markets focusing on destitute areas. The location of choice for the upcoming retail store is in Sao Paulo, Brazil and the company is making a public announcement today to confirm the grand opening in 10 months which falls on December 1, 2021. Their ideal development plan for construction is consistent with their existing stores which averages 100,000 square feet and provides outdoor space for a garden center plus plentiful parking for 200 patrons. The store will carry over 40,000 different products from a minimum of 3,000 global vendors. The Sao Paulo, Brazil Store Opening Plan is being prepared for all project stakeholders, including the project sponsor, senior leadership, and the project team.
2. Executive Summary of Project Charter
The scope of work includes the design of the store building, garage, and parking lots plus landscaping (UMGC, n.d.). The project start date begins March 1, 2021 and ends November 30, 2121. The total budget is expecting to cost $9,702,000 to $11,837,400 and the following issues are being considered. First, the project constraints will likely be contributory to natural disasters. For example, the Metropolitan Region of Sao Paulo was affected by rain, floods, and landslides on March 10, 2019 (Floodlist News, n.d.). Also, customs delays and legalities for permit approvals can be a hindrance as well. Second, research indicates the fluctuation in exchange rate requires constant monitoring. Third, we anticipate delays due official approvals of construction permits but we are confident that our land acquisition for the store is a major step to establishing a long-term relationship with the officials and local people in Sao Paulo, Brazil (UMGC, n.d.).
3. Scope Management
· Work Breakdown Structure
[Discuss the project's Work Breakdown Structure as created in your MS Project file (.mpp)]
4. Schedule/Time Management
[Provide estimated start and end dates for the project and include any other important dates from your Gantt chart. Provide the Gantt chart in the same MS Project file (.mpp) as the WBS. Be sure to identify the critical path in the Gantt chart. Discuss how you will minimize or avoid delays for tasks on the critical path.]
· Milestones
The table below lists the key milestones for this project, along with their estimated completion timeframe. [If the list of milestones is too long to insert here in the document, include them as an appendix.]
|
Milestone |
Estimated completion timeframe |
|
[Provide milestone benchmarks, for example: project approved to proceed.] |
[Provide timeframe for completion, for example: one week after project is authorized.] |
|
[Add as many rows as needed.] |
|
5. Cost/Budget Management
The projected budget is $8,352,810. The budget is divided into three sections: Construction Budget $5,064,507, Outfitting and Inventory Budget $3,023,103, and Staffing and Training Budget $265,200. The project budget incorporates a 10% contingency for all sections. The contingency captures the cost of delays due to common unexpected problems discovered during construction, material substitutions, exchange rate increase, increase in prices for outfitting and inventory items, and delays due to distribution, and delivery channel problems.
The project budget also contains a management reserve of 15% for construction cost and 5% management reserve for the other two sections. The management reserves are meant to cover the possible variability and uncertainty of the estimated costs (University of Maryland Global Campus, 2021). Refer to Project Budget Appendix for detail budget.
The project cost estimates were established using the parametric and vendor bid analysis approaches. Parametric technique was used to adjust historical data to project the cost per square meter and square feet of Sao Paulo, Brazil construction costs, and to estimate labor costs. The parametric cost was used as reference to analyze the firm-fixed-price bids from contractors and vendors. The vendor bid analysis approach was used by the project team to help chose bids.
The budget utilizes the following assumptions:
· BRL to USD conversion rate of 0.24. The January 31, 2021 BRL to USD conversion rate was 0.18305 compared to pre COVID-19 January 3, 2020 0.24845 conversion rate (XE, 2021). For this project, the conversion rate used is 0.24.
· Construction cost rate is $1,495.285 BRL/sq m or $359 USD/sq m or $110 USD/sq ft. This is a 10% increase from the CEIC (2021) reported Sao Paulo, Brazil construction cost rate of 1,359.350 BRL/sq m. Per Cummings (2021), the Washington, DC average area construction cost rate for retail neighborhood shopping center is $295 sq ft. At $110, the Sao Paulo, Brazil rate is 37% the Washington, DC rate.
· Parking lot paving construction rate used is $1/sq ft. This is equivalent to 37% of the $2.63/sq ft ProMatcher (2021) reported average cost of parking lot new construction in the United States.
· Prepare site to lay foundation rate is $2.22 USD/sq ft. The cost of a low slope and light vegetation site preparation and land clearing in the United States averages between $3 and $6 per square foot (Smith, 2020). For this project, the rate used is $2.22 (37% of $6 US rate).
· Outfitting and inventory cost were provided by the Contracts and Purchasing department.
· Staffing and training projection cost were provided by Human Resource department.
The budget will be managed by the project manager and project team. The team will meet weekly to go over project progress and compliance with budget projections.
6. Human Resource Management
Understanding Brazilian labor policies is crucial to properly navigate labor relations. To perform the HR needs of the projected required 130 employees, the company has hired two proven full-time Brazilian human resource (HR) staff well versed in Brazilian Consolidação das Leis do Trabalho (CLT), and the rules and regulations included in Brazilian Collective Bargaining Agreements.
The retail store project staffing and training budget is $265,200. The budget covers the staffing of 130 employees with an average salary $700 per month. Staffing and training costs average $300 per employee for a total of $39,000.
|
Staffing Breakdown Chart |
|
|
Store Manager |
1 |
|
Accountant |
1 |
|
Accounting Clerks |
2 |
|
Human Resource |
2 |
|
Assistant Managers |
5 |
|
Janitor |
6 |
|
Security |
6 |
|
Maintenance |
6 |
|
Department Managers |
10 |
|
Customer Service |
12 |
|
Shipping & Receiving |
12 |
|
Floor Attendants / Equipment Operators |
32 |
|
Floor Attendants / Cashiers |
35 |
|
Total Employees |
130 |
Our two Brazilian HR experts will work with Sao Paulo, Brazil human resource agencies Huxley, HProjekt, and Luandre to recruit and train staffing. HR will post all job openings in the company career page where prospective employees can apply. Weekly full page recruitment ads will be placed in Folha, a leading Sao Paulo’s newspaper (Folha de S.Paulo, 2020). Recruitment ads will also be placed in social media. The TSC corporate office will work with the HR staff to interview and select the Store Manager. The hired Stored Manager will work with HR to interview and select Assistant Managers. The Store Manager and Assistant Managers will work with HR to interview and select all other employees.
The initial hiring process will begin 23 June 2021 and end 12 July 2021. Initial employee training starts 13 July 2021 and ends 13 September 2021. Employee HR personnel will oversee the coordinating and scheduling of the following training:
• Customer Service – one day all employees
• Safety – one day all employees
• Equipment operation – one day for employees as designated by job
• Store manager – 10 days
• Assistant manager – 5 days
• Department managers – 3 days
The CLT lays out the basic employer and employee relationship principles. HR must also be aware of other rules and regulations, including Collective Bargaining Agreements (The GPS Team in Global Compliance, 2020). Wages in Brazil are paid monthly. The average monthly salary in Sao Paulo is 2,600 BRL, equivalent to $476 USD as of 31 January 2021 (Stotz, 2020).
To maintain compliance with Brazilian labor code employers are required to use eSocial, which tracks employment status, tax, social security, payroll, working hours, health and safety, and much more. All formal employees in Brazil are afforded the following:
· Minimum wage of 1,039 Reals per month.
· A non-decreasing salary.
· Maternity and paternity leave.
· Maximum work week of 44 hours. Maximum of eight hours per working day.
· Overtime compensation. Maximum of two hours per day. Maximum Brazilian workday is 10 hours. Overtime rate is 150% Monday thru Friday and 200% on Sunday.
· Accident insurance – 1% to 3% paid by employer depending on the working environment.
· Family and educational allowances.
· Freedom to associate with trade unions.
· The right to strike.
· Bonus 13th-month paid in two instalments in November and December. Equal to one month’s pay.
· Brazilian Social Security welfare contribution of 20% paid by the employer towards employee retirement benefits, disability, and length of service pensions. Employees also contribute 8-11% depending on their earnings.
· Contribution to Sistema S non-profit agencies representing employee economic sector, average rate of 5.8% paid by employers. (Cloudpay, 2020).
The Brazilian Labor Code does not protect elected officers, independent workers, and contract service providers (The GPS Team in Global Compliance, 2020). The code does guarantee special protection to employees who are:
· Directors of Labor Unions
· Suffering from work-related injuries (or even specific diseases that may not necessarily be labor-related)
· Serving on the Labor Accident Prevention Committee as elected representatives of the group of workers
· Expecting a child (The GPS Team in Global Compliance, 2020).
7. Stakeholder Management Plan
The stakeholder management process entails assessing the needs and expectations of stakeholders in relation to the main goal of the project. Stakeholder analysis is a method that can be used for the project team members to understand the variety of stakeholders that have an interest in the project and the possible risk that can occur during the project. Below is a summary of the stakeholder’s management plan; A stakeholder with high influence would control important decisions within the project and have strong ability to facilitate implementation of project tasks and cause others to take action. Usually, such influence is derived from the individual’s hierarchical, economic, social, or political position, but sometimes we see people with personal connections to other persons of influence also qualifies(pmi.org)
Latoya Green TCS CEO of Terripan Construction Supply, Inc who is the project sponsor is the key stakeholder. She is expected as the sponsor to assign resources and enforce decision regarding project. She has a high influence in decision made regarding the project, and as a stakeholder, she has invested interest due to her financial contribution. And her classification, she is very active and participate voluntary.
Kelly Doe, the president & Chief of Operation at Chester Group LLC is the project manager. The expectation for him is to manage the entire project, operations and logistics. He is looking forward to a successful completion of the project, and receiving an added bonus. He has a high influence in the decision making regarding the project. As a stakeholder, his interest is high due to a lot other stakeholders and investors are depending on him for the successful completion of this project. He is classified as internal, belong to the organization, voluntary and very active participant in managing this project.
Randol Smith an investor, his expectation is that, his financial contribution for the project as outlined in the project by the project manager would yield him a high return. He has a high influence in the decision made, and he is classified as external, doesn’t belong to the organization, voluntary and active participant.
John Gray, VP Chief Information Officer at Chester Group LLC is the project co-manager. The expectation for him is to manage the implementation and usability of information and computer technologies as outline on our project outline. He has a medium influence in the decision making regarding the project. He has medium interest related to the promotional bonus that he will receive on successful completion of project. His classification is very important for this project, due to he is internal, belongs to the organization, he is voluntary and actively participate in the project.
Peter White, Chief Financial Officer at Chester Group LLC, he controls the budget. The expectation for him is to control the budget and make sure, we stay within budget. He has a medium interest/influence in the decision making regarding the budget aspect of the project. And an invested interest due to the promotional bonus upon successful completion of the project. He is classified as internal, belong to the organization, voluntary and active participant in the project.
Mark Black, Director of Human Resources at Chester Group LLC. The expectation for him is to provide adequate staffing, training, maintain compliance with Brazilian labor code employers are required to use eSocial, which tracks employment status, tax, social security, payroll, working hours, health and safety, and much more. He is classified as internal due to he belongs to the organization, voluntary and active participant in the project. He has a medium influence in decision making regarding hiring process of obtaining staff. Lastly, he has a vested interest in the promotional bonus upon successfully completion of the project.
Sharon Blue (Executive Vice President – Design/Production) at Chester Group LLC. The project design/production manager, expectation is to Plans, directs, designs, and coordinates the development and manufacture of all products as outlined in the project by the project manager. Medium, interest in the promotional bonus upon successful completion of project. She has a medium influence in decision making regarding designs and production of the project. She is classified as internal, belongs to the organization and voluntary active participant in the project.
The Project procurement officer, marketing expert, legal expert and security are all classified as internal, belong to the organization, the are voluntary and actively participate in the project at hand. The procurement officer and the marketing expert both have medium influence in decision making regarding the project in their area of specialty, and medium interest. While the legal expert and security officer have low influence and interest.
Lastly the Vendor/supplier, contractor and the government regulator are all external stakeholders. The have little influence in decision making, and low interest.
Overall, all stakeholders whether internal or external, voluntary or involuntary, active or passive, high, medium or low influence or interest are involved in this project and the goal is to successfully complete the project, and when crisis or unforeseen events arrive, goal is to strategically resolved the issues, get as many stakeholders involved or engaged, effectively communicate what the project is and the expectations.
8. Risk Management
[Discuss important risks associated with the project. Include a project risk register as an appendix.]
9. Procurement Plan
Procurement Oversight Responsibility
The Project Manager will oversee the management of procurement activities under this project. The Project Team will identify all items required to complete the project. The Project Manager will review the procurement list before submitting it to the Contracts and Purchasing Department. The Contracts and Purchasing Department will track vendor and contractor selection. The Contracting and purchasing department will refer to project Gant Chart to establish required contract procurement timelines. The Project Team will provide the Contracting and Purchasing department with a detailed, comprehensive list of required merchandise and contract services.
Vendor and Contractor Proposal Process
All merchandise and contract services for this project will be procured under firm-fixed-price contracts. The Project Team will coordinate with the Contracts and Purchasing Department to identify item types, quantities, services, and required delivery dates. A Request for Proposal (RFP) form will be used to solicit bid proposals from vendors and contractors. The vendors and contractors RFP will:
a) describe how they will meet requirements,
b) outline how the work will be accomplished,
c) say who will perform the work,
d) provide vendors’ experience in delivering these goods or services,
e) provide customer testimonials and referrals, and
f) provide a line-item breakdown of all costs.
The vendors and contractors will also be required to submit work breakdown structures (WBSs) and work schedules to show their understanding of the work to be performed and their ability to meet the project schedule.
The RFP must include schedule, cost, scope, and technology:
· Schedule - Projected schedule and contract fulfillment to date within the established project schedule.
· Cost - Project budget with built-in contingency reserve. Contingency reserves are only used after an approved change in project scope.
· Scope - All procurement must be in the approved project scope. Procurement requests out of scope will automatically be disapproved.
· Technology - Specifications have been determined and included in the RFP. Use of alternative parts and equipment is unauthorized without written approval from the Project Manager. Alternative parts and equipment must match or exceed the predetermined specifications, and be compatible with all other equipment.
Proposals that omit solicited information or contain incomplete information will be discarded. The Contracts and Purchasing Department will obtain firm-fixed-price bids from at least three vendors and five contractors. The Project Manager will meet with the Project Team to review proposals and select winning bids.
Vendor and Contractor Selection Criteria
The Project Team and Project Manager will award procurement contracts based on the following decision criteria:
· Ability of the vendor or contractor to provide goods and services by the required delivery date.
· Quality of product and workmanship.
· Cost – while a crucial factor, it is not the primary deciding factor.
· Past performance, especially providing goods and services in Brazil.
· Procurement risks management history of vendor or contractor.
Procurement Risks
The following procurement risks must be considered, monitored, and worked around:
· Vendor stock shortages.
· Contract delays due to disputes, strikes, etc.
· Conflicts with contract relationships and vendor relationships.
· Delays in shipping.
· Contractor low-quality control.
· Delivered product not matching product ordered.
These risks are not all-inclusive, and the standard risk management process of identifying, documenting, analyzing, mitigating, and managing risks will be used. All issues concerning procurement will immediately be communicated to the Project Manager and the Contracts and Purchasing Department.
Vendor and Contractor Management
The Project Manager is ultimately responsible for managing vendors and contractors. The Project Manager or their designee will meet weekly with the contract and purchasing department and each vendor to discuss and monitor progress, verify specification and regulatory agency compliance, delivery compliance, and inspection or quality test findings. Meetings will also provide an opportunity to ask questions or modify contracts or requirements ahead of time to prevent delays in delivery and schedule. The Project Manager will be responsible for scheduling this meeting weekly until all items are delivered and determined to be acceptable.
General Procurement List and Schedule
|
Items |
Justification |
Requested Delivery Date |
NLT Delivery Date |
|
Garage & Garden Center Point-of-Sale System |
Required for installation of customer payment systems |
1-Jul-21 |
5-Jul-21 |
|
Garage & Garden Center Shelving |
Required for installation before stocking items for sale and store inventory. |
28-Jun-21 |
1-Jul-21 |
|
Garage & Garden Center Lighting |
Required to light Garage & garden center |
28-Jun-21 |
1-Jul-21 |
|
Store Shelving & Lighting |
Required for installation before stocking items for sale and store inventory. |
28-Jun-21 |
6-Jul-21 |
|
Dept Fixtures |
Required for installation of department-specific equipment. |
28-Jun-21 |
6-Jul-21 |
|
Communication Equipment |
Required for installation throughout all facilities |
1-Jul-21 |
5-Jul-21 |
|
Store Point-of-Sale Systems |
Required for installation of customer payment systems |
1-Jul-21 |
5-Jul-21 |
|
Security System |
Required for installation of security system throughout facilities |
1-Jul-21 |
5-Jul-21 |
|
Landscaping supplies |
Required for installation of plants, trees, rock water features, and stonework art. |
20-Jul-21 |
21-Jul-21 |
|
Hardware & Appliances |
Required for stocking for sale and on-site inventory |
20-Jul-21 |
9-Aug-21 |
|
Lumber |
Required for stocking for sale and on-site inventory |
20-Jul-21 |
9-Aug-21 |
|
All additional store merchandise |
Required for stocking for sale and on-site inventory |
20-Jul-21 |
23-Aug-21 |
Appendices
1. Project Charter: Sao Paulo, Brazil Store Opening
Background
Terrapin Construction Supply, Inc. (TCS) is based in Frederick, Maryland. 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 expand business opportunities in Sao Paulo, Brazil on behalf of TCS. 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.
Goals
· Complete the 10-month project on schedule by November 30, 2021.
· Complete the project without depleting the 25% ($2,425,500) contingency cost.
Scope
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
|
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.
· Engineer design (building, garage, parking lots, and landscaping)
· Completion date is May 5, 2021.
· Obtain required licenses and permits with a completion date of May 7, 2021.
· Prepare the site and lay the foundation on June 9, 2021.
· Begin construction of the new store building on June 10, 2021. End date July 19, 2021.
· Begin construction of the garage and garden center on June 23, 2021. End date July 7, 2021.
· Begin outfitting the store with shelves, fixtures, and it systems on July 6. 2021. End date July 15, 2021.
· Pave the parking lots and landscape the exterior of the store beginning June 23, 2021. End date of July 30, 2021.
· Start stocking the store with inventory on July 21, 2021. End date September 14, 2021.
· Start the process of staffing, hiring, and training store personnel on June 23, 2021. End date of September 13, 2021.
Project Management Plan: Sao Paulo, Brazil Store Opening
7
Appendix Project Budget
Constraints, Assumptions, Risks, and Dependencies
|
Constraints |
Natural disasters. Legalities and permits. Custom delays. |
|
Assumptions |
Store Building 80,000 sqft / 7,432 sqm @ $69 sqft Garden Center sqft 20,000 / 1,858 sqm @ $23 sqft Parking Lot sqft 70,000 / 6,503 sqm @ $1.50 sqft Shipping & Receiving area sqft 10,000 / 930 sqm @ $1.50 sqft 70,000 sqft 200 spaces parking lot @ cost of $160 per space 130 employees. Average salary $700 per month for two months. Staffing & Training costs averaging $300 per employee. |
|
Risks & Dependencies |
FLUCTUATION IN EXCHANGE RATE CONTRACT DELAYS GOVERNMENT CULTURE AND WORK PERMITS |
Approved By:
_____________________ _____________________ _____________________
Chief Operating Officer Chief Financial Officer Project Manager
|
2. Project Stakeholder Management Plan: Sao Paulo, Brazil Store Opening |
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Project Title: |
Sao Paulo, Brazil Store Opening and Construction Project |
Date Prepared: |
01/27/2021 |
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3. Project Risk Register: Sao Paulo Store Opening |
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1. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
|
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Drastic change in US-Brazilian real exchange rates |
Increase in project cost and need for approvals |
2. Unlikely |
2. Minor |
LOW |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Project team will monitor currency exchange situation during project. |
Coordinate with TCS finance for assistance in monitoring exchange rates. |
1. Rare |
1. Insignificant |
LOW |
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2. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Extreme Weather conditions may impact progress |
halt to construction, potential building structure damage, shortage of electricity and water |
2. Unlikely |
2. Minor |
MEDIUM |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
|
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We can monitor to ensure safety |
set up contingency fund, may need additional workforce to catch up work to meet deadlines |
2. Unlikely |
3. Moderate |
LOW |
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3. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
|
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COVID restrictions in Brazil locking down borders. |
delay in arrival of project management team which would delay project timeframe |
3. Moderate |
4. Major |
HIGH |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Monitor COVID restrictions in Brazil |
plan travel with sufficient time anticipation for PM team |
2. Unlikely |
3. Moderate |
LOW |
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4. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Permitting delays |
delay construction timelines |
2. Unlikely |
4. Major |
MEDIUM |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Have a local SME assist in process |
establish clear communication practices with local team with ample time before arrival |
1. Rare |
2. Minor |
LOW |
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5. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Unqualified contractors may complete sub-par quality structure |
Will incur additional costs repairing damage |
2. Unlikely |
3. Moderate |
LOW |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Look for highest qualified contractors with proven experience in similar projects |
Ensure proper budget in place to hire high level talent |
1. Rare |
2. Minor |
LOW |
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6. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Material theft due to high crime rates in site location |
Additional material expense to replace loss of materials |
4. Likely |
4. Major |
HIGH |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Hire nighttime security crew |
engage local law enforcement to patrol the area |
2. Unlikely |
2. Minor |
LOW |
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7. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Issues connecting to utilities |
delay in project timelines as we try to correct issues that arise |
2. Unlikely |
4. Major |
MEDIUM |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Work with utility companies to ensure proper access |
have local team assess land ahead of scheduled start date |
1. Rare |
2. Minor |
LOW |
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8. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Loss of power or water during project |
delay in construction time frame plus cost for power generators |
3. Moderate |
4. Major |
HIGH |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Have a backup generator ready to operate |
engage local water company and familiarize with protocols in this type of event |
2. Unlikely |
2. Minor |
LOW |
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9. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Socio-political environment may alter current labor laws |
changes in labor laws would halt all processes |
2. Unlikely |
4. Major |
MEDIUM |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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Stay informed of local government and pandemic guidelines ahead of project start date |
have ground team ready to respond to possible new guidelines and changes |
1. Rare |
2. Minor |
LOW |
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10. Potential risk |
Impact: What are potential consequences? |
Risk levels if left unchecked |
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Likelihood |
Consequence |
Risk rating (uncontrolled) |
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Customs regulations delays incoming shipment |
delays in store opening |
3. Moderate |
4. Major |
HIGH |
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Is it possible to deal with the risk? What is the method? |
Other controls or tools needed |
Risk levels with controls |
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Likelihood |
Consequence |
Risk rating (controlled) |
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prepare to have shipment arrive early or ahead of schedule |
ensure stagger arrival of items for a stream of |
2. Unlikely |
2. Minor |
LOW |
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TSC Brazil Home Improvement Store Construction Budget |
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Design building, garage, parking lots, and landscaping |
$321,000 |
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Obtain required licenses and permits |
$60,000 |
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Prepare the site and lay the foundation |
$720,000 |
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Construct the new store building and finish the interior |
$5,160,000 |
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Construct the garage and garden center |
$420,000 |
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Pave the parking lots and landscape the exterior of the store |
$120,000 |
|
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Total Construction Costs |
$6,801,000 |
|
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Construction Contingency 25% |
$1,700,250 |
|
|
Total Construction Budget |
$1,700,250 |
|
|
Outfit the store with shelves, fixtures, and IT systems |
$680,000 |
|
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Stock the store with inventory |
$2,000,000 |
|
|
Staff, hire, and train personnel |
$221,000 |
|
|
Total Initial Outfitting Costs |
$2,901,000 |
|
|
15% Contingency |
$435,150 |
|
|
Total Outfitting Budget |
$3,336,150 |
|
|
Total Project Budget Before Contingency |
|
$9,702,000 |
|
Total Contingency |
|
$2,135,400 |
|
Total Project Budget with Contingency |
|
$11,837,400 |
References
Floodlist News in Americas. (2019 March 12). Brazil – Rain in Sao Paulo Causes Deadly Floods and Landslides. Retrieved from http://floodlist.com/america/brazil-sao-paulo-floods-march-2019
University of Maryland Global Campus (n.d.). Project 2, Project Management in an International Environment, Start Here Transcript. Document posted in UMGC MBA 670 1121 classroom, archived at https://campus.umgc.edu
Cloudpay. (2020, July 1). Understanding payroll in Brazil - Ensuring successful global payroll operations. https://www.cloudpay.net/resources/understanding-payroll-in-brazil-ensuring-successful-global-payroll-operations#:%7E:text=Compensation%2C%20Bonuses%20and%20Severance&text=All%20employees%20in%20Brazil%20are%20also%20entitled%20to%20a%20’bonus,day%20of%20the%20following%20month.
Duran, R. (2013, July 12). Introduction to FGTS. The Brazil Business. https://thebrazilbusiness.com/article/introduction-to-fgts
Stotz, J. (2020, June 22). Average and minimum salary in Sao Paulo, Brazil. Check in Price. https://checkinprice.com/average-minimum-salary-in-sao-paulo-brazil/#:%7E:text=The%20current%20minimum%20salary%20in,of%20the%20highest%20in%20Brazil.
The GPS Team in Global Compliance. (2020, June 26). Brazil labor law changes in 2020. Global People Strategist. https://www.globalpeoplestrategist.com/brazil-labor-law-changes-in-2020/
Project Management Plan Approval
The undersigned acknowledges they have reviewed the Sao Paulo, Brazil Store Opening Project Management Plan and agree with the approach it presents. Changes to this Project Management Plan will be coordinated with and approved by the undersigned or their designated representatives.
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CostsContingencyReserveBudget
Design building, garage, parking lots, and landscaping$190,674
Obtain required licenses and permits$47,444
Prepare the site to lay the foundation$399,600
Construct the new store building and finish the interior$2,667,110
Construct the garage and garden center$666,777
Pave the parking lots and landscape the exterior of the store$80,000
Total Construction Costs$4,051,606
Contingency 10%$405,161
Construction Reserve 15%$607,741
Total Construction Budget$5,064,507
Outfit the store with shelves, fixtures, and IT systems$749,000
Stock the store with inventory$1,879,785
Total Outfitting & Inventory Costs$2,628,785
10% Contingency$262,879
Outfitting & Inventory Costs Reserve 5%$131,439
Total Outfitting & Inventory Budget$3,023,103
Staff and Training Costs$221,000
15% Contingency$33,150
Staff and Training Costs Reserve$11,050
Total Staff & Training Budget$265,200
Total Project Budget Before Contingency$6,901,391
Total Contingency$701,189
Total Management Reserve$750,230
Total Project Budget with Contingency$8,352,810
TSC Brazil Home Improvement Store Construction Budget
DescriptionDesign
Licenses &
Permits
Prepare site to
lay foundationConstruct Store
Pave parking
lots and
landdscapeOutfit StoreStock inventory
Staffing &
training
Main store sqft 80,000 / 7,432 sqm @ 1,495.285 BRL/sq m$190,674$47,444$177,600$2,667,110$658,000$1,879,785$221,000
Garden center sqft 20,000 / 1,858 sqm @ 1,495.285 BRL/sq m$44,400$666,777$91,000
Parking lot sqft 70,000 / 6,503 sqm @ $1 sqft$155,400$70,000
Shipping & Receiving area sqft 10,000 / 930 sqm @ $1 sqft$22,200$10,000
Total Costs$190,674$47,444$399,600$3,333,887$80,000$749,000$1,879,785$221,000
Total Developed Facility 180,000 sqft / 16,723 sqm
Wage InformationUSA Hourly
Sao Paulo,
Brazil Real$
Monthly
Sao Paulo,
Brazil USD$
Monthly
Minimum wage 2020$7.25$1,163$213
Average pay$12.81$2,600$476
Rate above minimum wage77%124%124%
Conversion Rate Real$ to US$ estimated @ 0.24
Main Store Outfititting
Racks/Shelves 800 @ $400$400,000
Point-of-sale systems 12 @ $8,000$96,000
Computers 10 @ $1,200$12,000
Ligh Fixtures @ $1.25 per sqft$100,000
Department fixtures$30,000
Other fixtures and finishes$20,000
Total Main Store Outfitting Costs$658,000
Garden Center Outfitting
Racks/Shelves 100 @ $400$50,000
Point-of-sale systems 2 @ $8,000$16,000
Ligh Fixtures @ $1.25 per sqft$25,000
Total Garden Center Outfitting Costs$91,000
According to Compass International the 2016 average construction cost to build a warehouse in Brazil is $69 USD per sqft and design cost range from 5-10% of construction cost (Compass International, 2017). For this
130 employees. Average salary $700 per month for two months. Staffing & Training costs averaging $300 per employee.
70,000 sqft 200 spaces parking lot @ cost of $160 per space
TCS Sao Paulo, Brazil - Store Project Budget
DescriptionDesign
Licenses &
Permits
Prepare site
& lay
foundation
Construct
Store
Pave
parking lots
and
landdscapeOutfit Store
Stock
inventory
Staffing &
training
Store buiding sqft 80,000 / 7,432 sqm @ $69 sqft$321,000$60,000$360,000$5,160,000$612,000$2,000,000$221,000
Garden Center sqft 20,000 / 1,858 sqm @ $23 sqft$40,000$420,000$68,000
Parking Lot sqft 70,000 / 6,503 sqm @ $1.50 sqft$280,000$105,000
Shipping & Receiving area sqft 10,000 / 930 sqm @ $1.50 sqft$40,000$15,000
Total Costs$321,000$60,000$720,000$5,580,000$120,000$680,000$2,000,000$221,000
Total Developed Facility 180,000 sqft / 16,723 sqm
Wage InformationUSA HourlySao Paulo, Sao Paulo,
Minimum wage 2020$7.25$1,163$213
Average pay$12.81$2,600$476
Rate above minimum wage77%124%124%
Conversion Rate Real$ to US$ as of 1/31/2021 is 0.18305
70,000 sqft 200 spaces parking lot @ cost of $160 per space
According to Compass International the 2016 average construction cost to build a warehouse in Brazil is $69 USD per sqft and design cost range from 5-10% of
130 employees. Average salary $700 per month for two months. Staffing & Training costs averaging $300 per employee.
