final project report*
r-rover
phi_sas_m4_a2.pptxProject Management
MGT 402 A02
Argosy University
Professor: Brent Scholar
By: Phil Sassa
03/07/2016
Factors affecting the schedule
The permits were to take 2 weeks but now they are taking 3 weeks
Drywall and framing contractors are running late on other projects and they can only release half of their crew, which doubles their schedule
What is needed:
Building the extra time into the schedule by doubling the installation work timelines for both the framing and drywall
Updating project plan with the new 3 week timeline for obtaining permits
The permits were to take 2 weeks but now they are taking 3 weeks
Drywall and framing contractors are running late on other projects and they can only release half of their crew, which doubles their schedule
What is needed
Building the extra time into the schedule by doubling the installation work timelines for both the framing and drywall
Update project plan with the new 3-week timeline for obtaining permits
2
Course of Actions to be considered
Adding a new contractor at an extra cost of $200,000 and negotiating an extra one week for the permits to be obtained from project sponsor
Building the extra time into the schedule by doubling the installation work timelines for both the framing and drywall, which will cater for the one week needed for the permits
The two course of action to be considered include: Adding a new contractor at an extra cost of $200, 000 and negotiating an extra one week for the permits to be obtained from the project sponsor
Building the extra time into the schedule by doubling the installation work timelines for both the framing and drywall, which will cater for the one week needed for the permits
3
Option 1: Hiring a new contractor & negotiating a one week extension
In considering hiring a new contractor, its important to consider the tradeoffs between time and cost
The total cost for hiring a new contractor and negotiating a one week extention for the permits will be…….
$200,000+250,000 ( (for the lost revenue for the one week) = $450,000
In considering hiring a new contractor, its important to consider the tradeoffs between time and cost
The total cost for hiring a new contractor and negotiating a one week extension for the permits will be:
$200,000+250,000 (for the lost revenue for the one week)= 450,000 extra the budget
4
Option 2: Increasing time schedule for the contractors
If the time schedule is increased for framing and drywall, there would be no extra cost in the budget
However, the company will have revenue lost which will be…..
$250,000*3=$750,000
If the time schedule is increased for framing and drywall, there would be no extra cost in the budget
However, the company will have revenue lost which will be:
$250,000*3=$750,000
5
Recommendation
Adding a new contractor at an extra cost of $200,000 and negotiating an extra one week for the permits to be obtained from the project sponsor will lead to an extra cost of $450,000
On the other hand, creating the extra time into the schedule by doubling the installation work timelines for both the framing and drywall, which will suffice for the one week needed for the permits will make the company lose revenue in the amount of $750,000
It is therefore recommended to add a new contractor and negotiate with the project sponsor about a one week extension for the project
Adding a new contractor at an extra cost of $200, 000 and negotiating an extra one week for the permits to be obtained from the project sponsor will lead to an extra cost of $450, 000
On the other hand, creating the extra time into the schedule by doubling the installation work timelines for both the framing and drywall, which will cater for the one week needed for the permits will make the company lose revenue worth $750,000.
It is therefore recommended to add a new contractor and negotiate with the project sponsor about a one week extension for the project.
6
References
Berkun, S. (2008). Making things happen: Mastering project management. Sebastopol, Calif: O’Reilly Media
Larson, Erik, Gray, C. (10/2013). Project Management, 6th Edition. [VitalSource Bookshelf Online]. Retrieved from https://digitalbookshelf.argosy.edu/#/books/1259341534/
Schmidt, T. (2009). Strategic project management made simple: practical tools for leaders & teams. Hoboken, N.J. John Wiley & Sons.
