Case Study: MGMT 505 Portfolio Project
Portfolio Project
By
Jason E Thigpen
A Paper Presented in Partial Fulfillment
Of The Requirements Of
MGMT 505 PROJECT MANAGEMENT FUNDAMENTALS
Sep 2011
Summary
Silver Fiddle Construction Company has been contracted to build a 2,500-square foot, 2½-bath 3-bedroom finished home for “Bolo” and Izabella Czopek in Grand Junction, Colorado in the price range of $450,000-$500,000. The project is expected to run from 5 July to 7 November and is expected to meet all local building codes and energy ratings. Silver Fiddle Construction Company is experienced at building homes in this market and is scheduled to build a total 11 homes this year in Grand Junction, Colorado (Larson & Gray, 2011). The scope of the project is to build a high-quality …show more content…
The current financial and housing markets can cut into the profit that is expected for this project. Mitigation for these issues are going to be hard, however one way to mitigate is selection of building materials. Pre-ordering in bulk can also cut down on the cost of building materials. One issue that has to be considered is the Czopek’s receiving their home loan and being able to take possession of the home at completion. In order to mitigate this risk we should require that 20% of the final cost should be paid up front so that some of the cost can be recovered if they are not able to qualify for a loan. Another economic issue to consider is the cost of sub-contracting as opposed to hiring the skilled labor that is required to finish this project. Hiring the specialized skilled laborers could cost in salaries up to $35.00 an hour. This would be a long-term cost as oppose to the onetime cost of hiring a sub-contractor to complete this …show more content…
One of the human aspects identified is the ever changing requirements by the Czopeks due to this being their dream home. The way we will mitigate this risk is to sit down and go over the blueprints before they settle on a final drawing. This is to ensure that they understand what they are asking for and will hopefully get them to look for new ideas that they would like added during the design phase of this project. As for the workers and sub-contractors risk that has been identified, the only way to mitigate this risk is to only use trusted workers. When it comes to sub-contractors we do not have to accept their work and ask for them to re-accomplish their phase of the construction, however this will put scheduling at risk again. The risks that have been identified for this project are not calamitous enough to cause a catastrophic failure for this project. However, there will always be a degree of risk that cannot be predicted that will have to be dealt with when it arises.
Risk Assessment Matrix
Below is a risk assessment matrix that identifies the risk event, likelihood of the event happening, then impact that it will have on the project, the detection difficulty, and when the expected risk will have the most impact on the project. In my opinion, scheduling and economic issues are the most likely to occur and have the greatest danger of being a major impact on the project’s completion and success.
By
Jason E Thigpen
A Paper Presented in Partial Fulfillment
Of The Requirements Of
MGMT 505 PROJECT MANAGEMENT FUNDAMENTALS
Sep 2011
Summary
Silver Fiddle Construction Company has been contracted to build a 2,500-square foot, 2½-bath 3-bedroom finished home for “Bolo” and Izabella Czopek in Grand Junction, Colorado in the price range of $450,000-$500,000. The project is expected to run from 5 July to 7 November and is expected to meet all local building codes and energy ratings. Silver Fiddle Construction Company is experienced at building homes in this market and is scheduled to build a total 11 homes this year in Grand Junction, Colorado (Larson & Gray, 2011). The scope of the project is to build a high-quality …show more content…
The current financial and housing markets can cut into the profit that is expected for this project. Mitigation for these issues are going to be hard, however one way to mitigate is selection of building materials. Pre-ordering in bulk can also cut down on the cost of building materials. One issue that has to be considered is the Czopek’s receiving their home loan and being able to take possession of the home at completion. In order to mitigate this risk we should require that 20% of the final cost should be paid up front so that some of the cost can be recovered if they are not able to qualify for a loan. Another economic issue to consider is the cost of sub-contracting as opposed to hiring the skilled labor that is required to finish this project. Hiring the specialized skilled laborers could cost in salaries up to $35.00 an hour. This would be a long-term cost as oppose to the onetime cost of hiring a sub-contractor to complete this …show more content…
One of the human aspects identified is the ever changing requirements by the Czopeks due to this being their dream home. The way we will mitigate this risk is to sit down and go over the blueprints before they settle on a final drawing. This is to ensure that they understand what they are asking for and will hopefully get them to look for new ideas that they would like added during the design phase of this project. As for the workers and sub-contractors risk that has been identified, the only way to mitigate this risk is to only use trusted workers. When it comes to sub-contractors we do not have to accept their work and ask for them to re-accomplish their phase of the construction, however this will put scheduling at risk again. The risks that have been identified for this project are not calamitous enough to cause a catastrophic failure for this project. However, there will always be a degree of risk that cannot be predicted that will have to be dealt with when it arises.
Risk Assessment Matrix
Below is a risk assessment matrix that identifies the risk event, likelihood of the event happening, then impact that it will have on the project, the detection difficulty, and when the expected risk will have the most impact on the project. In my opinion, scheduling and economic issues are the most likely to occur and have the greatest danger of being a major impact on the project’s completion and success.