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