Business Relocation

This article discusses the project management plan for relocating a business, including the process of finding a new location, setting up the office space, and installing necessary technology. It also covers the project scope, objectives, milestones, and technical requirements. The article provides insights into activity priorities, work breakdown structure, and cost estimation. Overall, it offers a comprehensive overview of the business relocation process.

Running Head: BUSINESS RELOCATION 1
Business Relocation
Student’s Name
Institution
Tutor
Date

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Introduction
The project management plan involves moving a company’s office to another location; a hotel
business in the coastal shores of Los Angeles needs to relocate their location to another place
within the coastal stretch. The relocation is because of the desire to operate nearer to the beaches
and closer to other commerce facilities. It will help the hotel to serve its merrymaking customers
better and make use of the available commerce facilities in the area such as banks and strong
internet connectivity, (Tereso, & Bernardino, 2011). The relocation exercise highly depends on
the scale of the hotel regarding its size and levels of operation. In the new location, the company
needs to increase its levels of operation and increase the size of the company’s human resource
level so as to adequately cover the increasing needs of the customers vesting the hotel. The
project requires proper planning of the new site, identifying the ideal office space, office
partitioning, installation of technological parameters, and furnishings.
The relocation project is extremely dependent on the important weeks of relocation, new office
needs in terms of IT requirements, office furniture and the strategies to be employed. This
relocation plan is geared towards having successful office relocation according to the set time
and the budgeted finance to carry out the exercise. The project scope statement is considered in
regards to the six main project goals which include project milestones, deliverables, project
objectives, project limits, and exclusions and the general technical requirements for the project
and most important project customer review, (Slabá, 2014). This report will also determine
project activity priorities according to activity requirement in terms of time, activity costs and the
project costs. The report provides a breakdown on work breakdown structure, project budget
estimation and the project time-phased budget. The grant diagram will illustrate the project time

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of activity completion will accurate activity finishing dates of the whole business relocation plan
of the hotel business.
Project scope
Project objectives
i. Complete the relocation plan of the business on the set time and the allocated budget
ii. To monitor the business operations of the plan
iii. Get the approval of the hotel furniture plans, construction documentation, and the
relocation map
iv. To properly install the required services to the new office
v. Ensure project plan documentation, necessary construction documentation, interior
designing map, and office furniture plan.
Project milestone
Activity Start date
Completion of project feasibility analysis 9th June 2019
Project planning phase completion 19th July 2019
Project relocation phase 3rd September 2019
The closing phase of the project 17th September 2019

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Project technical requirements for the plan
i. Train the hotel staff on the relocation process
ii. Ensure the new relocation site meets the necessary building requirements
iii. Update the new hotel located on the hotel platforms such as social media and
websites
iv. Complete the project after the set 98 days
v. Ensure the new hotel location is properly insured and all operation permits obtained.
Project limitations and exclusions
i. Budgetary constraints
ii. Inadequate time for relocation
iii. Need for an extra resource to carry out the project effectively and efficiently
Project customer reviews
The views of the current and potential customers are obtained in the form of the feedback they
leave on social media pages, hotel websites and a questionnaire are sent out to gather more
information, (Roberts, 2011). The feedback of the customer helps in modification of the hotel
during the relocation process to ensure that they have maximum services and experience at the

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hotel.
Activity priorities
Relocation activity priority matrix is developed before the project is executed. The priority
matrix depends on the relocation tasks to be conducted. It is important to the project manager to
determine the most vital criterion to prioritize the tasks. The following is the task priority matrix
for the hotel relocation process.
Activity criterion Time Activity scope Total cost
Constraint *
Enhance *
Activity acceptance *
It the project manager who has the responsibility to carry out activity times estimation, costs to
be incurred and the scope of the project. These are the three main factors that were included in
the project activity priority matrix. In this hotel relocation project, the following are the priorities
of the project;
Project cost: as per the project budget, the project cost is limited; hence the hotel needs to
increase the project fund so as to adequately meet the relocation requirements, (Harrison, &
Lock, 2017). Before the relocation process is undertaken, it is important for the hotel

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management to accurately estimate the resources required in the process to avoid the need to
increase the project budgets in the future.
Project scope: total scope of the project varies with the addition of new project requirements. The
scope is dynamic with the implementation of the relocation process.
Activity time: in the relocation process of the hotel, time is among the project constraints. The
relocation activities need to be started according to the set time which is 9th June 2019 and the
whole project should be closed on 17th September 2019. The duration process of the project is 98
days. Proper office finishing is necessary to be completed at the right time so as hotel processes
can be resumed as soon as possible.
Work breakdown structure
Project oversight
This is carried out to determine how the relocation project and the activities involved are
proceeding. It helps in determining if the whole process will be achieved with the set aside cost.
Project oversight is important in the identification of risks that may be faced hence the mitigation
measures can be put in place in case the risk occurs in a way that the project will not experience
a high degree of damage, (Gustafsson et al., 2013). All activities of the project are monitored
during the oversight of the project. This is important in order to determine how project
management functions can be used. This includes project scheduling, management scope, project
budgeting, risk management, activities regulations, project standards, and employed policies and
also checking project compliance with the set rules. To manage the construction of the new
business location project, the oversight of the project will include the following; establishment of

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the project scope taking into consideration the scope statements and the provided project charter.
And other deliverables included in the project work breakdown structure.
Subcontractor plans
Contracts refer to the obligatory agreements between two or more parties that demand one of the
parties to complete an activity as the other party offers to pay the other party after he/she
completes the said activity. In the construction process, the contractor is the prime receiver of the
construction fees for the activities that he/she might have even delegated to another party
referred to as a subcontractor. Understanding this relationship will be vital for the success of the
project. Subcontracts are highly affected by the terms of the main contract, (Failner, & Tyrrell,
2014). It includes the development of work statements that are used in the definition of the
project goals proposed to the owners of the business and the financiers. On this business
relocation project, the business will agree with the main contractor on the aims and the objectives
of the project leaving the subcontracting of activities at the hands of the main contractor.
From the business, which is the owner of the project, a contractor plan will be developed that
will require documentation of all project compliance needs, schedules, work processes, costs,
and the project deliverables. The following is the project work breakdown structure;
The following is the project work breakdown structure;
Work breakdown code Tasks
0 Business relocation

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1 Initiation of the project
1.1 Management of the project
1.1.1 The planning process of the project
1.1.2 Project budgeting
1.1.3 Project scheduling
1.1.4 Requirements procurement
2 Planning
2.1 Project requirement identification
2.1.1 Business requirements
2.1.2 Risks and constraint analysis
2.2 Project site selection
3 Construction

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3.1 Obtaining of construction permit
3.1.1 Project vendor selection
3.1.2 Contractors invitation and selection
3.1.3 Agreement with the chosen vendor
3.2 Project utilities
3.2.1 Project account creation
3.2.2 Actual construction, finishing, and interior
designs
4 Insurance
4.1 New location equipment packing
4.1.2 Cleaning of the rooms
4.1.3 Staff unpacking

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4.2 Unpacking of office equipment’s
4.2.1 Disposal of packing material
4.3 House maintenance activities established
Relocation project work packages are the activities that are related. The packages are the
smallest independent task of the projects that the project can be subdivided to in order to create
the work breakdown structure. Project deliverables were broken into smaller units that can be
autonomously managed as independent project activities, (Rivinus, 2013). Tasks breakdown are
done until the smaller units of the deliverables are obtained that can be considered as the project
work packages. Any smallest activity in the project that can be considered as in the work
breakdown is the project activity package. In the relocation process of this hotel, the following
are the project activity packages;
a. Preliminary scope
b. Customer needs
c. Selection of the office furniture vendor
d. Relocation map
e. Office IT requirement testing
The work breakdown packages need to be smaller enough to enable the project manager to
estimate their costs and the time required to complete them, (Indelicato, 2014). The above
packages can be scheduled, their costs estimated and proper management control exercised.

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Establishing project work breakdown packages is essential as it allows the management to carry
out several working components of the project.
Top-down cost estimates
This cost was derived from an experienced contractor who focuses on the construction and helps
the relocation of businesses. Consensus top-down cost estimation method was used. As the
project advanced, the Delphi top bottom cost estimation method was also used in determining the
macro costs need of the project, (Harrison, & Lock, 2017). The estimated total cost of
constructing a new business site as well as moving the business operation to this new place is
$96000
Bottom-up cost estimation
In order to get more refined cost estimates of the relocation project, bottom-up cost estimation
was employed. The total cost estimate was assigned to various activities in the project that will
help the stakeholders to get the specific costs that will be incurred, (Kakande, 2014). Then an

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estimate is obtained defining what each activity needs. Costs of smaller project activities of the
project are aggregated to obtain the general cost of a particular group of activities. This creates
more accurate figures for the project to be incurred. It also allows a refined consideration of
project activities and how they can be carefully being aggregated to obtain the aggregate costs of
the whole project.
Project quality and maintenance of general performance standards
It is very important to identify the project quality requirements and the standards at which
various activities need to be performed. This helps the stakeholders in monitoring the progress of
the project based on the quality levels employed. This is necessary for accessing risks and helps
mitigate them before they adversely affect the whole project, (De Felice et al., 2013).
Performance metrics are used to assess general project performance and the process of business
relocation. It involves the use of project cost variance and the scheduling of activities.
Project schedule variance = earned value – planned value
Planned value is the amount of project work that was supposed to be finished in a given time in
accordance with the set budget
Earned value is the finished work during the assessment as per the budget set.
For the project to be successful, the schedule variance needs to be positive indicating that the
project is ahead as planned. When the value becomes negative, it will indicate that the project
will be delayed compared to the planned schedule, (Kakande, 2014). During the construction of

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this new business location, whenever, the value nears zero, necessary actions need to be done to
correct it. Consequently fixing issues that would have made the project to delay;
Cost variance (CV)
CV = EV – AC
AC – Actual project costs
If the total project cost variance bears a positive figure, the project budget is within the set
amounts. Negative figures mean that the project is past the set budget. Whenever the figures are
nearing zero, the project manager should initiate actions that will solve the issues that will lead to
over expenditure.
Project cost estimation
Project task Activity duration Activity budget
Office acquisition Weeks 1 - 2 $50,000
Office finishing and fittings Week 3 $9000
Electrical and other
installation
Week 4 $4000
Hotel support amenities Weeks 5 - 6 $5000

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Internet and satellite
installations
Weeks 7 - 8 $8000
Office partitioning Weeks 9 – 12 $11000
Hotel content move Week 13 $2000
Other costs Weeks 14 - 15 $7000
week
1 week
2 week
3 week
4 week
5 week
6 week
7 week
8 week
9 week
10 week
11 week
12 week
13 week
14 week
15
0
10000
20000
30000
40000
50000
60000

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Conclusion
This project report was developed so as to develop an understanding of the use of project
management knowledge obtained in class to a real business situation. It encompassed the use of
different methodologies and how it can be used to determine the trade impact between the time
used in carrying out the project and the cost that may be incurred. It was also essential in the
determination of how project management principles can be used in the development of various
project plans. A case of the relocation of business was considered hence a relocation project plan
of the business was created. The scope of this relocation plan involved the disposal of the current
establishment place, place acquisition and building of a new structure that will house the
business and business asset shifting to the new location. This project has widely covered the
crucial activities that will be involved in the completion of this relocation process. The activities
involved project planning, project organization work breakdown structure creation, insight into
the different phases of the project, risk management, and project management process and
responsibilities.

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