Business Relocation

This article discusses the process of business relocation and the factors to consider. It provides insights on creating a successful business relocation plan, including risk evaluation, benefits assessment, and task checklist. The article also covers project scope, objectives, deliverables, milestones, and technical requirements. It concludes with information on project priorities, budgeting and planning, responsibility assignment, and project oversight.

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

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Introduction
Stakeholders relocate their firm due to several justifiable reasons. It may be due to the need to
get increased customer traffic and put the business at a position of growth opportunities as well
as get more space for business expansion. However, the whole process of relocating a business
may lead to business disruption, time-consuming and may also disrupt the customer-employee
bond that already exists. A business relocation plan should take into consideration the relocation
risk evaluation mechanism, relocation benefits to the firm as well as a detailed checklist on the
tasks need to successfully relocate the business, (De Felice et al., 2015). In the relocation plan, it
is important to clearly note down the reasons for relocating the business. Listing relocation
reasons is critical for focusing the relocation plan to the right direction and achieving the set
relocation goals. Comparison of possible risks and the benefits offered by the new location
should be done. Guide to the maximization of the new benefits in terms of the new environment,
easier access to the customers and business suppliers, availability of possible skilled labor from
the new location and the benefits offered by the new space for business expansion.
Project scope statement
The relocation process will begin with the identification of the ideal new location. This will
include the deployment of the firm’s surge team to carry out extensive market research and
determine the suitability of the identified place to the achievement of the goals of the business,
(Roberts, 2011). This will include accessibility of the new place to customers and business
suppliers. The leasing of the current place will be done when a new location has been identified,
constructed, partitioned and designed to meet all the requirement of the business and is ready for
occupation.

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Project objectives
i. Completion period is eight months
ii. Number of project managers is fifteen drawn from the firm and other project
developers
iii. Disposal of the current business location
iv. Construction of the new business location site and business relocation exercise
Project deliverables
The following are the main project deliverables;
i. The project plan for business relocation
ii. Approval of all relocation inventories
iii. Vendor management
iv. Business relocation to be achieved after 6 months
Project milestones
i. Identification and acquisition of the establishment site
ii. Project funds acquisition

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iii. Disposal of the current business location
iv. Complete construction of the new business location
v. Successful business relocation
Technical requirements
i. Project financing
ii. Project time requirement
iii. Resources
Limits and exclusions
i. Limited timeframe for data gathering and analysis
ii. Some project data was not availed due to the request of the new business opponents
iii. Some stakeholders stayed away from engaging in the project activities
iv. Incorrect data entry
Review with customers
i. Office accessibility made easier
ii. Strategically located in serving all customers

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Project priorities
Relocation process is a very critical process to carry out. It should be done carefully and all the
activities set in terms of their priority and their accomplishment, (Tereso, & Bernardino, 2011).
In this project, the stakeholders will put more priorities in the following activities; projecting
budgeting and planning, activity lead time and project personnel time commitment and assigning
responsibility to project personnel.
Project budgeting and planning
It is very important to start the relocation process by having a complete task funds allocation.
After the task inventory allocation has been done, it becomes important to assign the tasks to
individuals. The budgeting is important in task completion process and task assignment is
important since it gives responsibility to the completion of the task. Failure to properly plan and
budget project activity may make the project to fail terribly.
Lead time estimation and employee commitment
The thorough and complete activity of the project will be done. It is done by properly
determining all project activity lead time and most importantly the time that is required to
manage the activities. In order to make sure that the project will be successful, it becomes
extremely important to assign project activities to the people with appropriates skills and
expertise. The existing staff members will be assigned the project activities and make them
responsible for their success.

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Responsibility assignment
Normally, business relocation activity has four phases; project planning, preparing, business
relocation and business recovery with the operations in the new location. The whole process
starts with project planning, which is the first step. The following phases need continuous
management process since they involve numerous crucial activities that require a complete
understanding of hundreds of details, (Slabá, 2014). Most of the details involved in these tasks
affect more than one department. Therefore, they require the project managers to continually
monitor their effects in all the departments they affect.
Relocation work breakdown
Any activity conducted in the organization, including changing of the business location is under
the control of the firm’s board of directors. The project financiers will be funding the project
hence will require prudent financial reports on the implication of their finances on the project.

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The business manager is the head of all activities so most of the relocation reporting will be
reported to him. Other relocation project personnel will be reporting directly to the project
manager or the departmental managers they are under.

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Work packages;
Foundation; foundation will be done in the first week after acquisition of the project site, It is
critical for the quality of the structure that will be constructed.
Exterior; the main contractor will be in charge of all activities involving the construction of the
exterior of the building.
Interior; it is allocated to subcontractors who are in charge of constructing such things as walls,
plastering, interior designing and other finishing requirements
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;
Work breakdown code Tasks
0 Business relocation
1 Initiation of the project

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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
3.1 Obtaining of construction permit

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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
4.2 Unpacking of office equipment’s

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4.2.1 Disposal of packing material
4.3 House maintenance activities established
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. 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. During the construction of this new business

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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.
Cost estimation matrix
Relocating a business includes costs that are beyond the acquisition or construction of structures
the business is relocating to. The expenses are way above the normal costs incurred while
moving the business equipment and furniture. Relocation costs begin to accumulate before the
relocation process begins, (Iowa State University, 2014). The costs continue accruing during the
relocation process and after the business has settled in the new location. The following cost
matrix includes the costs incurred when this project was relocated

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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
$28, 622,000.
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
estimate is obtained defining what each activity needs. Costs of smaller project activities of the

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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 activity Cost incurred
Main business offices $25000000
Finishing and fitting $90000
Electricity wiring and other installations $2345000
Business supporting amenities $145000
Internet and satellite dishes installation $890000
Office interior partitions $65000
Labor cost $87000
Total cost $28622000
Time phased budgetimg

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This shows the time activities will be complete and the amount of finances that would have been
used.
January February March April May June July August
0
5000000
10000000
15000000
20000000
25000000
30000000
Series 1
Series 2
Series 3
Purpose
i. To monitor completion of the activities against their lead time
ii. To make sure that project completion time is as planned and the budget set in place
will be sufficient
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

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determination of how the project management principles can be used in the development of
various project plans. A case of a relocation of a 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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References
De Felice, F., Petrillo, A., & Silvestri, A. (2015). Offshoring: Relocation of production processes
towards low-cost countries through the project management & process reengineering
performance model. Business Process Management Journal, 21(2), 379-402.
Failner, S., & Tyrrell, M. (2014). Campus Planning and Construction Project Delivery PROJECT
UPDATES. Utah University.
Gustafsson, B., Yadav, B., Resmini, A., Keller, C., & Vimarlund, V. (2013). Closing IT projects.
Jonkoping International Business School.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Iowa State University. (2014). Facilities Planning and Management Moving Guide . Iowa State
University.
Kakande, N. (2014). Subcontractor Management. Kampala, Uganda : Joint Clinical Research
Centre.
Roberts, P. (2011). Guide to Project Management (3rd ed.). New Delhi, India: The Economist
Newspaper Ltd.
Slabá, M. (2014). STAKEHOLDER POWER-INTEREST MATRIX AND STAKEHOLDER-
RESPONSIBILITY MATRIX IN CORPORATE SOCIAL RESPONSIBILITY.

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International Days of Statistics and Economics (pp. 1366-1374). The Institute of
Technology and Business in ÄŒeské BudÄ›jovice.
Tereso, M., & Bernardino, J. (2011). OPEN SOURCE CRM SYSTEMS FOR SMES .
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