Construction of a New Restaurant in Auckland, New Zealand | Report

Running Head: PROJECT MANAGEMENT
Construction of a New Restaurant in Auckland, New Zealand
Name of the Student
Name of the University

1PROJECT MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................2
1.1 Description of the Project and Potential Value to the Company...........................................2
1.2 Scope of the Project...............................................................................................................2
1.3 Anticipated Outcomes of the Project.....................................................................................2
1.4 Key Stakeholders in the Project.............................................................................................3
2. Budgeting and Cost Management................................................................................................3
2.1 Detailed Financial Plan and Budget......................................................................................3
2.2 Identification of Financial Resources....................................................................................7
3. Time Management.....................................................................................................................10
3.1 Project Schedule including Milestones................................................................................10
3.2 Gantt Chart...........................................................................................................................13
3.3 Eisenhower’s Priority Matrix..............................................................................................15
4. Risk Management......................................................................................................................16
4.1 Identification and Mitigation of the Risks...........................................................................16
4.2 Constraints within the Project..............................................................................................16
4.3 Risk Management Strategies...............................................................................................16
5. Project Evaluation......................................................................................................................17
5.1 Use of Project Evaluation Tools..........................................................................................17
5.2 Monitoring and Control System..........................................................................................17
6. Quality Management.................................................................................................................17
6.1 Quality Management Approaches.......................................................................................17
6.2 Key Processes to Manage Quality of the Project.................................................................18
References......................................................................................................................................19

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1. Introduction
1.1 Description of the Project and Potential Value to the Company
One Tree Grill is a restaurant operating in Auckland and specialises in a large number of
New Zealand native cuisines as well as a huge variety of wine. Over the last few years, the
popularity of the restaurant has increased exponentially and customers have been constantly
demanding for a new branch of the restaurant in another part of the city that is a bit far from the
current location. The management of the restaurant has finally decided to approve the requests of
the customers and has proposed the opening of a new branch of the restaurant.
Considering the current popularity and a constant growth of profit, it is very expected that
the new branch will further increase the business of the company. The revenue is expected to
become double from the current value effectively pushing the profit margin up as well.
1.2 Scope of the Project
The project scope in this case includes the following:
 Purchase of a new property in another location in Auckland
 Construction of the new restaurant building on the purchased property
 Setting up the restaurant interior and exterior
 Opening of the restaurant for public
1.3 Anticipated Outcomes of the Project
The anticipated outcomes of the project including the SMART concept are as follows.
Specific – Construction of the new restaurant building.
Measurable – Completion of the project within the estimated budget of $2,376,000.
Achievable – Construction of the building as per specified design and requirements.
Realistic – Purchase of the property and construction of the building on the property.
Time Based – Completion of the project within 15 months.

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1.4 Key Stakeholders in the Project
The key stakeholders involved in the project are:
 Management Board
 Project Head
 Finance Chief
 Project Supervisor
 Design Engineer
 Contractor
2. Budgeting and Cost Management
2.1 Detailed Financial Plan and Budget
The financial plan of the project includes the following estimated values.
Resource Name Type Max. Units Std. Rate
Project Head Work 100% $200.00/hr
Project Supervisor Work 100% $150.00/hr
Contractor Work 100% $75.00/hr
Workers Work 100% $1,000.00/hr
Electrician Work 100% $50.00/hr
Plumber Work 100% $50.00/hr
Design Engineer Work 100% $150.00/hr
Construction Materials Material $500,000.00
Rent for Construction Vehicles Material $250,000.00
Other Costs Material $150,000.00

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The budget breakdown per each activity in the project is estimated using the bottom up
estimation technique and is shown in the following table.
WBS Task Name Duration Resource Names Cost
0 Construction of Restaurant Building in Auckland 327 days $2,376,000
1 Preliminary Planning for the Project 42 days $67,200.00
1.1 Host a Board Meeting for a New Branch of the Restaurant 5 days Project Head $8,000.00
1.2 Discuss Whether a Building will be Rented or Constructed in
the Preferred Location 5 days Project Head $8,000.00
1.3 Conduct Detailed Feasibility Analysis of the Project 10 days Project Head $16,000.00
1.4 Prepare Feasibility Report of the Project 5 days Project Head $8,000.00
1.5 Develop the Project Proposal 10 days Project Head $16,000.00
1.6 Send the Proposal to the Higher Authority for Approval 2 days Project Head $3,200.00
1.7 Review of the Proposal 5 days Project Head $8,000.00
1.8 Receive Approval Notice from the Authority 0 days $0.00
2 Preparations for the Project 49 days $126,400.00
2.1 Team Building 9 days $14,400.00
2.1.1 Select Personnel for Project Management Team 5 days Project Head $8,000.00
2.1.2 Create Stakeholder Posts for the Team 2 days Project Head $3,200.00
2.1.3 Allocate Stakeholder Roles to the Team Members 2 days Project Head $3,200.00
2.1.4 Documentation of Team Roles 0 days $0.00
2.2 Location Selection 40 days $112,000.00
2.2.1 Conduct Meeting with Team Members Regarding Location 3 days Project Head,
Project Supervisor $8,400.00

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2.2.2 Create a List of Possible Locations 3 days Project Head,
Project Supervisor $8,400.00
2.2.3 Conduct Survey at All Locations 5 days Project Head,
Project Supervisor $14,000.00
2.2.4 Contact Government Regarding Purchase of a Location 10 days Project Head,
Project Supervisor $28,000.00
2.2.5 Evaluate Pricing of the Different Properties Selected 2 days Project Head,
Project Supervisor $5,600.00
2.2.6 Select a Specific Property for the Construction 2 days Project Head,
Project Supervisor $5,600.00
2.2.7 Purchase the Selected Property 15 days Project Head,
Project Supervisor $42,000.00
3 Project Planning 17 days $20,400.00
3.1 Scope Definition of the Project 2 days Project Supervisor $2,400.00
3.2 Objectives Specification of the Project 3 days Project Supervisor $3,600.00
3.3 Estimation of Total Time Required for the Construction and
Delivery 3 days Project Supervisor $3,600.00
3.4 Estimation of Total Budget for the Project 4 days Project Supervisor $4,800.00
3.5 Risk Assessment 5 days Project Supervisor $6,000.00
3.6 Finalisation of the Project Plan 0 days $0.00
4 Contractor Hiring and Construction Process 192 days $1,965,200.00
4.1 Release Tender for the Project Contract 5 days Project Head $8,000.00
4.2 Hire Contractor through Bidding Process 2 days Project Head $3,200.00
4.3 Discuss the Project 5 days Contractor, Project
Head $11,000.00
4.4 Finalise the Contract with the Contractor 5 days Contractor, Project $11,000.00