Grancester Arena Project: Cost Plan and Investment Appraisal

This report evaluates the Grancester Arena Project with a focus on cost plan and investment appraisal techniques. It includes a Gantt chart, critical path analysis, cash flow statement, and project appraisal techniques. The report also provides recommendations for resource management and contingency planning.

GRANCESTER
ARENA PROJECT

EXECUTIVE SUMMARY
This report shall consist of cost plan and investment appraisal technique method which
mainly focusses on the evaluation of the project which is carried out by the Arena Development
or not.
Under the project task 1, it has been identified that longest path taken by the project is 76 weeks
whereas the shortest path is 56 weeks so critical path will be longest path. The Task 2 and Task 3
has been completed in the statement given below along with the recommendation therein. On
carrying out resource management task, it has been identified that hiring assistant project
manager over administration assistant is cheaper. Further, the limitations imposed on recruiting
assistant project manager was found to be budget savvy by £5150. Also, by using PERT
technique it has been evaluated that the chances of completion of project is 0.00% and that is
why, there is a need to make effective steps in order to meet the deadline. Under task 6 of
project, it has been identified that the estimated cost at completion will be £ 76,270,000 which is
higher than planned cost and estimated total duration is 93.8 weeks which is lower than planned
schedule.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
1.a Preparing a gantt chart......................................................................................................5
1.b) gantt chart........................................................................................................................7
1.c Critical path......................................................................................................................7
TASK 2 Budgets and Cost Planning:...............................................................................................8
a.) Preparation of Fully Itemised Cost Plan including provision for contingencies:..............8
b.) Determination of Basis for provision of contingency within the cost plan along with
recommendation stating the reasoning:..................................................................................9
TASK 3 Projects Appraisal Technique:.........................................................................................10
a.) Cash flow statement for the Period between 2022 to 2029 along with reason for stating the
figures that are considered in preparation:...........................................................................10
b.) Project Appraisal Technique:..........................................................................................11
c.) Recommendation on acceptance and rejection of the project on the basis of application of
above techniques:.................................................................................................................12
Task 4 – Resource Management....................................................................................................12
4a. Preparation of resource budget for the assistant project managers and administration
assistant.................................................................................................................................12
4b. Week by week resource histogram showing number of assistant project manager required
..............................................................................................................................................14
4c. Limiting the peak assistant project manager to the maximum of three..........................14
TASK 6..........................................................................................................................................18
6 a. Calculation of estimated cost of the arena construction at completion.........................18
6 b. Calculation of estimated total duration of the arena construction and identification of
estimated completion date....................................................................................................22
6 c. Comment upon the result...............................................................................................25
TASK 7..........................................................................................................................................26
7a. Traffic light progress report............................................................................................26
CONCLUSION..............................................................................................................................27

REFERENCES..............................................................................................................................28

INTRODUCTION
This statement is the project management report relating to Grantchester Arena Project which
belongs to the Arena Development which is the new firm operating in the United Kingdom
market. They are intending to purchase and develop an inner city brownfield site as a
multipurpose leisure venue. This statement shows the estimated cost the entity will undertake
along with revenue has been showcase in different phase.
TASK 1
1.a Preparing a gantt chart
Task
Mode Task Name Duration Start Finish Predecessors
1 Selection of a cite 3 wks Mon 1/10/22 Fri 1/28/22
2 draft a layout of a site 15 wks Mon 1/31/22 Fri 5/13/22 1
3 Provide approval 20 wks Mon 5/16/22 Fri 9/30/22 2
4 permission from a
government 10 wks Mon 10/3/22 Fri 12/9/22 3
5 finalizing the budget 3 wks Mon 12/12/22 Fri 12/30/22 4
6 Hire a team 5 wks Mon 1/2/23 Fri 2/3/23 1,5
7 consult with stakeholders 3 wks Mon 10/3/22 Fri 10/21/22 3,1
8
delegate the roles and
responsibilities to the
team
4 wks Mon 2/6/23 Fri 3/3/23 6,7
9 Site work 20 wks Mon 3/6/23 Fri 7/21/23 8
10 Finalizing the equipment
for training and gym 12 wks Mon 7/24/23 Fri 10/13/23 9
11 Security installation 13 wks Mon 10/16/23 Fri 1/12/24 9,10
12 installing electrical
equipment 9 wks Mon 1/15/24 Fri 3/15/24 11
13 furnishing the building 11 wks Mon 3/18/24 Fri 5/31/24 12
14 Soft launch trial events 5 wks Mon 6/3/24 Fri 7/5/24 13
15 take reviews from
stakeholder 3 wks Mon 7/8/24 Fri 7/26/24 13,14
16 monitoring 4 wks Mon 7/29/24 Fri 8/23/24 15
17 Launching 2 wks Mon 8/26/24 Fri 9/6/24 16

1.b) gantt chart
1.c Critical path
In accordance with the above gantt chart, there are 4 critical path identified which are as
mentioned below:
Critical path 1:
1 + 2 + 3 + 4 + 6 + 7 + 8 + 10 + 11
= 2 + 4 + 8 + 6 +15 + 4 + 20 + 5 + 4 (weeks)
= 68 weeks

Critical path 2:
1 + 2 + 3 + 4 + 6 + 7 +8 + 9 + 10 + 11
= 2 + 4 + 8 + 6 +15 + 4 + 20 + 8 + 5 + 4 (weeks)
= 76 weeks
Critical path 3:
1 + 2 + 3 + 4 + 6 + 7 + 9 + 10 + 11
= 2 + 4 + 8 + 6 +15 + 4 + 8 + 5 + 4 (weeks)
= 56 weeks
Critical path 4:
1 + 2 + 3 + 4 + 6 + 7 + 8 + 11
= 2 + 4 + 8 + 6 +15 + 4 + 20 + 4 (weeks)
= 63 weeks
By using the above calculations, it has been identified that shortest time taken by the
project manager in order to complete the project is 56 weeks whereas the largest path for the
project is 76 weeks.
TASK 2 Budgets and Cost Planning:
a.) Preparation of Fully Itemised Cost Plan including provision for contingencies:
Estimated Cost Plan for completed the project will be highlighted as under: -
Item Name Calculation Total Estimated Cost
Cost of Purchasing the Site Nil £17500000
Core Consultancy Fees ( 63375 * 33 Months) £ 2091375
Phase 2: Salary
Remediation Engineer ( 550 * 5 * 24 Weeks) £ 52800

Remediation Assistant ( 350 * 5 * 24 Weeks) £ 42000
Administration Assistant ( 35 * 40 * 24 Weeks) £ 33600
Phase 3 and 4: Salary
Construction Manager (450 * 5 * 84 Weeks) £ 189000
Safety Manager (400 * 5 * 84 Weeks) £ 168000
Administration Assistant (35 * 40* 84 Weeks) £ 117600
Staff Expenses (150 * 24 ) * 2 + (50 * 24) £ 8400
Utilities and other Expenses ( 650 * 4 * 27 ) £ 70200
Remediation Cost £ 18500000
Arena Construction Cost £ 76000000
The total Estimated Cost of
the Project
£ 1147,72,975
The provision of 10% has been taken as increase in the cost that has been calculated above for
the project. The rate of 10% has been taken assuring that there is the rise in the prices of material
and labour over the period of time and accordingly the cost will be revised.
b.) Determination of Basis for provision of contingency within the cost plan along with
recommendation stating the reasoning:
The provision for contingency has considered in the books after taking into account the increase
in the cost involved in the project. In the above Cost plan, it is assumed that the cost has been
increased over the period of 1 years by 10% and it has been mentioned in the escalation cost as
well. The recommendation that has been made to the arena development is to ensure that their
project must be completed within the phases as if such project is not started on due course then
they have to incur extra cost for the project as well. That will make them difficult for Arena

Developments to recover cost as they are generating the revenue form 2024 onwards and before
that they are at Par
TASK 3 Projects Appraisal Technique:
a.) Cash flow statement for the Period between 2022 to 2029 along with reason for stating the
figures that are considered in preparation:
Assumption: In preparation of Cash flows statements it is assumed that the 10% increase has
been conspired in operating cost.
Cash Flow Statement has been mentioned below:
Cash flow Statement of Arena Development ( Figures in £ )
Particular 2025 2026 2027 2028 2029
A. Cash flow from operating activities:-
Sales/Revenue 6200000 6400000 6500000 6800000 7000000
Consultancy Fees Paid -2091375
-
2300513
-
2530564
-
2783620
-
3061982
Salary to Engineer -52800 -58080 -63888
-
70276.8
-
77304.5
Salary to Remediation Assistant -42000 -46200 -50820 -55902
-
61492.2
Salary to Administration Assistant -33600 -36960 -40656
-
44721.6
-
49193.8
Construction Manager Payment -189000 -207900 -228690 -251559 -276715
Safety Manager Salary -168000 -184800 -203280 -223608 -245969
Payment to administration Assistant -117600 -129360 -142296 -156526 -172178
Staff Expenses -8400 -9240 -10164
-
11180.4
-
12298.4
Utilities and other operating Expenses -70200 -77220 -84942
-
93436.2 -102780
Net cash flow from operating activities:- 3427025 3349728 3144700 3109170 2940087
B. Cash flow from financing activities:-
Repayment of Loan -6875000
-
6875000
-
6875000
-
6875000 Nil
Net Cash flow from financing activities:- -6875000
-
6875000
-
6875000
-
6875000 0
C. Cash flow from Investing activities:-
Cost of Purchasing the site - Nil Nil Nil Nil

17500000
Net cash flow from investing activities:-
-
17500000 0 0 0 0
Total cash inflow/outflows(A+B+C)
-
20947975
-
3525273
-
3730300
-
3765830 2940087
b.) Project Appraisal Technique:
 Payback Period: The payback period shows the period that has been required by the
business to cover their investment that has been made by them initially relating to the
proposed project.
The payback period for the given project has been mentioned in the table below:
Period Cash Flows Cumulative Cash Flows
2024 - 175,00,000 - 175,00,000
2025 + 34,27,025 -14072975
2026 + 33,49,728 -10723247
2027 + 31,44,700 -7578547
2028 + 31,09,170 -4469377
2029 + 29,40,087 -1529290
The Payback period for the given project has been more than 6 years as the initial cost
that has been incurrent by the entity will take more than 6 years to recover the cost they
have incurred.
 Return on Capital:
The return on capital shows the net income earned by the organisation relative to its debt
and equity value. It simply means the return an organisation generates against the capital
they have invested in the business. The formula for calculating return on income will be
as under:
= Net Income / (Debt + Equity)
 Net Present Value:
This is the one of the best method for evaluation of the project that has been undertaken
by the organisation. Under this method the cash inflows are discounted at the

predetermined rate termed as discount rate and the total of such cash inflows are reduced
by cash outflows to arrive at Net Present Value. The decision or judgement has been
made on the basis of such NPV. If such NPV is positive, then project should be accepted
otherwise not.
The statement showing NPV of the projects carried out by the Arena Development are
being mentioned below: -
Period Cash Flows Discount factor @
5%
Net Present
Value
2024 - 175,00,000 1 -175,00,000
2025 + 34,27,025 .952 +32,62,528
2026 + 33,49,728 .907 +30,38,203
2027 + 31,44,700 .864 +27,17,021
2028 + 31,09,170 .823 +25,58,847
2029 + 29,40,087 .784 +23,05,028
NPV of the Project -36,18,373
Since NPV is negative in the given project therefore it is advisable to the Arena to not to invest
in the above project.
c.) Recommendation on acceptance and rejection of the project on the basis of application of
above techniques:
On the basis of the above investment appraisal technique and their results thereon, the conclusion
can be drawn that investment in not advisable to Arena as the cash flows are being in negative
and NPV method and Payback period does not provide positive results to the organisation.
Task 4 – Resource Management
4a. Preparation of resource budget for the assistant project managers and administration assistant
After looking at the projected breakdown structure and resource need for Grantchester Arena
Project, it has been identified that there is a need to recruit 4 assistant project managers and 1
administration assistant for the smooth completion of phase 4 of the project.
Particulars:
Working hours = 5 days or 40 hours a week

Leaves per year = 4 weeks (No payment made during this period)
Week expenses
For assistant project manager = £100 per week
For administration assistant = £50 per week
Payment per week
For assistant manager = £300 per day
For administration assistant = £35 per hour
Resource budget
S.
No.
Activities Assistant
Project
Manager
Administration
Assistant
Weeks
/ Hours
Payment
per week
(a)
Week
expenses
(b)
Total
payment
in £
(a + b)
13 Arena lower
tier
concessions
2 - 10 10 * 300
* 2
10 * 100
* 2
8000
14 Arena upper
tier
concessions
2 (diverted
above two)
- 8 8 * 300 *
2
8 * 100
* 2
6400
15 Executive
boxes and
hospitality
1
(additional
needed)
- 4 4 * 300 *
1
4 * 100
* 1
1600
16 TV Studio 1 (diverted
on
completion
of 15)
- 4 4 * 300 *
1
4 * 100
* 1
1600
17 Media
center
1 (diverted
on
completion
of 15)
1 5 (5 * 300
* 1) + (5
* 35 *
40)
(5 * 100
* 1) + (5
* 50 * 1)
9250
18 Management
center
1
(additional
- 2 2 * 300 *
1
2 * 100
* 1
800

need as the
activity
starts on
completion
of 15)
Total payment to be made during Phase 4 27650
4b. Week by week resource histogram showing number of assistant project manager required
4c. Limiting the peak assistant project manager to the maximum of three
In order to achieve the constraint of limited ability of employment agency in terms of hiring
enough suitable candidates, there is a need of revising the programme which would be done in
the following manner.
Those engaged in activity 14 for the duration of 8 weeks would probably get free on the
completion of activity 16. However, activity 16 and activity 18 are beginning simultaneously
indicating requirements for 2 project managers when the availability is just for 1. So, for activity
16 the assistant project manager getting free from activity 15 would be diverted. For activity 18,
1 administration assistant would be hired for 2 weeks and the activity 17 which is going to begin
after activity 16, the two project manager getting free on completion of activity14 with the
passage of 8-week duration would get diverted to activity 17. In addition to this, the project
manager getting free from would be relieved (Dwivedula, 2019).

Revised budget for resource requirement on considering the constraint for assistant project
manager
S.
No.
Activities Assistant
Project
Manager
Administration
Assistant
Weeks
/ Hours
Payment
per week
(a)
Week
expenses
(b)
Total
payment
in £
(a + b)
13 Arena lower
tier
concessions
2 - 10 10 * 300
* 2
10 * 100
* 2
8000
14 Arena upper
tier
concessions
2 (diverted
above two)
- 8 8 * 300 *
2
8 * 100
* 2
6400
15 Executive
boxes and
hospitality
1
(additional
needed)
- 4 4 * 300 *
1
4 * 100
* 1
1600
16 TV Studio 1 (diverted
on
completion
of 15)
- 4 4 * 300 *
1
4 * 100
* 1
1600
17 Media
center
2 (diverted
on
completion
of 14)
- 5 (5 * 300
* 1)
(5 * 100
* 1)
2000
18 Management
center
- 1 2 2 * 35 *
40
2 * 50 *
1
2900
Total payment to be made during Phase 4 22500
After taking into account the constraint for assistant project manager that has been arise on
account of inability of employment agency in hiring enough suitable candidates, there are only 3
assistant project managers and 1 administration assistant involved throughout the phase 4 which

leads to resource budget savings to the extent of £5150 (27650 - 22500) (Pinha and Ahluwalia,
2019).
TASK 5
5.a. Pert Technique
the formula of Pert = O + 4M + P / 6
Tas
k
Ref:
Task
Name:
Contractor’
s Duration
(Weeks):
Optimisti
c
Duration
(Weeks):
Pessimisti
c
Duration
(Weeks):
Pert
techniqu
e
Standar
d
deviatio
n
Varianc
e
1 Mobilisatio
n and site
set-up
2 2 2 = (2 +
4*2 + 2) /
6
= 12 / 6
= 2
0.00 0.00
2 Piling and
foundations
4 3 5 = (3 +
4*4 + 5) /
6
= 24 / 6
= 4
0.33 0.111
3 Arena
structural
steelwork
8 6 9 = (6 +
4*8 + 9) /
6
= 47/6
= 7.833
0.50 0.250
4 Arena lower
tier and
stairways
6 5 8 = (5 +
4*6 + 8) /
6
= 37 / 6
0.50 0.250

= 6.16
5 Arena upper
tier and
stairways
6 5 7 = (5 +
4*6 + 7) /
6
= 36/6
= 6
0.33 0.111
6 Curtain
walls,
brickwork,
cladding
15 13 18 = (13 +
4*15 +
18) / 6
= 91 / 6
= 15.16
0.833 0.694
7 Roof 4 3 5 = (4 +
4*3 + 5) /
6
= 21/6
= 3.5
0.333 0.11
8 Services 20 17 22 = (17 +
4*20 +
22) /6
= 119 / 6
= 19.83
0.833 0.694
9 Executive
boxes and
hospitality
8 7 9 = (7 +
4*8 + 9) /
6
= 48/6
= 8
0.333 0.11
10 Managemen
t Centre
5 4 7 = (4 +
4*5 +7) /
6
= 31 / 6
0.50 0.250

= 5.15
11 TV Studio
and Media
Centre
4 3 6 = (3 +
4*4 + 6) /
6
= 25 / 6
= 4.15
0.50 0.250
12 External
works and
landscaping
12 9 16 = (9 +
12*4 +
16) / 6
= 73/6
= 12.16
1.167 1.361
= 94.50 = 4.194
Z = (64 – 94.50) / 4.194^0.5
= -14.893
Probability of completion of project is 0.00%
Through the above calculation it has been identified that upto December 2023, the
chances of the completion of a project is 0 because by applying the appropriate formula, it can be
stated that with there are no chances of completion of project and that is why, project manager
need to evaluate the ways or change the tenure in order to improve the results and meet the
defined aim of a project.
TASK 6
6 a. Calculation of estimated cost of the arena construction at completion
Computation of Earned Value:

Task
Ref:
Task Name: Contractor’s
Budget (£):
Expenditure
to date (£):
Progre
ss %
comple
te
Earned Value
(Budget cost *
Progress
Complete
percentage) (£)
Cost Variance
(Earned Value –
Actual expenditure
to date)
Estimated cost at
completion
(EAC)*
1 Mobilisation
and site set-up
50,000 45,000 100 50000 * 100% =
50000
50000 – 45000 =
5000
45000 + (50000 –
50000)
= 45000
2 Piling and
foundations
8,750,000 9,450,000 100 8750000 * 100%
= 8750000
8750000 –
9450000 = -
700000
9450000 +
(8750000 –
8750000)
= 9450000
3 Arena structural
steelwork
12,500,000 10,625,000 90 12500000 * 90%
= 11250000
11250000 –
10625000 =
625000
10625000 +
(12500000 -
11250000)
= 11875000

4 Arena lower
tier and
stairways
9,500,000 4,950,000 50 9500000 * 50%
= 4750000
4750000 –
4950000 = -
200000
4950000 +
(9500000 –
4750000)
= 9700000
Task
Ref:
Task Name: Contractor’s
Budget (£):
Expenditure
to date (£):
5 Arena upper
tier and
stairways
7,500,000 2,250,000 30 7500000 * 30%
= 2250000
2250000 –
2250000 = 0
2250000 +
(7500000 –
2250000)
= 7500000
6 Curtain walls,
brickwork,
cladding
12,500,000 - - 12500000
7 Roof 8,000,000 - - 8000000
8 Services 15,000,000 - - 15000000
9 Executive 700,000 - - 700000

boxes and
hospitality
10 Management
Centre
400,000 - - 400000
11 TV Studio and
Media Centre
350,000 - - 350000
12 External works
and landscaping
750,000 - - 750000
£ 76,000,000 £ 27,320,000 £ 27,050,000 27050000 –
27320000 = -£
270000
£ 76,270,000

Note: In the present task, due to lack of information regarding the project progress completion
percentage, the percentage provided in task 7 is consider for this task as well.
*The negative cost variance indicate that cost incurred or expended on arena development
project till January 2023 is greater than what they have planned (Xu and et.al., 2019).
*Formula used to compute estimated cost at completion under current situation is as follows:
EAC = AC + (BAC – EV)
Where,
EAC = Estimate at completion
AC = Actual Cost till date i.e., 31st January, 2022
BAC = Budget at completion
EV = Earned Value
The reason behind the use of this formula is that, the project manager expects that the remaining
budget is accurate and that need not be change. Only previous performance issue will be taken
into account to estimate the cost of project at completion.
On the basis of above calculation, the estimated cost of the arena construction at completion is £
76,270,000.
6 b. Calculation of estimated total duration of the arena construction and identification of
estimated completion date
Calculation of Earned schedule:

Task
Ref:
Task Name: Budgeted
Duration
(Weeks):
Actual Time or
schedule*
(weeks)
Progress %
completion
Earned
Schedule
Schedule
Variance
(Earned
Schedule –
Actual Time
Estimated
total
duration*
(ETC)
1 Mobilisation and site
set-up
2 2 weeks /
50000 * 45000
= 1.8 weeks
100 2 * 100% = 2
weeks
0.2 week 1.8 week +
(2 – 2)
= 1.8 weeks
2 Piling and
foundations
4 4 weeks /
8750000 *
9450000 = 4.3
weeks
100 4 * 100% = 4
weeks
-0.3 week 4.3 weeks +
(4 – 4)
= 4.3 weeks
3 Arena structural
steelwork
8 8 weeks /
12500000 *
10625000 = 6.8
weeks
90 8 * 90% = 7.2
weeks
0.4 week 6.8 weeks +
(8 – 7.2) =
= 7.6 weeks
4 Arena lower tier and
stairways
6 6 weeks /
9500000 *
4950000 = 3.1
weeks
50 6 * 50% = 3
weeks
-0.1 week 3.1 weeks +
(6 – 3)
= 6.1 weeks

Task
Ref:
Task Name: Duration
(Weeks):
5 Arena upper tier and
stairways
6 6 weeks /
7500000 *
2250000 = 1.8
weeks
30 6 * 30% = 1.8
weeks
1.8 – 1.8 = 0
week
1.8 weeks +
(6 – 1.8)
= 6 weeks
6 Curtain walls,
brickwork, cladding
15 - - 15 weeks
7 Roof 4 - - 4 weeks
8 Services 20 - - 20 weeks
9 Executive boxes and
hospitality
8 - - 8 weeks
10 Management Centre 5 - - 5 weeks
11 TV Studio and
Media Centre
4 - - 4 weeks
12 External works and
landscaping
12 - - 12 weeks
94 weeks 17.8 weeks 18 weeks 0.2 week 93.8 weeks

Note: Due to the lack of information regarding the actual time elapsed to complete the specific
task, the same has been computed on the basis of budgeted cost and actual cost incurred till date
(Leon and et.al., 2018). The formula used to compute the actual time in the present scenario is as
follows:
Budgeted duration / Budgeted cost * Actual Cost till date = Actual time or schedule
In order to compute the estimate total duration of the arena construction, the following formula
has been used as per Earned Value approach:
Formula = ETD = AD + (BD – ES)
Where,
ETD = Estimated total duration
AD = Actual Duration
BD = Budgeted duration
ES = Earned Schedule
On the basis of above calculation, it is identified that the estimated total duration required to
complete the arena construction project is 93.8 weeks. It means the project will get completed by
0.2 week i.e., 1.4 days earlier. On an approx. basis it can be said that, the project will estimate
complete 1 day before.
The estimated completion date of the project is 27th September, 2024.
6 c. Comment upon the result
On the basis of above calculation of estimated cost and duration of project using Earned Value
approach, it is identified that the estimated cost at completion will be £ 76,270,000. On the other
hand, total duration to complete the arena project will be 93.8 weeks. This means that, the project
will complete before budgeted time but they will incur greater than expected. In order to further
manage and control its future task costs, they have keep proper eye on arena development project
and market conditions (de Andrade, Martens and Vanhoucke, 2019).
TASK 7
7a. Traffic light progress report
Task Name Status Progress % Complete: Finish date

Mobilization and site
set-up
100 Fri 10/14/22
Piling and foundations 100 Fri 11/11/22
Arena structural
steelwork
90 Fri 1/6/23
Arena lower tier and
stairways
50 Fri 2/17/23
Arena upper tier and
stairways
30 Fri 3/31/23
Curtain walls,
brickwork, cladding
- Fri 6/2/23
Roof - Fri 6/30/23
Services - Fri 11/17/23
Executive boxes and
hospitality
- Fri 1/12/24
Management Centre - Fri 2/16/24
TV Studio and Media
Centre
- Fri 3/15/24
External works and
landscaping
- Fri 9/22/23
Through the above table, it has been identified that majority of the work is still pending
from the project management side and that is why, as per the progress report, the work which is
not completed is highlight as an Amber colour whereas green color indicated that the work is
completed before the time and that is why, the project manager is able to complete the project.
However, the red color shows that there is still some task pending that need to be completed in
order to meet the defined aim. Overall, it can be stated that there is a need to complete the project
on time because till February 2023, there are many task which is still not started yet. That is why,
effective steps need to be taken in order to complete the project within a specific tenure.
CONCLUSION
The above report shall consist of the project under which the investment has been made by Arena
Development with the intention to generate revenue from such investment. Through the gantt
chart, it has been concluded that project manager requires 76 weeks as a critical path identified in
order to meet the defined aim. The above report shall consist of task 2 and task 3 relating to cost

plan and investment appraisal technique regarding the viability of the project they have
undertaken and recommendation also made to them that whether such investment is visible to the
entity or not. Further, till December 2023, the probability of completion the project will be
0.00% (as calculated by Pert technique) and this in turn reflected that it will be not completed till
the defined date. After performing resource management task, it has been concluded that
limitations imposed on hiring no more than three assistant project manager leads to saving
resource budget by £5150. The report has also concluded through earned value approach
calculation that estimated cost at completion is £ 76,270,000 and the estimated total duration is
93.8 weeks for the arena project development or completion. Moreover, report concluded that
there are many task which are still not yet started and that is why, the task which have been
completed till February 2023 are Mobilization and site set-up and Piling and foundations.

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