Grancester Arena Project: Cost Plan and Investment Appraisal

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