Construction of a New Retail Store Project Charter

Read the project charter for the construction of a new retail store for XYZ retail chain in Sydney. The charter includes details of the project timeline, budget, resources, risks, stakeholders and more.

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Construction of a New Retail Store
Project Charter
11/16/2018

Construction of a New Retail Store
Letter to Sponsor
Sponsor (Name)
17th November 2018
Sub: Project Charter
Dear (Name),
The purpose of the letter is to present the project charter for the construction of the retail store
for your company. The charter includes the high-level details of the project. The start date of
the project is 16th November 2018 and it will end on 29th November 2019. A timeframe of
271 days is estimated for the project with the budget as AUD 349,960. The project will be led
by the Project Manager and there will be 9 other resources involved as Finance Expert,
Painter, Carpenter, Construction Workers, Legal Advisor, Technical Writer, Marketing
Manager, Data Analyst, and Environmental Specialist. The charter covers the details of the
project risks and the stakeholder information as well.
Please review and let us know the approval status of the same. Also, please feel free to
highlight changes to be made, if any.
Best Regards,
Project Manager
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Construction of a New Retail Store
Table of Contents
Letter to Sponsor...................................................................................................................................1
Scope Overview....................................................................................................................................3
Business Case – Objective.....................................................................................................................3
Background...........................................................................................................................................3
Milestone Schedule...............................................................................................................................3
Success Criteria.....................................................................................................................................4
Major Risks, Assumptions, and Constraints..........................................................................................4
Resources Needed.................................................................................................................................8
Stakeholders List...................................................................................................................................9
Team Operating Principles..................................................................................................................10
Lessons Learned..................................................................................................................................10
Signatures & Comments......................................................................................................................11
References...........................................................................................................................................12
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Construction of a New Retail Store
Scope Overview
XYZ is a retail chain of food & lifestyle products in Australia and currently has five stores in
Brisbane, Sydney, and Melbourne. The company is now looking to open another retail store
in Sydney and the scope of the project includes the construction and launch of the new store.
The project scope includes the activities as initiation and planning processes for the building,
construction of the building, migration of information, tools, and equipment to the building,
change control, quality management, launch of the building, and the closure activities
(Kloppenborg, Anantatmula and Wells, 2014).
The major deliverables that will be provided to the stakeholders during the project timeline
will be project charter document, project plan, design document, constructed building, quality
report of the new retail store, and the closure report of the project (Desmond, 2016).
Business Case – Objective
The company is opening the retail store to maximize its offline sales by 40% and enhance the
customer base in Sydney by another 35% in the first year after the launch of the store.
There is only one retail store that is set up in Sydney and the customers may not be able to
visit the store due to its location. The retail store being opened now is in the heart of the city
and will be able to enhance the market shares of the company by at least 40%.
Background
XYZ is an organization that opened its first retail store in Sydney in the year 1995. The
company has now expanded to five stores across Australia and has online presence as well in
the form of its website and mobile application. The company has decided to open its sixth
store which will be set up in Sydney so that more number of customers may be reached out
through the same.
Milestone Schedule
The milestone schedule of the project has been shown in the image below.
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Construction of a New Retail Store
Success Criteria
 The completion of the retail store in the estimated duration of 271 days.
 The completion of the construction and other project activities in the estimated budget
of AUD 350,000.
 Maximization of the offline sales of the company by 40% after one year of the launch
of the store.
 Expansion of the customer base by at least 35% after one year of the launch of the
retail store.
 Enhancement of the market shares by 40% after the launch of the retail store.
Major Risks, Assumptions, and Constraints
There will be various risks that the project will be exposed to. The risks have been identified
using the qualitative and quantitative techniques as interviews, decision-tree analysis, domain
analysis, SWOT analysis, observations, and group discussions. A risk register has been
prepared below that lists out the risks, their descriptions, likelihood level, impact level, and
treatment strategy for each risk. The risk score is also included which is obtained by
multiplying the impact and likelihood levels (Blackhurst, Scheibe and Johnson, 2008). The
likelihood and impact of the risks have been provided a score from 1 to 5 wherein 1 indicates
lowest level and 5 indicates highest level.
ID Name Description Likelihood Impact Score Treatment Strategy
1 Schedule/Budget
Overrun
The project has
been assigned
with an
estimated budget
and schedule.
The changes in
the
2 4 8 The risk shall be
treated using
avoidance as the
strategy in which
the Project
Manager and senior
management
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Construction of a New Retail Store
specifications of
the building,
environmental
conditions,
productivity
levels of the
resources, and
other factors
may lead to the
overrun of the
schedule or
budget.
resources must
review the project
schedule and
budget during
every project
activity. The gaps,
if any, shall be
treated immediately
to avoid any sever
implications of the
delay or overrun of
the budget.
2 Health & Safety
Risks
The health and
safety conditions
at the
construction site
may not be in
accordance with
the defined
standards which
may lead to
workplace
accidents and
injuries.
1 5 5 The Health &
Safety regulator
must conduct audits
before the project is
kick started and
these audits must
continue during the
project life cycle as
well in order to
avoid the risk
(Cerniglia-
Lowensen, 2015).
3 Legal Risks There will be
several third-
parties that will
be involved in
the project in the
form of
suppliers and
vendors. The
non-adherence
to the
1 5 5 The Legal Advisor
must conduct audits
before the project is
kick started and
these audits must
continue during the
project life cycle as
well in order to
avoid the risk
(Fochmann and
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Construction of a New Retail Store
contractual
terms may bring
up legal
obligations.
Haak, 2015). The
procurement and
contractual
methods shall be
incentive based in
nature.
4 Technical Risks There will be
automated and
technical tools
used in the
construction and
project
management
activities. These
tools may turn
faulty.
3 4 12 The risk shall be
treated using
transfer as the
strategy in which
the supplier of the
technical tools shall
be handed over
with the
responsibility to
treat the risk.
5 Resource Risks The resources
assigned to the
project may not
perform as per
the expected
levels of their
productivity and
efficiency. This
may bring up the
risk of schedule
and budget
overrun. Also,
absenteeism of
the resources
and resignation
from the
organization
may bring up the
2 5 10 The avoidance
strategy shall be
adopted and the
management must
have regular
discussions with
the resources to
understand their
concerns and
develop &
implement
resource-friendly
strategies to
overcome the same.
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Construction of a New Retail Store
risks of resource
scarcity.
6 Quality Risks The quality
norms and
standards may
not be followed
and reflected
during the
project activities
which may lead
to the issue of
non-compliance.
1 5 5 The Quality
Manager must
conduct audits
before the project is
kick started and
these audits must
continue during the
project life cycle as
well in order to
avoid the risk
(Ershadi, Aiasi and
Kazemi, 2018).
7 Market Risks The expectations
of the customers
in the market
may change
which may have
an impact on the
sales
performance of
the organization.
3 4 12 Market studies and
surveys shall be
done in advance to
determine the
market scenarios
before the project is
initiated. The
change
management plan
must be set up in
advance to mitigate
the risks.
8 Environment
Risks
The
environmental
conditions, such
as extreme heat
or cold, or rains
may lead to
delay in the
completion of
2 5 10 The design of the
construction
schedule shall be
done on the basis of
the environmental
studies and the
mitigation
strategies shall also
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Construction of a New Retail Store
the construction
activities.
be developed in
advance to deal
with the
unexpected
environmental
conditions.
9 Operational
Risks
The members of
the project team
may perform
operational
errors which
may bring up
excessive re-
work for the
resources.
4 3 12 The risk shall be
avoided by training
the resources as per
the operational
tasks and activities
that will be
performed.
10 Communication
Risks
The availability
of the internal
and external
customers may
not match up
which may lead
to the
communication
gaps and issues.
4 4 16 A communication
plan and guideline
shall be developed
in advance and
shall be followed
during the project
timeline.
Resources Needed
There will be human and non-human resources that will be needed in the project. The details
of the human resources have been shown in the table below.
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Construction of a New Retail Store
The non-human resources and their details are as shown below.
Stakeholders List
There will be several stakeholders involved in the project. The names of the stakeholders and
their involvement in the project are as described below.
 Project Sponsor: XYZ retail stores are the sponsor of the project and the business case
along with the funds for all the project activities will be provided by the stakeholder.
 Business Partners: The retail chain has business partners that will be the prime
shareholders in the project and its outcomes.
 End-Users/Customers: The customers visiting the store will be the prime stakeholders
as the design of the building along with the inclusion of the products will be in
accordance with the expectations of the customers (Missonier and Loufrani-Fedida,
2014).
 Legal & Regulatory Bodies: The legal sign offs and approvals will be provided by the
stakeholders.
 Third-party vendors: The tools and equipment along with the material needed to
complete the project will be provided by the vendors.
 Project Manager & Team: The Project Manager and all of the resources will execute
the project by carrying out the tasks and activities as per the specifications provided.
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Construction of a New Retail Store
Team Operating Principles
 The members of the project team will make sure that the ethical codes and
professional code of conduct is followed and is reflected in all of the project activities.
There will be six codes that will be adhered to:
o Honesty
o Enhancement of quality of life
o Professionalism
o Professional Development
o Competence
o Primacy of Public Interest
 There will be internal and external meetings conducted in the project and the team
members must ensure that they show active participation in the project (Markaki,
Sakas and Chadjipantelis, 2011).
 Every team member must submit a daily log of the activities done by them in a status
report and shall send the same to the Project Manager.
 The Project Manager shall send a weekly status report to the Project Sponsor.
 ISO 9001 and Total Quality Management (TQM) are the quality standards that the
team shall adhere to.
Lessons Learned
There are some of the essential activities that must be accomplished in the initiation phase of
the project. The first and the foremost is the conduction of a feasibility study. The feasibility
study shall be done on all the aspects as technical, environmental, economic, operational,
social, and likewise. The decision to carry on with the project must be based on the results of
the feasibility study. It is also essential that a kick-off meeting is done in the initiation phase
so that the members of the project team are informed about the business case and the basic
requirements that they are expected to fulfil. Such an activity makes sure that the resources
get to know about the project specifications and understand the expectations that the
management has from each of the resources identified for the project. Chartering of the
project is one of the essential activities and the project charter is one of the significant project
deliverables. It is because the high-level details of the project are included in the project
charter, such as high-level requirements, budget, schedule, and likewise. The charter shall be
submitted to the Project Sponsor and a formal go-ahead shall be obtained for the project. The
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Construction of a New Retail Store
Project Manager must make sure that the charter approval is provided by the sponsor and the
planning processes shall begin thereafter.
Signatures & Comments
Name of the Project Sponsor:
Signature of the Project Sponsor:
Date:
Approval Status:
Other Comments:
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Construction of a New Retail Store
References
Blackhurst, J., Scheibe, K. and Johnson, D. (2008). Supplier risk assessment and monitoring
for the automotive industry. International Journal of Physical Distribution & Logistics
Management, 38(2), pp.143-165.
Cerniglia-Lowensen, J. (2015). Learning From Mistakes and Near Mistakes: Using Root
Cause Analysis as a Risk Management Tool. Journal of Radiology Nursing, 34(1), pp.4-7.
Desmond, C. (2016). Project to plan for significant process change. IEEE Engineering
Management Review, 44(2), pp.15-16.
Ershadi, M., Aiasi, R. and Kazemi, S. (2018). Root cause analysis in quality problem solving
of research information systems: a case study. International Journal of Productivity and
Quality Management, 24(2), p.284.
Fochmann, M. and Haak, M. (2015). Strategic Decision Behavior and Audit Quality of Big
and Small Audit Firms in a Tendering Process. SSRN Electronic Journal.
Kloppenborg, T., Anantatmula, V. and Wells, K. (2014). Contemporary Project
Management. 4th ed. Mason, OH: Cengage Learning US.
Markaki, E., Sakas, D. and Chadjipantelis, T. (2011). Building the Interactive Relationship
between the Top Management and the External Project Manager: The Communication Plan
in Laboratory Research. Key Engineering Materials, 495, pp.151-154.
Missonier, S. and Loufrani-Fedida, S. (2014). Stakeholder analysis and engagement in
projects: From stakeholder relational perspective to stakeholder relational ontology.
International Journal of Project Management, 32(7), pp.1108-1122.
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