Project Report on Construction of Office Building

Running Head: PROJECT MANAGEMENT
Project Report on Construction of Office Building on a Particular Site
Name of the Student
Name of the University

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Executive Summary
ABC Banking Ltd. is a private bank that has decided to approve a project regarding the
construction of a new office building for expansion. Before the project is actually started, it is
required to ensure the project is feasibility and to determine a suitable budget and schedule for
the project. Accordingly in this report, the project has been analyzed and several aspects like
quality management, risk management and stakeholder management have been discussed.

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Table of Contents
Introduction and Background of the Project....................................................................................3
Portfolio Management Process........................................................................................................4
Work Breakdown Structure.............................................................................................................5
Network Diagram and Responsibility Matrix................................................................................10
Budget and Cost Distribution Plan................................................................................................21
Quality Management Plan.............................................................................................................30
Risk Management Plan..................................................................................................................31
Stakeholder and Communication Management Plan.....................................................................33
Conclusion.....................................................................................................................................34
Bibliography..................................................................................................................................36

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Introduction and Background of the Project
Project management is a field that deals with the planning, management and control of a
particular venture that might include implementation of a certain plan or strategy, construction of
a building, implementation of a new system and others. While all these ventures can be done
with the help of project management, it is recommended to use project management as it
provides a specific roadmap, structure and plan for the venture. Project managers are assigned to
control and manage the project is order to ensure the specified particular structure is followed
throughout the course of the project.
ABC Banking Ltd. is private banking organization that has currently 150 employees
working. However, the current office building was initially selected for accommodating 85
employees when there are only 30 employees at that time. However, with continuous recruitment
process and rapid growth of the organization in terms of business, the company has expanded
and even needs more employees in order to gain control of the rapid progress. However, the
company also needs space to accommodate the new employees. Based on a meeting between the
company stakeholders, it has been decided that a project will be undertaken for the construction
of a new office building. As per the plan, a land will be purchased in a commercial or business
district and a five storey building will be constructed on that particular piece of land. While the
office will only require two storeys, the rest of the floors will be immediately rented out after
construction so that the organization can have an additional source of income for paying off their
loans and investments.

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Portfolio Management Process
Portfolio management process is generally developed in order to determine the driving
forces behind any project i.e. if there is a host of different projects to be undertaken, the portfolio
management process helps to determine which project will be best for the organization. The
considerations mainly made in the portfolio management process include immediate benefits,
long term benefits, cost benefit, return on investment, alignment with business plan and strategy
and others. Similarly, for ABC Banking Ltd., the portfolio management process includes the
following considerations for the selection of this particular project.
Expansion of Office – With increasing number of employees in the bank, it needs a
significant expansion of space in order to provide sufficient space to the employees for their
work. However, due to lack of permit or space, the existing building cannot be further expanded.
As a result, the organization has decided to build a new office building that will provide
sufficient space to the excess number of employees as well as future employees. For that
purpose, the company needs to select a popular commercial region and buy a piece of land for
construction of the new building.
Financial Feasibility – Construction of an office building will involve expense of a huge
amount of monetary resources and hence, it is important to ensure earning of sufficient return on
investment as early as possible. Generally, for such large expenses, organizations opt to take
loans from the bank or financial support from a sponsor. Unless the project is financially
feasible, the organization will not be able to pay the loans or sponsor investments back.
Considering the need for financial feasibility, ABC Banking Ltd. has decided to build a five
storey building of which, their office will occupy the first and the second floor. The ground floor
will be rented for commercial purposes and the upper two floors will be rented to some other

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office or organization. With the income from the rent, the organization will be able to pay back
the loans or investments within a reasonable period of time.
Work Breakdown Structure
The work breakdown structure of the project is shown in the following table.
WBS Task Name
0 Construction of Office Building Project
1 Preliminary Survey and Analysis
1.1 Discussion Regarding New Office Building
1.2 Approval to Build a New Building
1.3 Selection of Region for the New Office Building
1.4 Survey Region for Empty Lands
1.5 Buy Piece of Land for Construction
1.6 Apply for Construction Licence
1.7 Receive Legal Approval for Construction
1.8 Receive Final Approval for Project
1.9 Proceed for Planning
2 Project Planning

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2.1 Determine the Type of Building to be Built
2.2 Determine the Height and Total Stories of the Building
2.3 Determine an Estimated Budget for the Project
2.4 Release Tender for Building Contract
2.5 Analyze Background of Interested Contractors
2.6 Start Bidding
2.7 Assess All Bids
2.8 Select a Reasonable Bid
2.9 Place Contract Based on Bid
2.10 Insert Budget and Time Clauses in Contract
2.11 Sign Contract and Hire Contractor
2.12 Hand Over Land to Contractor
2.13 Hire Architect
2.14 Prepare Blueprint of the Building
2.15 Approve the Blueprint

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2.16 Approval to Proceed to Construction
3 Project Initiation
3.1 Develop Project Charter
3.1.1 Determine the Scope of the Entire Project
3.1.2 Determine an Estimated Schedule for Project
3.1.3 Determine Final Budget for Project
3.2 Assess Risks Associated with the Project
3.3 Hire Construction Workers
3.4 Hire Construction Vehicles
3.5 Purchase Construction Materials as Required
3.6 Finalize the Project
4 Project Execution
4.1 Land Clearing
4.1.1 Excavate the Land
4.1.2 Clear Weed, Plants, Waste and Existing Stones and Concrete Chunks
4.1.3 Build the Foundation of the Building