Project Charter Development Report - PROJ6000, [University Name]

This report details the development of a project charter, focusing on the construction sector in Germany, specifically addressing agency issues within companies like Merck. It explores the background, objectives, constraints, and leadership structure required for successful project management. The report identifies project risks, mitigation strategies, and the importance of effective stakeholder communication. It outlines project objectives such as building mutual understanding, clarifying technical issues, rebranding, and increasing sales. Furthermore, it discusses the limitations of the project, the leadership structure required, and the project team culture needed for success. The report also highlights project management methodologies like Prince2 and Agile for risk mitigation. Finally, it emphasizes the importance of effective communication with stakeholders and presents a vision for a competitive and collaborative team culture.

Project Charter Development

TABLE OF CONTENTS
PROJECT CHARTER.....................................................................................................................3
A. Background to the Project.......................................................................................................3
B. Reasons for the Project...........................................................................................................3
C. Project objectives....................................................................................................................4
D. Constraints and Limitations....................................................................................................4
E. Leadership Structure...............................................................................................................4
F. Project risks and mitigation.....................................................................................................5
G. project stakeholders and ways of communicating with them.................................................5
H. Vision of the project and the type of project team culture......................................................6
REFERENCES................................................................................................................................7

PROJECT CHARTER
A. Background to the Project
The project is based on the construction sector along with the largest building stock of the
continent i.e., Germany. This is observed that the construction sector contributes greatly to the
economy of the countries. But the sector has not seen constant opportunities for the growth,
productivity and performance. The contactors play a major role in the construction industry of
Germany. There is a need for the companies to change the ways they use for choosing the
contractors (Demirkesen and Ozorhon, 2017). The companies like Merck in Germany are in
dilemma that whether they must go with the traditional ways to choose and select the contractors
or develop new innovative ways to perform the same. Similarly, all the processes of the
construction companies will be done by making use of innovative ways. There are various
processes going on in the construction companies such as selecting the contractors, procurement
processes and the execution processes. This is why; it is must to select the ways in which these
processes need to be carried out. The main areas where the case study is focused on is the
construction and the agency issues which are faced in the various processes of the companies
such as developing the procurement strategies, maintaining the relationships between the client,
contractor and the agent through collaborative approach and many more.
B. Reasons for the Project
The main reason behind doing the project is that the construction company plays a major
role in the economy of the country which is the processes in these companies must be smooth
going and efficient. Every company face various types of challenges which destroy the efficiency
and the productivity of the companies. This was also analysed that when these processes are not
carried out in proper manner then the whole economy gets disturbed (Bondarenko and et.al.,
2018). So the main reason of doing the project is to identify the agency issues of the project
management and the issues in the various processes such as procurement, building strong
relationships between the agent, client and the contractors and many other processes. This
project will also help in developing of various procurement strategies which can help in
resolving the agency issues in the project environments which are complex.
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C. Project objectives
 Building a mutual understanding of technical as well as qualitative building requirements.
 To clarify all technical issues for both types of recruitment approaches.
 To rebrand into single brand Merck.
 To bring innovative ideas for recruiting skilled contractors and workers via the best
recruitment approach.
 To increase sales up to 45% within 1 year.
D. Constraints and Limitations
The various limitations in this project can be the cope, time and cost. These are also
known as the project management triangle. The project has the less time to achieve the goals.
The scope of the project is not defined which means the goal is to benefit all the construction
companies of Germany which is not possible at a single time. There are less resources and time
for the completion of the project. But still the project can be successfully done by making use of
available time and resources (Owusu, Chan and Shan, 2019). The project also needs a large
capital but the goals can be achieved by making use of available capital. The limitation can also
be by using the new innovative ways which can lead to various risks. There can also be
limitation of the goal conflicts.
E. Leadership Structure
The leadership structure plays a major role as this project needs various leaders such as
recruitment manager for selecting the best contractors through innovative methods, procurements
manager by selecting the procurements through the competitive bidding process, HR manager
for maintaining the relationship between clients and the contractors and the project leaders who
will handle all the aspects of the project for resolving the agency issues (Schröpfer, Tah and
Kurul, 2017). These leaders will handle their respective responsibilities to reach the goals of the
project. This will also help in enhancing the skills of the project managers as they will come to
know about the innovative ways to carry out various processes in the construction companies.
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F. Project risks and mitigation
Some risks of this project are lack of technology, management of technology for re-
branding into single brand Merck. Management of technology while recruiting with new method
is the main risk. It can create problems related to security of data and managing data of
contractors and others. It can limit investors as they will think twice before investing in company
because of employing new contractors with new methods of recruitment. Risks are associated
with old or traditional method of recruiting new contractors as it can limits innovation. It is
important to mitigate these risks and for solving these problems of risks, project manager needs
to ensure that privacy of data of contractors will be maintained and will be confidential (Marín
and Roelofs, 2018). There are some project management techniques that can also help in
managing and mitigating these risks such as:
Prince2: Prince 2 is an effective process based method in project management. This
method is being used by project managers in order to justify their projects, for defining structure
of organization for all team members of project. It is important for all team members to have
skills and knowledge about organizational structure and main aim of developing project and this
methodology helps all team members in providing detailed information.
Agile: Agile is another iterative approach in project management that helps project
managers in delivering projects in an effective manner throughout its lifecycle. It is mainly being
used in project of software development in order to promote adaptability and velocity as well.
There are several principles of this approach that needs to be followed by project managers in
order to make their project successful such as: frequent delivery, embrace change, face to face or
direct conversation, sustainable development and continuous delivery of valuable software.
Both these methodologies can help project manager in rebranding this and bringing
innovation within business and employ skilled contractors for completing projects by having
better technologies for managing data.
G. project stakeholders and ways of communicating with them
There are some internal and external stakeholders such as investors, contractors,
employees, customers and others. For making this project successful of rebranding and making
decision about deciding the way of recruiting contractors, it is important to communicate with
them in an effective manner. For communicating with internal stakeholders, face to face and
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telephone communicational models will be used. Team meeting will also be held for making
them know about tasks which they needs to do as in team meeting problems and their effects of
both types of recruitment methods can be known (Du and et.al., 2018).
For communicating with external stakeholders, project manager will make use of E-mail
and telephone as in E-mail all information will be given in a detailed manner as it will help them
out in knowing about the scope and objectives of project.
H. Vision of the project and the type of project team culture
Having effective team culture is important. It helps project manager in completing and
making project successful by employing skilled contractors for rebranding of Merck. For this
purpose and vision, competitive and comfortable team culture will be developed with democratic
and transformational leadership. As per these team culture, all team members will be allowed to
share their views, collaborate to each other’s and working with each others in order to
accomplish shared goals rather focusing on individual goals.
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REFERENCES
Books and Journals
Bondarenko, S. and et.al., 2018. Application of project analysis software in project management
in the pre-investment phase. Journal of Mechanical Engineering and Technology. 9(13).
pp.676-684.
Demirkesen, S. and Ozorhon, B., 2017. Impact of integration management on construction
project management performance. International Journal of Project Management. 35(8).
pp.1639-1654.
Du, J. and et.al., 2018. CoVR: Cloud-based multiuser virtual reality headset system for project
communication of remote users. Journal of Construction Engineering and
Management. 144(2). p.04017109.
Marín, L.S. and Roelofs, C., 2018. Engaging small residential construction contractors in
community-based participatory research to promote safety. Annals of work exposures
and health, 62(Supplement_1). pp.S72-S80.
Owusu, E.K., Chan, A.P. and Shan, M., 2019. Causal factors of corruption in construction
project management: An overview. Science and engineering ethics. 25(1). pp.1-31.
Schröpfer, V.L.M., Tah, J. and Kurul, E., 2017. Mapping the knowledge flow in sustainable
construction project teams using social network analysis. Engineering, Construction and
Architectural Management.
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