Project Management Application: Construction: Case study of Regency Plaza Project

This report analyzes the Regency Plaza Project and provides recommendations for project contracts, pre-planning, controlling communication, and project close-out.

Running head: PROJECT MANAGEMENT APPLICATION
Project Management Application: Construction: Case study of Regency Plaza Project
Name of the Student:
Name of the University:

1PROJECT MANAGEMENT APPLICATION
Table of Contents
Introduction......................................................................................................................................3
Part A: Project contracts..................................................................................................................3
1. Identify and analyze legal benefits and challenges that Regency Plaza experience................3
2. Mitigate the potential challenges of contract types.................................................................5
3. Contracts recommended for the project...................................................................................5
Part B: Project pre-planning............................................................................................................6
1. Analyze major challenges need to address to begin the construction and mitigate the
challenges....................................................................................................................................6
2. Effective approach use to meet on-time delivery of the project with low cost and high
quality..........................................................................................................................................6
3. Project cost breakdown structure.............................................................................................7
4. Work breakdown structure......................................................................................................8
Part C: Controlling communication.................................................................................................9
1. Communication management plan..........................................................................................9
2. Analyze report to address project stakeholder expectations..................................................10
3. Analyze level of stakeholder reports.....................................................................................10
Part D: Project close out................................................................................................................11
1. Explain role of following elements in close-out of the project:............................................11
2. Coordination of lessons learned component..........................................................................12

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Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
The report is based on analyzing the Regency Plaza Project which is a combination of
project consisting of 300-room Regency Plaza as well as 96 luxury condominiums. This report
argues the lawful benefits in addition to challenges that Regency Plaza experience in their
business operations. The challenges are identified for different contract type and mitigated on
time for successful completion of Regency Plaza Project. Effective approaches are also analyzed
to gather on-time delivery of the project with small cost moreover high quality. Project cost
breakdown structure and work breakdown structure are also analyzed so that the project manager
can track the progress of the construction work. Communication management plan is analyzed to
interact with the project team members to discuss the challenges and mitigation strategies.
Finally, the lesson learned components are identified for project close out.
Part A: Project contracts
1. Identify and analyze legal benefits and challenges that Regency Plaza experience
Following type of contracts help to identify and analyse legal benefits and challenges that
the project might experience such as:
Stipulated or lumps-sum contract: It is an agreement between the contractor and
customer. It is required that the contractor can agreed to give specified services for the fixed
price. It shits the cost liability from the client to contractor. At the time of bid submission, the
contractor should build large mark-up to contain the expenses (Adriaanse, 2016). The contractor
bids low to win it, then they may loss the money on contract until a strict control over time as
well as expense is done.

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Cost of work plus fee contract: It mitigates the liability for the project expenses. It places
liability on project client and is used as urgency linked with need to facilitate the construction
project work of hotel room and condominium units. It presents the contractor with an incentive
to complete the project work rapidly (Thomas & Wright, 2016). Cost of work plus fee contract
provides incentive for contractor to bid job properly as the percentage is higher when job comes
under budget and low when the job costs more than its estimated amount.
Cost of work plus fee with guaranteed maximum price (GMP) contract: It is well
defined project in which the client can make few or no changes throughout the construction
work. Liability to bring the project within budget is based on project contractor those can
estimate the maximum cost (Klee, 2018). Cost savings is an option for the project client can split
with contractor but it is based on terms negotiated with the contract. Sometimes, this cost savings
are shared among project owner and contractor as incentive to keep the cost of project down.
Construction management (CM) contract: Under this contract, the construction manager
has responsibility to arrange as well as supervise the performance work by the sub-contractors.
This contract is used for Regency Plaza Project where the employer is appointed and separated
of trade contracts for carrying out the project work (Greenhalgh, 2016). The construction
manager can oversee the project completion work for fee.
Design-build or design-and-construct (D&C) contract: This contract is accurate when
the project delivery method is stated as design build. The architect has completed the design
phase, and then the project puts for bid to other contracting organizations. After signing of the
contract, the contractor is accountable for plan as well as building work desirable to finish the

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construction work (Rowlinson, 2018). After the project owner commends the design, the
contractor oversees the method of construction along with hire of subcontractors as required.
2. Mitigate the potential challenges of contract types
The project manager takes measures to manage and allocate risks involved in the
construction contract. The parties to bond should have lawful ability to come in into the contract.
Legal ability means that the revelries should have authorized age and skilled. The individuals
those are signing the contract have power to attach lawful entity to project agreement. There
should be real aim to enter in the agreement as of the parties (Ballesteros-Pérez et al., 2015). The
purpose of all construction contracts should be for the legal endeavours. The contract should
identify the term which will direct the agreement.
3. Contracts recommended for the project
The recommended contract for this project work is design-build or design-and-construct
(D&C) contract. It is a contract type to bring the construction project in which plan as well as
construction services are being contracted by solitary entity as design build contractor. The
project owner prepares request for qualification where there is analysis of sources under fair
competition based on some specific criteria as well as weighted factors (Charrett, 2018). It is a
procurement route where the contractor is being appointed for design and construction of work.
The client appoints the consultant for design development for the hotel and condominium units
in Regency Plaza Project. This contract is used when the project owner saves time by having
construction start before completion of final design of the hotel and condominium.

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Part B: Project pre-planning
1. Analyze major challenges need to address to begin the construction and mitigate
the challenges
The condominiums venture focused on catering wealthy couples in middle age. The
construction duration of the project is 29 months with a total sale of $134.4 million. However,
the undertaking work of the hotel was not achieved. The sale of condominiums units were moved
slow as only 30 out of 96 units were being sold, therefore it results in bad economy and task was
behind the project scheduled time. The shareholders of Regency Plaza Project were so much
frustrated and the condominiums units were uttered their displeasure over poor superiority
workmanship as well as delayed finish work for the condominiums units.
The challenges related to budget and schedule is mitigated by implementation of budget
and project schedule plan with considering of all the project resources and expenses so that the
project should not go over-budgeted and behind the schedule (Love et al., 2018). The Regency
Plaza hotel will build with the project specifications as well as design of the blueprints and the
condominiums units will furnish by the drawings provided from the construction company. Right
amount of contractors are reserved for right to contract of the project work.
2. Effective approach use to meet on-time delivery of the project with low cost and
high quality
The project manager and project team members follow regular approach to organize,
define, schedule, track and manage the project work. The approach is designed to get better
likelihood of the development success, awareness of the project benefits and ease the project
team to distribute quality products on planned time with estimated budget (Sovacool, Nugent, &

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Gilbert, 2014). The top down approach defines the project task involved with starting the project
goal and final deliverable. This approach provides a clear insight of the project details so that the
project work can deliver on time with lower cost and higher quality of the work.
3. Project cost breakdown structure
The cost is organized by establishment of proper amount of control over the project
budget. The cost is prohibited by the project manager by recognition of the sources of project
cost (Lock, 2016). The cost breakdown structure which is used for this project work consists of
the cost elements and its respective cost into various components.
Figure 1: Cost Breakdown Structure
(Source: Created by author)

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4. Work breakdown structure
Figure 2: Work Breakdown Structure
(Source: Created by author)
When Helen Millers had submitted the interior design of the hotel and condominium
units, then the work activities such as civil, mechanical, electrical as well as plumbing work are
carried out of the Miller units and other part of the building in such a way which is suitable for
the entire project structure. Kelly construction receives new architectural changes after they
started to work in the construction of Regency Plaza Condominium. This unit is down part of the
completed construction work for accommodating the architectural design of the hotel. The work
breakdown structure is moved from WBS 1.1, architecture of condominium units towards WBS
1.2, construction of condominium which is caused tension among the stakeholders of Regency

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Plaza Project. Hodgkins has defined the solution for the condominium unit’s technical
specification (WBS 2.1.2) so that the project work should complete as per scheduled budget and
time. Since, completion time of Regency Plaza Project is behind the project schedule,
condominium unit’s technical specifications will be done when the architecture of condominium
unit is not opposed the construction work of condominium. With a detailed structure, cost, time
and project activities are performed successfully. Detailed WBS is served as the project guideline
which makes sure that the project is done as per planned time.
Part C: Controlling communication
1. Communication management plan
Project Name: Design and Construction of Regency Plaza Project
Project Manager: (Please fill)
Date: 8th October, 2018
Deliverable
Information
Recipient Delivery method Schedule Responsible
person
Information related to
the project plan
Project
team
members
Team meetings and
conference calls
Weekly Project
Manager
Status of the
development plan
Project
Planner
Email By every
Monday
Project
Manager
Schedule for the project Project
Team
Email and team meetings Weekly Project
Manager
Timeline keep informed Project Meetings and presentation Weekly Project

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Team Manager
Update of the project
work
Project
Manager
Team meetings, email and
conference calls
Monthly Project Team
Project related risks Project
team
Risk document and meeting
minutes
Monthly Project
Manager
2. Analyze report to address project stakeholder expectations
The communication management reports are used to address the expectations of the
project stakeholder. The project manager can communicate with stakeholders via email to update
them about the project progress (Hughes, Champion, & Murdoch, 2015). Communication report
is well managed element of the project which consists of the regular and clear interaction with
the stakeholders and project team. The project manager and team can determine requirement of
communication. Communication requirements are used to communicate project related
information to the stakeholders (Hardin & McCool, 2015). The plan consists of expected format
and content via e-mail updates.
3. Analyze level of stakeholder reports
The level of details which are required to make the stakeholder reports are activities
completed in provided period of time, activities which are planned to complete, critical issues
and problems. The report also consists of the activities which are planned to complete in next
period (Taroun, 2014). There are four type of reports which are communicated with the
stakeholders such as project status report (contains status of the project plan occurred till date),
risk report (contains the type of risks and its details), timeline update report (contains the

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progress of time required to perform each project activities) and agenda (contains list of meeting
activities carried out).
Part D: Project close out
1. Explain role of following elements in close-out of the project:
Project acceptance: The role of project acceptance is set of conditions which are required
to meet before acceptance of the project deliverables. The project acceptance factors are cost,
time schedule, customer satisfaction and cost benefit analysis (Hassan et al., 2016). The project
manager should define the project acceptance criteria before starting to work in the project. In
this construction project, the acceptance criteria are:
1. All the project requirements are approved by the management.
2. Back up of the project information are completed properly (Joseph, 2017).
3. The project executive should sign off the project report.
Contract close out: It refers to the process for verification of administrative actions
which have taken on project contract. The contract is reviewed to determine that all project
requirements are met (Fertitta, Nedinsky, & Gilmore, 2016). This close-out report determines
that subcontractors are completed all the work which they are responsible.
Document turnover and archiving: It defines the amount received into sales for a stated
period of time. It also consists of information related to cycle of purchase, sale as well as
replacement of the stock of goods and products (Brook, 2016). The role of archive is to contain
historical records and the physical place where the data are located.

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Team performance appraisal: This report provides feedback to the organizational team
based on their performance in the project plan. It provides information to help in improving
performance, increasing business efficiency and defining expectations of the management. The
appraisal compares work performed against the project objectives and goals that the employee is
agreed at starting of the appraisal period (Robinson & Adriaanse, 2015). The role of team
performance appraisal is to evaluate presentation of team on their managerial presentation.
Team reassignment or demobilization schedule: The team members are updated on
various project records. The project team is ensured that right people are allocated at right time
for addressing the project requirements by staying on schedule and in estimated budget
(Jugenheimer, Sheehan, & Kelley, 2015).
2. Coordination of lessons learned component
The lessons learned document contains learning gained from the process to perform the
project work. The project manager is responsible to coordinate the lessons learned component
among the project team members for their future reference. The project manager can reduce the
project cost by learning from the past project work and implement past successes while avoiding
of past failures (Wright, 2017). Lessons learned are used to reduce planned duration of the
project work. After completion of entire construction work, the project manager coordinates
furthermore interacts with the team to analyze the lesson learned document for monetary returns.
Conclusion
It is concluded that the successful Regency Plaza Project is not dependent on the
technical aspects but it engages the stakeholders to increase enthusiastic for undertaking the
condominiums venture work. The project team implements of strategies and creates dynamic

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team as it plays an important role. Communication, time management, budget and organize of
meeting is a critical path into the project management. The key learning from the project is
balancing hard and soft skills which are required for an effective project manager. The possible
problems which are faced by the project manager are budget and schedule problem, therefore
entire work is confronted with budget as well as time constraint accomplished by the contractors
those are overlooking the quality of project. Poor communication is a critical factor for the
project success. Therefore, proper mitigation strategies are adopted to overcome with identified
issues. Proper project planning is done in terms of budget and schedule. There is also proper
allocation of manpower to the project for completing individual work package with specific cost
involved. It is recommended that the project manager should posses’ ability to communicate and
hand over work to the team members.

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References
Adriaanse, M. J. (2016). Construction contract law. Macmillan International Higher Education.
Ballesteros-Pérez, P., González-Cruz, M. C., Fuentes-Bargues, J. L., & Skitmore, M. (2015).
Analysis of the distribution of the number of bidders in construction contract
auctions. Construction management and economics, 33(9), 752-770.
Brook, M. (2016). Estimating and tendering for construction work. Routledge.
Charrett, D. (2018). Design AND construct contracts and final design cost risk. In The
Application of Contracts in Engineering and Construction Projects (pp. 123-136).
Informa Law from Routledge.
Fertitta, T. D., Nedinsky, A. L., & Gilmore, J. G. (2016). Construction Project Delays and Time
Extensions. In Construction Contract Claims, Changes, and Dispute Resolution (pp.
117-137).
Greenhalgh, B. (2016). Introduction to Construction Contract Management. Routledge.
Hardin, B., & McCool, D. (2015). BIM and construction management: proven tools, methods,
and workflows. John Wiley & Sons.
Hassan, M. H., Azmin, N. A., Habib, A., & Haryati, S. N. (2016). Perception of stakeholders in
Shari'ah compliant construction contract. IIUM Press.
Hughes, W., Champion, R., & Murdoch, J. (2015). Construction contracts: law and
management. Routledge.

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Joseph, J. J. (2017). A Strategic Communication Plan for Dominica-America Scholarship and
Culture, Inc (Doctoral dissertation).
Jugenheimer, D. W., Sheehan, K., & Kelley, L. D. (2015). Advertising media planning: a brand
management approach. Routledge.
Klee, L. (2018). International construction contract law. John Wiley & Sons.
Lock, D. (2016). Project management in construction. Routledge.
Love, P. E., Smith, J., Ackermann, F., Irani, Z., & Teo, P. (2018). The costs of rework: insights
from construction and opportunities for learning. Production Planning & Control, 1-14.
Robinson, H. S., & Adriaanse, J. (2015). Procurement and Contract Strategy: Risks Allocation
and Construction Cost.
Rowlinson, M. (2018). A Practical Guide to the NEC4 Engineering and Construction Contract.
Wiley-Blackwell.
Sovacool, B. K., Nugent, D., & Gilbert, A. (2014). Construction cost overruns and electricity
infrastructure: an unavoidable risk?. The Electricity Journal, 27(4), 112-120.
Taroun, A. (2014). Towards a better modelling and assessment of construction risk: Insights
from a literature review. International journal of Project management, 32(1), 101-115.
Thomas, R. W., & Wright, M. (2016). Construction contract claims. Macmillan International
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Results (Doctoral dissertation, Southern Utah University).