Project Management Plan and Risk Management Plan

Project Management Plan and Risk Management Plan

Table of Content
Executive Summary
Introduction:
Work Breakdown Structure
Gantt chart
Network diagram
Stack holder analysis
Communication Plan
Risk management plan
Allocating Ratings to the risks
Conclusion
Reference:

Executive Summary
In this report, a project plan and risk management plan has been presented for Real Estate
Company. Here the Real Estate Company has been named as ABC Corporation. This Project
plan is started with the Background where the scope is defined along with the Benefits.
Additionally, the Cash Flow, Tax Benefits, Loan Pay Down, Appreciation. Along with the range,
details regarding the objectives, Start Date, Finish Date, Expected volume, Key assumptions,
Constraints and monetary value are also given.
Analysis regarding the stakeholders is also presented here in this plan. In the stakeholder
analysis, a project has been prepared to state about the factors including the name of the
stakeholders, roles and responsibilities of each member, influence level, contribution level, level
of interest of each stockholder, and type of the stakeholder. Along with the stakeholders'
details, the information regarding the documents reports shared is also given. Finally, the
analysis comes to an end by presenting the report frequency.
Along with Stakeholder analysis, the stakeholder communication plan is also presented. This
Communication plan States the process followed among the stakeholders to communicate and
share the details regarding the project going on. Additionally, the details regarding the process
of communication, requirements of the communication, the escalation process, the methods for
updating and refining the communication management plan are also defined in this project plan.
It is also found that there are no communication constraints between the stakeholders. Finally,
the project plan comes to an end along with risk management plan documenting the potential
risk, response towards each threat, responsibility of every member for implementing the
response and the time frame. After that, the ratings for each potential risk for the plan are
located. At last, after analysing each phase of the project plan and the risk management plan,
the conclusion has been made.

Introduction:
Background
A real estate business requires the employment of individual employees such as real estate
broker, associates who help in conducting transactions related to the company. These
transactions are made possible with the help of brokerage. It helps in the process of buying and
selling a real estate. Before starting the Real Estate Business, It is important for the organization
to avail license. After getting the license, organization can easily start working as a real estate
broker. It helps a real estate to obtain a permit for a specific period with some particular
requirements also. Functions of a real estate broker include some paperwork, advising others
and facilitating some transactions related to the work. They also perform some duties such as
listing the clients, marketing, holding open houses etc. they offer attractive agreements with
suitable properties to others.
This work requires quite extended interaction with clients to secure buyers. An ideal broker is
one who is very quick in attracting the buyers and selling the property to them. Whenever the
Real Estate Agencies deal in selling a property, they earn a nice amount of profit in the form of
Commission. This is the main point of them for getting or earning money. During the sale of a
property, they act as a coordinator between buyer and seller and help them in carrying out the
paperwork without any help of any party. They receive a fixed percentage of amounts while
agreeing with the contract. It can be in the ratio of 50:50, 60:40 or even 90:10. It also depends
on the broker and agent.
Benefits
Being a real estate broker helps in earning a tremendous amount of wealth in very less time.
This is a reliable and wealthy business, especially for a person with an entrepreneurial mind.
There are many benefits of starting a real estate, out of which some are given below.
Cash flow: Most of the people that invest in a real estate business is because of the
considerable cash flow from it. It helps in earning money by spending the time in travelling,
building a business, or just investing in some real estate. The amount of profit that the real
estate agencies earn cannot get predicted as it is generally dependent on the percentage or
margin decided while signing the contract.

Tax benefits: Government offers tax benefits in different forms which act as extra income along
with cash flow. This can be in the form of depreciation or lower tax rates in the way of profit
earned in the long term (Burtonshaw, 2017).
The loan pays down: When someone buy any rental property with the help of a mortgage, it is
the tenant who pays the mortgage amount, and that helps in increasing the net earning every
month. It acts like a saving amount that goes on the increase with depositing money into it.
Appreciation: The value of real estate goes up, which act as an asset after being all the
amount of the loan paid out. Hence it led into appreciation in the value of the real estate.
Objectives
Real estate agencies generally work in a highly competitive market. They have to follow a
positive attitude during marketing to earn high revenue and build the business. Times by time,
companies are adopting the latest technologies to make differences, and every agency must
focus on building relationships and trust with buyers, sellers and other partners (Cabal et al.
2016). There can be many objectives behind starting a real estate business, which can include:
 Creating a clear market position which can help in attracting more buyers and focusing
on the right media to attract the targeted market.
 Attracting buyers by encouraging them to buy any property that will result in a
tremendous amount of cash flow
 To increase sales by selling more properties
 Earning profit in long term
 Investing in a real estate investment trust
A start and a finish date
Name of the organisation ABC Corporation
Category Real Estate Organisation
Start Date of the Project 28th May 2018
End Date of the Project 7th September 2018
A monetary value

Licensing fees differ from state to state. Starting a real estate business will require an office,
ongoing campaign for marketing and some associates. It will also need insurance that will help
out during any error or omission during dealing with contracts (Carreno et al. 2017).
The startup cost will range as:
 License for real estate broker: $1500
 Deposit for office lease: $2000
 Rent of the first month: $2000
 Internet, telephone bill and other utilities: $250 per month
 Marketing campaign expenditure:$2000 per month
 Employees’ wages and salaries: depends on the number of associates
 Office signage: $2000
Usually the Real Estate Agencies take around a year to crack the deals and earn the profits
(commission). In the first year, it is simply a loss for the agency as all the expenses have to be
fulfilled from the personal accounts. Hence on an average, it will require around along with
employees pay and personal expenses (Chan et al. 2016).
Budget and resources
WBS Task Name Resource Names Cost
1 Launch of real estate agency $62,420.00
1.1 Project Initiation $6,080.00
1.1.1 Project Charter Creation Project Manager $3,040.00
1.1.2 Project Charter Review Project Manager $3,040.00
1.1.3 Sign-off project charter Project Sponsor $0.00
1.1.4 Milestone 1: Final project charter $0.00
1.2 Project Management Plan $22,800.00
1.2.1 Resource Management Project Manager $3,800.00
1.2.2 Communication Management Project Manager $3,800.00
1.2.3 Scheduling Project Manager $3,800.00
1.2.4 Budgeting Project Manager $3,800.00
1.2.5 Risk Management Project Manager $3,800.00
1.2.6 Sign-off project plan Project Sponsor $0.00
1.2.7 Get agency license Project Manager $3,800.00
1.2.8 Milestone 2: Final project plan $0.00
1.3 Office Establishment $7,200.00
1.3.1 Start-up Procedure $7,200.00
1.3.1.1 Office Selection Internet Agency
Manager
$1,600.00

1.3.1.2 Office Purchase Agreement Project Manager $3,040.00
1.3.1.3 Internal Office purchase $2,560.00
1.3.1.3.1 Air conditioner Interior
designer,Internet
Agency Manager
$1,680.00
1.3.1.3.2 Furniture purchase Interior designer $880.00
1.3.2 Sign-off office set up Project Sponsor $0.00
1.3.3 Milestone 3: Office set up design $0.00
1.4 Purchase of IT systems $19,500.00
1.4.1 Personal computers IT Manager $1,800.00
1.4.2 Software packages $9,000.00
1.4.2.1 Essential software $7,200.00
1.4.2.1.1 Security Software IT Manager $1,800.00
1.4.2.1.2 Office software IT Manager $1,800.00
1.4.2.1.3 Operating system IT Manager $1,800.00
1.4.2.1.4 Downloaded software IT Manager $1,800.00
1.4.2.2 Real Estate Management software IT Manager $1,800.00
1.4.3 Sign-off set up of IT systems $0.00
1.4.4 Milestone 4: Purchase office set up $0.00
1.4.5 Networking Equipments $8,700.00
1.4.5.1 Routers IT
Manager,Routers[1]
$2,300.00
1.4.5.2 Cables IT
Manager,Cables[1]
$2,200.00
1.4.5.3 Establish network IT Manager $2,400.00
1.4.5.4 Test network IT Manager $1,800.00
1.4.5.5 Sign-off the network Project Sponsor $0.00
1.4.5.6 Milestone 5: Network set up $0.00
1.5 Internet services $4,560.00
1.5.1 Vendor Selection Project Manager $2,280.00
1.5.2 Purchase of Internet service package Project Manager $2,280.00
1.5.3 Milestone 6: Internet services set up $0.00
1.6 Launch agency Project Manager,
Project Sponsor
$2,280.00
Constraints
Like any investment, real estate also faces some obstacles along with its benefits. Similar is in
the case of ABC corporation (Bourne, 2016). There will be many constraints that can come in
the way of starting its agency. These are:

 When it comes to purchasing a real estate, it requires transaction cost which sometimes
is very high
 Real estate business has very less liquidity as it takes around one year to start the
business by selling any property for the first time (Ducatez et al. 2018).
 It leads to an increase in liabilities as investing in real estate requires much investment
to meet out finance and legal requirements.
 Lack of information related with new property also creates constraints for real estate
owner
 Real estate requires high management and maintained
Key assumptions
There can be many assumptions which ABC Corporation can do before starting a real estate
agency. It assumes an approximately 20% sales on credit along with interest rate of around
15%. The tax rate can be expected as 30%, and it must assume that the company will gain no
profit in the first year as it will take around 12 months to get commission by selling any real
estate (Duggan et al. 2015).
Expected volume
Sales commission can be expected up to 6% to 8% of the sales price. It is likely that the
agency will earn around $100000 per year. For more expensive commercial properties
commission on sales can be expected as 3% to 4%. Typically any real estate broker expects
10% to 50% depending on the financial support of the broker (Farmer et al. 2016).
Work Breakdown Structure
WBS Task Name
1 Launch of real estate agency
1.1 Project Initiation
1.1.1 Project Charter Creation
1.1.2 Project Charter Review
1.1.3 Sign-off project charter
1.2 Project Management Plan
1.2.1 Resource Management
1.2.2 Communication Management
1.2.3 Scheduling
1.2.4 Budgeting
1.2.5 Risk Management