Construction of a Residential Suite - Project Charter

This project charter covers the details of the project resources, stakeholders, scope, risks, milestones, and operating principles on a high-level for the construction of a residential suite. The estimated budget is AUD 357,226 with ten resources engaged in the project.

Construction of a Residential
Suite
Project Charter

Construction of a Residential Suite
Letter to Sponsor
Sponsor Name
17th November 2018
Sub: Project Charter for Residential Suite
Dear Sponsor Name,
The letter is written to inform you about the submission of the project charter for the
construction of the residential suite.
The charter covers the details of the project resources, stakeholders, scope, risks, milestones,
and operating principles on a high-level. The project will begin on 19th November 2018 and it
will end on 29th November 2019 with an estimated budget of AUD 357,226. There will be ten
resources engaged in the project.
Please review and let us know your comments.
Thanks & Regards,
Project Manager
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Construction of a Residential Suite
Table of Contents
Scope Overview....................................................................................................................................3
Business Case – Objective.....................................................................................................................3
Background...........................................................................................................................................3
Milestone Schedule...............................................................................................................................3
Success Criteria.....................................................................................................................................4
Major Risks, Assumptions, and Constraints..........................................................................................4
Resources Needed.................................................................................................................................9
Stakeholders List...................................................................................................................................9
Team Operating Principles....................................................................................................................9
Lessons Learned..................................................................................................................................10
Signatures & Comments......................................................................................................................10
References...........................................................................................................................................11
Appendix.............................................................................................................................................12
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Construction of a Residential Suite
Scope Overview
ABC is an Australian based construction company that works in the area of commercial and
residential buildings. The company has taken up a project of developing a residential suite for
a family in Sydney. The suite will include three bedrooms, dining hall, kitchen, garden area,
parking space, three bathrooms, lobby, study and a living room. The scope of the project will
include the construction of the interiors and exteriors of the suite. The construction and
management activities will be covered in the project scope (Kloppenborg, Anantatmula and
Wells, 2014, p. 15-35).
The primary deliverables that will be given to the project sponsor will include the Project
Charter Document, Plan, Design of the Building, Architectural Details of the Building,
Interiors & Exteriors of the Constructed Building, and the Completion Report of the Project
(Desmond, 2016, p. 15-16).
Business Case – Objective
The residential suite that will be constructed by the company will make use of the latest
construction technology and equipment. It will lead to the enhancement of the customer base
for the company by 25% and the revenues will also go up by 28%.
Background
ABC is an Australian construction company that has its headquarters in Sydney. The
company was set up in the year 2005 and has been engaged in the construction of commercial
and residential buildings since its inception. The company has undertaken a project of
constructing a residential suite for an Australian family in Sydney.
Milestone Schedule
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Construction of a Residential Suite
Success Criteria
 The total timeframe for the construction of the building shall not be more than 270
days.
 The total costs spent on the project shall not be more than AUD 358,000.
 The customer base for the organization shall increase by 25% after the construction of
the building.
 The revenues for the company shall increase by 28% after the construction of the
residential suite.
 The sponsor shall provide go-ahead on all the deliverables.
Major Risks, Assumptions, and Constraints
The risks to the project of the construction of residential suite have been identified on the
basis of the information collected using the techniques as interviews, observations, domain
analysis, decision tree analysis, and likewise. The risks identified have been analysed and the
probability and impact scores are assigned to the risks. The scale that is used to assign the
scores is from 1 to 5 (Blackhurst, Scheibe and Johnson, 2008, p. 143-165).
ID Name Description Probability Impact Score Treatment
Strategy
1 Project-related
risks: Schedule
& Budget
Overrun
The timeframe
identified for the
project is 270
days and the
estimated
budget is AUD
$357,226.00.
Due to the
unexpected
changes,
unavailability of
the resources,
change in
policies, and
other factors,
3 5 15 Risk avoidance
shall be used with
the pro-active
approach shown
by the project
leaders and
managers. The
Project Manager
along with the
senior
management
resources must
conduct project
audits and reviews
to keep a track of
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Construction of a Residential Suite
the project may
be delayed
which will also
increase the
costs.
the values of the
schedule and
budget.
2 Health &
Safety Risks
The
construction
workers and
resources will
be exposed to
these risks due
to the accidents
that may happen
on the
construction
site.
1 5 5 There shall be
audits done to
validate the health
and safety
conditions at the
workplace and the
construction site to
prevent the risk
from taking place
(Cerniglia-
Lowensen, 2015,
p. 4-7).
3 Legal
Obligations
The Worker
Health & Safety
Regulations,
Environmental
Safety &
Sustainability
Act, Data
Protection Act,
etc. are some of
the legal
standards and
laws that will be
required to be
followed. The
non-compliance
may result in
2 5 10 There shall be
audits done to
validate the legal
compliance at the
workplace to
prevent the risk
from taking place
(Fochmann and
Haak, 2015, p.10).
The Legal head
must carry out
regular reviews.
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Construction of a Residential Suite
legal
punishments.
4 Technical
Faults
The
construction
tools and the
management
tools may
experience
issues or
failures.
3 3 9 Risk transfer shall
be used as the
strategy and the
third-party
vendors shall be
asked to resolve
the issue.
5 Resource Risks Unavailability
of the resources
for work,
enhanced
absenteeism
rate, resource
conflicts &
disputes,
reduced worker
productivity,
and resource
scarcity are
some of the
resource risks
that may appear
and impact the
progress.
3 5 15 The Project
Manager along
with the senior
management must
track the resource
performance using
the Key
Performance
Indicators. The
resources shall
also be provided
with resource-
friendly work
culture and
atmosphere. There
shall be regular
reviews and
discussions
conducted with the
resources.
6 Quality Issues ISO 9001 and
TQM are the
quality
1 5 5 There shall be
audits done to
validate the
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Construction of a Residential Suite
standards that
must be adhered
with. The
inability to do
so may lead to
the issues of
non-compliance.
compliance
towards the
quality standards
at the workplace
and the Quality
Manager shall also
conduct
verification cycles
(Ershadi, Aiasi
and Kazemi, 2018,
p.284).
7 Market Risks There will be
construction
equipment and
materials
needed to be
procured along
with the paints,
furniture, etc.
The change in
the inflation
rates and market
trends may
impact the
project.
2 4 8 The market studies
shall be conducted
using the
techniques as
automated data
analysis, market
surveys, and
interviews to
understand the
market trends and
avoid the risks.
8 Environmental
Issues
The weather
conditions or the
occurrence of
natural hazards
may come up
and impact the
project progress.
1 5 5 Disaster recovery
plans must be in
place to deal with
the issues of
natural hazards
and disasters.
There shall also be
scheduling done
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Construction of a Residential Suite
adequately on the
basis of the
weather
conditions.
9 Operational
Errors
The
management,
construction,
and operational
workers may
perform certain
errors that may
not be rolled
back.
4 4 16 Resource trainings
shall be conducted
to avoid the risk
from taking place.
10 Communicatio
n Issues
The project
resources and
the stakeholders
may not have
clear
communication
cycles followed
between them
leading to gaps.
4 5 20 The Project
Manager must
develop and
circulate a
communication
plan for the
members and
stakeholders and
the guidelines
specified in the
plan shall be
followed.
The project schedule and budget will be the prime constraints for the project as there are no
variations possible. The environmental conditions may also become constraint for the project.
It is assumed that the resources will be provided with the tools and equipment required during
the project timeline.
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Construction of a Residential Suite
Resources Needed
The details of the human and non-human resources are covered in the table below.
Stakeholders List
There will be several stakeholders associated with the project. The sponsor of the project will
be the family for which the residential suite is being constructed. The project funds and the
approval on the deliverables will be provided by the sponsor. The company has a huge
customer base in the market and the outcomes of the project will have an impact on the
engagement levels of the customers with the organization (Missonier and Loufrani-Fedida,
2014, p.1108-1122). There will be regulatory agencies involved with the project that will
keep a track on the legal and quality compliance levels during the project. The construction
material and other equipment necessary for the project will be provided by the suppliers. The
project activities will be performed by the resources and the Project Manager using the funds
allotted and the specification provided.
Team Operating Principles
 The team will maintain compliance towards the ethical standards and protocols.
 The communication plan will be used in the project to determine the communication
and meeting guidelines. There will be a daily internal meeting conducted among the
project team and a weekly external meetings with the stakeholders (Markaki, Sakas
and Chadjipantelis, 2011, p.151-154).
 The project team members shall send a daily status report to the Project Manager.
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Construction of a Residential Suite
 The Project Manager shall communicate the project progress to the stakeholder
through a weekly status report and the weekly meeting organized using the tele-
conferencing medium.
Lessons Learned
There are several phases in the project that are essential and the best way to carry out a
project is in a series of phases. There are also deliverables associated with each of the project
phases. The first phase is the start-up phase and project charter is one of the prime
deliverables that is provided at the end of this phase. The project charter must clearly specify
the details and background of the project along with the information on the scope. The project
provided a chance to develop the project charter and the scope overview, business case, and
background was some of the essential sections of the same. The charter document must also
provide the sponsor and stakeholders with the information on the project details, such as
primary risks involved with the project, associated milestone schedule, resources allotted to
the project, stakeholder information, and the primary principles that the members of the
project team shall follow. The charter document must also comprise of the information on the
project budget, project schedule. There shall be high-level details included in the document as
the detailed account of all of this information is covered in the project plan. The project
charter shall be submitted as per the due date of delivery.
Signatures & Comments
Project Sponsor (Name):
Project Sponsor (Signature):
Date of Delivery:
Approved: Yes/No
Additional Comments:
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Construction of a Residential Suite
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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Construction of a Residential Suite
Appendix
ABC is an Australian construction company that has its headquarters in Sydney. The
company was set up in the year 2005 and has been engaged in the construction of commercial
and residential buildings since its inception. The company has undertaken a project of
constructing a residential suite for an Australian family in Sydney.
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