Project Management Plan: Auckland Restaurant Construction Project

This project management plan details the construction of a new restaurant in Auckland, New Zealand, for One Tree Grill. It covers project scope, anticipated outcomes, key stakeholders, and a detailed financial plan with a budget of $2,376,000. The plan includes a work breakdown structure, resource allocation, and a project schedule with milestones and a Gantt chart for time management. Risk management strategies and project evaluation tools are outlined, along with quality management approaches. The project aims to complete within 15 months, increasing revenue and profit for the company. The document provides a comprehensive overview of the project's planning, execution, and control phases, addressing various aspects from initial planning to project closure.

Running Head: PROJECT MANAGEMENT
Construction of a New Restaurant in Auckland, New Zealand
Name of the Student
Name of the University

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Table of Contents
1. Introduction..................................................................................................................................2
1.1 Description of the Project and Potential Value to the Company...........................................2
1.2 Scope of the Project...............................................................................................................2
1.3 Anticipated Outcomes of the Project.....................................................................................2
1.4 Key Stakeholders in the Project.............................................................................................3
2. Budgeting and Cost Management................................................................................................3
2.1 Detailed Financial Plan and Budget......................................................................................3
2.2 Identification of Financial Resources....................................................................................7
3. Time Management.....................................................................................................................10
3.1 Project Schedule including Milestones................................................................................10
3.2 Gantt Chart...........................................................................................................................13
3.3 Eisenhower’s Priority Matrix..............................................................................................15
4. Risk Management......................................................................................................................16
4.1 Identification and Mitigation of the Risks...........................................................................16
4.2 Constraints within the Project..............................................................................................16
4.3 Risk Management Strategies...............................................................................................16
5. Project Evaluation......................................................................................................................17
5.1 Use of Project Evaluation Tools..........................................................................................17
5.2 Monitoring and Control System..........................................................................................17
6. Quality Management.................................................................................................................17
6.1 Quality Management Approaches.......................................................................................17
6.2 Key Processes to Manage Quality of the Project.................................................................18
References......................................................................................................................................19

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1. Introduction
1.1 Description of the Project and Potential Value to the Company
One Tree Grill is a restaurant operating in Auckland and specialises in a large number of
New Zealand native cuisines as well as a huge variety of wine. Over the last few years, the
popularity of the restaurant has increased exponentially and customers have been constantly
demanding for a new branch of the restaurant in another part of the city that is a bit far from the
current location. The management of the restaurant has finally decided to approve the requests of
the customers and has proposed the opening of a new branch of the restaurant.
Considering the current popularity and a constant growth of profit, it is very expected that
the new branch will further increase the business of the company. The revenue is expected to
become double from the current value effectively pushing the profit margin up as well.
1.2 Scope of the Project
The project scope in this case includes the following:
 Purchase of a new property in another location in Auckland
 Construction of the new restaurant building on the purchased property
 Setting up the restaurant interior and exterior
 Opening of the restaurant for public
1.3 Anticipated Outcomes of the Project
The anticipated outcomes of the project including the SMART concept are as follows.
Specific – Construction of the new restaurant building.
Measurable – Completion of the project within the estimated budget of $2,376,000.
Achievable – Construction of the building as per specified design and requirements.
Realistic – Purchase of the property and construction of the building on the property.
Time Based – Completion of the project within 15 months.

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1.4 Key Stakeholders in the Project
The key stakeholders involved in the project are:
 Management Board
 Project Head
 Finance Chief
 Project Supervisor
 Design Engineer
 Contractor
2. Budgeting and Cost Management
2.1 Detailed Financial Plan and Budget
The financial plan of the project includes the following estimated values.
Resource Name Type Max. Units Std. Rate
Project Head Work 100% $200.00/hr
Project Supervisor Work 100% $150.00/hr
Contractor Work 100% $75.00/hr
Workers Work 100% $1,000.00/hr
Electrician Work 100% $50.00/hr
Plumber Work 100% $50.00/hr
Design Engineer Work 100% $150.00/hr
Construction Materials Material $500,000.00
Rent for Construction Vehicles Material $250,000.00
Other Costs Material $150,000.00

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The budget breakdown per each activity in the project is estimated using the bottom up
estimation technique and is shown in the following table.
WBS Task Name Duration Resource Names Cost
0 Construction of Restaurant Building in Auckland 327 days $2,376,000
1 Preliminary Planning for the Project 42 days $67,200.00
1.1 Host a Board Meeting for a New Branch of the Restaurant 5 days Project Head $8,000.00
1.2 Discuss Whether a Building will be Rented or Constructed in
the Preferred Location 5 days Project Head $8,000.00
1.3 Conduct Detailed Feasibility Analysis of the Project 10 days Project Head $16,000.00
1.4 Prepare Feasibility Report of the Project 5 days Project Head $8,000.00
1.5 Develop the Project Proposal 10 days Project Head $16,000.00
1.6 Send the Proposal to the Higher Authority for Approval 2 days Project Head $3,200.00
1.7 Review of the Proposal 5 days Project Head $8,000.00
1.8 Receive Approval Notice from the Authority 0 days $0.00
2 Preparations for the Project 49 days $126,400.00
2.1 Team Building 9 days $14,400.00
2.1.1 Select Personnel for Project Management Team 5 days Project Head $8,000.00
2.1.2 Create Stakeholder Posts for the Team 2 days Project Head $3,200.00
2.1.3 Allocate Stakeholder Roles to the Team Members 2 days Project Head $3,200.00
2.1.4 Documentation of Team Roles 0 days $0.00
2.2 Location Selection 40 days $112,000.00
2.2.1 Conduct Meeting with Team Members Regarding Location 3 days Project Head,
Project Supervisor $8,400.00

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2.2.2 Create a List of Possible Locations 3 days Project Head,
Project Supervisor $8,400.00
2.2.3 Conduct Survey at All Locations 5 days Project Head,
Project Supervisor $14,000.00
2.2.4 Contact Government Regarding Purchase of a Location 10 days Project Head,
Project Supervisor $28,000.00
2.2.5 Evaluate Pricing of the Different Properties Selected 2 days Project Head,
Project Supervisor $5,600.00
2.2.6 Select a Specific Property for the Construction 2 days Project Head,
Project Supervisor $5,600.00
2.2.7 Purchase the Selected Property 15 days Project Head,
Project Supervisor $42,000.00
3 Project Planning 17 days $20,400.00
3.1 Scope Definition of the Project 2 days Project Supervisor $2,400.00
3.2 Objectives Specification of the Project 3 days Project Supervisor $3,600.00
3.3 Estimation of Total Time Required for the Construction and
Delivery 3 days Project Supervisor $3,600.00
3.4 Estimation of Total Budget for the Project 4 days Project Supervisor $4,800.00
3.5 Risk Assessment 5 days Project Supervisor $6,000.00
3.6 Finalisation of the Project Plan 0 days $0.00
4 Contractor Hiring and Construction Process 192 days $1,965,200.00
4.1 Release Tender for the Project Contract 5 days Project Head $8,000.00
4.2 Hire Contractor through Bidding Process 2 days Project Head $3,200.00
4.3 Discuss the Project 5 days Contractor, Project
Head $11,000.00
4.4 Finalise the Contract with the Contractor 5 days Contractor, Project $11,000.00

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Head
4.5 Assign Workers for the Construction 10 days Contractor $6,000.00
4.6 Place Order to Vendor for Purchasing Materials 2 days
Construction
Materials[1],
Contractor
$501,200.00
4.7 Hire Construction Vehicles 3 days
Contractor, Rent
for Construction
Vehicles[1]
$251,800.00
4.8 Design Building Blueprint 15 days Design Engineer $18,000.00
4.9 Design the Floor Plan for the Restaurant 15 days Design Engineer $18,000.00
4.10 Excavation and Foundation Building 10 days
Contractor, Project
Supervisor,
Workers
$98,000.00
4.11 Construction of the Building 3 mons
Contractor, Project
Supervisor,
Workers
$588,000.00
4.12 Installation of Amenities and Equipments 15 days
Contractor, Project
Supervisor,
Workers
$147,000.00
4.13 Interior Decorations and Colour 15 days
Contractor, Project
Supervisor,
Workers
$147,000.00
4.14 Exterior Colour 10 days
Contractor, Project
Supervisor,
Workers
$98,000.00
4.15 Connection with Electricity Line 5 days Electrician $2,000.00
4.16 Connection with Water Line 5 days
Contractor, Project
Supervisor,
Workers, Plumber
$51,000.00
4.17 Final Activities 10 days Contractor $6,000.00

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4.18 Handover the Building 0 days $0.00
5 Project Review and Closing 27 days $196,800.00
5.1 Conduct Detailed Post Project Review 10 days Project Head $16,000.00
5.2 Appraisal and Documentation of the Project 10 days Project Head $16,000.00
5.3 Finalising Pending Payments 5 days Other Costs[1],
Project Head $158,000.00
5.4 Sign Off 2 days
Contractor, Project
Head, Project
Supervisor
$6,800.00
5.5 Official Closing of the Project 0 days $0.00
2.2 Identification of Financial Resources
While estimating the budget using the bottom up estimation technique, there are several
elements that are to be identified and specified correctly for ensuring maximum accuracy of the
budget (Kerzner, 2017). The first step is to develop the work breakdown structure as follows.
WBS Task Name
0 Construction of Restaurant Building in Auckland
1 Preliminary Planning for the Project
1.1 Host a Board Meeting for a New Branch of the Restaurant
1.2 Discuss Whether a Building will be Rented or Constructed in the Preferred Location
1.3 Conduct Detailed Feasibility Analysis of the Project
1.4 Prepare Feasibility Report of the Project
1.5 Develop the Project Proposal

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1.6 Send the Proposal to the Higher Authority for Approval
1.7 Review of the Proposal
1.8 Receive Approval Notice from the Authority
2 Preparations for the Project
2.1 Team Building
2.1.1 Select Personnel for Project Management Team
2.1.2 Create Stakeholder Posts for the Team
2.1.3 Allocate Stakeholder Roles to the Team Members
2.1.4 Documentation of Team Roles
2.2 Location Selection
2.2.1 Conduct Meeting with Team Members Regarding Location
2.2.2 Create a List of Possible Locations
2.2.3 Conduct Survey at All Locations
2.2.4 Contact Government Regarding Purchase of a Location
2.2.5 Evaluate Pricing of the Different Properties Selected
2.2.6 Select a Specific Property for the Construction
2.2.7 Purchase the Selected Property
3 Project Planning
3.1 Scope Definition of the Project
3.2 Objectives Specification of the Project
3.3 Estimation of Total Time Required for the Construction and Delivery
3.4 Estimation of Total Budget for the Project

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3.5 Risk Assessment
3.6 Finalisation of the Project Plan
4 Contractor Hiring and Construction Process
4.1 Release Tender for the Project Contract
4.2 Hire Contractor through Bidding Process
4.3 Discuss the Project
4.4 Finalise the Contract with the Contractor
4.5 Assign Workers for the Construction
4.6 Place Order to Vendor for Purchasing Materials
4.7 Hire Construction Vehicles
4.8 Design Building Blueprint
4.9 Design the Floor Plan for the Restaurant
4.10 Excavation and Foundation Building
4.11 Construction of the Building
4.12 Installation of Amenities and Equipments
4.13 Interior Decorations and Colour
4.14 Exterior Colour
4.15 Connection with Electricity Line
4.16 Connection with Water Line
4.17 Final Activities
4.18 Handover the Building
5 Project Review and Closing

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5.1 Conduct Detailed Post Project Review
5.2 Appraisal and Documentation of the Project
5.3 Finalising Pending Payments
5.4 Sign Off
5.5 Official Closing of the Project
Now, once the work breakdown structure is developed, the duration of each work
package is set as per the requirements. Afterwards, the working stakeholders, human resources
and material resources are listed along within estimated costs (rates / wages, fixed costs), which
are then assignment to each work package (Meredith, Mantel Jr& Shafer, 2017). From the same,
the total costs of each work package are added up (duration x cost) to determine the final
estimated budget of the entire project.
3. Time Management
3.1 Project Schedule including Milestones
The schedule of the project is developed below showing all the activities, deliverables,
work packages, milestones, durations and start-end dates.
WBS Task Name Duration Start Finish
0 Construction of Restaurant Building in Auckland 327 days Mon 16-03-20 Tue 15-06-21
1 Preliminary Planning for the Project 42 days Mon 16-03-20 Tue 12-05-20
1.1 Host a Board Meeting for a New Branch of the Restaurant 5 days Mon 16-03-20 Fri 20-03-20
1.2 Discuss Whether a Building will be Rented or Constructed in
the Preferred Location 5 days Mon 23-03-20 Fri 27-03-20
1.3 Conduct Detailed Feasibility Analysis of the Project 10 days Mon 30-03-20 Fri 10-04-20
1.4 Prepare Feasibility Report of the Project 5 days Mon 13-04-20 Fri 17-04-20

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1.5 Develop the Project Proposal 10 days Mon 20-04-20 Fri 01-05-20
1.6 Send the Proposal to the Higher Authority for Approval 2 days Mon 04-05-20 Tue 05-05-20
1.7 Review of the Proposal 5 days Wed 06-05-20 Tue 12-05-20
1.8 Receive Approval Notice from the Authority 0 days Tue 12-05-20 Tue 12-05-20
2 Preparations for the Project 49 days Wed 13-05-20 Mon 20-07-20
2.1 Team Building 9 days Wed 13-05-20 Mon 25-05-20
2.1.1 Select Personnel for Project Management Team 5 days Wed 13-05-20 Tue 19-05-20
2.1.2 Create Stakeholder Posts for the Team 2 days Wed 20-05-20 Thu 21-05-20
2.1.3 Allocate Stakeholder Roles to the Team Members 2 days Fri 22-05-20 Mon 25-05-20
2.1.4 Documentation of Team Roles 0 days Mon 25-05-20 Mon 25-05-20
2.2 Location Selection 40 days Tue 26-05-20 Mon 20-07-20
2.2.1 Conduct Meeting with Team Members Regarding Location 3 days Tue 26-05-20 Thu 28-05-20
2.2.2 Create a List of Possible Locations 3 days Fri 29-05-20 Tue 02-06-20
2.2.3 Conduct Survey at All Locations 5 days Wed 03-06-20 Tue 09-06-20
2.2.4 Contact Government Regarding Purchase of a Location 10 days Wed 10-06-20 Tue 23-06-20
2.2.5 Evaluate Pricing of the Different Properties Selected 2 days Wed 24-06-20 Thu 25-06-20
2.2.6 Select a Specific Property for the Construction 2 days Fri 26-06-20 Mon 29-06-20
2.2.7 Purchase the Selected Property 15 days Tue 30-06-20 Mon 20-07-20
3 Project Planning 17 days Tue 21-07-20 Wed 12-08-20
3.1 Scope Definition of the Project 2 days Tue 21-07-20 Wed 22-07-20
3.2 Objectives Specification of the Project 3 days Thu 23-07-20 Mon 27-07-20
3.3 Estimation of Total Time Required for the Construction and 3 days Tue 28-07-20 Thu 30-07-20