Project Charter: Dream Home Construction, MGT5164, Ontario, Canada

This document is a project charter created for the construction of a dream home in Windsor, Ontario, Canada. It begins with a Statement of Work (SOW) that defines the project's scope, including a budget of $300,000 and a 14-month timeline, encompassing landscaping, construction, interior work, and infrastructure. The charter details the business case, emphasizing the justification for the investment. It outlines the project's purpose, which is to build a home in a better neighborhood, and sets objectives such as completing the construction within budget and on time. The charter also identifies exclusions, such as on-job training, and assumptions, like the use of quality materials. It lists constraints related to scope, budget, and time. The document also presents anticipated risks, including budget overruns and labor shortages, and requirements such as clearly defined contracts and quality control manuals. Finally, it provides a list of deliverables, milestones, and stakeholders involved in the project.

Running head: PROJECT CHARTER
Assignment 1: Project Charter
Name of the student:
Name of the Project:
Date of Submission

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3. Project background
3.1 Statement of Work (SOW)
The project for which this particular charter has been created in this document is
“building of dream home”. The dream home has to be In order to construct the dream home
project accurate development activities are required to be followed. It is role of the project
initiator to follow and maintain the activities according to the project requirements. It is duty of
the project manager to guide the other project team associates and other assigned associates.
SOW is a part of contract and bidding documentation. Both the bidding document and SOW has
to be clear to the project associates and stakeholders.
Scope
The dream home construction work should be completed in a budget of $300,000 and 14
months. The construction will be completed followed by landscaping, house construction, inside
work or interior, infrastructure, proper management and other considerations. Due to complexity
and large size of the project, responbilities are distributed among stakeholders respectively.
Apart from that useful resource in terms of facilities, equipments, quality assurances process
those are essential to carry out the project are also elaborated in the SOW.
Importance of complete the project within deadline and budget are also illustrated in the
SOW. Purpose of the project including risks, assumptions, milestones and deliverables are also
elaborated in the Statement of Work (SOW). Both in scope and out scope of the dream home
construction project are presented in SOW. A detail schedule and budget summary are
developed. Before beginning this project it’s SOW and documentation has to be approved by the

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project supervisor and other sponsors assigned. The way through which stakeholders will
contribute throughout the project development activities are demonstrated in the SOW.
Location
The location selected for the dream home construction project is riverfront or lakefront
property located in Windsor city, Ontario, Canada.
Timelines
The project is expected to be completed within 14 months
Standards
In order to complete dream home construction generally builders and contractors take 2
Acre of area and an expert construction team. The concept of green building is considered to
implement this project. It is expected that the project will be completed within 14 months and
$300,000 budget approved and granted from the bank.
Acceptance criteria
The project will be accepted after all the paper work done properly. It would be taken if
contractor successfully completes the project within the estimated budget and time.
Contract and payment mode
The payment mode that will be followed for this project is fixed price payment method
Conclusion

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It is concluded that Statement of Work (SOW) is a form of document that defines
complete scope of project including cost, timeline, stakeholders, risks and associate vendors. The
SOW basically defines the project situation and elaborates the different actions that a project
manager and the assigned project team associates need to follow and maintain as well throughout
to meet the project objectives.
3.2 Business case
Building or construction of a dream home is a journey. This business case also justifies
the investment and make sure that no capital is wasted. The final business case decides whether
probable merit is investigated in details or not. Before beginning or taking any final decision
regarding dream home building project the business case is prepared. Business cases are
presented after comparing different similar type construction projects.
Firstly, the goals for this particular project are presented. The goal of the project is to
construct a dream home riverfront or lakefront property located in Windsor city, Ontario,
Canada. For dream home construction project, exterior and interior decoration is an important
aspect that definitely not overlooked. After setting project goals, objectives, aim and other
development aspects are required to be considered by contractors, managers and other
stakeholders. The responsibility of construction manager is to distribute the entire work based on
their previous skills and experiences. After that detail budget and schedule is presented in
business case.
After presenting all details project team must be formed accurately. In other words the
mission, vision and objectives of the project have to be clear to the associates and stakeholder.
The bank has approved an amount of $300,000 to complete the dream home construction. The

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project is segregate followed by landscaping, house construction, inside work, infrastructure,
management and others. The successful construction business case will justify expected project
outcomes and make sure that it is commercially profitable and meet the expected project
outcomes.
4. Project purpose (goal)
The current location where the client of “Dream Home” project lives is very congested.
In order to get a better neighbourhood and pollution free daily life the owner of the project has
decided to build a dream home in the riverside location of Canada. The potential challenges with
location and site will be completely resolved with this new dream home. For completing the
construction work the other main work activities those are essential include landscaping
excavation, foundation, grading, and driveways.
The goal of dream home construction project is to complete all the leading activities in
the budget of $300,000 and time of 14 months. Apart from that electrical, plumbing, mechanical
activities are also respectively needed to be followed.
5. Project objectives
The objectives of the project are as follows:
 To complete the contract bidding accurately followed by negotiation
 To complete the construction work in the budget of $300,000 and time of 14
months
 To design high level assumptions, deliverables, timeline, budget and resource
allocation to avoid potential risks

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6. Project exclusion
Project scope, assumption and conclusion are three most effective and important project
related documents. If any one of this document is missed or not prepared appropriately then the
entire project will fail to meet the expected objectives and goals determined earlier. For the
dream home construction project different knowledge areas are considered in terms of risk,
resource, schedule, budget, stakeholder management plan.
However, some knowledge areas are not fall under scope of the project. Theses aspects
are beyond the limitation or project boundary. No benefit realization business strategies are
considered in this project. Though, it is very common for any project to initiate it with a basic
business case. This project also initiates with a business case. For large projects changes may
impact the Return on Investment (ROI). Change management program is part of the project but
not considered during the progress period. The out of scope items for the dream home
construction project are- No such on-job professional training for the project associates, critical
or insufficient documentation.
7. High level project assumptions
Before executing the dream home construction project the project manager needs to
assume some aspects or factors. The project plan should be prepared based on client
requirements and developers expectation. For this construction project it is assumed that the
project needs to be completed in the budget of $300,000 and time of 14 months. The project is
assumed to be completed within assigned resources. The early construction guidelines will be
followed throughout the project development life cycle period. Before signing contract to the
architect and civil engineer their previous skills and experiences, performances should be

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analyzed. For constructing the dream home materials that will be supplied by vendors are
assumed to be of high quality. Instead of traditional style modern construction method is
assumed to be considered for the dream home construction project. It is assumed that only
registered architects are appointed to the construction project.
8. High level project constraints
Triple project constraints are considered for the dream home construction work in terms
of scope, budget and time. The budget estimated for the project is $300,000 and time estimated is
14 months. Scope of the project is to complete the constriction work with quality raw materials
followed by requirements of the clients. Not only this but also the home owners are required to
hold post home maintenance plan as well. Budget is estimated for both interior and exterior
design of the home.
9. Problems, anticipated issues and potential risks
The risks anticipated for the dream home construction project are as follows:
 Managing the change orders in dream home construction project
 A poorly determined contract paper and drawing
 Shortage of labour
 A poorly developed project plan
 Issues associated to suppliers and subcontractors
 Using damaged tools in the construction site
 Overrunning project budget and schedule
 Suddenly increased material cost

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 Frequently changing project scope
 Logistic risks while supplying materials to the construction site
10. High level project requirements
The requirements for the dream home construction project are specified in the below
section.
Clearly defined contract: The construction manager must use clearly defined contract
paper to make sure that the requirement is clear to all the project stakeholders. The contract must
be signed based on tender, bidding and negotiation.
Design of a Q&M manual: Before design and delivery of the dream home construction
project there should be a Q&M manual. The manual will make that all the requirements are clear
to the project team associates and stakeholders as well.
Use of contract policy: Before complete delivery of the dream home construction project
effective construction policies are also needed to set.
Owner’s representatives: A representative must be there from the project owner side who will
check the official contracts, decisions, directions, problem resolutions and direction that the team
need to follow to reach the project objectives.
Periodic inspection and testing: The dream home construction project is large and
complex. Due to this reason the large project is segmented into small parts. Before delivering the
parts individual’s inspection and testing has to be done.

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Above ceiling inspection: In this stage the above ceiling requirements are all present and
working properly or not are checked. If not then those are fixed in this stage.
Installing fire protection system: The engineer and designer are needed to install fire
protection system.
Construction timeline based on work schedule: In order to complete the project on-
time within allocated budget working hour for each need to set. It ensures the necessary activities
and time that it will take for successful completion.
Quality raw material: In order to complete the dream home construction activities
quality raw materials should be used to maintain safety of the owners and working labours as
well.
11. Deliverables
The project manager and contractor are expected to complete the dream home
construction project in estimated time and budget. Deliverable is an element that deals with
project scope statement. The construction project has to be completed in the time of 14 months
and budget of $300,000. The dream home has to be constructed followed by modern technical
specifications. Though, the home is not a smart but still many additional technical elements are
installed in the new home. The project needs to be completed followed by the different
milestones.
12. Project milestones
Milestone name Milestone description Milestone date

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Project initiation stage In this phase the project
initiation activities will take
place
25th February, 2020
pre construction phase Feasibility analysis, budget
and schedule will be
estimated in this stage
2nd March, 2020
construction stage Infrastructure and detail
construction work will be
completed in this stage
15t April, 2020
Post construction stage After completion of the
construction work how the
contractor should maintain
the contract until the project
is handover to clients is
content of this activity
26th May, 2020
13. Project stakeholders
In order to complete the dream house construction work three important stakeholders
who are assigned to this project include contactor, civil engineer and architect.
The three different stakeholders associated to the project are contractor, architect and
civil engineer. The role plays by each of the stakeholders are elaborated in a tabular format.
Stakeholders Role of the stakeholder

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Contractor Role of project contractor is to plan, execute,
supervise, investigate and direct the other
associates accurately to make sure that the
construction work is completed on time.
Civil Engineer Civil engineer’s role is to create, develop, as
well as protect the surrounding living
environment. The civil engineer plan, design,
oversee and maintain the dream home structure
Architect Role of an architect is to visually represent the
structural design of dream home who basically
develops facility according to the design
concept and specific construction requirements
The stakeholders of the project are in involved in all separate work packages in terms of
initiation, pre construction phase, construction phase and post construction stage. The
stakeholders are involved in each project development activity. The team was formed based on
their previous skill and experience. The stakeholders contributed on specific activities for what
they have early experiences. From successful delivery of the project they need commercial profit
and social fame. As soon as the dream home construction project will be completed, it will
become an advertising element too. People will come to know about the development team and
sign contract with them. The stakeholders will report to the project manager, supervisor and the

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project sponsors to let them know that the project is conducting based on project development
activities and detail delivery expectations.
The stakeholder’s expectation from the project is to complete it within 14 months and
budget of $300,000. The project manager will provide enough of information to the stakeholders
regarding construction of the dream home. The project manager again needs to accommodate the
stakeholders as part of their communication management plan. Direct open communication is the
best applicable interaction approach that the project manager and stakeholders need to use for
sharing important information among each other. The total budget that the project requires for its
execution is designed in the initiation stage. The information shared in the initiation stage is all
required to develop the project planning stage.
14. Project manager responsibilities and authority level
The person who is assigned as manager for this project is: Steven Smith (construction
project manager). The responsibilities of the assigned project manager are enlisted in the below
section:
 Planning and defining the actual scope of the project
 Detail project planning followed by proper sequence
 Developing accurate resource and schedule management plan
 Detail time band budget estimation for the project
 Development of project budget along with a feasibility report
 Creating project charts and details documentation
 Risk analysis through risk identification, analysis and management
 Periodic project status reporting by monitoring and progress reporting

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 Business strategy development by selecting vendors
 Imitation, planning, execution, validation and final evaluation
 Monitoring and controlling the project progress
15. Payment schedule
Payment schedule is referred to as financial documentation process used to develop the
payment summary for the dream home construction project. The total budget estimated for the
project is $300,000. It is duty of the finance manager to distribute the complete budget for
individual activities. The distribution must be dome based on complexity of the activities. The
maximum budget is allocated for the construct ion stage. On the other hand, rest of the budget is
allocated for the post construction and contract establishment stage. Whether the project is
progressing under control and as per the requirements of clients or not must be checked
throughout the project development lifecycle period. If it is found that, the value of variance is
huge between the actual cost and the planned cost then proper changes must be considered to
meet the project expectation.
16. Document approval section
In order to approve the project requirements and documents in details proper approval
processes are needed to be considered by the contractors and project associates. The stages that
are to be followed sequentially include in the below section:
 Accurate project initiation stage
 Appropriate project scoping stage
 Proper construction planning stage

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 Effective procurement planning stage
 Successful project evaluation

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engineering, 165, pp.1812-1817.

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