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SMART - Project Management

1) There are 3 project management organization types this week. They are Pure Project, Matrix, and Functional. What is the proper project management organization for the outline paper listed below? Explain why? Would the other project management organization types work? Why or Why not?

2) How would you go about determining the SMART requirements for the outline paper project listed below? Explain why you took this approach.

HERE IS MY OUTLINE ASSIGNMENT YOU NEED TO USE!

Project Background
Our family of 3 has found ourselves in a situation. We have a 2 bedroom ranch house on one acre and when people want to have an extended stay, we don't have adequate accommodations for them. After much deliberation and discussion of whether to add on one or two rooms we decided to build ourselves a much needed garage and attach living quarters to it. Our current project is to build a garage that has living quarters attached to it. Our next step is to decide if those will over the garage or on the side. If you build above the garage then anyone who visits would have to climb stairs so that was not as appealing as having a small area built next to the garage. This extra space will be a 3 room studio style space with a kitchenette and bathroom. We have an acre of land so space is not a problem and we have already been approved to proceed by our city planning commission. This project has a budget of $75,000 and a timeline of 90 days. The contractor has been selected and he has been notified of our 90 timeline for the project. This timeline is not flexible so we will need to ensure that we plan for parallel activities to be conducted at the same time. In order for this to happen and for it to be successful we need a plan, a well timed plan. After the completion of this project we will benefit in that we will have a new garage in which to house our vehicles, store our gardening tools, and gain extra storage along with a mother-in-law type living quarters where visitors will benefit in having their own space and privacy when staying with us.
Statement of Need
The need for the extra space really became important when we discovered that our mother needed to come and stay with us for an extended time. We had already discussed needing to build a garage and due to the lack of an extra bedroom and bath accommodations we decided that we would go ahead with our plan for a garage and to attach the living quarters next to it.
Project Objectives
Project Introduction
The need for additional quarters has arisen due to the expected arrival of mother-in-law in the next 90 days. Living quarters at this time are tight and there is a need to expand the current homestead; however, adding on directly to the home is not desired and separate living quarters for the mother-in-law are needed. The living quarters should include a small bedroom, kitchenette, and bathroom.
Statement of Work
General Description
This document is intended as a Statement of Work (SOW) to identify and describe important milestones and deliverables for the construction of garage living quarters. The goal of the project is to construct and finish a high quality garage living quarters.
Scope of Work
 Add approximately 300 square feet for living space
 Addition to be done according to city codes
 Addition to be on slab foundation
 Addition to be framed according to city approved plans
 Addition to include one sliding door
 Addition to have composite roof to match original home
 Addition to have carpet installed in bedroom
 Master bathroom to include installation of fixtures, toilet, sink, vanity, counter top, medicine cabinet, track lighting,
 Prime and paint both bathroom and bedroom with semi gloss paint
 Installation of tile in bathroom
 Installation of all doors and windows
 Prepare heat ducts
 Plumbing and electricity installed according to city approved plans
? Period of Performance
 Period of performance shall be no longer than 90 days from January 31, 2008 to April 30, 2008
? Project Structure
 Key Contractor Personnel
 Contractor Proposal, Evaluation and Selection
 Status Reporting
 Project Updates, Meetings
? Points of Contact
 Project Manager
 Contract Administrator
 Plumber
 Electrician
 General Laborer
? Acceptance of Deliverables and Milestones
? Statement of Work Deliverables and Milestones
 Start Project: 5 days (preparing landscape for slab)
 Slab/Inspection: 7 days (includes inspection time and re-inspection if necessary)
 Framing/Inspection: 10 days (includes inspection time and re-inspection if necessary)
 Plumbing/Inspection: 10 days (includes inspection time and re-inspection if necessary)
 Electric/Inspection: 10 days (includes inspection time and re-inspection if necessary)
 Duct work 10 days (includes electrical installation of forced air unit)
 Insulation/Inspection: 7 days (includes inspection time and re-inspection if necessary)
 Drywall/Inspection: 10 days (includes inspection time and re-inspection if necessary)
 Roofing/Inspection: 11 days (includes inspection time and re-inspection if necessary)
 Final inspection: By 80th day to allow for any corrections and re-inspection
 Walk-through: 90th day
? Contractor Proposal Requirements
o Statement of Intent
o Copy of Contractor's License
o Copy of Worker's Compensation Insurance Declaration Page
o Copy of Certificate of Liability Insurance
o Contractor's Bond
o Report from Better Business Bureau with current standing
o Licensing Board report
o Examples of work
o 5 references and scope of work completed
o Costs
o Timeline
o Guarantees
? Project organization chart listed by order of chain of command
o Owner (oversees project and funding)
o Contractor (Organizes and manages all work, sub contractors and labors including plans, permits, and inspections. Also known as a project manager)
o Sub Contractors (work for the contractor in specific areas)
o Laborers (work for sub contractors in specific areas)
? The approach and methodologies to be used to accomplish the work
o Methodologies:
 Analyze
 Advise
 Execute
o Approaches
 Clear process for out-sourcing (i.e. bidding contractor communications and approvals for purchase
 Create management plan by segment
 Create best practices for management of goals
 Identify cost comparisons and sourcing best practices
 Create and use tracking tool for project management
? Dispute Resolution:
o The Contractor shall implement a Project Change Request (PCR) process to manage and approve any chances to the Statement of Work as herein described in this contract. The PCR will include the reason for the change, a complete description of work to be performed, an estimate of time to complete the task, a completion date for the PCR Statement of Work and an impact analysis indicting ramifications or impacts to the garage living quarters.
o If unforeseen circumstances arise where a change order or dispute resolution might be needed, CONTRACTOR will submit (in writing) a description of the problem and proposed resolution to the project manager and primary point of contact for his/her consideration. If change orders are needed, CONTRACTOR agrees to continue at the hourly rate specified in the proposal.
o In the event it is determined that a change to the Statement of Work is required, a Contract amendment shall be made to the Contract. The PCR shall be used by the Contractor as the justification for a change to the Statement of Work.

Risks and Risk Management
As with any home improvement or addition there are risks; however, small projects such as the construction of an "in-laws cottage" risks are minimal. Most risk management for a contractor or construction job is in the form of insurances. Liability, worker's compensation, and bonding are typical insurance policies that are included in a job of this nature. Liability insurance will protect both the owner and the contractor in the event that the building has flaws resulting in injury. Worker's compensation insurance provides protection to the employer, worker, and the owner in the event a laborer gets injured on the owner's property. Finally, the presence of a bond protects the employer including defense costs of up to a certain amount. Generally, a bond for this type of project is $1 million per occurrence. This is usually in addition to their liability insurance. These insurances cover risks associated with this project.
Types of Risks
Inclement weather is the only risk in this project that is not protected under the insurances noted above. The weather is typically good during this time of the year (early spring); however, in the event of rain, all contract work that is able to be done inside will be done to help minimize the down-time. These include installation (but not activation) of any light fixtures and sockets; any plumbing preparation including the preparation of shower pan and tiling; and finally, any finishing work that can be done inside.
Time Table
Appendix A shows specific tasks, milestones, completion dates, and estimated costs. CONTRACTOR is estimating approximately three (3) months to completion with a projected end date of April 30, 2008. This includes work to lay foundation, framing, drywall, painting, finishing and includes exterior finishing. CONTRACTOR will pursue all options to complete this project ahead of schedule and under the quoted costs. Payments of invoices will be based upon the Contractor meeting the stated deadlines for deliverables and upon the Agency's acceptance of the proposed deliverables. (See appendix A)

Selection Model
The selection of this project was done after careful analyses and use of the following selection model. However, several items are worth noting. First, the three available options were; build an addition on current home, purchase a new home, or build a garage with living quarters on top. Although we did decide to a selection model, just as there is with any project; there were numerous intangible issues that weren't included in the model. We will discuss those items following the model.
Cost Privacy Impact Time frame required Subjective choice Total score
(50 possible)
Project A 10
(lowest) 5
(some) 5
(house demolition) 9
(done in 90
days) 5
(2nd choice) 34

Project B 3
(highest) 3
(unknown) 2
(selling, moving, buying) 1
(probably won't be completed) 1
(3rd choice) 10
Project C 8
(medium) 10
(excellent) 10
(low) 9
(done in 90 days) 10
(1st choice) 47

Table key & Scale
Project A - Build an addition on current home
Project B - Purchase a new home
Project C - Build garage with livings quarters on top
Scale - 10 - Excellent - 5 Fair - 1 - Unacceptable
As previously mentioned, there were several intangible items that weren't evaluated in the selection model. First, the prospect of purchasing a new house had several other issues that weren't in the model. For instance, without significant time and energy; there wasn't any way to tell whether we could locate a house that would offer all the things we need in a home. Also, since we have lived in our home for 20 years, the mortgage is nearly paid off. The cost of $75,000 will almost certainly be less than the difference in price of selling our current home and purchasing a new one. Additionally, the completion of a garage on our current home will literally "kill two birds with one stone." This will provide a new garage space for our current home, as well as a private living area for mother.

Appendix A

Timetable and Deliverables
Task Description Days Cost Date
1 Project Begins 5 $00.00 1/31/2008

Landscape graded and prepared for the slab
2 Slab Pouring and Inspection 7 $00.00 2/1/2008
Rebar installed, slab poured and inspections made. Any corrections done and re-inspection is included during this time frame.
3 Framing 15 $00.00 2/8/2008
Framing and inspection with time for any corrections and re-inspection.
4 Insulation 2 $00.00 2/23/2008
Insulation and inspection of insulation with time for any corrections and re-inspection allowed.
5 Electrical 10 $00.00 2/25/2008
Installation of all electrical fixtures in kitchenette, bathroom, bedroom and living room. Inspections to be made and any corrections and re-inspection are included in this time frame.
6 Plumbing 5 $00.00 3/8/2008
Installation of all plumbing in bathroom and kitchenette. Inspections to be made and any corrections and re-inspection are included in this time frame.
7 Drywall Installation 10 $00.00 3/13/2008
After framing and installation of insulation, plumbing, and electrical are done, installation of drywall is done. Inspections and re-inspections by city are included in this time frame.
8 Roofing 10 $00.00 3/23/2008
Roofing done and inspected.
9 Bathroom Installation 10 $00.00 4/3/2008
Tile, shower pan and fixture installation
10 Kitchen Installation 10 $00.00 4/13/2008

Installation of appliances, tile, countertops and cabinents.
1 Final Inspection 5 $00.00 4/23/2008

Inspection of final project by owner, and city.
1 Furnishings delivered and installed 5 $00.00 4/28/2008

All furnishing delivered and installed during this time frame.

Solution Preview

1) There are 3 project management organization types this week. They are Pure Project, Matrix, and Functional. What is the proper project management organization for the outline paper listed below? Explain why? Would the other project management organization types work? Why or Why not?
The decision as to which structure to use often depends on the number of departments involved, length and size of the project, the experience of the team and the location of the project.
The Matrix Organization would be the best solution for this project as it incorporates the benefits of both the pure-project organization while maintaining the advantages of the functional organization. In a Matrix Organization, people report to multiple managers which are often the case with a contractor. Contractors use sub contractors which not only defines the reporting to multiple managers, but also is a web of relationships which needs to be coordinated. These are the basic functions of a Matrix Organization. In a Matrix Organization there is usually a need to share scarce or unique resources in various areas (plumber, electrician, roofer and framer) In addition, contractors generally work more than one job and he must provide excellent communication and ...

Solution Summary

1) There are 3 project management organization types this week. They are Pure Project, Matrix, and Functional. What is the proper project management organization for the outline paper listed below? Explain why? Would the other project management organization types work? Why or Why not?
The decision as to which structure to use often depends on the number of departments involved, length and size of the project, the experience of the team and the location of the project.

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