Using the data in the scenario, prepare a fully itemised cost plan for the project to include the provision of contingencies.

Assignment Task One Project Planning

1a. Using the data in the scenario, prepare a Gantt chart for the entire programme from inception to the end of the ‘soft launch’. You may assume the project start date is Monday 10 January 2022.

1b. Compile a detailed network diagram and Gantt chart for the Arena construction phase (phase 3). You should allow in your programme for a two week shutdown of construction activity over the year-end holiday period.

1c. Identify the critical path for the construction phase.

1d. Re-present key data in Table 3 to show task durations using Eli Goldratt’s Critical Chain approach. Show also the safety buffer for the phase as a whole. Determine how buffer time should be used either at key milestones within the construction phase or only at the end clearly stating the reasons for your choice.

1e Present a simple Gantt chart to show the critical chain approach and the buffer distribution you have selected to use.

Assignment Task Two Budgets and Cost Planning

2a. Using the data in the scenario, prepare a fully itemised cost plan for the project to include the provision of contingencies.

2b. Determine a basis for the provision of contingency within the cost plan (for example, adopting a flat rate for the entire project or risk-related rates for different elements or phases). Make a clear recommendation, stating your reasoning.

Assignment Task Three Project Appraisal

3a. Using the budget you prepared in task two with the income streams provided in the scenario, prepare an itemised cash flow for the project for the period 2022 to 2029 inclusive. You should consider the payment profiles for both the remediation phase (phase 2) and the main arena construction phases (phases 3 and 4). You will also need to include an estimate for the revenue receipt in Q4 2024, stating your reasoning for the figure you have chosen.

3b. Using the cash flow data, prepare an initial project appraisal and identify the Payback Period; Return on Capital (RoC); and Net Present Value of the project to support a business case for presentation to the client’s Board. Use a discount rate of 4% per annum.

3c. State any assumptions made and the commercial implications of the results presented including an accept / reject recommendation for the project as a whole

Assignment Task Four Resource Management

As the arena construction phase nears completion in Q4 2023, the professional team have re-focussed attention on the logistics and management of phase 4 – the arena fit-out, concession areas and commissioning.

With the main contractor having left site, additional site management resources will be required to co-ordinate and control the fit-out works for each retail and food unit as well as specialist equipment to be installed in hospitality areas, the TV Studio and Media Centre.

It has been decided to recruit a number of assistant project managers to support the construction manager and safety manager plus another administration assistant.

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