ST.

Dismas Case 5 & 6

Case Analysis
Group 2
Sec3

 Construction of Assisted living facility program has

completed 4 months and soon it is moving towards the
end of the program
Kyle Nanno, Project Manager holds meeting every week
and takes update & review time & budget as of todays
date, and also for next two weeks, any issues regarding
time & budget, next step and course of action
Two key issues: Location of security panel &
introduction of Hair salon

Case 5 : Key Points

 Build strong communication system

Should not have completely relied on one person, and the
decision and input could be taken by other project team
members also
Should have sent warning messages or need to be taken
disciplinary action
Should have informed Fred at the earliest

What do you think the construction project manager should have

done when the Director of Security stopped attending the project
meetings?

 Yes
The LF steering team and the President should know the
exact progress of the meeting as the project has come its
half way. This not only saves us from crisis situations but
also helps us in taking follow ups and approval for new
proposed changes (in this case hair salon)
It is also true that if we share too many details the
complexity & involvement of decision making increases
So it is in to the hand of project manager to decide what
information is important and will directly affect the
project should be shared and what not
Do you think it is an effective communications tool to send the
construction project meeting minutes to the ALF steering team
and the President? Support your answer

The Gantt chart - 4/11/01.

The project shows a finish date variance of 14 days.
The project as a whole is 14 days behind schedule.
They ran 15 days late on Phase 1 of the project.
The project was 14 days early on both Phase 2 and Phase
3 of the project which got cancelled activity 1 & 2

How much time has to be made up for the original, baseline

schedule to be met?

Develop an action plan and draw a Gantt chart for the

Parking Lot phase of the project. Answer Freds questions.

Scope creep
It was not part of the original project plan
Research about would residents like the idea of hair salon
Will this be an extra revenue generation
Cost benefit analysis, ROI
If approved, what changes will it bring to the existing
project schedule & budget

What information does Fred need to make a decision about

building a hair salon?

 Mid May 2001

Final weeks of the project but it was running late by
2weeks as a result of a problem encountered during
excavation phase
Ready to pay overtime but still project dint catch up
Appointed project auditor Carloine Stevens to figure
out what wrong was happening

Case 6 : Key Points

Estimated Actual at Completion

Budgeted

Remaining $

Construction Costs:
Building

6,743,000.00

$6,743,000.00

$0.00

Contingency

674,300.00

$674,300.00

$0.00

Land

600,000.00

$600,000.00

$0.00

Program development & equipment costs

405,000.00

$405,000.00

$0.00

Furniture

400,000.00

$400,000.00

$0.00

A&E Fees

347,000.00

$347,000.00

$0.00

Financing costs

202,000.00

$202,000.00

$0.00

Capitalized interest

135,000.00

$135,000.00

$0.00

Site improvements

125,000.00

$147,655.00

-$22,655.00

Phone & IS system

30,000.00

$30,000.00

$0.00

Kitchen equipment

30,000.00

$23,776.00

$6,224.00

9,691,300.00

$9,707,731.00

-$16,431.00

Legal and accounting

25,000.00

$0.00

$25,000.00

Initial marketing

250,000.00

$0.00

$250,000.00

Project consultant

80,000.00

$0.00

$80,000.00

Follow-up Market survey

20,000.00

$0.00

$20,000.00

Total

375,000.00

$0.00

$375,000.00

Total

10,066,300.00

$9,707,731.00

$358,569.00

Total

Organizational Costs:

Estimate the final construction budget.

 No information provided in the case as what amount to

was spent from organizational costs. Only CFO can
explain that

Estimate the final construction budget.

 There was a communication gap between the

construction crew and contractor. They were not
informed about their next work assignment
PM must look into the matter and take necessary action
ask contractor to inform their crew about each & every
assignment on time
And also warn him that next onwards no additional
slowdown will be allowed and the assignment stays on
schedule

What should they do about the work slowdown?

Create a Gantt chart with the revisions to the duration of the

interiors step. When will the project be completed?

Create a Gantt chart with the revisions to the duration of the

interiors step. When will the project be completed?

 It is the fault of the CFO that he did not allocate staff

expenses
It will have an significant impact om the project budget
Any extra cost unbudgeted will affect the bottom-line and
the success of the project in meeting its budget
Last minute no one can help nor even CEO

What is the importance of the fact that the Hospital staff expenses were
not reported under the project budget?