PART 1
The prenzlauer project is going to be funded by the German investment bank and the bank would fund the entire capital cost and this cash would be repaid by the bank in five equal annual payments of €79m which would commence exactly a year after the start of the project by the club.it was agreed that the architects fee of €3m would be paid immediately. Additional revenue contributions that would arise from the new stadium were forecasted for the seven years. The first and second year would generate no revenue because the club would continue to use the old stadium while the construction work was in progress. But on the third year €85m revenue contribution would be generated. Additionally, on the fourth, fifth, sixth and seventh year would generate €100m, €110m, €120m, €125m revenue contributions respectively.
| YEAR | REVENUE CONTRIBUTIONS | BALANCE | % of balance |
| 1 | €0M | – | – |
| 2 | €0M | – | – |
| 3 | €85M | €6 | 7.05 |
| 4 | €100 | €21 | 21 |
| 5 | €110 | €31 | 28.18 |
| 6 | €120 | €41 | 34.17 |
| 7 | €125 | €46 | 36.80 |
the revenues to be collected will be impacted by the success of the football club to qualify for the Champions League or the Europa League as the club cannot join both leagues in the same year. If the club would be successful enough to join the Champions League they will be able to add 25%to the additional revenue figures for each year and the chances of such a joining was assessed to be 15%.if the club would qualify for the Europa league they will be able to add 10%to the additional revenue of each season and the clubs chances to achieving such success was assessed as 25%.the chances of success for Europa league was higher than that for the champions league. The new stadium would require also additional operating costs of €5m per year once the new stadium was operational and this means from the third year onwards. The ground to be used for the new stadium was to be leased by the berlin council. Since there are still seven years left on the lease period this means that cash inflows is not a major requirement.
Assumptions made were that the football club will be successful enough to either join the Europa league or the champion’s league or even both in the years so that they can reap the revenue benefits. Another assumption made was that the new stadium would be able to generate income after two years. Another assumption is that the club would be able to pay the German investment bank in five equal annual payments 0f €79m commencing exactly one year after the very start of the project.
The agile project framework which has been used in many projects was applied here too. The agile framework concentrates on empowering people and their interactions with each other and ensures early and constant delivery of value into the project.it mainly focuses on the delivery of maximum value against the projects priorities in the period and budget allocated especially when the drive to deliver is greater than the risk. The principles of the agile framework include the project breaking down the requirement into smaller pieces which are then made a priority in terms of being important. This has occurred in the case of construction whereby the project director, Mr. Franz Muller split the construction work into four sequential stages. Another principle is that the agile framework promotes collaborative working with its clients in that in the case of the prenzlauer project the majority of supporters welcome the redevelopment project although a group of local residents have voiced some opposition in that they believe the quality of their neighborhoods will be impacted negatively by the presence of many supporters on match days.
Agile framework assimilates planning with execution hence it allows an organization to create a working mindset which helps the team to reply effectively to changing needs.
GERMAN INVESTMENT BANK BERLIN COUNCIL COMMERCIAL SPONSORS
The above diagram shows how the various shareholders have promoted the project. Due to the investment of the new stadium the prenzlauer club was required to borrow extensively to fund the new stadium project and make plans to repay the capital investment through increased revenues arising from the new facilities. The German investment Bank has agreed to fund the entire capital cost and has given the club two years to prepare to pay it back in five annual payments of €79m which will commence exactly a year after the very start of the project. The berlin council together with the local council has granted planning permission and ensured that the local transport infrastructure is adequate for the new capacity. The berlin council has also leased the ground in which construction is supposed to take place. Lastly, the club has a number of significant commercial sponsors who inject their money into the club through sponsorship and advertising and they are very keen to see the project come to fruition.
A project manager is a person who is equipped with the responsibility for the successful initiation, planning, construction and execution of a project. The project manager is responsible for his team and bears the burden of the project ensures that the project is successful. A construction [project manager is responsible for the planning and is required to oversee the project until it is completed. He is required to balance the budget so as to ensure it fits with the available resources, collaborate with the subcontractors and ensure that all the requirements and regulations are met and that the permits required are acquired. The project manager is expected to be a multitasker in that he should handle both administrative and hands on work while overseeing the project. His responsibilities include; estimating costs that will be used in the project to prevent loss and save money, oversee the construction project from its onset until it is completed. He is required to come up with solutions to problems arising and should resolve them and prevent them from coming up again. He is also required to follow up or keep track with the inventories provided, tools and equipment to ensure they are used well and not mishandled. He should also be orderly since he will be required to maintain the supplies in an orderly manner and that they are delivered according to the schedule provided. He should be compliant with safety regulations to promote safety since he is solely responsible for his team. He is required to provide daily reports to the shareholders on the progress of the construction progress o that in case of an incident or requirement needed the shareholders will have knowledge of the issue.
The project manager is required to allocate the available resources and manage them to ensure when they are needed they are available. The construction project manager qualifications include: he should have a degree in architecture, building science, engineering or construction management. Also, he can have a certificate relating to the same field. Most project managers are employed when they have previous work experience especially in the managing of budgets for construction projects. They are required to be highly organized, have a good memory, able to lead and guide people especially have knowledge in conflict resolution and conflict management and also should be able top plan ahead. He also should have excellent communication skills and interpersonal abilities including negotiation skills and should have excellent time management ability.
PART 2
2 (c) the impending weather conditions may impinge on the completion of task six in nine weeks as outlined in the plan. After the time factor mismatched during stage 3, it appears that all plans were to be rescheduled. At stage six in spite of the rescheduling, more time will be needed to accommodate the request from the contractor. There appears no floating time in the schedule. The best advice is therefore re-drawing the time schedule beyond the time of the plan by allowing up to three more weeks to accommodate this request.
PART 3
| DESCRIPTION | BUDGET{€} |
| 1.Project Director | _ |
| 2.Project Manager | 116500 |
| 3.Planning and Cost Manager | 93200 |
| 4.Contract Manager | 116500 |
| 5.Quality Manager | 104850 |
| 6.Project Administration Supervisor | 54056 |
| 7.Project Planner | 48464 |
| 8.Project Secretary | 35416 |
| EXPENSES | 42300 |
| ACCOMODATIONS | 23030 |
| AGGREGATE | 634316 |
WORKING
No. of weeks in the year=53
Working days =5
Total no. of days=366
Holidays=29 days
No of weekends=104
No. of working days=233
No of working weeks=233÷5=47
Working 5 days a week of 40 hours
Total no. of hours=233×40÷5=1864
Project manager=€500×233=116500
Planning and cost manager=€400×233=93200
Contracts manager=€500×233=116500
Quality management=€450×233=104850
Project administration supervisor=€29×1864=54056
Project planner=€26×1864=48464
Project secretary=€19×1864=35416
Expenses= management level staff=€150×47×5=35250
Support staff=€50×47×3=7050
Total expenses=42300
Accommodation=€490×47=23030
Aggregate=
Assumptions made on the making of the budget include;
- The money stipulated would be paid to the staff by the project
- No setbacks would occur or there will be no disturbances in the year that may affect the payments.
3 (B)
3 (C)
| WEEK | TASK | TASK NAME | DURATION | NO. OF QCs |
| 2 | 2 | Develop stage 1 quality plan | 1 | 2 |
| 3 | 4 | Site preparation | 6 | 3 |
| 9 | 5 | North stand construction | 14 | 2 |
| 24 | 6 | East stand construction | 9 | 2 |
| 34 | 7 | West end construction | 10 | 2 |
| 45 | 8 | Internal facilities | 9 | 3 |
| 54 | 9 | Completion works | 6 | 2 |
PART 4
Systems play a vital role in our lives and even in the society we live in and impacts on everything we do. The system is defined as a set of detail methods, and procedures which are created to carry out a specific activity, to perform something or a duty and also the system is used to solve a problem. The traffic light system is used in this project to highlight the progress of the tasks which were placed under construction phase four.as required by the project manager, I was to place each color to a task according to the progress made. The color red was to be placed to tasks in which the progress was falling more than 5% behind the plan placed for the task. The color amber was to be placed on tasks which were in progress or were broadly in line with the plan made or which had not yet started. Lastly, the color green was to be placed to the tasks which were already completed or which the progress made was 5% ahead of the plan made.
The first task which was site clearance and had taken a week to be completed fell under the green color. Also the placing of foundations which had taken two weeks with one predecessor fell under the green color as it was also completed on time. The placing of the lower tier fell under the color red as the progress made fell behind the plan with the progress having been done at 60% and had been du-rated to take three weeks with two predecessors. the placing of the upper tier which had made a progress of 40 % and had been tasked to be finished at five weeks fell under the green color as the task was 5%ahead of the plan.
The construction of the staircases and services to be offered which was to take three weeks with four predecessors and the construction of the executive boxes which was to have a duration of two weeks with four predecessors fell under the amber color since the progress had not yet started. The construction of the floor of offices fell under the color of amber also because the progress had not yet started and it was to take two weeks with six predecessors. The construction of the shop and hospitality suite fell under the green color due to the fact that it had already started and had made a progress of 15%and had been given a duration of four weeks with three predecessors. The construction of the TV studio and the completion of the work and the project which was to take a total of two weeks with as many as nine predecessors or even more fell under the color amber since the program had not yet started.
According to the actual progress made and provided at the meeting on the Friday at the end of five weeks of work, and which were based on the color code the following task fell under the red color; The construction of the lower tier. This meant that the progress had delayed and that immediate action was to be taken into consideration in terms of manual labour required, the machinery to be used were to be provided as early as possible with also more funds to be collected in order for the task to be completed on time. The delay of this task was surely going to affect the other projects which were to be done after this task.
Tasks which had fallen under the green color were as follows; the site clearance, the placing of the foundation, the construction of the upper tier and the construction of the shop and hospitality suite. This was a great boost to the project as these tasks were completed or were on their way to completion. This meant that the plans put in place were adhered to and followed to the latter. Recommendations were to be placed such as boosting of the morale of the workers by motivating them on the work they have done especially by going forward and starting the construction of the shop and hospitality suite. Due to the progress made by these tasks, this meant that the project was moving in the right direction and at the right pace. In order for the project to be completed at the stipulated time, we are required to manage our time wisely so as to increase efficiency in the project and tasks placed. Time management is a useful tool in ensuring that the workers are accountable and more productive hence saving more money in the long term.
The tasks that have fallen under the color of amber included the construction of staircases and services, construction of executive boxes, the construction of the floor of offices, the construction of the TV studio and the completion of the work. This meant that the tasks were broadly in line with the plan or that the tasks had not yet started. This meant that recommendations were to be put in place to ensure progress and also that the project will end right on schedule because if it did not there will be major repercussions such as there will be a direct loss of resources and operational expenses and this will require large amounts of cash inflows to be made hence adding more debts to the club. Also the reputation of the club will be at stake as customers and shareholders will lose trust on the capability of the project and this will be a huge loss to the club as the shareholders may threaten to pull out their resources. The confidence of the customers in the club will also be at stake as they also help to generate cash into the club. If recommendations are not put in place then the clubs success at completing the project will be at stake.
The color code that I will recommend is green. Green is a color that is associated with life, renewal and energy.it is usually used to represent tranquility, good luck, harmony and fertility.in this project it has been used to represent the tasks which were completed or were on their way to completion as their progress was 5% ahead of the plan.one of the reason why I chose this color is because in the tasks detailed only one was delayed in its completion. This means that the project has a high chance of reaching its completion and all that it requires is by boosting the morale of the team by radiating positivity, having a purpose and rewarding them on the good job they have done. Another way of ensuring this project is successfully completed by availing the resources required for the remaining tasks. Cash inflows which were funded by the shareholders should be availed.
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