Sharon Construction Corporation
Sharon Construction Corporation is found in Gaineville. It is a private corporation. Sharon Construction Corporation does all phases that are involved in management of a house, as well as other forms of innovations. Thus, the corporation undertakes activities, such as construction and home repairs. The corporation has been awarded a contract that entails construction of a 20,000–seat stadium. The construction is scheduled to start by February 15 and be completed within a period of one year.
However, there are various challenges that the corporation is likely to face during management of their project, until the construction of the project is complete. The management of the project is likely to be issues, such as shortage of finances caused by overhead costs, weather conditions, as well as labor strikes. Therefore, the possibilities of strike, cold weather, when the concrete should be poured, may derail the entire project. In order to avoid penalties of lateness, Jim Brown, the president of Sharon construction, has come up with several measures, such as hiring a consultant to help in analyzing the entire project. Therefore, this paper entails a report on the analysis of the project, such as resources to be used, alternatives, problems that are likely to derail the project, solutions, cost and time to be spent in completing the project, as well as recommendations. Possible Problems There are various possible problems that are likely to face the process of constructing the stadium by Sharon Corporation.
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Firstly, once the project is delayed, there is a likelihood of increment of overhead cost of about $ 500 per week. This additional cost is likely to occur for the total number of weeks to be used in construction. Secondly, the cost of project’s construction is likely to increase, due to the penalty of about $ 15000 every week. This is especially, if the project takes more than 52 weeks. Thirdly, during the entire process of construction, there is a possibility of occurrence of labor strike that will increase the time to be used to complete the project.
This may take place during the month of December. The last possible problem that may interfere with completion of the project is extreme cold in December that may affect both the process of construction, as well as the laborers themselves. Major Problem The major problem that is likely to derail the entire project is the shortage of labor. This may be triggered by several factors, such as lack of proper unionizing of the required employees. Moreover, the planning of the project may be underestimated in terms of the tme in which it may be completed. This may result in withdrawal of employees.
For example, the project is scheduled to be completed by December. In case there are delays caused by several interrelated factors, the project will require more laborers, something that directly demands additional time. Moreover, increase in cost of resources, such as raw materials and labor. This directly affects the running of the entire project. The budgeted cost should meet the total cost of the whole project.
However, the budget may be adversely affected by the overhead costs, penalties among other costs that had not been previously accounted for by the management. Recommendations Some of the recommendations for the problems analyzed above include the following; firstly, in the case of extreme weather conditions, such as cold, the laborers can choose not to do anything until the December 1st. On the same, the pouring of the concrete can be postponed, as well when presence of heat is required. In case of strike, it is recommended that all the activities can be expedited, until an amicable resolution is reached and problems solved among the laborers and the staff. Other essential recommendations include expediting the process of roofing. In addition, seat gallery can be expedited.
This may target the gallery that supports and fills the field. Thus, expedition of the seat gallery is a major recommendation. Finally, workers can opt for doing nothing at all. Gantt Charts Representing Activities, Procedures of the Project The below figure shows an analysis of the project baseline and Activity 5.In case the alternative entails doing nothing, the number of weeks will increase.
Thus, the number of weeks will be (48 weeks + X weeks) In the analysis of Activity 1, the process of expedition and pouring concrete for seat gallery, and its supports will have the total cost of $ 20,000. The activity is likely to take from 12 to 6 weeks. Thus, the total time taken will be (42 weeks + X weeks) Analysis of Activity 2 As earlier stated, the expedite pouring of the concrete for the seat gallery, and its supports will cost $20,000 which will take from 12 weeks to 6 weeks. In addition, the filling of the field will cost $ 10,000 which will take about 14 to 9 weeks. Thus, the total time spent will be (42+Xweeks) The total cost of expediting roofing will be about $ 9000 which will take about 8 – 12 weeks.
TThus, the total time spent will be (48+ X weeks) Analysis of Activity 4 in case of 12 weeks strike In case of strike, the laborers are likely to do nothing until the 1st December. In case there is extreme cold; the pouring of the concrete will be postponed. Moreover, heating will be also postponed when needed. In case a strike will occur, all activities of the project will be expedited after the resolution. The weeks when the construction will be postponed, the cost will increase by $ 3,000 per week. Project duration