Problems of Woody 2000 Project

The Woody 2000 Project enumerated in the case study had a lot of deficiencies which
made the project not a successful one. The major issue is the fact that Project
Management methodology was not in any way followed and so from inception, the
project was bound to fail hence, throughout the project lifecycle it was from one problem
to another. A Project Manager would have initiated the project properly and that would
have eliminated most the problems that were to come up later in the project.
The project from inception had no plan only long (management) meetings were held
and decisions reached to embark on the project hoping to be able to be part of the
commercial boom in the area the Woody’s is sited.
However, going through the case study, the things that went wrong with the project are
enormous and could be seen as one reads through the document. Interestingly enough,
these are avoidable issues listed below are some of the deficiencies of the Woody 2000
project:-

 Initial appointment of a project manager was not well conceived in that VP

Finance and Administration (Moneysworth) had no project management ideas.
 The project lacked the presence of PM methodology and as such the contractor
(EID) to handle the project was handpicked without any criteria. It is not enough
that the contractor has been delivering projects in town. He did follow due
process in his procurement activities (engagement of)
 Proper estimates were not worked out for the projects; instead a Cash flow
process was engaged. There was no basis for it.
 There was the inclusion of so many uncertainties in plan by EID which were
never discussed with the client.
 Adoption of hourly rate contract without spelling out how this was to be
monitored.
 A later appointment of Leadbetter another in experienced project manager was
another wrong effort in the wrong direction
 In the asking of Woody’s management to take over procurement of production
train directly amounted to a change in scope without an analysis to consider how
it will affect the project.
 Another change in scope by Miles Faster (in the increase of production train) was
another blunder that should have been avoided. In fact this action alone lead to a
lot of losses in terms of time, and resources.
 The change in the production train above had a ripple effect leading to:
- A re-writing of the software programme so many times
- In ability to deliver project as at when due
- A shorter length of production line constructed
- Increase in production trains leads to increase in building length by 5ft
(rendering building designs obsolete) and foundation already cast
-
 Design documents (drawings, specifications, bill of quantities etc.) were not
reviewed/approved by Woody’s management
 There was the issue of Faster & Leadbetter going on leave without a properly
handing over or delegating someone to act in their place. This action had its own
negative effect on the project:
0
 - The keeping away of the design documents by junior clerk who
obviously did not know the importance of the documents
 Non discussion of the specifications for the installations at the dust free paint
shop
 There was the issue of strained relations on site due to poor management by an
inexperienced officer
 Waste disposal management plan for paint was not put in place
 There was Project over run of over 6 months due to forgoing above
 There was no close out plan in place – acceptance, inspection, testing etc
 Poor management led to a two week delay in utility installation
 With loss of power and other utility on site there was several weeks of production
loss with its cumulative effect:
- Customer delivery dates missed
- Cancellation of contracts and orders for millwork
- Depletion of the store of finished goods
- Loss of sales opportunities

 Loss of funds due to direct charges to Woody’s account

 Project over run budget exhausted at 85% completion
 Money had to be borrowed at 2-1/2%
 There was no communication management plan in place
 There were also no documentation done in the company

Having taken note of the above problems, on the project, I have come up with a “Project
Management Plan” as a way to run this project from inception such that the kind of
problems as enumerated above associated with the Woody 2000 will be avoided and
the project delivered within the time frame, scope and resources.

1
Table of Contents
1.0 Introduction ................................................................................................... 4
1.1 Project Indetification........................................................................................ 4
1.2 Document Purpose ......................................................................................... 5
2.0 Project Overview ........................................................................................... 6
2.1 Background ..................................................................................................... 6
2.2 Project Objective ............................................................................................. 6
2.3 Project Scope ................................................................................................. 6
2.3.1 Design ............................................................................................................. 6
2.3.2 General / Preliminary Works ........................................................................... 6
2.3.3 Substructure Works ........................................................................................ 6
2.3.4 Superstructure Works ..................................................................................... 7
2.3.5 External Works................................................................................................ 7
2.4 Project Scope Exclusion ................................................................................. 7
2.5 Project Deliverable ......................................................................................... 7
2.6 Project Success Criteria .................................................................................. 8
2.7 Project Constraint ........................................................................................... 8
2.8 Project Completion.......................................................................................... 8
3.0 Approach .............................................................................................................. 9
3.1 Project Work Method ............................................................................................. 9
3.1.1 Design Works.................................................................................................. 9
3.1.2 General/ Preliminary Works ............................................................................ 9
4.0 Assumptions ..................................................................................................... 11
5.0 Project Management Plan ................................................................................. 12
5.1 Project Schedule ................................................................................................. 12
5.1.1 Work Breakdown Structure of Key Activities and Tasks ............................... 12
5.1.2 Gantt Chart .................................................................................................. 13
5.1.3 Critical Path .................................................................................................. 14
5.1.4 Schedule of Milestones .................................................................................... 14
5.2 Cost Management ............................................................................................... 16
5.2.1 Milestone Payment Arrangement ..................................................................... 16
5.2.2 Cost Estimate ................................................................................................... 17
5.3 Project Team ....................................................................................................... 17
5.3.1 Roles and Responsibilities ............................................................................ 18
5.4 Communication Management.............................................................................. 20
5.4.1 Stakeholder Analysis .................................................................................... 20
5.4.2 Communication Plan ..................................................................................... 24
5.5 Risk and Issue Management ............................................................................... 24
Risk No 1 ................................................................................................................. 25
Risk No 2 ................................................................................................................. 25
Risk No 3 ................................................................................................................. 26
Risk No 4 ................................................................................................................. 26
Risk No 5 ................................................................................................................. 26
5.6 Change Control Management ............................................................................. 27
5.7 Project Quality Management ............................................................................... 28
5.8 HSE Management ............................................................................................... 29
5.8.1 HSE Standard ............................................................................................... 30

2
 5.9 Escalation Procedures........................................................................................ 32
6.0 Document Sign Off ............................................................................................ 33
7.0 Conclusion and Reccomendation .................................................................... 36

References ................................................................................................................... 36

3
1.0 Introduction
1.1 Project Identification

Project Name Project Number Project Type

Woody 2000 Project. CWC/002/1000 Building
Project Location Planned Start Date Planned Finish Date
South-Western B C. 20 March 2012 20 September 2013
Project Sponsor Project Manager
Ron Carpenter
Miles Faster
(Chairman CEO)
Contractor Project
Supervising
Consultant

4
1.2 Document Purpose
The purpose of this document is to define the management approach to be used
by the Project team to deliver the intended project scope during the
implementation phase of Woody 2000 Project at South-Western BC

The Project Implementation Plan serves as a guide to the project team

throughout the duration of the project. It contains a snapshot of the project, and
refers to other documentation in use for the project. It outlines the project’s
objectives, parties involved in the project planning and execution, the overall
timeframe for the project as well as the delivery strategy for the project.

This implementation plan is a living document and must be updated when

substantive changes are made to the scope of the project.

5
2.0 Project Overview
2.1 Background
In line with its management decision to increase her production capacity, and
then position herself well enough to be part of the construction boom in South
western BC, a project code named “Woody 2000” is set up by The Custom
Woodworking Company. The company has been on its facility in BC since its
establishment in 1954 and has been doing well in the delivery of its goods and
services to its clients. However, with an increase in its client base and the
subsequent additions to its original works of custom built furniture and a brighter
future in the furniture business, the company has decided on an expansion
programme. The said expansion programme - The Woody 2000 project will see
to the increase in the floor area by an additional 25% floor space, construction of
a dust free paint and finishing shop complete with additional compressor,
installation of a new air conditioning system, and installation of an automated
production line.
A budget of $17 million has graciously been approved for all the works to be
executed in this project.

2.2 Project Objective

The objectives of this project are:

a. To construct additional building
b. To install a new air conditioning system.
c. To construct a dust free paint and finishing shop complete with additional
compressor capacity
d. To develop and install a computerized production train.

2.3 Project Scope

The scope of work to achieve the objectives as stated above includes:-
a. Design Studies leading to production of Preliminary & Final Design
documents.
b. Construction of Substructure elements
c. Construction of superstructure elements
d. External Works

The scope of work for the Woody 2000 Project shall be subdivided into the
following work packages:

i. Design
ii. General/Preliminary Works
iii. Substructure
iv. Superstructure
v. External Works

2.3.1 Design
o Design work for the additional building

6
 o Design of the new air conditioning system
o Design for the computerization of production train,
o Design of the mechanical aspect.

2.3.2 General / Preliminary Works

o Provision of living accommodation for Supervising Consultant
o Procurement & mobilization of project vehicle
o Procurement of other Site Equipment

2.3.3 Substructure Works

o Excavation and Earthworks
o Casting of plain in-situ concrete
o De-watering (if necessary)
o Casting of vibrated reinforced in-situ concrete
o Formwork construction
o Construction of flower pot

2.3.4 Superstructure Works

o Construction of frames (columns and beams)
o Upper floor slabs and staircases
o Roof
o Walls
o Doors
o Windows
o Finishings
o Fixed Fittings & Furnishing
o Decorations
o Services.

2.3.5 External Works

o Grassing and Planting
o Drainage Construction
o Septic Tanks and Soakaway
o Walkways and Sideways
o Treatment Plant
o External Electrification and Fire Fighting System

2.4 Project Scope Exclusions

The scope of this project is as defined above and should be managed as such
throughout the duration of the project. Any change in scope should be requested
and approved according to the change control process

2.5 Project Deliverables

A Building of floor size …..

Installed air conditioning system

7
 A dust free paint and finishing shop complete with compressor
A computerized production train

2.6 Project Success Criteria

The success criteria for this project are:-

o The project must be executed within schedule 18 months (72 weeks)
o It must be executed within budget ($17m)
o It must be executed in compliance with design specifications
o The project must also be executed in compliance with HSE and
Project Management Plan

2.7 Project Constraints

o Response time to technical and commercial issues.
o Community interference

2.8 Project Completion

This project is scheduled to be completed in September 2013

8
3.0 Approach

This section summarizes the overall project implementation approach as proposed

by the contractor in executing the project.

3.1 Project Work Method

3.1.1 Design Works

Design works shall be carried out in two stages in accordance with the
guidelines issued as attached to the letter of commission.
Stage I Preliminary Design Stage which shall be reviewed after submission with
all the alternative options as submitted reviewed with the client and thereafter
approval will be given for the consultant to proceed to the Final Design Stage in
accordance with the guideline already issued to the Consultant.

3.1.2 General/ Preliminary Works

3.1.2.1 Office Accommodation for Project Team

An office shall be provided within the existing office facility and shall have
installed air conditioners and power outlet for PC. A generator or solar panel
shall be provided to supply electricity to the office in case of power failure. Other
office furniture like chairs and tables shall be provided. Work elements under the
following work units are as follows:

3.1.2.2 Site preparation works/ project sign boards

Work elements under the following work units are as follows:
i. Land Marks for equipment parking lots
ii. Demarcations
iii. Clearing
iv. Signalling/Safety warning
v. Security Posts

Adequate arrangement shall be made for safety signals and muster points
during this process for adequate emergency evacuation in the event of crisis.

3.1.2.3 Substructure work

Work elements under this comprise:
i Excavation and Earthworks
ii Casting of plain in-situ concrete
iii De-watering (if necessary)
iv Casting of vibrated reinforced in-situ concrete
v Formwork construction
vi Construction of flower pot

9
 3.1.2.4 Superstructure Works
Work elements under this unit comprise:
- Construction of frames (columns and beams)
 Construction of upper floor slabs and staircases
 Construction of roof members and covering including roof beams and
gutter slab, and barrel vault slab.
 Erection of block walls including construction of lintels
 Installation of doors and windows
 Finishes on
- Walls
- Floors
- Sofit of upper floor slabs
 Installation of suspended ceiling
 Fixed fitting and furnishing
 Decorations
 Services
- Rain water installations
- Sanitary installations
- Cold water installations
- Fire fighting installations
- Ventilations installations
- Cable and conduits
Power Installation
- Final circuit
- Lighting Installations
- Earthing and Lightning Protection Installations
- Installation of production machine

3.1.2.4 External Works

Work elements under this unit comprise
 Grassing and Planting
 Construction of drainage
 Construction of septic tanks and soakaway pits
 Construction of walkways and sideways
 Borehole and water supply
 Water treatment plant
 External Electrification

10
4.0 Assumptions

 Community issues will be settled.

 Force majeure situations will be addressed.

11
5.0 Project Management Plan

5.1 Project Schedule

Schedule Management involves defining, managing and maintaining the project

schedule and understanding and reporting the actual Project progress against
planned project progress. It consists of performing standardized reviews and
analysis of project work plans, major milestones and major deliverables.

5.1.1 Work Breakdown Structure of Key Activities and Tasks

The work packages (WP) and work units (WU) for the project are shown
below

WP/ Duration Human Equipment

Description
WU (Weeks) Resource Schedule
Schedule
1 Design Works
1.1 Design of additional building 11
Design of new air-conditioning
1.2 11
system
Design of Computerisation of
1.3 11
Production train
1.4 Mechanical Designs 11
2 General/Preliminary Works
Provision of office
2.1 accommodation for Project 2
Team
2.2 Site Preparations 3
Procurement & mobilization of
2.3 8
project
Procurement of other Site
2.4 8
Equipment
3.0 Substructure
3.1 Excavation and Earthworks 6
3.2 Casting of plain in-situ concrete 6
Casting of vibrated reinforced in-
3.3 7
situ concrete
3.4 Formwork construction 7
4 Superstructure Works
Formwork for first floor
4.1 7
beams/slab
Reinforcement for first floor
4.2 4
beams/slab
Formwork to column
4.5 4
reinforcement and casting
4.6 "Fixing of pvc pipes, casting of 4
12
 first floor beams/slab
4.7 Block works 7
4.8 Mechanical and Electrical works 7

Iron work/extension columns to

4.9 6
roof level
4.10 Formwork to columns/Leveling 2
4.11 Casting of columns to roof level 2
4.12 Doors and windows 4

4.13 Formwork for roof beams 2

4.14 Reinforcement for roof beams 2

4.15 Casting of roof beams 2

4.16 Construction of roof members 2

4.17 Roof covering 3
4.18 Ceiling 3
4.19 Finishes 3
4.20 Fixed Fittings and furnishing 2
4.21 Decorations 2
5 External Works
Grassing and Planting
5.1 3
(Landscaping)
Drainage, septic tank and
5.2 3
soakaway pits
5.3 Borehole and water supply 2
6 Closure
6.1 Snagging 1
6.2 Cleaning and Demobilization 1

5.1.2 Gantt Chart (See Attachment “Woody 2000 Project”)

5.1.3 Critical Path

This is the longest path through the project, and shows the sequence of
activities that determines the duration of the project. (Wysocki 2009 p.
172) The critical activities for this project are as follow:

Duration
WP/WU Description
(Weeks)
1.0 Design Works
1.1 Design of additional building 11
1.2 Design of new air-conditioning system 11
1.3 Design of Computerisation of Production train 11
1.4 Mechanical Designs 11
13
 WP: 2.00 General / Preliminary
Provision of office accommodation for Project
2.1 2
Team
2.2 Site Preparations 3
2.3 Procurement & mobilization of project 8
WP: 2.00 Substructure Works
WU3.1 Excavation and Earthworks 6
3.3 Casting of plain in-situ concrete 7
3.4 Formwork construction 7
WP: 4.0 Superstructure Works
WU4.7 Block works 6
4.9 Iron work/extension columns to roof level 2
4.12 Doors and Windows 4
4.13 Formwork for roof beams 2
4.14 Reinforcement for roof beams 2
4.15 Casting of roof beams 2
4.16 Construction of roof members 2
4.17 Roof covering 4
4.19 Finishes 3
4.20 Fixed Fittings and furnishing 2
4.21 Decorations 2
Closure
6.1 Snagging 1
6.2 Cleaning and Demobilization 1

5.1.4 Schedule of Milestones

The milestone payment shall be based on the achievement of physical structures

on site. Physical structures mean structures that cannot be easily removed.

Milestones / Milestone 1 Milestone 2 Milestone 3 Milestone 4 Milestone 5

Date 20 April 2012 4 June 2012 13 September 2012 3 January. 2014 14 March 2014

Activities Preliminary Final Design Mobilization up to site Cumulative Cumulative

Design Works Works preparations permanent work permanent work
$1,800,000.00 $2,200,000.00 $2,320,000 on site up to on site up to
$2,940,000.00 $3,700,000.00

Milestone Submission of Submission of Substructure 100% Finishes,

components. Prelim Design Final Design Site Preparations Works and External
Documents Documents Works.

Milestones / Milestone 6 Milestone 7 Milestone 8

Date 9 May 2014 25 July 2014 30 September 2014

Activities Cumulative Cumulative Cumulative permanent

permanent permanent work on site up to
work on site work on site up $3,540,000.00
up to to

14
 $1,358,000.00 $2,200,000.00
Milestone Works up to Completion of
components. roof covering construction All final works
works

15
5.2 Cost Management

Cost management is considered essential for the smooth running of the project.
It is largely the Project Manager’s responsibility to ensure that the project does
not suffer the negative effect of cost overruns. This can be done by controlling
the cost of work packages using the baseline estimates.

On the part of the client, it is equally relevant to ensure that all contractual
obligations as regards milestone payments and schedule of payments are met.
For adequate control, all milestone payments should be preceded by
establishing that work done is in agreement with the agreed baselines.

5.2.1 Milestone Payment Arrangement

5.2.1.1 First Milestone Payment

The first milestone payment will come up after a minimum of 45% of the Design
works has been completed and this will lead to a total of $1,800,000.00

5.2.1.2 Second Milestone Payment

With the final completion of the Design Stage, the balance cost of Design will be
released to the Consultant as interim Payment Certificate No 2 and it will be for
$2,200,000.00

5.2.1.3 Third Milestone Payment

Third milestone interim certificate will be as be raised. Based on projection, this

period is fixed at 13 September 2012 when it is expected that this would be
achieved
$2,320,000.00

5.2.1.4 Fourth Milestone Payment

Based on projection, this period is fixed at 3 January 2013 when it is expected

additional permanent works would have been delivered.

Hence a certificate of payment for the sum of $2,940,000 is raised

5.2.1.5 Fifth Milestone Payment

Based on projection, this period is fixed at 14 March, 2013 when additional

permanent works would have delivered
A certificate of $3,700,000.00 work on the project will have been delivered.

16
 5.2.1.6 Sixth Milestone Payment

 Based on projection, this period is fixed at 9 May, 2013 when additional

permanent works would have delivered
 A certificate of $1,358,000.00 work on the project will have been delivered.

5.2.1.7 Seventh Payment

Based on projection, this period is fixed at 25 July, 2013 when additional

permanent works would have delivered
A certificate of $2,200,000.00 work on the project will have been delivered.

5.2.1.8 Milestone Eight Payment

Based on projection, this period is fixed at 30 September, 2013 when additional

permanent works would have delivered
A certificate of $3,540,000.00 work on the project will have been delivered.

5.2.2 Cost Estimate

The Cost Estimate for this project will be broken down into the following work
packages:

1. Design Works
2. General / Preliminary Works
3. Substructure Works
4. Superstructure Works
5. External Works

5.3 Project Team

S/N Role Position Name Participation

1 Project Sponsor Chief Executive Ron Carpenter Part Time

Officer
2 Project Manager VP Production Miles Faster Part Time
3 Project Quantity VP Finance & Spencer Part Time
Surveyor Admin Moneysworth
3 Project Supervising Algoba Alufoje & Full Time
Consultant Consultant Partners
4 Project Contractor Roccani Ventures Ltd Full Time
Contractor
5 Community and Team Member Nil
Rural
Development
17
 Representative
6 Project Engineer Team Member Engr. Agi, Isemele Part Time
7 Project Engineer Team Member Engr. Olovie Emem Part Time

.
Ron Carpenter

(Sponsor)

Emelia Carpenter
President

Miles Faster

(Project Manager)

Spencer
. Hope Anama Algoba Alofoje
Engr. Agi, Osimele
Moneysworth Adukeh
& Partners
Olovie Charles (Architect)
(Site Engineer) (Civil Engineer)
(Quantity Surveyor) )

Contractor

5.3.1 Roles and Responsibilities

5.3.1.1 Project Sponsor (Part Time)

 Sets out strategic direction for the execution of the project

 Review project financial information
 Review project resourcing status
 Review escalated change requests
 Approve Emergency Change Requests
 Secure additional project funding as needed

18
  Ensure stakeholders’ expectations are being managed and
achieved
 Resolve conflicts that extend beyond the project manager’s
control
 Constitute (or appoints a representative in the) change control
board
 Provide formal acceptance of the project deliverables

5.3.1.2 Project Manager (Part Time)

 Coordinate the Project planning activities (preparation of

Execution Plan)
 Review all project reports for management’s attention
 Take decisions on projects based on management’s approval
 Give high level direction to the project team
 Ensure deliverables are produced and approved on time
 Ensure project is delivered with quality
 Ensure project is delivered within allotted time and budget
 Supervise and monitor the Consultant
 Coordination of the efforts of the project team
 Participate in Management reviews
 Preparation of periodic reports to Woody’s Management
 Ensure that all project management framework components are
tracked.
 Represent team at the periodic project peer review meeting

5.3.1.3 Project Supervising Consultant

 Ensure that the construction activities meet specifications

 Monitor Project activities to ensure the project schedule, cost
and quality are met
 Prepare the agenda, notice of meeting (if required) and minutes
of all Project Progress Meetings.
 Enforce project document control measures on all project
documentation such as drawings (design and as-built),
specifications, procedure etc.
 Contributes to HSE reviews
 Prepare a monthly progress reports to Woody’s Management

5.3.1.4 Project Contractor

 Execute the project according to design specifications, agreed

work plan and work method
 Prepare weekly site reports
 Participate in community relations activities

19
5.4 Communication Management

Meetings shall be held between the various stakeholders as necessary. All

communication from the Contractor to the Project Manager shall be routed
through the Supervising Consultant except when the purpose of communication
is related to a conflict between the Contractor and the Consultant.

Channel of communication shall include:

i. Meetings - Face to Face or Telephone Calls
ii. Reports / Minutes of Meetings delivered in hard copy or soft copy (Email)

5.4.1 Stakeholder Analysis

The Stakeholders for the project are:

i. Chairman & CEO, Woody Ron Carpenter – The Project Sponsor.

ii. President Emilia Carpenter
iii. Functional Heads - (Exe VP , VP Production, VP Fin & Admin, VP
Personnel, VP Sales)
iv. Director John Carpenter
v. Project Management Team Members –
vi. BC Community – Host Community.

Other key players in the communication chain include:

i. Supervising Consultant
ii. Contractor

5.4.1.1 Project Sponsor – Chairman & CEO

S/N Needs/Requirements Frequency Channel of Remarks

delivery
1. Monthly Monthly Hand Delivery / This is
Performance/Progress Email mandatory and
Report also
informational
2. Project Manager’s Monthly Hand Delivery / This is
Report Email mandatory and
also
informational
3 Risk / Issue As Needed Hand Delivery / This report is on
Communication Email / Verbal as needed basis
Discussion

20
5.4.1.1 Functional Heads

S/N Needs/Requirements Frequency Channel of Remarks

delivery
1. Monthly Monthly Hand Delivery / This is
Performance/Progress Email mandatory and
Report also informational
2 Risk / Issue As Needed Hand Delivery / This report is on
Communication Email / Verbal as needed basis
Discussion

5.4.1.2 Project Manager

S/N Needs/Requirements Frequency Channel of Remarks

delivery
1. Monthly Monthly Hand Delivery / This is
Performance/Progress Email mandatory and
Report also
informational
2. Project Manager’s Monthly Hand Delivery / This is
Report Email mandatory and
also
informational
3 Project Management Monthly Minutes of This is
Team Meeting Meeting by mandatory and
Hand Delivery / also
Email informational
4 Risk / Issue As Needed Hand Delivery / This report is on
Communication Email / Verbal as needed basis
Discussion
5 Weekly Site Meeting Weekly Minutes of This is
Meeting by informational
Hand Delivery /
Email

5.4.1.3 Project Team Members

S/N Needs/Requirements Frequency Channel of Remarks

delivery
1 Risk / Issue As Needed Hand Delivery / This report is on
Communication Email / Verbal as needed basis
Discussion
2 Project Management Monthly Minutes of This is
Team Meeting Meeting by mandatory and
21
 Hand Delivery / also
Email informational
3 Risk / Issue As Needed Hand Delivery / This report is on
Communication Email / Verbal as needed basis
Discussion

5.4.1.4 BC Community

S/N Needs/Requirements Frequency Channel of Remarks

delivery
1 Community Meeting At the start of Verbal The meeting is
project, Discussion, mandatory to
Quarterly Minutes of establish
Meeting relationship and
Distributed agreements with
the host
community

22
5.4.2 Communication Plan (See attachment)

23
5.5 Risk and Issue Management

Risk could be defined as the exposure to loss, gain, or the probability of

occurrence of loss/gain multiplied by its respective magnitude. Jaafari A., (2001,
p. 89)
Risk Identification:
A number of possible risks could be associated with this building project. They
could be classified under the following: Technical, Operational, Quality, HSE
(Health Security & Environment), Financial, Community Related, Project
Management or Organizational. A few of these risks shall be highlighted here.
NDDC PIP (2009. P 30)

Key to Risk Analysis

 Risk Description– describes/elaborates on the risk

 Risk Classification – This classifies the risks under different categories i.e.
technical, operational, quality, HSE, financial, community related, project
management or organizational

 Severity of Impact - This is an estimate of the overall scale of the impact

following an occurrence of each risk. This is rated on the following scale:

5 Critical impact – threatens success of the overall project

4 High impact – significant disruption to overall project schedule,
cost, and products over the medium and long terms
3 Medium impact – progress disrupted with large extensions to
schedule and cost, across short and medium terms
2 Moderate impact – progress disrupted with manageable extensions
to short-term schedule and cost
1 Marginal impact – slight exposure

 Probability of Occurrence - This is an assessment of the probability of an

occurrence of the risk, given the responses identified, and the other factors or
risks on which it is dependent. This is rated on the following scale:

5 Extremely likely occurrence

4 Very probable occurrence
3 Probable occurrence
2 Unlikely occurrence
1 Highly improbable occurrence

 Risk Exposure (Rank) – Exposure or Rank is determined by multiplying the impact

with the probability of occurrence. The higher the resulting number, the greater the
risk is.
 Low (1 – 4)
 Medium (5-10)
24
  High (> 10)
5.5.1 Risk Mitigation
 This is a risk response planning technique associated with threats that seeks
to reduce the probability of occurrence or impact of a risk to below an
acceptable threshold. PMBOK (2008 p. 447)

Risk Mitigation – Enter the mitigation activities/strategy that can be

accomplished to reduce the probability or impact of the risk.

 Contingency plan – In the event that the risk could not be avoided what
should be done to remedy the situation if it occurs?

 Risk owner – Person who is responsible for the mitigation and tracking of the risk
Risk No 1

Risk Late Purchase and delivery of material resources

Description
Risk Operational
Classification
Risk Severity of impact Probability of Risk exposure/priority
Assessment occurrence
5 4 High

Risk 1. Purchase material resources from local sources

Mitigation 2. Purchase material resources in bulk
3. Payment of Contractors as at when due
4. Secure long term steady supplier relationship and develop strategic
partnership with key supplier.
5. Establish direct business relationship with key suppliers obtaining
steady-going supply
Contingency
plan
Risk Owner Contractor, Project Manager

Risk No 2
Risk Adverse weather
Description
Risk Environmental
Classification

Risk Severity of impact Probability of Risk

Assessment occurrence exposure/priority
2 2 Low

Risk 1. We shall make provision for adverse weather condition

Mitigation 2. Proper planning of schedule to ensure that materials needed are on site
at the appropriate time

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 Contingency1. Advice the Contractor to carry out other activities when there is an
plan adverse weather condition

Risk Owner Project Manager, Contractor,

Risk No 3
Risk Theft of construction materials on site
Description
Risk Operational
Classification
Risk Severity of impact Probability of Risk exposure/priority
Assessment occurrence
2 4 Medium

Risk 1. Once the site is handed over to the Contractor, he becomes completely
Mitigation responsible for the security of all construction materials on site. The
Contractor should therefore be advised to provide adequate security for
both human and material resources
2. Employ security to guard plants and equipment
Contingency1. Employ security men to guard project site
plan 2. Ask Contractor to replace stolen material

Risk Owner Contractor, Consultant

No 4:

Risk Description Delays as a result of injuries

Risk QA/QC and HSE
Classification
Risk Severity of impact Probability of Risk exposure/priority
Assessment occurrence
4 3 High

Risk Mitigation 1. Pre-mobilization inspection/ audit of Contractor equipment

2. Ensure conduction of daily on-site safety meetings before
commencement of construction activities.
3. Provision of well-stocked First Aid Kit at the project site
4. Reach an agreement with nearby hospitals on how injured construction
workers will be treated
5. Inform Woody’s Management as soon as there is any injured person on
site
6. Ensure that equipment for site test are available and that a dedicated
lab is available for all tests
Contingency 1. Provide first aid to the injured worker and take him/her to the hospital
plan 2. Get a new staff to replace the injured person

Risk Owner QHSE Rep, Consultant

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 No 5:

Risk Description Reliability and Logistics

Risk Operational
Classification
Risk Severity of impact Probability of Risk exposure/priority
Assessment occurrence
1 3 Low

Risk Mitigation 1. Logistic rationalization to reduce transportation cost

2. Well organized production and order planning via key commodity
coordinator
3. Establish long-term relationship with high quality suppliers
Contingency
plan
Risk Owner Contractor

5.6 Change Control Management

The change control system is designed to allow the project the flexibility to
incorporate agreed changes to the project scope while retaining control over
costs and time frames

All changes that have the potential to impact the project end-date, scope and
budget will be reviewed against other project priorities / deliverables to identify
potential trade-offs. The objective of this review is to protect the project
baselines.

Change Control Procedures are the mechanism whereby any prospective

change in any baseline document (Project Management Plan, system
specifications, baseline project schedules (Gantt charts) or process) is passed
through a formal assessment and authorization process.

The change control process to be adopted on this project is depicted below:

27
 Identify change Submit change Review submitted Change request
need request form change request form necessary?
(Contractor ) (Consultant ) (Project Manager ) ( Project Manager )

Yes

Perform impact
analysis (cost, CR approved for Review change Perform initial
schedule , resources , Yes investigation ? request assessment
milestones) ( Project Manager )

No
Review detailed
change request
(Change Control Notify Consultant /
Board ) Contractor that CR was
not approved No
(Project Manager )

CR approved for
addition to project No
scope ?
(CCB)

Yes

Develop revised
Advise all impacted parties of
design and revised
revised scope
(Project Manager )

5.7 Project Quality Management

When
will this
Quality Activities to meet Quality Responsible
S/N expectati
Parameters parameters Party/Person
on be
met?
1 Schedule All deliverables should be Contractor /
produced in line with the agreed Consultant /
project schedule. Project
Manager
2 Budget Contractor should produce all Contractor /
their deliverables within the Consultant /
budget restraints Project
Manager
3 Scope Contractor should adhere to the Consultant /
defined scope for the project. Project
Where changes to scope are Manager
proposed, all such scope changes
need to be formally approved
through the Change Management
process. These changes should
be evaluated in the context of
these priorities and with an
emphasis on meeting
28
 stakeholders’ expectations.
4 Quality The quality of all deliverables Project
must be planned for and Manager /
managed to ensure quality as Consultant
envisaged by stakeholders.
Process check shall be carried Consultant
out to ensure that the procedure
for performing each activity is
followed
Random tests such as crushing Contractor
test and compaction test shall be
carried out by the Contactor for
the concrete, and other
construction items according to
the consultant’s specifications and
instructions
5 Proactive All impacts on the local Woody’s
engagemen community should be discussed Management
t with the and agreed with them in advance.
local
community
6 HSE Project team should ensure all Contractor
compliance pre-defined HSE standards and
regulations are adhered to at all
times and with the involvement of
the Contractor’s safety officer.

5.8 HSE Management

The Health, Safety and Environmental (HSE) Management shall be the

responsibility of the Contractor. HSE will therefore be managed according
to Health, Safety and Environmental Management Plan submitted by the
Contractor as approved by Woody’s through the Consultant.

Contractor’s activities will therefore be organized, planned and executed in

such a manner as to:
 Protect and promote the health of its work force as well as the
conduct of its activities in such a manner not to adversely affect any
third party (Host Community inclusive)
 Avoid injury to any worker(s), sub-contractors, and third parties who
are involved in the project
 Ensure the personal security of the work force and third parties and
the security of property
 Minimize the impact on the environment in which the Contractor
operates
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 5.8.1 HSE Standard

S/N HSE Standard Activities to meet Standard Responsible

Party/Person
 Pre-mobilization meeting between QHSE and Project Team /
1 Zero fatality Contractor. All equipment to be deployed for thisConsultant
project shall be assembled at Contractor’s yard
or other locations for inspection and
certification, before being mobilized to the
project site.
 Provision of personal protective equipment to all Contractor
site personnel QHSE
 Portable fire extinguishers and foam trailers
should be positioned at the site’s major
installations.
 Ensure all site personnel know the safety
precautions required for the job. If knowledge is
not present, training should be provided.
 All personnel to be engaged for this Contract
shall be medically fit
 Provisions where necessary should be made for
temporary demarcation, temporary road closure,
additional lighting, scaffolding and work
platform.
 Provision for first aid treatment on site.
 Provision for emergency breathing apparatus
where necessary.
 Maintaining a clean working environment.
 Site components, particularly the suspended
ones should be adequately maintained.
 Pasting on the walls, standard operating
procedures for equipment and machines.
 Conduct gas tests at regular and pre-defined
intervals
 All flushing discharge during construction should Contractor
2 Zero be channeled to the septic tank/Soak away pit.
discharge/Pollution  All fuels/lubricants used on site should be
prevention and properly stored to prevent any spill.
control

30
S/N HSE Standard Activities to meet Standard Responsible
Party/Person
 Maintain a good housekeeping standard. Contractor
3 Injury/incident Free  Conduct pre job safety meetings.
Operation  Pasting on the walls, standard operating
procedures for equipment and machines.
 Portable fire extinguishers should be positioned
at the site’s major installations.
 Site personnel on duty must put on safety
wears. Personnel (Woody’s or external) must
wear safety gear in areas where these safety
standards must be observed.
 Ensure all site personnel know the safety
precautions required for the job. If knowledge is
not present, training should be provided.
 Are there any special precautions that need to
be taken?
 Provisions where necessary should be made for
temporary demarcation, temporary road closure,
additional lighting, scaffolding and work
platform.
 Provision of first aid treatment on site.
 Provision for emergency breathing apparatus
where necessary.
 Maintaining a clean working environment.
 Site components, particularly the suspended
ones should be adequately maintained.
 Pasting on the walls, standard operating
procedures for equipment and machines.
 Conduct gas tests at regular and pre-defined
intervals.
 There shall be no night driving of vehicle, except
on emergency cases.
 Contractor Site Manager must approve night
driving on emergency cases
 Proper and effective measures must be put in Contractor
4 Waste Management place for the discharge of our waste.

 Hot work, excavation, entry, electrical work and Contractor

5 QHSE Safe work general permits should be issued before any
practices and operations by are carried out.
procedure, (OE)
 Ensure periodic inspection of site equipments. Consultant
6 Zero lost
opportunity time
(LOT)
 After all works, site shall be thoroughly cleaned Contractor.
7 Site Clean up and and all areas directly or indirectly affected by the
Demobilization work activities shall be restored to its original
state prior to demobilization of all resources
from site.
31
5.9 Escalation Procedures

Action points not progressed by the agreed completion date and which have a time
or cost impact on the project, will automatically be escalated through the project
hierarchy. Where issues remain unresolved within the project structure, the Project
Manager will escalate the issue to the Project Sponsor as appropriate.

The escalation process is described below:

32
 Issue
Issue Management
Management Roles
Process

Identify Issue
1.0 Raise Issue
Issue Submit Issue Form Originator

Review Issue
2.0 Log Issue Project
Manager
Is Issue
applicable to
No the project?
Yes

Update Issue Log & Assign

Priority

3.0 Assign Review Issue Log Project

Issue Actions Review Group

Close issue & update Has issue

log been resolved?
Yes
No

Issue
Change Does issue require
Request Yes a change?
No

Identify
Project Does issue raise
Risk Yes a risk? No

Issue actions assigned

4.0 Implement Issue actions completed Project Team

Issue Actions

Issue Management Log

33
6.0 Document Sign Off

The above document has been reviewed and accepted as the formal Project
Management Plan for Woody 2000 Project.

……………......…...... ……………......…......
Ron Carpenter Miles Faster
Project Sponsor Project Manager
Woodys Woody’s

….../….../….. ….../….../…..

……………......…...... ……………......…......
Duru Okey Mr. Eruohi Samuel
Project Supervising Consultant Contractor

….../….../….. ….../….../…..

34
7.0 Conclusion & Recommendation
It is hoped and believed that following these processes as outline above this project will
be well managed.
It is recommended that at the end of the project, there should be a project
implementation audit to verify, and confirm that all the project deliverables were
achieved and the lessons learnt from the project documented so as to help in the
management of future projects in Woody’s

References
1. Crowe, A (2011) The PMP Exam – How To Pass On Your First Try
2. Mantel, S. J Jr and Meredith (2009) Project Management A Managerial Approach
7th Edition; John Wiley & Sons, Inc
3. NDDC Project Implementation Plan (PIP) 2009 for the Construction of 515 Man
Hostel at University of Port Harcourt
4. PMI (2008) A guide to the project management body of knowledge (PMBOK
Guide) – Fourth Edition
5. The NDDC HSE Manual
6. Wysocki, R. K. (2009) Effective Project Management Traditional, Agile, Extreme.
5th Edition; Wiley Publishing Inc
7. Week 4 & 6 Submissions by me Eigbe, Albert

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