FACULTY OF BUILT ENVIRONMENT AND SURVEYING

SGHH 4353

PROJECT MANAGEMENT

PROJECT CHARTER & BUSINESS CASE DEFINITION:

LECTURER:

AP DR. MAT NAIM BIN ABDULLAH @ ASMONI

GROUP MEMBER
NO. NAME MATRIC NO.

1. VINCENT LEOW CHEE HO A19BE0287

2. WONG KHING YIEU A19BE0295
3. LENG ZHEN YU A19BE0094
4. LIM JIAN YI A19BE0096
PROJECT INFORMATION

Project Name Aurora Skyline Project Vincent Leow

Manager Chee Ho

 16 acres
Description & Project  1) Wong Khing
 110 units 2-storey
Goals Yieu
terrace house Team Member
2) Leng Zhen Yu

3) Lim Jian Yi

 Delivering the project with the authority and responsibility

Role &
delegated by the project board.
Responsibility of
 Lead and manage the project teams to ensure run the project
Project Manager
on a day-to-day basis.
 Act as mediator between the project and the business area.
 Plan and monitor the overall progress of the project and the
use of resources, and take corrective action when necessary
to ensure that the project schedule is not delayed.

 Have broad authority over all elements of the project.

Authority of Project
 Participate in all necessary management and technical actions
Manager
required to complete the project.
 Design and make technical decisions in development.
 Control funds, formulate schedule and ensure the quality of
product.
 Maximum authority in selection of subcontractors.

PROJECT OVERVIEW
  Discover a portrait of harmony between modern architecture
Purpose of Project
and natural beauty in the carefully-planned streets and tree-
lined pathways of Taman Mutiara Maju
 Presents an excellent and enduring quality of life for
everyone.

 To improve quality of life of people who live in Johor Bahru

 Levitate the opportunity to own housing units

 To achieve the highest business performance of the project

 Drawings (APPENDIX A)
Documents
 Specifications (APPENDIX B)
Required
 Business Case Definition (ATTACHED IN THE BUSINESS
CASE DEFINITION FILE)

Expected PHASE 1 - INITIATION

Deliverables
 Business case
 Project proposal
 Tender document
 Kick-off meeting
 Project charter

PHASE 2 - PLANNING

 Project work plan

 Document with project requirements
 Communication plan
 Product prototype

PHASE 3 - EXECUTING
  Status report
 Progress report
 Engineering report
 Meeting notes

PHASE 4 - CLOSING

 Project closure spreadsheet

 Project closure notification

Estimated Budget RM 40,000,000

TENTATIVE SCHEDULE

Key Milestone Start End

Project approval 08.11.2022 20.11.2022

Project planning 20.11.2022 04.12.2022

Funding 04.12.2022 25.12.2022

Design approval 25.12.2022 25.01.2023

Vendor contracts 25.01.2023 14.02.2023

Project requirement review  14.02.2023 24.02.2023

 Completing critical tasks 24.02.2023 08.06.2023

Stakeholders feedback 08.06.2023 20.07.2023

Testing 20.07.2023 15.08.2023

Defects fixing 15.08.2023 24.10.2023

Final approval 24.10.2023 08.11.2024

APPENDIX

DRAWINGS
MASTER PLAN

OVERVIEW

FLOOR PLANS
 Ground Floor Plan

First Floor Plan

BUSINESS CASE DEFINITION
1. Current condition

The land site of propose project is located at Taman Mutiara Maju, Skudai, Johor. The
land is nearby Taman Zmrud and Taman Nora. The land is said to be agriculture land on the
land title deed. The land area of the site is 16 acres. The land is now planted with Rubber
trees and being commercial activities of selling rubber resin. This land must be used in
accordance to the category of land use and the express condition stipulated in the title. Failure
to do so is a breach of condition of the land alienated and the State Authority can forfeit the
land.

2. Desired Condition

The desired condition of the project is proposed to have new housing zones that aim
to improve the quality of life, levitate the opportunity to own housing units, and encourage
population growth within the Johor Bahru District. According to Dasar Perumahan Negara
2018-2025 (DRN), the priority of housing supply in the future is to ensure that the people can
afford to own and inhabit quality housing. To determine the provision of quality housing for
citizens, the government will formulate Quality Housing Standards (PPB) to assess the
quality of housing existing and to be built. Existing housing standards (CIS 1,2,3 and 4) will
be reviewed and various aspects related to culture, demographic patterns, climate and local
materials will be taken into account in the preparation of PPB later. For new housing, the
determination of minimum standards will be provided with more focus on quality control of
housing units to be built. Henceforth, the subject land is suggested for the construction of
residential housing schemes such as neighbourhood residential housing by the client which
matches the Local Plan.

The proposed land is segregated into two allocations which is the building area and
the open space. In this proposed development, the allocation of land for the building area is
70% and the remaining area would be reserved for the open space development. The building
area will be fully utilized to construct the double-storey terraced house while the open space
will allocate as a recreational place and other facilities. This proposed of residential housing
development will produce a total of 110 units double-storey terraced houses.
 Owing to the proposed land being classified as agricultural land for its land-use
purpose for a long time ago, it is considered to be a long-term land use. As a result, a series of
land conversion processes need to take place for the land in order to develop for other
purposes. The proposed land has to change the category of land-use into residential purpose
from agricultural purpose and the procedure of land conversion is indicated in Section 204 of
the National Land Code.

3. Project Objectives

i. To improve the quality of life of people who live in Johor Bahru

ii. Levitate the opportunity to own housing units

iii. Encourage population growth within the Johor Bahru District

iv. To fulfil the property demand and achieve the satisfaction of Johorean

v. To achieve the highest business performance of the project

vi. To drive economic growth to the Johor Bahru district

4. Economic Viability
0 1 2
Year (Pre-Construction) (During Construction) (Post-Construction)
Land Cost Building Cost

Cash Flow (14,000,000) (22,000,000) 88,000,000

Cost

Land Cost = 16 acres × 43560 × RM 20 psf = RM 13,939,200

5. Deliverables

Project phases Deliverables

Phase 1 – Initiation
Phase 2 – Planning
Phase 3 – Executing
Phase 4 - Closing
- Business case
- Project proposal
- Tender document
- Kick-off meeting
- Project charter
- Project work plan
- Document with project requirements
- Communication plan
- Product prototype
- Status report
- Progress report
- Engineering report 6.
- Meeting notes
- Project closure spreadsheet
- Project closure notification

6.Customer-driven milestones

Project approval | 08.11.2022 – 20.11.2022

Analysis of business needs
Business cases
Pre-align with stakeholders
Project approval
Signing of documents

Project planning | 20.11.2022 – 04.12.2022

Meeting with stakeholders
Construction budget approval
Coordination of construction completion dates
Risks alignment
Construction plan
Project planning
Funding | 04.12.2022 – 25.12.2022
Initial meeting
General financial plan
Financial plan for unforeseen changes
Funding

Design approval | 25.12.2022 – 25.01.2023

Pricing page design requirements
Research
Concept generation
Preliminary design
Design approval

Vendor contracts | 25.01.2023 – 14.02.2023

Initial meeting with the market analysis
Executive summary with the requirements
Sending proposal requests
Final meeting
Signing vendor contracts

Project requirement review | 14.02.2023 – 24.02.2023

Defining the team participants
Defining total duration
Budget plan
Completing critical tasks | 24.02.2023 – 08.06.2023
Core resources
Supplier contracts
Discussing a project
Building stuff plan
(shipment)
Project
Garbagerequirement
removal review
Project plan construction
Completing approval phase 1
Cleaning the territory
Completing construction phase 2
Painting the walls
Stakeholders feedback | 08.06.2023 – 20.07.2023
Initial discussion
Writing specifications
Designing
Testing
Stakeholders feedback
Implementation

Testing | 20.07.2023 – 15.08.2023

Initial documents
Construction work (phase 1)
Testing
Construction work (phase 2)
Testing

Defects fixing | 15.08.2023 – 24.10.2023

Backing grooming 1
Current tasks prioritization
Delegating tasks
Defining defects and bugs
Defects fixing
Backlog grooming 2

Final approval | 24.10.2023 – 08.11.2024

Project initiation documents
Change control (inside budget and outside budget)
Financial estimation
Final approval
7. Organizational expertise and capacity

We believe that the current organizational expertise and capacity is adequate to

complete this project according to the planned schedule. However, we also believe that the
current organizational expertise and capacity must be improved to ensure that the project is to
be completed perfectly. For example, it can be recruited more talents, employees with
relevant work experience, potential graduates, etc.

8. Assumptions

 Uncertain Economic Situation

The economic situation of a country is unpredictable. This is because the economy of
a country is closely related to the global economy. Malaysia is a country with a
relatively small market compared to other countries. Therefore, a county with a small
market also means that the economy is relatively fragile and easily affected, and it is
vulnerable to the impact of the global economy, even if it is only a slight fluctuation
in the global market. (Disputes between countries, the spread of epidemic in a
country, etc.)

 Political Instability
The political instability in a country will affect the investor confidence. The investors’
loss of confidence in the market means that they will reduce the investment in the
market which will indirectly affect the economic growth of a country. The slower
economic growth in a country means that the purchasing power in the market of the
country will also decrease.

 Climate Change
 Climate change is also one of the issues that cannot be predicted in advance and this
issue is one of the issues that faced by almost all the property developers in the
market. This is because the climate change may cause the project to be delayed and
not able to be completed within the planned deadline.

9. Constraints

 No Cooperation Between Departments

If each department is only responsible for the issues of their own department, and the
departments have not interacted, communicated, and cooperated between each other,
then the team’s flexibility to be perform the project will be very limit.

 Inflexible Work Schedule

A rigid work schedule will limit the team’s flexibility to perform the project. This is
because many uncertainties are bound to arise when undertaking a project. Therefore,
if the work schedule is inflexible or fixed and cannot be modified at the time, it will
cause the project to force to stagnation until the uncertain issues resolved.

10. Potential problems

 Budget restriction and changes

 Lack of communication
 Team conflict
 Mismatched team skills
 Absence of accountability
 Poor risk management
 Stakeholder disengagement
 Unrealistic deadlines
 Lack of trust
 Technological shortcomings
 Scheduling conflicts
 Inadequate resources
 Bad-decision making
  Ambiguous contingency plans
 Lack of transparency

11. Potential opportunities - List anything good that may occur to performing the project

 Economic Become Better

Economic become better means that the market purchasing power will also increase
and more investors invest in the market.

 New Policy Unveils by the Government

The government unveils the new policy such as reduce the tax rates will brings the
benefits of lowering the cost of carrying out the project.

12. Key stakeholders and constituencies

Project stakeholders can be classified into two types:

 Internal Stakeholders
 External Stakeholders

Internal Stakeholders

These are the people involved in a project from within. They include:

 A sponsor
 An internal customer or client (if the project started due to an internal need of the
organization)
 A project team
 A program or portfolio manager
 Management
 Another team’s manager of the company

External Stakeholders
 These stakeholders are not directly involved but are engaged form outside and are
affected by the project outcome.

 An external customer or client (if the project started due to a contract from an external
party)
 An end-user
 Subcontractors
 A supplier
 The government
 Local communities
 Media

13. Unusual Resource Requirements

● Financial Resources (Funding)

For this broad-scale construction project, the start-up costs can be absolutely high up
to hundred million which most companies cannot afford. Therefore, the start-up
capital shall be collected or obtained from financial institutions, friends and relatives,
private investors, and even the government in the form of loans.

● Human Resources (Employees)

The success of this construction project can be said that heavily reliant on the talent
and strength of the employees. It mostly relies on the professional practice of
contractors, project managers, architects, land surveyors, quantity surveyors,
engineers, internal designers, valuers, and others.

● Educational Resources (In-depth knowledge)

We as an entrepreneur shall keep ourselves knowledgeable and high-educated. We

shall have an in-depth knowledge of the fields that we proposed to go forward and to
develop. We shall understand this construction project thoroughly about its capital
costs, procedures, risks, expected future achievements, and others.

● Physical Resources (Equipment)

Every organization and company requires physical resources to survive and operate
well. A proper and tidy workplace provides a place for employees to discuss and plan
 the construction project. Working telephone lines at the workplace ensures that
employees can be contacted at any time during working hours.

● Emotional Resources (Support System)

A stressful working environment will always lead to failure outcomes. To avoid this
situation from happening, employees shall have a “support team” that can give them
inspiration and guidance as needed. This team may be composed of friends and family
as well as a mentor or professional group. Or even the company can have a regular
gathering every month to motivate and bond a strong relationship between employees.

14. Project Performance Criteria

● The construction project is completed within the expected time period

● The total costs spent on the construction project are within the expected budget.

● Properties completed without cut corners.

● Properties with high-quality interior and external design.

● Have a clean and nice environment in the surroundings.

● No land subsidence and flood problems.

● Reasonable price of the properties.

● Strong security system in this Taman Mutiara Maju area.

● This project is profitable and meets the stakeholder perception of value.