Module 2 - Case PLANNING AND ORGANIZING

PRM490 Case 2 Your Name Trident University International PRM490 Project Management Integration Due Date PRM490 Case 2 Project Overview This project entails the provision of an office space of 2000 sq. ft built for 75000$. The office will be a private commercial workspace that is in keeping with the current trends in the community. It will conform with all legal prerequisites of commercial space while giving priority to efficiency and the preservation of the environment. To control risks arising from increased cost, procurement, and technology requirements, the project will incorporate proper planning and contingency measures to deliver the office building on time and with minimal costs. Contingencies: Changing Costs The conditions of today's economic setting include sharp and unpredictable changes in the costs of products and services caused by inflation, instability of the supply chain systems, and a labor shortage. Primary construction materials, lumber, concrete, and steel, which are integral in construction, have risen in cost within the last year by at least 10-25% due to global demand stress and other logistics challenges (Schuldt et al., 2021). Overhead costs have risen in the same regard through the pressure competition has put on getting a qualified workforce and the upward revision of minimum wages in several areas. Economic risks thus require sound contingency measures that guarantee that project objectives are met without going over budgets (Wang et al., 2024). One such application is organizing a contingency fund to equal 15 percent of the project's overall cost. This ensures that money is available to cater for costs that may flare up unexpectedly as the money status is kept central to minimize embezzlement. For instance, the fund may be helpful in cases where the price of lumber rises due to shortages in supply. In the same situation, the contingency fund helps bear the extra cost without taking cash from other important areas. Competition prices and suppliers' rates should be closely watched so that any rising costs can be spotted on time and the necessary contingency resources can be arranged. The project team will enter fixed-price deals with suppliers and subcontractors to minimize cost increases. Pricing the building components at the initiation time avoids the financial risks associated with fluctuations in the market costs. Furthermore, by applying VE practice, it is possible to minimize material costs since it will look for other ways of constructing or different materials. For example, switching from conventional to sustainable and recycled material reduces the costs without compromising the project's sustainability objectives. The other strategic component of cost management is the application of dynamic budgeting in combination with tools for predictive analytics. The relevant project team can study past cost trends and current market cost predictions and choose the best way to reflect cost changes in a project. It also helps to be more proactive in financial planning and is far less likely to experience an overrun of its budget (Adaurhere et al., 2021). Transparency with stakeholders is also important; frequent conveying of budgets keeps the stakeholders aware of the realities on the ground. When needed, the project's scope can be expanded or reduced, or only part of it can be implemented to ensure that its objectives coincide with its resources. Contingencies: Procurement Organizational supply chain issues have emerged as concerns to procurement due to supply disruption, scar...