th

PROJECT CHARTER & PROJECT PLAN on the desalination   
        DISTRIBUTION SYSTEM 


Course: group project - project management framework –repc 103
LECTURER: Mr. Marlon Walcott
Students: Wayne Collymore-Taylor, Felicia Husband, Akilah Young & Mark ROLLOCK-JONES
Date:2016/06/30
Table of Contents
1.    EXECUTIVE    1
2.    PROJECT CHARTER    1
a.    Project Background    1
      i.    Assumption    2
b.    Project Objectives…………………………………………………………………………………………………….3
c.    Project Stakeholders………………………………………………………………………………………………..5
d.    Success Criteria………………………………………………………………………………………………………..6
3.    Project Plan…………………………………………………………………………………………………………………………….6
a.    Change Management Plan……………………………………………………………………………………….6
b.    Project Schedule………………………………………………………………………………………………………7
i.    WBS…………………………………………………………………………………………………….8
ii.    Project Network Diagram……………………………………………………………………9
c.    Stakeholder Management Plan……………………………………………………………………………..11
d.    Cost Management………………………………………………………………………………………………….12
i.    Cost Baseline………………………………………………………………………………………14
ii.    Cost Variance……………………………………………………………………………………..15
e.    Communication Management Plan……………………………………………………………………….15
f.    Risk Management………………………………………………………………………………………………….16
i.    Risk Register……………………………………………………………………………………….17
ii.    Risk Management……………………………………………………………………………….19
4.    CONCLUSION………………………………………………………………………………………………………………………..19
a.    Primary investor accept proposal………………………………………………………………………….19
b.    Motivation for the decision……………………………………………………………………………………19
c.    Would another investor make a similar Decision……………………………………………………20
5.    REFERENCES………………………………………………………………………………………………………………………….21

 

6.    APPENDICES………………………………………………………………………………………………………………………….20

List of Tables and Figures………………………………………………………………………………………………………….20
Table 1- Project Stakeholders.......……………………………………………………………………………….5
Table 2- Phase 1 Activity & schedule...…………………………………………………………………………..7
Table  3-Phase 2-Activity & Schedule……………………………………………………………………………..8
Figure 1- Work Breakdown Structure…………………………………………………………………………….9
Figure 2- Network Diagram…………………………………………………………………………………………..10
Table 4– Phase 1 Predecessors and Duration……………………………………………………………….10
Table 5- Predecessors and Duration……………………………………………………………………………..11
Table 6-Phase 1 Baseline Budget Cost………………………………………………………………………….13
Table 7- Phase 2 Baseline Budget Cost…………………………………………………………………………14
Table 8- Risk Register…………………………………………………………………………………………………..17
Table 9- Risk Register Con’t…………………………………………………………………………………………18
Table 10-Excel Spreadsheet Data Phase 1……………………………………………………………………22
Figure 3-Risk Register………………………………………………………………………………………………….22
Table 11- Excel Spreadsheet Data Phase 2…………………………………………………………………..24
Table 12- Wage Agreement…………………………………………………………………………………………25

 

 

 

 
1.    EXECUTIVE SUMMARY

Prior to the use of desalination technologies in Barbados, water sources were limited largely to treatment and distribution of surface water, spring water, and ground water from aquifers, boreholes and wells. However, after 28 years of establishing a desalination plant in Barbados the benefits were accomplished by mixing desalination water  with an under groundwater supply which more or less boost the pressure and volume of water reaching the customers . However, a dilemma crept in where the island was experiencing drought spells for the past three years. That is a lack of enough rainfall to recharge the aquifers. As a result the buhbados Investment Company came to an agreement with the BWA to draft a Project Charter and Project Plan with the objective of putting into use a standby well at the existing desalination plant at Brighton. This standby well had the necessary infrastructure in place and it was only a matter of starting the new pump to pump water to the reservoir. The first Phase of the project was to connect the 16” main to the reservoir at Brighton and from there the water will be pumped to the Applewaithes Pumping Station; the second phase was to lay a 16” main between Golden Ridge Pumping Station and Castle Grant reservoir. Immediately after the PPP (Private Public Partnership) Agreement the BIC (Barbados Investment Co.) hired on a consultancy basis a team of Project Managers and professionals to ensure the Charter was initiated, inclusive of the Project Plan. It was confirmed that a business case had already been sign off and it was left to the Project Charter and Project plan combined in one document to be issued and review by the accountant. The sponsors are the Buhbados Investment Co who will provide the money for this project. The costs related to this proposal will be estimated using various techniques selected by the Project Managers.

2.  PROJECT CHARTER
    a. Project Background
Project name is DESALINATION DISTRIBUTION SYSTEM. This project requirement involve a reliable output well of 0.5 IMGD (Imperial million gallons per day) ready to put in use when the sixteen (16”) inch main from Brighton to Applewhaites is finally laid and connected to a source of desalinated water supply. The second sixteen (16”) inch main is proposed to run from Golden Ridge to Castle Grant reservoir to complete the Desalination Distribution System. The Buhbados Investment Corporation is a private equity firm which functions by investing in a diverse portfolios of investment. One of these investment is the construction of a reverse Osmosis Desalination Plant at Brighton in St Michael since 1988. The Bubados  Investment Corporation  build, own and operate the plant in agreement with the Barbados Water Authority since the aforementioned date. However, with the recent low pressure of water mainly in the St Joseph and St John area due somewhat to climate change and to worn main that burst frequently, the firm has proposed to curb this deficiency by taking $10m of its capital and investing it in the installation of a two sixteen (16”) main which would take additional water from the Desalination plant at Brighton .This first phase of laying the 16” main would link up with the booster pump at Applewhaites Pumping Station. From here the Booster pumps will pump the desalination water to the Golden Ridge Pumping Station. At the Golden Ridge facility the desalination water will mixed with the Golden Ridge P.S. water supply to boost the water flow. This translate into increase flow to the Castle Grant reservoir in cattle wash, St. Joseph. Even if low pressure develops and the pumps at Golden ridge had to be stopped to prevent salt intrusion, the new desalination distribution system will augment that supply. In accomplishing this 16’ installation the standby well will be put into action at the desalination plant. The pump from the well will then pump the water through a reverse osmosis system. After the Reverse Osmosis process is completed the desalinated residue will be channeled to the booster pumps at Applewaithes Pumping Station in St Thomas. This about two miles from the Brighton Desalination Plant. 
The Business case, after already initiated and authorized has given rise to this Charter and Project plan Document. The Business case document already issued presented the justification for investment in the Desalination Distribution System. The Project team would have previously sought the advice of the accountants to review the Business case.

1.    Assumption    

The Business case has been sign off already. it was established that when the Project is finished  in August 2017 that the Buhbados  would be in charge of the newly installed Desalination Distribution system, managing its operations up to five years. During this period the Buhbados co will be generating revenue from the sale of this water to the Barbados water Authority. The business case document that was signed off by the Project Manager would have shown positive Net present value on the cash flow generated from the sale of water. This positive NPV would have given the go ahead to continue the project. Therefore the BIC’s consultancy team would then ensure that the project meets its timeline and within budget of 10m based on a discount rate of 11%. Furthermore a contingency provision between 5 to 9% of the actual cost of the project was considered but only could be determined when the actual project starts and progress on the activity was discussed and circulated among shareholders. This contingency plan was considered to cover any unexpected cost during the course of the project schedule.  The Project Team will utilize established project management standards and practices, promoted by the Project Management Institute (PMI), to assist in the successful completion of the project. (Project Management Body of Knowledge,     PMBOX; 4th Edition)

    b. Project Objectives
The Objectives of the project Desalination Distribution System is to put in to use a standby 80 ft. well to pump brackish water. This has low salt content which deemed it a low cost exercise. An additional objective was to install a Transmission main sixteen inch (16”) in diameter, which will be laid from  Brighton Desalination plant, via Warrens, Bibby Lane, Exchange until it reaches the booster pumps at Applewhaites Pumping Station. Here the desalination water will combined with the water supply pumped from the underground aquifer at Applewhaites. This marriage of groundwater and desalinated water will eventually be pumped to the Golden Ridge Pumping station. At the Golden ridge Pumping Station a second marriage with groundwater would ensure that this desalinated and potable water combination reaches the reservoir at Castle grant by means of Booster pumps. The Castle Grant Reservoir will be augmented with an additional water supply of 750,000 gal/day by complements of the Project Desalination Distribution system. This added supply will seek to curb some of the low pressure as a result of lack of insufficient rainfall during the dry seasons between February to May. Rainfall as we know is critical to the recharging of the aquifers. This project has a 18 month deadline and an investment of $10,000,000m; plus a contingency Budget to mitigate against risk during the course of the actual work performed.
The remaining objectives are:
•    To Ensure the desalinated quality meets the necessary water quality requirements
•    To effect minimal impact to the environment
•    Produce desalinated water with a reliable output of 750,000 gal/day
•    To meet the ISO 9001 quality standards.

In essence, the objective can be further realized if the scope of the project is communicated to all stakeholders. Defining what is needed is the first step toward establishing a project timeline, setting of project goals and allocating project resources. These steps will help to define the work that needs to be done - or in other words, define the scope of the project. Once this is defined, Project Manager will be able to allocate tasks and give his team the direction they needed to deliver the project on time and on budget. The actual work started on January 4 th, however, it ran into some over cost and in order to get the project to finish on schedule the project team had to approach the Buhbados Investment co. for the contingency savings that was originally negotiated to be drawn on only if it was to cover the additional cost of underestimated and omitted project cost. This contingency cost budget is factored into the summary task of the Microsoft project schedule. (Check the Ms. Project spreadsheet attached digitally) 

Desal Construction Ltd a subsidiary of Buhbados Investment Co. Was sub-contracted to prepare the site (removing trees, unnecessary boulders, shrubs, debris, etc.), excavate and backfill the mains in the first Phase; while the other contractors, Infra Red concentrated on the second Phase. The BWA is responsible for installing the main and providing signs for traffic diversions.
    

 


    c. Project Stakeholder
Table 1
Stakeholders    Roles and Responsibilities
Primary 1     
Project Manager (Wainanns Project Team)    The Project Manager is responsible for delivering the project, with authority and responsibility from the Project Board to run the project on a day-to-day basis.  Delivers the task (activity) with an acceptable level of quality, on budget and on time. Responsible for providing status report to the project sponsor periodically and escalating issues to the project sponsor and program manager as needed.
Contractors: Desal Construction Ltd
Contractors: Infra red incorporated    Responsible for preparing site(clearing of shrubs, tree, boulders, etc.) excavation, and backfilling
Barbados Water Authority    Responsible for placing signs and Cans in road to highlight traffic constrain. Also, BWA Responsible for laying mains  pressure testing, inspection and Chlorination
Primary - Buhbados Investment Co    Provide the funds for the project including funds for supply of pipes, fittings and other appurtenances. Sets the strategic goals and objectives.
Ministry of Transport & Works    MTW would communicate to public through website, public notices on radio to inform other stake holders on traffic diversion
Secondary    Ministry of Agriculture, Food, Fisheries and Water Resource Management assist in making press conference about the project
Consumers    Must be aware of signs and diversion of traffic
Telephone Company    Path of telephone cables be identified by paint so BWA excavation will not intercept cables
Electric company    Path of electrical cables close to excavation must be identified by paint so as to avoid contact with cables
            
            Success Criteria

•    All stakeholders were given the Barbados Water Authority specification manual as guidelines to follow to make the desalination Distribution Project successful

•    The prospect of providing Desalinated  water to the communities that were severely impacted during the drought season in St Joseph and St John would have been a plus in itself

•    Pressure and flow test were carried out  at the stand by desalinated water pump to ensure that the criteria was met when the actual connection to the system would have been initiated immediately after the finish date of the baseline project date of 7th July 2017 and water was flowing through the mains.


5. PROJECT PLAN 
a. Change Management Plan 
The Change Management Plan establishes how changes will be proposed, accepted, monitored, and controlled. The change control procedures identified in the Change Management Plan will govern changes to the baseline project scope including changes to the work breakdown structure and requirements from project inception through to completion.  In addition, the change control procedures will govern changes to the baseline schedule and cost.  The cost baseline is a figure accepted by the sponsors which serves as the cost expected throughout the life of the project. Example the cost baseline for the Desalination Distribution System Project( check Microsoft Project) showed a cost of $ 10,000000 for the proposed laying of 6.5 km (4 miles) of PVC Pipeline from Brighton Plant to Applewhaites,’ P.S and secondly the laying of 5.8 (3.6 miles) km of PVC Pipeline from Golden ridge P.S to Castle Grant Reservoir.
This combines the direct, indirect, variable, fixed and contingency costs. During the execution of the project the funds being spend should closely monitored and bench marked against the baseline. 


b. Project Schedule
There are two Phases in the Desalination Distribution Project. For instance, Phase I comprises of Laying 6.5 km of 16” PVC Pipeline from The Brighton Desalination Plant to Applewaithes  Pumping Station. Phase 2 comprises of laying 5.8 km of 16” PVC Pipeline from Golden Ridge Pumping Station to Castle Grant Reservoir. There are nine activities that relates to Phase 1 and Phase 2 of the project. These activities are described in Table 1 and Table 2 below. Table 1 and 2 also shows the milestones (start and finish), the deliverables and time lines
Major Deliverables/Milestones for crew laying main from Brighton to Applewaithes P.S
The 80 ft. well is on standby so that when the project finish it’s only a matter of starting the pump when connection is made to the Brighton pump and the distribution system. The tables below shows the Baseline activities and milestone of both Phase1 and Phase2 of the Desalination Distribution Project.
Table 2.Phase 1
          Activity
            Milestone

    Duration    Start    Finish
Phase 1 - Desalination Distribution System    0 days    Jan 4 ‘016    Jan 15 ‘016
Preparation and clearing of sites Plant    31 days    Jan 16, ‘016
    June 14, ‘016
Excavation of 1600 km tract from Paradise Rd to Applewaithes Pumping Station    86 days
    June 15, 016    Oct. 12, 2016
Inspection of Depth(5’-0”) & Width( 4’-0”) of Excavation    43 days    Oct 15 2016    Sep 26, ‘016
Quarter inch to Dust Material Bedding    31 days    Sep 27, 016    Dec 27, 016
Installation of 1600 km of PVC 16” Pipeline    65 days    Dec 28, 016    28 Dec 2016
Inspection, installation of Thrust Block    43 days    Dec 29, 2016    Feb 24, 017
Inspection & Pressure Testing 16” PVC Pipeline    31 days    Feb 27, 017     April 10, 017
Quarter inch to Dust Material & compacting of 2 Down up to top of Trench    43 days    April 11, 017     June 8, 2017
Inspection, Flushing, Chlorination-Water Quality Technician    43
 days    Jun 12, 2017    Aug 9, 2017
Phase 1 Tasks Completed    0 days    Aug 9, 2017    Aug 9, 2017

Major Deliverables/Milestones for crew laying main from Golden Ridge P.S to Golden Ridge Reservoir
Table 3. Phase 2
          Activity
            Milestone

        Start    Finish
Phase 2- Desalination Distribution System    0 days    Jan 12, 2016    Jan 12, 2016
Preparation and clearing of sites    28 days     Jan 12, 2016
    Feb 18, 2016
Excavation of 1500 km tract from Golden Ridge P.S to Castle Grant Reservoir    80
    Feb 19    June 8, 2016
Inspection of Depth(5’-0”) & Width( 4’-0”) of Excavation    40 days    June 9, 2016    Aug 3, 2016
Quarter inch to Dust Material Bedding    28 days    Aug 4, 2016    Sep 12, 2016
Installation of 1500 km of PVC 16” Pipeline    40 days    Sep 13, 2016    Dec 5, 2016
Inspection, installation of Thrust Block     60 days    Dec6, 2016    Feb 6, 2017
Inspection & Pressure Testing 16” PVC Pipeline    28    Feb 7, 2017    Mar 16, 2017
Quarter inch to Dust Material & compacting of 2 Down up to top of Trench    40 days    Mar 20, 2017    May 12, 2017
Inspection, Flushing, Chlorination-Water Quality Technician    40    May 15, 2017    July 7, 2017
Phase 2 Tasks Completed    0 days    July 7-2017    July 7, 2017    


i  WBS 

A Work Breakdown structures shows how the project has been broken down into activities and work packages. It is a hierarchical representation of the project scope. There are six levels. Each level is numbered 
Example:  1. – Desalination Distribution Project –Top Level
 1.1 Phase 1 – Site Preparation – Second level
   1.1.1 Excavation of 6.8 km Tract- Third Level, etc. as shown below in Table 4

Figure 1- Work Breakdown Structure

i.    Project Network Diagram 
In the context of project planning, a network diagram is a sequence of steps (activities), commonly represented by blocks, that are linked together in the logical sequence they need to be carried out. Producing a network diagram follows the completion of your project Work Breakdown Structure. The network diagram is shown in the Ms. Project. Below is a schematic sketch of the Desalination Network Diagram. You can follow the larger version in the Ms project where you can clearly read the text.
Figure 2 Network Diagram


Table 4. Predecessors and duration (based on actual start & Finish Dates)-Phase 1
ACTIVITY    DEPENDENCY    DURATION
Site 1 Prep                               A    2    101
  Excavation of PVC-Tract       B    3    87
Inspect. Depth .With Tract       C    2,3    47
Quarter Inch  to dust                 D    6    43
Installation of  PVC Main         E    5    37
Inspec.&Thrust Bloc                 F    7    92
Inspection & pressure              G    5,4,6,7    34
Quarter Inch &2Down             H    8,9    42
Flushing .Chlorination              I    10    43

 

        Table 5 Predecessors and duration - Phase2
ACTIVITY –PHASE 2    DEPENDENCY    DURATION
Site 1 Prep                            A1    2    35
  Excavation of PVC-            B1    13    135
Inspect. Depth. Width tract      C1    2,13    124
Quarter Inch  to dust              D1    14    32
Installation  of PVC main       E1    16    65
Inspec.&Thrust Bloc              F1    17    50
Inspect. & pressure  Test        G1    15,14,16,17    20
Quarter Inch &2Down          H1    18    301
Flushing .Chlorination          I1    20,9    50


The critical path which has the longest duration is highlighted in red nodes in the Project Network Diagram above.
 c. Stakeholder Management Plan  
The stakeholder management plan is a component of the project management plan and identifies the management strategies required to effectively engage stakeholders. The level of details can vary based on the needs of the project. The example below showed the signatures of the stakeholders signing off on the Desalination Distribution project stakeholders Management plan,
STAKEHOLDER MANAGEMENT PLAN
Version <Type Version #>

My signature indicates approval of this Stakeholder Management Plan.
    
    Approved by:    

Buhbados Investment Co
    Approved by:    

Project Sponsor
    Prepared by:    


The sample document above includes the processes required to identify the people, groups and organizations that could affect or be affected by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate strategies and tactics for effectively engaging stakeholders in a manner appropriate to the stakeholders’ interest and involvement in the project. The Stakeholder Management Plan helps ensure that stakeholders are effectively involved in project decisions and execution (PMBOK 5th Edition) throughout the lifecycle of the project, to gain support for the project and anticipate resistance, conflict, or competing objectives among the project’s stakeholders. Furthermore, in this document The Stakeholder Management Plan includes several sections: Identify Stakeholders – identify by name and title the people, groups, and organizations that have significant influence on project direction and its success or who are significantly impacted by the project.Plan Stakeholder Management – identify the strategies and mechanisms that will be used to achieve the greatest support of stakeholders and minimize resistance. Manage Stakeholder Engagement – outlines the processes and steps that will be undertaken to carry out the planned strategies. Control Stakeholder Engagement – describes the methods that will be used to monitor stakeholder engagement and alert the project team if problems are surfacing

d. Cost Management Plan
Cost management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget. The Tool Ms. Project use to track actual cost of the project against baseline cost is shown in the Appendix on page 18 which calculated the actual cost to be higher than the baseline cost. As result the scope was revised and the project manager had to go back to the sponsors to get additional funding. This was in the form of a contingency cost that Buhbados had proposed and would only release if the project run into risk, like delays due to weather and some cost overrun. That contingency was calculated as an additional 9 % on the actual cost which eventually was $10,990.725. Check Cost Management Summary Task in the Ms. Project Tool that the sponsors had invested in the project. This translate to an actual cost of $990,735.75
This contingency fund had to be authorized so during the course of the project the stakeholders of the project met at a special meeting .At this meeting the sponsors and the project manager sign off on the document by placing their signatures to the official document.  The meeting also review the recommended formal cost control and risk assessment to be applied to the remaining activities of the project and cost contingency measures to address this issue.

The Table 4 shows the Phase1 projected Baseline cost of the Project Budget to lay the first 16” PVC main from the existing desalinated plant to Applewaithes Pumping Station. Each of these Task require Excavators (for digging), Labour, Materials and other auxiliary Equipment. 

Salaries.  It must be noted that  the Barbados water authority workers, example Engineers, Main Laying Foreman, Engineering Assistants, labours, etc. were paid from the usual BWA monthly salaries and was not part of the Project estimate. However, a business alliance between the BWA and Buhbados Investment Co resulted in the BWA Paying the Administrative and overhead cost of the Project.

Table 6 –Baseline Budget Cost ($ 5M)
Activity/Task    Cost
Phase 1Desalination Distribution Project    $4800 
Phase 1 Site preparation from Brighton to Applewaithes    $939852
Excavation of 1600 km of  tract from Brighton to Applewaites P.S    $1268252
Inspection of  Depth (5’-0”) & width (4’-0”) of Excavation    $6000
Quarter inch to Dust material Bedding    $23140
Installation of 1600 KM OF 16” PVC Pipeline    $1929852
Inspection & Installation of Thrust Blocks    $382652
Inspection & Pressure Testing    $8000
Quarter Inch to dust Material & 2 Down    $439852
Inspection, Flushing & Chlorination    $20400
TOTAL    $5018000

The table 5 shows the Phase2Baseline projected cost
of the project to lay the second 16"PVC main from Golden Ridge Pumping Station to Castle Grant


Table 8 Baseline Budget Cost Phase 2-Budget ($ 5M)
Category    Cost
Phase 2Desalination Distribution Project     
Phase 2 Site preparation from Golden Ridge to Castle Grant Res.    $936850
Excavation of 5.4 km tract from to Golden Ridge Pumping Station to Castle Grant    $1265250
Inspection of Depth (5'-0") & Width(4'-0") Excavation    $3000
Quarter Inch to Dust Material Bedding Compacted    $21140
Installation of 1500 km of PVC 16” Pipeline    $1936852
Inspection and Installation of Thrust Blocks    $370653
Inspection & Pressure Testing    $5000
 Quarter Inch to Dust Material & 2 Down Compacted    $436852
Inspection,  Flushing & Chlorinating    $17400
TOTAL    $4982000

i. Cost Baseline 
The cost baseline is that part of that part of the project baseline that handles the amount of money the project is predicted to cost and on the other side when that money will be spent.  It is an approved budget usually in a time distribution format to estimate, monitor and control the overall cost performance of the project. The cost baseline. The baseline cost for the project is $10,000, 00    

 

ii. Cost Variance Response  
Cost variance analysis is a control system that is designed to detect and correct     variances from expected levels. It is comprised of the following steps:
Calculate the difference between an incurred cost and an expected cost
•    Investigate the reasons for the difference
•    Report this information to management
•    Take corrective action to bring the incurred cost into closer alignment with the expected cost.
Cost variance is the difference between a cost's actual amount and its budgeted or total cost. For example Baseline cost of the Desalination Distribution project is $10,000.00, the actual cost incurred is $10,990,706.83. By subtracting the baseline cost from the actual cost ($10,990,706.83 -$10,000,000) gives a  variance of $990,706.83. Since the actual cost amount is more than the baseline cost, the cost variance is unfavourable (Check the summary Task Desalination Distribution System for confirmation.

e. Communication Management Plan (5 pts) 
A communication plan that will guide the messages to a project’s affected stakeholders is a critical part of any project. How well you communicate throughout the life cycle of your project can make the difference between success and failure. During the planning phase of your project, you need to create a high level Communication Management Plan that defines the general communication requirements for your project. This plan should include:
•    The plan’s purpose and approach
•    Communication goals and objectives
•    Communication roles
•    Communication tools and methods, and
•    High level project communication messages. It’s also helpful to include any specific    requirements or standards that govern your project, if applicable.

 

f. Risk Management Plan
A risk management plan is a document that a project manager prepares to foresee risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix. A risk is "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives." It is a management tool commonly used within project management. It is a means of recording identified risks
•    The severity and impacts of risks
•    Mitigation activity
•    cause of the risk
•    Probability of the risk
•    Proposed response.

i. Risk Register 
A Risk Register, also referred to as a Risk Log, is a master document which is created during the early stages of your project. It is a tool that plays an important part in your Risk Management Plan, helping you to track issues and address problems as they arise.
The Risk assessment list matrix table given in Table 8 and 9 is a representation of the table in the excel spread sheet attached. However the columns have been separated so it can fit on this page. The risk description and the risk impact list the topics that are considered to have the most influence on project risks. In Table 7 below the risk ranking guidelines are qualitative statements assigned to low, medium and high risk categories. The risk assessment data sheet in the Excel software I have submitted for exam purpose mirrors the information in both Table 8 and 9 These tables are to be used in conjunction with the excels spread sheet for cross references.
Generally, when a crew from the Barbados Water Authority go out in the field to make connections to mains 79% of the time the valve, hydrants and meters will leak. This may due to shortage of packing materials, gasket, and seals. As a result the crew (labourers) may use unconventional means. The standard specification guideline document must be adhere to if quality and efficiency in installing mains must be adhered. This can be a serious risk to this project and all contractors may not do things in an ethical manner. Furthermore, this project had incurred increased cost based on the calculation in the Ms. Project of the actual cost against the baseline cost. This Risk Register seeks to magnify the information from the JPEG Version found on page 23 Figure 3 of the Appendices.
Table 8 Risk Register
    Project Charter & Project plan on the desalination distribution system    Impact
        
Risk ID    Risk(description)    
    Inability to spend within required timescale    
    Changes to scope work    Agreed strategies and plans require review and amendment. Cost and time implication
    Surrounding community-dust, noise and water shortage, lack of barrier around the sight    Stoppages to construction due to complaints/ delay cost
    Valves, hydrants, meters can leak because of faulty installation    Can increase cost of the project
    Improper anchorage of mains    Pressure can blow joints
    users operations disrupted by construction work-pedestrians, residents, traffic and parking,
    Delays to the excavation process
    Re-ordering of large material    Delays to residents
    Failure to meet stakeholders requirements at handover    Can increase cost of the project
Cost. Management
    inaccurate cost plan estimates    Can increase delays in the installation, excavation and backfilling of tract
    Poor management of utilities performance on-site    
quality failure
    Poor quality workmanship    
    Site security-vandalism to site materials    
health and safety performance
    Accidents and injury to site personnel causes delay or claims    
        
Adverse weather    Accidents and injury to general public either pedestrian or through road traffic accidents    

 

Table 9 Risk Register Con’td
Mitigation measures    ownership    Adjusted probability    Adjusted severity
Working to get realistic timescales for   installation, excavation and backfilling within the overall project            high
Change control procedure enforced  to provide auditable process            medium
Management issue of  main contractor’s site logistics            medium
            medium
            high
Established strategy for pedestrian, users and traffic movements            low
Design work for most  long term initiated to mitigate any adverse effects on program            medium
            High
To have regular dialogues between cost managers and the remaining team to confirm any initial assumption            High

            medium
Selection of contractors will review quality and workmanship control. Full time supervisions on the establish site safety procedures    Contractor
        medium
    contractor        low
Establishing site safety procedures    contractor        medium
    contractor        medium
Take necessary precaution to            medium
            
            
            
            

 

 

ii.    Risk Management

Risk management can be assessed in five steps. There are:
Step 1: Identify the Risk. You and your team uncover, recognize and describe risks that might affect your project or its outcomes. There are a number of techniques you can use to find project risks. During this step you start to prepare your Project Risk Register.
Step 2: Analyze the risk. Once risks are identified you determine the likelihood and consequence of each risk. You develop an understanding of the nature of the risk and its potential to affect project goals and objectives. This information is also input to your Project Risk Register.
Step 3: Evaluate or Rank the Risk. You evaluate or rank the risk by determining the risk magnitude, which is the combination of likelihood and consequence. You make decisions about whether the risk is acceptable or whether it is serious enough to warrant treatment. These risk rankings are also added to your Project Risk Register.
Step 4: Treat the Risk. This is also referred to as Risk Response Planning. During this step you assess your highest ranked risks and set out a plan to treat or modify these risks to achieve acceptable risk levels. How can you minimize the probability of the negative risks as well as enhancing the opportunities? You create risk mitigation strategies, preventive plans and contingency plans in this step. And you add the risk treatment measures for the highest ranking or most serious risks to your Project Risk Register.
Step 5: Monitor and Review the risk. This is the step where you take your Project Risk Register and use it to monitor, track and review risks.

 6. CONCLUSION  
a. Will the primary investor accept proposal? 
 In the project charter section of this comprehensive document the sponsor or the primary investor is aware of the revenue that can be generated from his investment of $10,000,000 over a four year period. So as a result of the positive net value calculated by his accountant due to the sale of water when the project is completed. In essence this will persuade him in accepting the proposal
b. What would be his motivations for his decision? 
Since the primary investor, Buhbados Investment Co has experience in the desalination industry before, that is investing his money in the construction of a desalination plant at Brighton during the year 2000, and he is motivated to continue this trend. He had originally sold water to the BWA through a private public partnership agreement before with that entity. He is well aware of the success story in generating income through the sale of water to the BWA. The agreement would incorporate how many years the sponsor’s company will run operation of the desalination plant and when the time has reached to hand over the responsibility of running the desalination plant to the BWA; inevitably the sponsor would comply. In 2016 the sponsor is faced with another Desalination project this one is called the Desalination Distribution system Project
d.    Would another investor make a similar decision?
Another investor if he has the money to invest and he is robust and aggressive like the sponsor mentioned above he will take that risk.

Finally, just as the contingency budget document had to be sign off by sponsor and Project manager to finish the project, the project closure signaled the end of the Project and that too had to be sign off by the main stakeholders. This also provides a facility for feedback from the customer. Where there is no such direct line, surveys and questionnaires can be used to gather feedback customers/stakeholders. This may be planned as part of Communication and/or Stakeholder management.

 

 

 

 

 

 

7.0 REFERENCE
1. Kerzner, R. Harold (2003).   Project Management: A system approach to  
    Planning Scheduling and controlling, 11th  Edition USA: Wiley

2. A guide to the Project Management Body of Knowledge (PMBOK Guide; 
5th  Edition

3. Meredith, R. Jack  et al.    Project Management : A Management Approach 7th  Edition

 

 

 

 

 

APPENDICES
Table - Phase 10 Estimte A Excel tool used by BWA TO Track cost of labour, Equipmet & Material-check excel attachment for more details. The distance of  main is 6.5 Km (3020 ft)


Risk Register
Figure 3

 

 

 

 

 

 

 

 

Table 10 Phase 2- Estimate – Distance of main 5.8 Km (17686 ft.)

 

 

 

 

Table 12 Wage Agreement
Desalination Distribution Project Private Public Partnership Agreement    
6.    Project Management Administrative Services    $    116,718.80
7. Overheads- PHASE I Main Laying    $918,681.23
7.    Overhead cost –PHASE 2 – Main Laying    539,660.45
Total Project Costs     $9,605,925.78
    

Note: 10% incidentals, 10 % surcharge and VAT was charge on the total of the two excel sheet ($4,593,406.14 and ($2,698,302.23). These totals can be found in the attached Excel Program. These were also paid by the BWA. As a result of this arrangement the first five years of handing over the project to the BWA will get an incentive by way of a discount. This discount would last for three years. Thereafter the BWA will pay in the full cost of the sale of water for the next 10 years. After that that the contract comes to an end where the BWA take full responsibility for the water.

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