Assignment 01 - Project Charter

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Course: PMF110 – Introduction to Processed-Based Approach to Projects Prepared by: Marte A.

Mateo
Title: Assignment 1 – Project Charter Date: Sept. 29, 2023

Project: 2 Storey Commercial Building


01 Formal Project Authorization Document
1. Signed Contract – A contract for design and construction services. Complete with but not
limited to bill of quantities, construction drawings, and project schedule, prepared by the
contractor and signed by the client.
2. Permit – Consists of Building Permit, Electrical and Sanitary Permit approved by the local
Office of Building Official.

02 General Project Purpose


The location is at a province in the Philippines which is currently a rice field and will be transformed
into commercial area by the local government authority. A huge demand of commercial rental spaces
is to be anticipated.

03 Specific Requirements
1. 2 Storey Commercial Building
2. Occupancy Permit – includes inspections, clearances, and paperwork for approval

04 Success Criteria for Specific Requirements


1. 100% completion of the project and acceptance of the client.
2. Approval from the Office of the Building official once all the requirements are met.

05 Project Scope
1st floor – convenience store, small office with private comfort room, storage room, public comfort
room, parking space
2nd floor – 2 commercial space units. Each unit has an area of 29sqm with pantry and private comfort
room.

06 Risk Identification
1. Expected poor soil condition considering the location is currently use as a rice field.
Furthermore, the current level of the proposed location is about 2 meters lower than the
existing road.
2. The proposed location is situated at the side of the hi-way, it may cause traffic congestion due
to heavy equipment and material deliveries that will go in and out of the vicinity during
construction.

07 Risk Response
1. Do a soil condition test, consider the result of the test when designing the foundation. Backfill
material is to be approved by the designer and the client.
2. Have the contractor provide a logistics plan and possible road diversion subjected to
authority’s approval.

08 Milestone Schedule
 Project Start: June 01 2022 - Day 01 will be topographic survey of the location, determining
the boundaries and establishing building positions and other necessary ancillaries.
 Project End: January 15 2023 - Completion and hand-over of the project to client’s
acceptance.

09 Preliminary Cost
Optimistic - $130,000, assuming no changes to approved designs, no delays due to natural disaster,
and the construction will go smoothly to client’s preference.
Course: PMF110 – Introduction to Processed-Based Approach to Projects Prepared by: Marte A. Mateo
Title: Assignment 1 – Project Charter Date: Sept. 29, 2023

Pessimistic - $315,000, considering changes on the design due to actual site condition, change in
client’s preference, project delays and several cost implications due to unforeseen circumstances.

10 Estimated Resource Commitments


The total estimated project cost will be $185,000.
 80% cash = $148,000 (tangible costs such as salaries, materials, logistics, construction and
design services, professional fees, etc.)
 20% sweat equity= $37,000 (intangible costs like hard work, maximum effort, teamwork,
sense of urgency and responsibility, etc.)

11 Key Stakeholder List


Contractor - Consists of Project Manager, Site Engineers, Architect and Relevant Authorities.

12 Project Approval Requirements


Client – The owner of the proposed building.

13 Project Exit Criteria


Project Close - 100% completion and client’s acceptance.
Project Cancel - unreasonable project delay, non-compliance to the design.

14 Project Manager
Project Manager will be present at the very beginning during project planning and submitting the
project proposal to the client.
He will have full authority to hire or fire the personnel on the project team.
All project expenses, methodologies, procedures, and all other project related matters will be
subjected to his approval.

15 Charter and/or Commencement Communication


Kick-Off Meeting and confirmation email of Contract Award and project commencement.

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