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LIBERTY_BUSI_680_SHORELINE_STADIUM_CASE

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Shoreline Stadium Case Study The G&E Company is initializing the bidding process to build the new 47,000 Shoreline baseball stadium that is estimated to open prior to the start of the 2020 baseball ... season. This project entails a strict construction deadline as construction must start on July 3, 2017, and must be completed by April 3, 2020. Any delay in the construction process will accrue a $250,000 per day penalty past the April 3, 2020 deadline. The president of the G&E Company, Percival Young, articulated his excitement by estimating a $3 million profit for the company and prospects of future luxury stadium projects if the bid and construction process is successful. The following will provide a thorough analysis of potential project risks along with an overall project recommendation. Potential Risks The top-down estimate that was assessed by the president of the company portrayed an optimistic approach to this stadium project. Top-down estimates are designed in the initial development of a complete plan and even though these estimates may be significantly off, the overall goal of these estimates is to provide a rough cut to warrant more formal planning . The detailed activity results and critical path of the project were thoroughly analyzed and recorded in the Gantt chart (appendix 1) to breakdown the activity and to give an estimated timeframe of the project. The risk response matrix (appendix 2) helped identify 3 possible risks then analyzed each individual risk along with the contingency plan in place as the risks emerge. The first risk is the scheduling risk and it is estimated that the timeframe to complete this stadium project is 945 work days. The deadline without penalty allows for only 720 days and, therefore, due to the time constraints in order to mitigate this risk there would need to be a significant amount of scheduling time reduced. The second risk remains within the scheduling risk as weather conditions. It is impossible to foresee weather complications over this extended period of time on an outside construction project and there would need to be an additional amount of grace days to overcome any weather-related risks, with would also increase the total construction project days. The third risk involved in this project is the budget risk. Projects of long duration need some contingency for price changes and over extended periods of time inflation may increase the overall costs of a project . It is critical to verify these scheduling and budget risks and address them to the president of the company. Without any adjustments to these risks, the Shoreline stadium project will be doomed. [Show More]

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