Project Management

Fixer Upper
Renovation of a Single family home
Spartan Women Warriors

March 18-
May 26
2013
Kedara Gouri AvulaSuparna SarkarBernice Azrah
Table of Contents
1. Our team produced

2. Product – success criteria

3. Project management tools we used

4. Original and Actual Budget

5. Project Assessment

6. What went right

7. What went wrong

8. Team learned by working on this project

9. Selection of project manager

10. Project manager’s job in leading the team

11. Would she like to be a project manager in future

12. Work well as team

13. Sponsor’s final assessment of the project

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 1. Our team produced

Our team produced a project about renovation of a single-family home, with in

the budget on time and in full using all the available resources.

2. Product – success criteria

The project was a success as all the basic requirements are fulfilled. The

project was planned well and implemented according to the plan. We

reached the milestones according to our planned time and budget.

3. Project management tools we used

We used Microsoft Project to do our WBS and it was helpful in allocation and

planning.

4. Original and Actual Budget

The cost control on a project, the renovation plan and the associated cash flow

estimated provides the baseline reference for subsequent project monitoring and

control. For schedules, progress on the activities and the achievement of

milestone completions have monitor by the progress of fixing the home

purchased in foreclosure. The final or detailed cost estimate provides a baseline

for the assessment of financial performance during the project. Costs are within

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the detailed cost estimate, so the project is within the investment received by our

aunt. Expense incurred during the planning and control focuses upon the

categories included in the final cost estimation. For control and monitoring

purposes, the original detailed cost estimate is to the project budget was

$40,000.00 to be used for total cost for all items, maintenance and repair for the

renovation. Expenses incurred during the course of the project are recorded in

the financial information to determine our aunt investment to help us buying a

home and also estimated the home’s monthly rent. In addition to cost amounts,

information on material quantities and labor inputs within each job account is also

typically retained in the project budget. With this information, actual materials

usage and labor employed for repair on window, backyard are estimated in the

first year of the investment. As a result of scheduling a budget, project planning

during the activity continues throughout the lifetime of a project. When

discrepancies between the plan and the realization occur, the project schedule

and cost estimates was modified to reflect new changes that incurred. We

learned that Periodic updating of future activity durations and budgets is

especially important to avoid excessive optimism in projects experiencing

problems. If one type of activity experiences delays on a project, then related

activities are also likely to be delayed unless managerial changes are made.

Construction projects normally involve numerous activities, which are closely

related due to the use of similar materials, equipment, workers or site

characteristics. Expected cost changes should also be propagated throughout a

project plan. In essence, duration and cost estimates for future activities should

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 be revised in light of the actual experience on the job. Without this updating,

project schedules slip more and more as time progresses. To perform this type of

updating, project managers need access to original estimates and estimating

assumptions. Moreover, project managers should have mechanisms available for

evaluating any type of schedule change. An updating activity duration

estimations, changing scheduled start times, modifying the estimates of

resources required for each activity, and even changing the project network logic

(by inserting new activities or other changes) should all be easily accomplished.

Therefore, we create a spreadsheet to summarize the financial information that

included Loan, Cash Flow and Investment for the home purchased. Below is the

financial information.

Loan received shows below our monthly payment over a year period.

Fixed Rate Loan

Payments

$154,900. Monthly
Amount $704
00 Payment
Interest
3.60% Monthly Rate 0.30%
Rate
Term (Year) 30

Months
Beginning
(over a Payment Principal Interest Ending Balance
Balance
year)
1 $704 $242 $457 $154,900 $154,685
2 $704 $243 $456 $154,685 $154,442
3 $704 $243 $456 $154,442 $154,199
4 $704 $244 $455 $154,199 $153,955
5 $704 $245 $454 $153,955 $153,710
6 $704 $246 $454 $153,710 $153,464
7 $704 $246 $453 $153,464 $153,218

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8 $704 $247 $452 $153,218 $152,971
9 $704 $248 $451 $152,971 $152,723
10 $704 $249 $451 $152,723 $152,474
11 $704 $249 $450 $152,474 $152,225
12 $704 $250 $449 $152,225 $151,975
Cash Flow below shows our monthly expenses and revenues for each month over a
year period.
Cash Flow is by quarter over 1 year.

Transaction Type Jan - Mar Apr – Jun Jul - Sep Oct - Dec
Bank Account Balance $27,117.06 $16,367.32 $8,187.16 $4,152.58
Monthly pay check $12,500.01 $12,500.01 $12,500.01 $12,500.01

($2,112.75 ($2,112.75
Rent or Mortgage ($2,112.75) ($2,112.75)
) )
Bank Account Start $1,500.00
Homeowners Insurance ($150.00) ($150.00) ($150.00) ($150.00)
Taxes ($3,500/12) ($875.01) ($875.01) ($875.01) ($875.01)
Car Insurance ($330.00) ($330.00) ($330.00) ($330.00)
Cable/Internet ($240.00) ($240.00) ($240.00) ($240.00)
Cell Phone 60*3 $180.00 $180.00 $180.00
Food $1,580.00 $895.00 $435.00 $205.00
Gas-Car $436.00 $238.00 $123.00 $55.00
Electricity $435.00 $225.00 $130.00 $55.00
Water $420.00 $230.00 $150.00 $40.00
Maintenance $105 $105 $105 $105
Payment to aunt $1,500.00 $1,500.00 $1,500.00 $1,500.00
Other $2,250.00 $1,300.00 $650.00 $300.00

The investment indicates the Net Present Value of the loan amount received from our

aunt discounted at rate 3.60% over 5 years period. This investment also shows that the

loan amount provided by our aunt to purchase our house is a great investment because

the Net Present Value over the 5 years period is positive.

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 $350,000.0

Investment 0

10% Down Deposit $35,000.00

Oregon - Current Home Loan Rates- 30 Year Fixed 3.60%

Monthly Rate 0.003

Year 30

Monthly 360

Monthly Payment ($1,591.26)

Annually Payment $19,095.10

Discount rate 3.60%

Project 1 2 3 4 5 NPV Total

Principal (0ver 2.5 $19,095 $19,095 $19,095 $19,095 $19,095 $95,475
years)
Discount Factor 0.97 0.93 0.9 0.87 0.84
Discounted $18,432 $17,791 $17,173 $16,576 $16,000

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 Principal
Add: Total Cost of $20,150 - - - -
Repair/Maintenanc
e
Add Backyard $500
Renovation

Total $58,178 $36,887 $36,269 $35,672 $35,096 $202,102

5. Project Assessment

Our assessment process is designed to allow us to a do a "deep dive" into your project,

laying groundwork for obtaining buy-in to the assessment results, while minimizing any

disruptive impact on renovating the house. Providing self-assessment materials to

collect pertinent information that will be used in our assessment, reviewing and

analyzing the materials needed to fix the foreclosure house that we bought. We created

a set of preliminary focus issues, which guided us the interview to process the project

plans, design, standards, and estimated cost for fixing the home; included dog to keep

gophers out of our property. For items needed for renovation, such as paints, roof

replacement, carpet cleaning, furnace cleaning, windows, waterproofing, we spent a

total cost of $20,150.00 for repair/maintenance.

During the project assessment, the risk encountered was how to chase away gophers

that are destroying the yard away. Knowing the law, we can’t endanger animals, even

though they are on our properties. We decided to put animal traps to catch them,

however, it would be a lot of work for us to everyday check whether we did catch any

gopher or not. The other option was to buy a decoration fountain to put on whole made

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by gophers. This option was not efficient because it won’t stop them destroying our yard

and it costs money. So, we decided to go with the options to have dogs get rid of them.

6. What went right

 Recognize where to save

In the kitchen, we did not spend much as everything is already fixed.

 Work towards a timeline

Working according to the time and finishing the project in appropriate time limit.

 We found inspiration in the most usual places

From internet, friends, TV programs, visit houses of friends and relatives.

 Pre-paint as many doors,

Paint moldings, skirting & Shelves before they are fixed on.

 For a uniform look

Stick with one theme and follow it through in every room.

7. What went wrong

 Appearance - Contrast, proportion and balance that elevate the look of house

which help in attracting the house in first look, mainly at the time of sale.

 Car Shade -There was no garage and if we had budget left we could have built a

car shade that can protect the cars from snow and hot sun.

 Mini play ground - As we have kids, it would be good to have a mini playground

with swings and slides for children to have fun. We could have done if we have

preplanned and had budget for this.

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  Bird feeder - Welcome birds to your backyard is a friendly and natural way to get

rid of insects and to get a beautiful look. and can also cover the gopher holes.

 Tree House - Kids will have fun in a tree house in the back yard. This can be

done if there was budget left.

8. Team learned by working on this project

This project gave us an excellent opportunity to learn the project management

process in practical through planning, organizing, and managing resources to bring

about the successful completion of our project goals(renovation of a house within the

given budget, time and resources).

9. Selection of the project manager

The project manager for this project .i.e Ms Kedara Gouri Avula, was appointed

by Prof. Salman Qureshi.

10. Project manager’s job in leading the team

Ms. Avula proved to be a very good team lead. She managed, monitored,

controlled and executed all the processes and resources very well within the given time

frame. She is also a very good motivator.

11. Would she like to be a project manager in future?

Definitely yes!

12. Work well as a team

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 Our team worked much better than that was expected. We had very good co-

ordination, understanding and integration. We shared the work equally and enjoyed

doing the project during the course of 10 weeks.

13. Sponsor's final assessment of the project

We did not have an official sponsor, mainly because it’s not a real time project.

But in this imaginary project we do have a sponsor Aunt Julie. We, however, will be

assessed by Prof. Salman Qureshi in the final week.

References –

http://homerenovations.about.com/od/planningtorenovate/a/artremodelproce.htm

http://www.consumerbuild.org.nz/publish/reno/renovations_building_.php