Project Management: Financial Control Issues Accounting, Finance Essay

Project Management: Financial Control Issues
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Institutional Affiliation
Project Management: Financial Control Issues
Project Management is a concept that spans different disciplines, but the goal remains the same: to meet the expectations of the client through the provision of quality deliverables. However, due to changes that arise in the process of working, project managers face challenges that impact the quality of the work they do. To solve these challenges, project managers have to use project control and monitoring techniques. This paper introduces the concept of work breakdown structure as a technique for solving problems affecting Redstar Construction Company.
The Project Management Institute PMI (2017) defines a project as an endeavor that is undertaken to create a unique product or a service. The product or service may be for the benefit of the organization or stakeholders outside the organization, who are the clients. Whether the project is intended to serve the organization or the external clients, projects have a unique attribute as cited in PMI (2009). This single attribute is that projects must have a defined beginning and an end within a given time duration. The concept of time duration raises concerns about other issues that may arise in the process of meeting deadlines. These issues are cost variance, client satisfaction, scheduling, and safety.
Company Description
Redstart Construction Company (RCC) was started in 2009 and has been by Redmin Reiyal, an experienced project manager that had served in the previous successful company. RCC serves a range of clients from business firms, private developers, governmental and non-governmental institutions, schools, hospitals, and industries. For the first three years that Redmin was the manager, the company grew to serve three adjacent states in the United States. The mission of the company is to provide quality construction services, enhance customer satisfaction and experience, and to be the leading construction company in the United States. RCC works on the philosophy of teamwork, and its vision is to be sought out as the most reliable company in the construction sector, attracting competent workers in the industry, train the workers to meet the institutional standards, and retain the best from the market. For the first five years under the leadership of Redmin, RCC was able to accomplish a lot of its goals and objectives. The company grew in revenue and was one of the competing companies in the market, earning state contracts and some of the most lucrative deals from the market. RCC was faced by the first blow in 2015 when Redmin, the company manager died of an accident in one of its facilities that were still in progress. The death of Redmin was an onset of financial and company control issues that have overflowed to the stakeholders in the market.
Challenges
Even though RCC operates on the philosophy of teamwork and has a history of quality products and services, the company has developed a variety of issues in the recent past that have tarnished its image. Construction projects build the name of the company and positions it to tender and win other contracts in the market in future. Project issues such as cancellation of work...