Project Management Plan And The Proposed Steps

Project Management Report Concerning Case Study
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Project Management Report regarding Case Study
Introduction
It has been observed from the past literature that project management is a systemic process. In addition, a project plan is composed of different stages that are shaped and practiced accordingly (Too & Weaver, 2014). For instance, the initiation phase is designed for collecting relevant information and delivering the scope of a project. Then, planning and schedule management is exercised by the project team so that all the relevant activities are noted and synchronized accordingly (Grover & Froese, 2016). Ultimately, the execution process is experienced that gives rise to control and closing of a project. However, a variance can be experienced in the execution and estimation of the plan (Turner, 2014). Variance is referred to as the change in actual and estimated processes. In response to this, the following study will demonstrate variance for a construction project.
Background
Initially, a fixed contracted was practiced to deliver a building with five bedrooms, a kitchen, landscaping and a two-car garage under $500k. On the contrary, the cost of materials is raised to 10% due to political reasons. Besides, the project is already lagging with 90 days. Subsequently, a variance reported is needed to be presented to the contractors so that reasons can be highlighted for the variance in the budget and schedule of the project.
Variance Analysis
Variance is referred to as the tendency of change in actual and planned action. The variance analysis in project management is defined as a technique that demonstrates the cause and tendency of difference between estimation and actual outcomes (Whyte, Stasis, & Lindkvist, 2016). In other terms, variance analysis identifies the reason for a deviating outcome. Also, it helps the project team to address the deviated outcome by presenting possible solutions and lowering the degree of variances in the plan (Grover & Froese, 2016). For this project, estimated budget and schedule has deviated. So, the following action plan can be considered for demonstration of reasons and receiving the consent of the contracted party for working under the deviated condition.
Action Plan for Variance in Budget and Schedule
At first, the completed tasks are to be reported for determination of the remaining budget and its deviation. After this, the spending and budget need to be synchronized. The next step is to determine the impact of change in cost on the project. For this, the changed cost of resources is to be listed and prepared for a demonstration to the contractor. Once the deviated cost is determined, the scope of the project requires a critical review. This review will result in scrutinizing of irrelevant costs and cost-saving from other possible actions. Another significant action is to survey alternates in the market. In addition, negotiation with the vendors can also help in this task. After the completion, of relevant information, scrutinized activities and re-negotiated sessions with the vendors a new plan with an amendment in specific areas is to be designed (Turner, 2014). Later on, this plan is to be presented ...