Scenario: You are the project manager responsible for a new building construction in northern Virginia. The building is worth $500,000 and will have five bedrooms, a kitchen, landscaping, and a two-car garage to be completed in two years. This was agreed upon in a firm fixed contract. During the execution (construction) of the building, you realize that the cost of materials have gone up by 10%, and your schedule is behind by 90 days due to delays from county inspections and permit processes. You also notice that if you continue with the current cost rate and schedule rate that the total cost to complete this house would be $600,000 and delivered three months late.
Submit a three-page report explaining the reasons for these variances from your original project management plan and the proposed steps on how you are going to control the cost and schedule to achieve the contract threshold of $500,000 to be delivered in two years. Your plan must include the following:
Refer to the execution and control process examples in the Handbook of project-based management: Leading Strategic change in organizations textbook, Chapter 17. Include at least one additional source to support your ideas, thoughts, and theories. Use APA format to document your sources in-text and in your “References” list at the end of the essay.
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