Project schedule and assumptions and more clarification

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Reference no: EM131805112

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"You are the superintendent on a $50 million hotel renovation project in downtown Boston. Your project is on schedule, the grand opening date set for October 1, 2017. Today's date is March 1, 2017.

When the project began in January of 2015, Hilton was to be the operator of the hotel, which is owned by your clients, XYZ Hotel Development Company. However, XYZ is having difficulty finalizing their agreement with Hilton and is negotiating with Marriott as the new operator. Marriott, in order to accept the operation of the hotel requires at least $10 million in changes to the original design. XYZ's pro-forma requires Grand Opening by October 1st in order to capture Boston's lucrative convention business in the Fall.

What would you do to manage expectations and to manage the project in order to keep your client happy and still achieve the opening of October 1st, with Marriott as the operator?"

Project schedule and Assumptions and more clarification

Start date Jan 2015

Finish date (Grand opening) Oct 1 2017 (total schedule 32 months, Jan 2015- Sep 2017)

Construction progress is on schedule that is Schedule to finish by end of Sep 2017 and as of today (Mar 1, 2017) we finished 84% of work complete as per Hotel operator Hilton group requirements.

Construction in progress is on budget ($50M X 84% complete = $42M Project value complete in 26 months (Jan 1 2015 - Feb 28 2017)

Today (Mar 1, 2017) we made aware by XYZ Hotel Development, they have dispute in agreement with Hilton Group and they successfully selected new operator Marriot but with the change order amount of $10M, XYZ must keep original Grand opening date of Oct 1 2017(Marriott Group Hotel)

Total remaining project value = $18M i.e.: $8M ($50M- $42M complete) plus scope change of $10M.

Original scope $8M in 6 months (Mar 1, 2017 - Sep 30, 2017)

CURRENT SITUATION: Original scope + Change order: $18M in 6 months (Mar 1, 2017 - Sep 30, 2017)

Reference no: EM131805112

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