Project Charter: Elements, Purpose, And Scope For Office Relocation Project

Overview of the Project

The main elements of project charter are listed as follows along with their detailed explanation as found in literature.

Overview of the Project – This is the introductory section of a project charter that provides an overall background information of the project to the reader (Kerzner and Kerzner 2017). The overview of the project includes the context of the project plan and why it is being executed. The overview also includes the discussion of benefits that are expected from the project.

Purpose of the Charter – In this section, the main discussion is based on the reason for developing this charter. There are many projects that do not require project charter and the plans are made differently. Project charter serves its own important purpose that helps the project management to develop a fully fledged project plan (Heldman 2018). Even if the complete project plan is not developed, the charter can act as a preliminary plan that can give the basic idea of the overall project plan.

Project Scope and Objectives – Project scope is defined as the boundary that is set during planning such that the project stays within a particular limit. Without the project scope, the project will move out of control at one point causing huge losses to the parent organisation. In a charter, the project scope is mainly defined using a six item checklist that includes objective, key milestones, high level requirements, assumptions and exclusions, issues and risks and key stakeholders (Kloppenborg, Anantatmula and Wells 2018). On the other hand, project objectives define the main outcomes and requirements that are expected as the end product of the project. In most project charters, the objective is defined using the SMART technique (Specific, Measurable, Acceptable, Realistic and Time-Based).

Project Deliverables and Milestones – In this section, the main deliverables of the project are specified. This is mainly done by developing a work breakdown structure that includes the project phases, sub-phases, deliverables and work packages that are to be executed during the project (Varajão, Colomo-Palacios and Silva 2017). Milestones are specific points within the work breakdown structure that define the completion of a particular part of the project. These milestones are also specified within the work breakdown structure.

Project Schedule – Using the work breakdown structure, the project schedule can be developed by adding durations to each of the work packages. This is either done manually or using suitable project management software that can compute the total duration of the project from the durations of the work packages entered (Kerzner and Kerzner 2017). The schedule is generally presented in the form of Gantt chart.

Purpose of the Charter

Assumptions and Constraints – This section describes the main assumptions that have been made during planning of the project (Heldman 2018). The section also discusses about the constraints that will be faced while executing the project.

Project Budget – In this section, the total budget of the project is estimated. In most of the cases, there are two main budget estimation techniques utilized depending on the nature of the project – top down estimation and bottom up estimation (Kloppenborg, Anantatmula and Wells 2018). Bottom up estimation technique is more common and it utilizes the work breakdown structure developed earlier.

Stakeholder Roles and Responsibilities – This section identifies the main stakeholders that are involved in the project and also defines the roles and responsibilities of each stakeholder.

Charter Acceptance – This is the final section of the project charter in which the names and signatures of the stakeholders are provided (Kerzner and Kerzner 2017). The purpose of this section is to sign off the charter after successful review of the same. 

2.1 Overview of the Project

This project is based on the relocation of an insurance company after expiry of the lease at the current office. The land owner will not extend the contract of the list but has provided a time period of 2 months within which, the office has to be relocated to a new location. Accordingly, a new location has been found in a nearby suburb but there are several conditions for relocation. The main condition is that the relocation process should not disrupt the staffs or the customers in any way. As per this condition, it is proposed that the relocation process will be done within a 4-days window from one Friday shift end to Monday shift beginning but in order to achieve the same, the project team members have to work overtime to reduce downtime as much as possible.

2.2 Purpose of the Charter

The purpose of this charter is to develop a plan for the proposed relocation project for the insurance company. The plan should take into consideration several conditions that must be fulfilled during the entire relocation process.

2.3 Project Scope and Objectives

The main scope of the project is to relocate the office from one location to another with the least downtime possible and without disrupting regular activities of the clients and staffs. Based on this scope, the objectives are defined using SMART technique as follows.

Project Scope and Objectives

Specific – After clearing out from the existing office space, the relocation is to be done to the new space in the nearby suburban area.

Measurable – The relocation must be completed within the two months period provided by the owner of the current office space.

Acceptable – The relocation has to be done in such a way that the staff or clients’ activities are not disrupted in any way.

Realistic – The relocation process is to be done within a realistic budget and timeline.

Time Based – The relocation process has to be done within one weekend so that the activities of the staffs and clients are not disrupted in any way.

2.4 Project Deliverables and Milestones

The key deliverables of the project are shown in the following work breakdown structure.

WBS	Task Name
0	Office Relocation Project
1	Relocation Planning
1.1	Search for New Office Space
1.2	Selection of Office Space
1.3	Discussion Regarding New Office Location
1.4	Receive Approval from CEO Regarding Relocation
1.5	Milestone 1: Finalization of Relocation
2	Preparation for Relocation
2.1	Hire Subject Matter Experts
2.2	Develop Project Plan
2.3	Determine Schedule
2.4	Determine Final Budget
2.5	Consider the Constraints of the Project
2.6	Finalize Contract with New Office Space Owner
2.7	Milestone 2: Completion of Preparations
3	Relocation Process
3.1	Pack All Office Equipments
3.2	Clean Up the Entire Office
3.3	Transport the Equipments to New Location
3.4	Set Up the Equipments
3.5	Installation and Set Up of Workstations
3.6	Milestone 3: Completion of Relocation
4	Finalization and Closing
4.1	Complete Formalities with Previous Office Space Owner
4.2	Sign Off the End Contract
4.3	Review the New Office Post Relocation
4.4	Milestone 4: Completion of the Relocation Project

The main milestones of the project are shown in the following table.

WBS	Task Name
0	Office Relocation Project
1.5	Milestone 1: Finalization of Relocation
2.7	Milestone 2: Completion of Preparations
3.6	Milestone 3: Completion of Relocation
4.4	Milestone 4: Completion of the Relocation Project

2.5 Project Schedule

The project schedule is shown in the Gantt chart as follows.

 

Figure 1: Gantt Chart of the Project

(Source: Created by Author)

2.6 Assumptions and Constraints

The main assumptions made for the project are as follows.

• It has been assumed that the relocation process can be completed within the four-day window.
• It has been assumed that the new office location is convenient for the staffs and the clients.
• It is assumed that the relocation can be completed within the budget of $100,000.

The main constraints of the project are as follows.

• The relocation process cannot disrupt the works of the staffs and the clients.
• The budget cannot exceed $100,000.
• The entire process including planning, relocating, cleaning up and formalities for handover must be completed within the 2 months period.

2.7 Project Budget

The budget has been developed considering various costs as follows.

Resource Name	Std. Rate
Project Manager	$200.00/hr
Manager of CIT	$150.00/hr
Administration Manager	$150.00/hr
SMEs	$350.00/hr
Relocation Workers	$300.00/hr
Transport and Other Costs	$25,000.00

Accordingly, the final project budget is developed as follows.

Task Name	Resource Names	Cost
Office Relocation Project		$86,700.00 [TOTAL BUDGET]
Relocation Planning		$15,600.00
Search for New Office Space	Administration Manager	$6,000.00
Selection of Office Space	Administration Manager	$2,400.00
Discussion Regarding New Office Location	Administration Manager, Project Manager	$5,600.00
Receive Approval from CEO Regarding Relocation	Project Manager	$1,600.00
Milestone 1: Finalization of Relocation		$0.00
Preparation for Relocation		$15,600.00
Hire Subject Matter Experts	Manager of CIT	$2,400.00
Develop Project Plan	Project Manager	$4,800.00
Determine Schedule	Administration Manager	$1,200.00
Determine Final Budget	Administration Manager	$1,200.00
Consider the Constraints of the Project	Administration Manager	$1,200.00
Finalize Contract with New Office Space Owner	Project Manager	$4,800.00
Milestone 2: Completion of Preparations		$0.00
Relocation Process		$47,500.00
Pack All Office Equipments	Relocation Workers	$7,200.00
Clean Up the Entire Office	Relocation Workers	$3,600.00
Transport the Equipments to New Location	Relocation Workers, Transport and Other Costs[1]	$26,800.00
Set Up the Equipments	Relocation Workers, SMEs	$7,800.00
Installation and Set Up of Workstations	SMEs	$2,100.00
Milestone 3: Completion of Relocation		$0.00
Finalization and Closing		$8,000.00
Complete Formalities with Previous Office Space Owner	Project Manager	$3,200.00
Sign Off the End Contract	Project Manager	$1,600.00
Review the New Office Post Relocation	Project Manager	$3,200.00
Milestone 4: Completion of the Relocation Project		$0.00

2.8 Stakeholder Roles and Responsibilities

The main stakeholders of the project and their responsibilities are defined as follows.

Stakeholder Name	Designation	Role and Responsibility
Mr. A	CEO / Sponsor	Fund the project
Mr. B	Branch Manager / Project Manager	Supervise, guide and control the project
Mr. C	Manager of Communications and Information Technology (CIT)	Supervise relocation and installation of computers and telephones
Mr. D	Administration Manager	Assistance and reporting in the project

2.9 Charter Acceptance

Name	Signature
Mr. A	. . . . . . . . . . . . . . . . . . .
Mr. B	. . . . . . . . . . . . . . . . . . .
Mr. C	. . . . . . . . . . . . . . . . . . .
Mr. D	. . . . . . . . . . . . . . . . . . .

References

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